Globes.il : The US hedge fund has become a party-at-interest in the Israeli adva

The US hedge fund has become a party-at-interest in the Israeli advanced driving assistance systems company.

The share price of Israeli advanced driving assistance systems (ADAS) company Mobileye Global Inc (Nasdaq: MBLY) rose 5.2% on Wall Street on Friday, giving a market cap of $12.655 billion, after reports that hedge fund Point72 Asset Management holds a 5% stake in the company. However, Jerusalem-based Mobileye's share price was down 1% overall on the week.

Point72, managed by Steve Cohen, has $36.9 billion under management. The value of Point72's stake in Mobileye, managed by cofounder and CEO Prof. Amnon Shashua, is worth $78 million.

Point72's entry into Mobileye is viewed as positive. Mobileye held its Nasdaq IPO at the end of 2022 at $21 per share, after it was acquired by Intel in 2017, which still holds a controlling stake in the company. The share price more than doubled to $47 before falling back to its current price of $15.59. In 2024, the company's revenue fell 20.4% but Mobileye expects to return to growth this year.

FT : Japan seeks tariff reprieve after Donald Trump questions long-standing defe

Japan seeks tariff reprieve after Donald Trump questions long-standing defence pact
Trade minister to pitch ‘win-win’ solutions in Washington as deadline looms for steel and aluminium duties

Japan’s trade minister is heading to Washington in a last-minute attempt to seek tariff exemptions after President Donald Trump openly questioned a long-standing security pact between the US and one of its closest allies.

Yoji Muto, minister of economy, trade and industry, is scheduled to meet his American counterpart Howard Lutnick on Monday, just two days before the US is set to impose a 25 per cent tariff on all steel and aluminium imports.

People close to the commerce secretary have described Lutnick as favouring the use of tariffs to convince foreign governments to adopt more US-friendly policies.

The trip comes after Trump on Thursday said while the US had a great relationship with Japan, “we have an interesting deal with Japan that we have to protect them, but they don’t have to protect us”.

In response, Prime Minister Shigeru Ishiba told parliament on Friday that the security treaty was reciprocal. Japan hosts more than a dozen US bases and roughly 60,000 US military personnel under a mutual defence pact signed by Republican president Dwight Eisenhower in 1960.

Ishiba is also overseeing a rapid expansion of military spending towards a target of 2 per cent of GDP.

The trade minister is expected to discuss exemptions from the metals tariffs, as well as a reprieve from a possible 25 per cent levy on car imports, which Trump threatened in February could come as soon as April.

Automobile duties would hurt Japan’s big carmakers, which directly export to the US and have complex production networks that rely on the free movement of parts between the US, Mexico and Canada. Cars were Japan’s biggest export last year, with roughly a third bound for the US.

The on-off nature of Trump’s tariff threats has triggered market volatility, with Japan’s exporter-heavy Nikkei 225 stock index falling more than 2 per cent on Friday.

As he departed Tokyo on Sunday, Muto told reporters that he would use his first meeting with Lutnick to “build human relations” and offer suggestions that were “win-win for both the US and Japanese economies”, but did not elaborate.

His visit was announced last week amid rising consternation in Japan over whether its long-standing friendship with the US would protect it from a president who has pointed to the existence of trade deficits with other countries as evidence of unfairness. 

The US trade deficit in goods with Japan was the seventh largest by country, at $68.5bn, last year, according to the US Bureau of Economic Analysis. But Japan was also the largest provider of foreign direct investment to the US in terms of ultimate beneficial owner, with $783.3bn in 2023.

Tokyo’s concerns also include accusations of currency manipulation. Trump last Monday cited Japan and China as countries that had been reducing the value of their currency in a way that was unfair to the US.

In response, former Bank of Japan governor Haruhiko Kuroda noted that the country had undertaken huge efforts last year to prop up the falling yen and that current monetary policy, which has been focused on raising interest rates, was not aimed at cheapening the yen.

“If there’s any misunderstanding on that point, it needs to be addressed,” he said on Friday in his first televised interview since stepping down as governor in April 2023.

FT : Trump does not rule out recession as he rejects business fears over tariffs

Trump does not rule out recession as he rejects business fears over tariffs
US administration concedes some prices might rise as fears grow of trade chaos causing disruption

Donald Trump has declined to rule out either a recession or higher inflation while dismissing the concerns of business over a lack of clarity on tariffs, after a tumultuous week in which he watered down elements of his aggressive trade agenda. 

