Capital Calls: Bundesbank, Biogen 20 Dec 2021 Concise views on global finance: The new head of Germany's central bank is a reassuringly boring choice; cutting the price of its Alzheimer's drug could help Biogen squeeze something out of what looks like a flop.
Boots exit may smooth way for Walgreens buyout 6 Dec 2021 The $40 bln drugstore operator may sell its UK chain, less than a decade after buying it. A sale could raise $8 bln for the U.S. group to beef up its own in-store clinics. And if Chairman Stefano Pessina wants one last big deal, a leaner Walgreens would be an easier target.
UK health robot SPAC is punt on big pharma buyout 6 Dec 2021 The Zaoui brothers are merging their blank-cheque firm with BenevolentAI, which uses tech to discover new drugs. A $440 mln cash infusion will keep computers whirring, but revenue remains distant. Investors including AstraZeneca and Sanofi’s former CEO hint at a future takeover.
Nordic drug buyout flop highlights hidden gem 3 Dec 2021 The $8 bln takeover of Swedish Orphan Biovitrum failed after buyers could not secure 90% of the shares. The market reaction suggests the deal is dead. But investor AstraZeneca’s role in the failed bid and its interest in a respiratory disease treatment provides some comfort.
CSL’s Swiss drug punt looks like a bad trip 2 Dec 2021 The $99 bln Aussie jab maker is in talks to buy iron-deficiency specialist Vifor for around $7 bln. CEO Paul Perreault has a track record of strong growth and winning M&A. The prospect of subpar returns and a looming patent expiry suggest his golden touch is losing its lustre.
Pharmacy bidding war stands to get more feverish 2 Dec 2021 Aussie supermarket chain Woolworths has offered 13% extra to buy Priceline owner API over an agreed deal with Wesfarmers. The premium now stands at a whopping 53%. Deep-pocketed buyers, a frenzied M&A market and the implied returns are a prescription for additional sweeteners.
Vaccinating the world is a worthy but elusive goal 1 Dec 2021 Ensuring all rich and poor countries are fully jabbed is the best way to stop Covid-19 variants. The cost of lockdowns makes it an economic necessity. The challenge, as South Africa shows, is getting needles to people, and persuading them of the benefits. That may take years.
New Covid-19 variant raises risk of recovery limbo 26 Nov 2021 Britain and others have revived travel bans on South Africa amid a new viral mutation. Countries with low vaccination rates are most vulnerable. But if the virus evades vaccines, new lockdowns may be necessary at a time when governments and central banks have depleted firepower.
Europe’s vaccine bazooka is more like sniper rifle 18 Nov 2021 Germany may join Austria in imposing curbs on the unvaccinated to tackle soaring Covid-19 infections. Restricting freedoms is harsh but worked in France and the United States, which both saw inoculation rates pick up. It also avoids the economic pain of blanket lockdowns.
J&J breakup about more than financial engineering 12 Nov 2021 The $429 bln maker of shampoo and vaccines is splitting in two. A valuation uplift looks likely as consumer giants like P&G fetch higher multiples than pharma groups. Giving the business a separate life, with its own currency, opens the door to other possibilities, including M&A.
Bad trips reinforce psychedelic industry’s worth 10 Nov 2021 A study showed magic-mushroom drug psilocybin can treat depression. But 5% of patients suffered side-effects like self-harm, hammering shares in $1.5 bln Compass Pathways, which ran the trial. Beating this will take time, money and expertise. Whoever does, has a path to profit.
AstraZeneca’s virus fix becomes awkward appendage 10 Nov 2021 The $195 billion drug group is moving its Covid-19 jab and related treatments into a new unit. That could open the door to a sale to a peer like Johnson & Johnson. But the drug’s uncertain future and messy political history make any deal tricky and unlikely to deliver much value.
Consumer rivals can beat buyout firms in GSK scrum 9 Nov 2021 The $106 bln drugmaker’s plan to spin off its Advil unit has drawn interest from industry giants and private equity firms. A leveraged buyout would stretch even the most daring financial buyers and leave GSK with a chunky stake. Selling to a rival like P&G looks a cleaner option.
Capital Calls: Couch-potato habits help Roblox 9 Nov 2021 Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.
Capital Calls: Canada Goose’s extra insulation 5 Nov 2021 Concise views on global finance: Shares in the winter-jacket firm flew up over 16% after the company reported a 40% rise in sales, but the company’s valuation still has some extra padding.
Roche has edge on Novartis in Swiss pharma switch 4 Nov 2021 The drugs giant is buying back stock from its rival for $20 bln. It highlights the group run by Severin Schwan’s rich valuation and makes risky M&A less likely. The cash could be less helpful for Novartis, which is still in the middle of a turnaround and has a patchy deal record.
Novartis’ generic surgery will improve its health 26 Oct 2021 The $207 bln drugmaker is considering the future of its ailing copycat-drugs unit. With few obvious buyers, CEO Vas Narasimhan may have to accept a knockdown price or sell it in pieces. Either option should deliver a better prognosis for the rest of his business.
J&J’s Texas two-step may not soothe talc risk 20 Oct 2021 The healthcare giant took a $1.4 bln third-quarter charge for litigation. It has tried to limit claims to a unit that just declared bankruptcy. That would mean a cap on its liabilities and quicker payouts. But J&J, and others that try the legal tactic, aren't assured of success.
Merck has upper hand with Acceleron dissidents 18 Oct 2021 The biotech target's 7% shareholder, Avoro Capital, is among funds that reckon the roughly $11 billion price Merck is offering is not high enough. There are arguments on both sides. But knocking the deal off course will be tough, especially as other bidders didn't emerge.
Capital Calls: Klarna, French vaccine, Philips 18 Oct 2021 Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.