The president insisted industry had “plenty of clarity” and lashed out at “soundbite[s]” from companies expressing confusion over his plans. 

“They always say that — that’s like almost a soundbite — they always say that: ‘we want clarity’,” Trump said in an interview aired on Fox News on Sunday. 

“It sounds good to say, but for years, the globalists, the big globalists, have been ripping off the United States. They’ve been taking money away from the United States, and all we’re doing is getting some of it back.”

The president declined to rule out a recession hitting the US economy this year after the Atlanta Fed warned of an economic contraction in the first quarter of the year. 

“I hate to predict things like that. There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing, and there are always periods, it takes a little time.”

Asked whether tariffs could fuel inflation again, Trump said: “You may get it. In the meantime, guess what? Interest rates are down.”

The comments come after a week of about-turns and an equity market sell-off as markets scrambled for clarity over Trump’s brewing trade war and companies warned of rising prices.

The president imposed 25 per cent tariffs across the board on imports from Canada and Mexico on Tuesday before backtracking later in the week.

On Wednesday he granted carmakers a carve-out from the levies and on Thursday extended that to all goods that met the rules of the 2020 USMCA free-trade deal. Separate 25 per cent tariffs on steel and aluminium imports are set to take effect this week.

The levies have already caused significant upheaval in the market as companies stockpile materials, review operations and prepare to raise prices. Trump reiterated that the tariffs could rise in future.

“The tariffs could go up as time goes by. They may go up, I don’t know if it’s predictability,” he said.

Trump said in the interview that he had “wanted to help the American carmakers” this week but insisted that no such leeway would be shown on reciprocal tariffs set to be imposed next month. 

“I gave them a little bit of a break for a short period of time . . . It’s a transition into April, and after that I’m not doing this . . . I told them, I said: Look, I’m going to do it this one time but, after that, I’m not doing it.”

Separately on Sunday, Howard Lutnick, Trump’s commerce secretary, conceded some of the tariffs would cause inflationary pressures, echoing Trump’s warnings of “a little disturbance” when he addressed Congress on Tuesday.

“So, will there be distortions? Of course, foreign goods may get a little more expensive, but American goods are going to get cheaper.,” Lutnick told NBC’s meet the press.

FT : Elon Musk seeks Italian presidential meeting to salvage Starlink deal

Elon Musk seeks Italian presidential meeting to salvage Starlink deal
Domestic political opposition to $1.5bn deal for secure communications has mounted amid transatlantic diplomatic tensions

Elon Musk has asked to meet Italy’s President Sergio Mattarella, amid growing doubts in Rome about a potential $1.5bn deal with Starlink, the multi-billionaire’s internet satellite provider.

Musk wrote on X late on Saturday that it “would be an honour to speak with President Matterella”, in a bid to salvage a deal that has faced opposition as geopolitical turbulence between the US and Europe intensifies.

Prime Minister Giorgia Meloni’s government has been in talks with Starlink over a potential five-year deal for secure military communications for diplomats, troops and other Italian civil servants working abroad.

Meloni, who has forged a strong personal bond with Musk, said in early January that talks were still at the “preliminary stage,” but defended the necessity of a potential deal saying there was “no public alternative” to meet Italy’s secure communication needs. 

Yet the deal now looks increasingly likely to be a casualty of a transatlantic rift over defence, following US President Donald Trump’s decision to suspend military aid and intelligence sharing with Ukraine. Musk has also repeatedly said on X that the US should leave the Nato security alliance.

Musk’s remarks followed a claim by a right-wing social media influencer allied with the multi-billionaire that Mattarella was personally obstructing the deal.

The Italian president, who wields strong moral authority as head of state, has not made any public comment on the Starlink deal or the choices facing Italy as it seeks to enlist a satellite-based internet provider.

But he rebuked Musk last year for intervening in Italy’s internal politics, after the multi-billionaire demanded the removal of Italian judges that had ruled against one of Meloni’s flagship initiatives to deter illegal migrants.

A spokesman for Mattarella said on Sunday said that the president, currently en route to Italy after an official visit to Japan, had no immediate comment.

Rome has begun to more actively consider alternatives to Starlink for critical services as fierce domestic political controversy to the deal has mounted.

Industry minister Adolfo Urso said last month that the government was working to develop a domestic provider. Last week, Eva Berneke, chief executive of Eutelsat, confirmed the Franco-British owner of Starlink rival OneWeb, has also begun talks with Rome.

News of the government’s exploratory talks with Eutelsat prompted an attack from the far-right League led by deputy prime minister Matteo Salvini, who is an admirer of both Trump and Russian President Vladimir Putin.

“In the Italian national interest it would be strange to choose a French entity . . . instead of a more technically developed and cutting edge system like the American one,” the League said in a statement late last week. 

“In a delicate phase like this, every choice must be made in the name of the Italian national interest without ideological prejudices, considering the USA an essential partner for the security and growth of our country,” the statement added.

Musk last week separately thanked Salvini’s League for its support.

While Meloni has made no public comment on the debate since January, her office has said that any decision would be made “in full compliance with institutional procedures and with the utmost transparency”.

Italy’s left-wing opposition parties also tried last week to amend a pending space bill to restrict Rome to procuring satellite communication services exclusively from EU-based companies.

The amendments were rejected by a vote in parliament, where Meloni’s right-wing party enjoys a comfortable majority, but highlighted the growing furore around the already controversial Starlink talks, which has also drawn criticism from members of the European parliament.  

WSJ : What Went Wrong at Saudi Arabia’s Futuristic Metropolis in the Desert

What Went Wrong at Saudi Arabia’s Futuristic Metropolis in the Desert
Neom executives shielded the crown prince from the challenges of his fantastical plans, including by engaging in ​‘deliberate manipulation​’ of financials, an internal report​ ​found

It was supposed to be a launch party for the new Saudi Arabia.

Will Smith, Tom Brady and other celebrities gathered on a sandy island in the Red Sea packed with luxury hotels. Superyachts floated nearby while Alicia Keys played for business executives who had flown in from London and New York. Spotlights blared into the night sky.

The October event was the lavish opening of the first part of Neom, a planned metropolis defined by cutting-edge technology and psychedelic architecture, a cornerstone of the country’s plan to pivot its economy away from oil.

The truth for the project was less glamorous.

The relatively simple, low-rise development, known as Sindalah, was over three years late and on track to cost nearly $4 billion, three times its initial budget. Hotels were unfinished, high winds disrupted ferries and golf, and much of the site was still under construction.

Saudi Crown Prince Mohammed bin Salman, Neom’s mastermind, was a surprise no-show. Neom board documents say the party cost at least $45 million. Many Neom staff viewed his absence as a sign of disapproval.

Weeks later, Neom’s boss of six years, a former crown prince favorite, left the project and a new crew of executives was installed to turn Neom around.

After spending more than $50 billion, the crown prince’s sci-fi-inspired dreams—an arid-mountain ski resort, a floating business district, and the Line, the 106-mile-long pair of Empire State Building-height skyscrapers that is Neom’s centerpiece—have collided with reality.

Costs have soared, delays are ubiquitous and a decision last year to reduce Neom’s first phase threatens to deprive the desert city of the critical mass of inhabitants needed to make it a modern business hub.

Behind Neom’s problems: a dance of mutual delusion in which the crown prince pushed for fantastical plans—and executives shielded him from the full scope of challenges and costs, according to former employees and a more than 100-page internal audit of the project presented to members of Neom’s board last spring and reviewed by The Wall Street Journal.

The audit report, labeled “final draft,” found that executives, at times aided by the project’s longtime consultants, McKinsey & Co., plugged unrealistically rosy assumptions into Neom’s business plan to justify rising cost estimates. The audit found “evidence of deliberate manipulation” of finances by “certain members of management.”

In a sign of the massive ambitions of the project, a draft board presentation from last summer pegged the capital expenditure required to build Neom to its “end-state” by 2080 at $8.8 trillion—more than 25 times the annual Saudi budget—and $370 billion for its first phase by 2035. The Saudi state is funding the lion’s share of Neom’s initial costs, although officials hope private investors will eventually share the burden.

A Neom spokeswoman said the Journal was “incorrectly interpreting” and misrepresenting the figures. She declined to provide additional detail.

Neom “champions excellence, professionalism, diversity and ethical conduct,” she said, and has policies requiring staff to uphold those values. The project’s “priorities are intact and the project remains on track, demonstrating tangible progress,” she said, adding that schedule and cost adjustments are common practice for large projects.

The Saudi government didn’t respond to questions about Neom or the crown prince’s involvement in the project.

A McKinsey spokesman said the firm ensures “compliance with the rules that govern international commerce.” He said any claim that it “has been involved in the manipulation of financial reporting is false.”

Saudi officials have begun referring to Neom as a generational investment that will bear fruit in decades to come—dropping descriptions that cast it as an economic engine starting in 2030. The country has long said its economic plan, Vision 2030, was filled with highly ambitious targets. Even accomplishing a portion would be a success, officials have said.

Other parts of the crown prince’s economic plan have transformed the country. Millions of women have joined the labor force. The private sector has grown to contribute nearly half of Saudi’s gross domestic product, according to the International Monetary Fund, and smaller megaprojects in Riyadh have made faster and more visible progress.

Neom, however, was meant to be the anchor. Launched in 2017, the concept was to build from scratch an international hub with fewer social and legal strictures than the rest of Saudi Arabia.

The crown prince compared the project to Egypt’s pyramids. He said it would mark a “civilizational revolution” and hold nine million people by 2045.

The crown prince chairs the boards of Neom and sub-boards of all of the projects within it, and his approval is frequently needed for architectural choices. A fan of videogames and sci-fi movies, the crown prince pushed the idea of “zero gravity” architecture that looks like it defies physics, some of the former employees said.

A feature known as the chandelier—essentially an empty glass building more than 30 stories tall—is planned to hang upside down from a giant steel bridge in the Line. It was designed by Marvel film designer Olivier Pron, who was brought in because staff knew the prince liked his movies, some of the former employees said.

Neom executives made plans to build 10 miles of the Line by 2030. This meant constructing the equivalent of all the office buildings in Midtown Manhattan three times over in a decade. It would require significant portions of the world’s available steel and window glass.

Costs would be a challenge. The remote construction site had virtually no labor, no sizable port, few roads and insufficient electricity. The design involved an amusement park built 1,000 feet up and theaters suspended in the air between the parallel towers.

They made the numbers work on paper by saying the Line would cost less a square foot than tall skyscrapers in Riyadh, some of the former employees said. Planners assumed economies of scale would bring prices down.

Former managers and executives within Neom said they routinely considered projections completely unrealistic. Some refused to sign documents attesting to aggressive schedules and targets. Plans were pushed ahead regardless.

The original architect of the Line, Thom Mayne of Los Angeles-based firm Morphosis, wanted to express concerns to the crown prince about the Line’s high costs. Neom executives rejected his requests, according to one of the former employees.

Bids on early work from contractors ran high. One way executives hid rising costs was to beef up profit assumptions, according to the internal audit and some of the former employees.

The crown prince encouraged Neom to use a commonly used investment metric known as the internal rate of return, essentially the percentage of an investment that comes back in annual profit. If a hotel costs $1 million to build, and is worth $1.1 million a year later, it would have an IRR of 10%.

At Trojena, the planned ski resort, a fall 2023 review found that costs had surged by over $10 billion, according to an internal presentation reviewed by the Journal. That caused the IRR to fall to 7%, below the project’s target of around 9%.

To cover the gap, estimates for the rate at an “inventive glamping” site were readjusted to $704 a night, up from $216, according to the presentation. A “boutique hiking hotel” room was pegged at $1,866 a night, up from $489. The changes helped to push the IRR up to 9.3%.

The audit said Antoni Vives, who oversaw the broad vision at Neom and then ran Sindalah, justified rising costs with higher assumptions on revenue, rather than reassessing them as too expensive. He told colleagues and McKinsey consultants in an email before a key meeting that “we must not proactively mention cost at all.”

Dissent was also quashed. A Sindalah project manager was “removed after they challenged cost estimates,” the internal audit report found.

An attorney for Vives said that work at Neom “was done with total honesty and with the ambition that the project demands, in addition to absolute loyalty to the leadership of the country.”

McKinsey helped to create “models to help improve the IRR calculation,” the audit said. The firm validated financial projections for Sindalah after a separate adviser refused to do so, according to the audit.

The auditors recommended further investigation into potential conflicts of interest because McKinsey served both in planning and in validating the projects.

McKinsey’s fees at Neom have topped $130 million in a single year, according to people familiar with the fees.

The McKinsey spokesman said the firm has “strict protocols to prevent conflicts of interest in our engagements.” He added McKinsey was “not responsible for Sindalah’s integrated financial reporting.”

The Neom spokeswoman said the organization has “improved its internal controls and governance, particularly around procurement and managing third parties.”

A key driver of costs has been the Line’s 1,640-foot height. Engineering and construction challenges make it hard to build profitable supertall towers anywhere, let alone in the remote desert. Neom staff repeatedly urged executives to reduce the height to around 1,000 feet to save on costs.

At a Neom board meeting last spring, the crown prince “clarified the inappropriateness of reducing the height” of the tower, board minutes show. Cost savings should be found elsewhere, he said.

The head of the country’s wealth fund, Yasir Al-Rumayyan, suggested instead to use “new technologies to reduce the labor force.”

Officials mothballed the portion of a rail line that involved digging an 18-mile tunnel through a mountain. They delayed the first piece of the Line, which had already been reduced to 1½ miles from 10 miles planned earlier. The current aim is to open the first half-mile chunk—topped by a stadium to host World Cup matches—by 2034.

“We’ll start to go vertical—hopefully—at the end of this year,” Denis Hickey, who oversees the development of the Line, said at the World Economic Forum in Davos, Switzerland, in January.

At Sindalah, the island resort remains unfinished. Restaurant workers have been reading books to pass the time without guests to serve, people who worked at the resort say. The golf course and hotels, four months after the party, still aren’t open to the public.

WSJ : Lasers, Magnets and the $40 Billion Fight to Store the World’s Data

Lasers, Magnets and the $40 Billion Fight to Store the World’s Data
Hard disk drive makers, under pressure from faster rivals, hope a breakthrough will keep it the dominant data-storage medium

The fate of an industry is riding on a laser smaller than a grain of salt.

Data-storage company Seagate STX 1.57%increase; green up pointing triangle developed this diminutive heat source to help it encode information in ever-greater quantities on the spinning magnetic platters of hard disk drives. Stacked by the thousands in data centers, the drives hold everything from home movies to medical records to factory log files.

Seagate’s innovation, heat-assisted magnetic recording, is critical to the future of the globe-spanning manufacturer. Its hard drives are competing against newer and faster technology in the business of storing the world’s information, and to survive, their capacity must continue to increase.

The company has started shipping a paperback-size drive that holds 36 terabytes of data—the equivalent of 1,400 Blu-ray movies. It has achieved nearly twice that in the lab, and its executives think far more is possible.

“We’ve always believed that hard drives had legs,” said Seagate Chief Executive Dave Mosley. “We’ve proven that by continuing to invest in them and see the returns.”

The new products arrive as AI is fueling a surge in demand for data storage. Data centers last year spent an estimated $40 billion on storage devices, according to the consulting firm IDC, and that is expected to grow by 31% over the next two years.

Wall Street analysts predict that Seagate’s sales from fiscal 2024 to 2026 will increase by 55%, to $10 billion, while its earnings per share will grow by more than 650%.

IBM invented the hard disk drive in the 1950s, and the storage device has endured while other media such as punch cards, floppy disks and CD-ROMs fell into obscurity. The drives’ capacity grew as their price dropped, and today a one-terabyte consumer model, which can hold tens of thousands of high-resolution photos, costs less than $70.

But in the 1990s, hard drives’ most formidable challenger emerged. Solid-state drives store data as electrons, allowing them to read and write faster than hard drives.

Solid-state drives are more expensive than hard drives on a per-terabyte basis, but the disparity has steadily declined. They have become the default in personal computers, and some in the industry say it won’t be long until they take over data centers too.

John Colgrove, founder and chief visionary officer of Pure Storage, a company that designs storage systems, said it is now shipping 150-terabyte solid-state drives called DirectFlash.

Their capacity will quadruple in the next two years, he said, and that growth, coupled with what he called solid state’s lower demand for power, will quickly erode hard drives’ cost advantage.

“The debate isn’t will hard drives go away—it’s when will they go away,” Colgrove said.

Hard drives write by flipping the magnetic orientation of tiny “bits” up or down. That action denotes them as a one or a zero, the binary code that makes up the digital language.

Seagate and other manufacturers have managed to make those bits smaller and smaller, but in conventional hard drives, they are approaching a limit beyond which they would become too unstable to control.

Enter heat-assisted magnetic recording, or HAMR, a technology Seagate has been developing for more than 20 years. The new drives use a laser to apply a nanosecond of heat to bits smaller than any used before, allowing them to be magnetically manipulated

The read-write heads that record information are made in vast clean rooms in Seagate’s suburban Minneapolis factory. On a recent morning workers in masks, gloves and hooded coveralls operated machines that deposited or etched away layers of material atop 8-inch-wide ceramic wafers. The room was bathed in yellow light that wouldn’t interfere with photosensitive chemicals used in the process.

Each wafer, which workers carried from station to station in lunchbox-size cases, held 100,000 heads. Once complete, the wafers would be flown to Thailand, where other staffers would attach the lasers and assemble the drives.

Seagate said two large cloud-computing customers have each ordered one exabyte’s worth of HAMR storage, which works out to tens of thousands of hard drives.

Irving Tan, CEO of Western Digital WDC 0.60%increase; green up pointing triangle, Seagate’s main competitor in hard drive manufacturing, said HAMR drives could eventually hit 100 terabytes, and after that, a technology that is still in the R&D phase might take over. Known as heat dot magnetic recording, it aims to write on even smaller particles.

IDC says hard drives account for more than 80% of data center storage, but solid-state drives have been nibbling away at that dominance.

Some data centers prioritize solid state, saying their customers demand high-speed performance.

Others continue to see the utility of hard drives, including Tampa-based Hivelocity. Chief Operations Officer Jason Burnett said not all operations require data to be available with the speed of solid state.

“There are certain functions, whether archival or backups or something like that, that I don’t care how fast I can access the data—I just need to be able to store a lot of it,” he said.

IDC predicts that by 2028, hard drives will still be one-fifth the cost of their solid state equivalents. It expects data-center spending on hard drives to reach $22 billion that year, a 69% increase over 2024 but less than the $32 billion forecast for solid state.

Brian Beeler, chief analyst of the testing website StorageReview.com, said there currently isn’t enough solid-state-manufacturing capacity to replace hard drives. That reality alone means hard drives will stick around for a while.

“They’re not fast, they’re not that big, they’re not powerful, they’re not anything, but they can hold stuff for a long time really well at an effective cost per terabyte,” he said.

FT : Hikma races to launch generic versions of blockbuster obesity drugs

Hikma races to launch generic versions of blockbuster obesity drugs
Pharma group looks to take advantage as Wegovy and Ozempic start to go off patent next year

Drugmaker Hikma is in talks with partners across the world to prepare to sell a generic version of Ozempic and Wegovy, as patents on Novo Nordisk’s blockbuster diabetes and weight loss drugs start expiring as soon as next year.

The FTSE 100 group is racing to produce a generic form of semaglutide, the active ingredient in the drugs. Patents on the branded versions are due to expire in Canada, China, India and Brazil in 2026, and in other markets between 2028 and 2032.

Riad Mishlawi, Hikma’s chief executive, said the impact of the new class of drugs had a comparable impact to the first antibiotic penicillin. 

“It’s not only because of the weight loss . . . It is because the weight causes a lot of other diseases,” he said. “So when you treat this, indirectly, you’re treating a lot of diseases. So that’s why it has been a big craze and a lot of people are jumping on it.” 

Analysts have estimated the size of the weight loss drug market as anywhere between $80bn and $140bn. Mishlawi said the current medicines were “only the beginning” because there are so many new obesity drugs being developed. 

Some US health insurers and many European healthcare systems are restricting access to the drugs because of the cost implications given the number of obese and overweight patients. In the US, the list price for a month’s supply of Wegovy is more than $1,300.

Generic drugs tend to be 80 to 85 per cent cheaper than branded medicines, according to the US Food and Drug Administration.

When patents on weight loss drugs expire, generic versions are likely to be in very high demand.

Novo Nordisk said patent expiry was a “natural part of the pharmaceutical product lifestyle” and the company was “exploring new molecules, combinations and formulations of treatments, both organically and through external opportunities”. 

“The market potential and opportunity to treat more patients continues to remain strong,” it said.

Hikma was founded in Jordan and is the second largest drugmaker in the Middle East and north Africa by sales, after French pharmaceutical company Sanofi.

Mishlawi said weight loss drugs are very popular in the region. He added that the company was “always racing to be the first” maker of generic products in the Middle East. Shares in the company have risen 17 per cent in the past year.  

Hikma launched liraglutide, a generic version of an earlier Novo Nordisk weight loss drug, in the US in December. Liraglutide, which Novo sells as Victoza for diabetes and Saxenda for weight loss, has been shown in clinical trials to help patients lose about 5 to 7 per cent of their body weight, compared to about 15 per cent for Ozempic or Wegovy. 

Mishlawi said the price of generic liraglutide had plummeted even though there are only two drugmakers selling it — Hikma and Teva — in the US.

“I don’t think it has hit rock bottom yet, but I think with one or two more players, it will easily get to that level,” he said. 

FT : Martin Gilbert rules out selling Revolut stock as he backs share-buying fun

Martin Gilbert rules out selling Revolut stock as he backs share-buying fund
LTC aims to buy technology companies’ stock through secondary share sales

City veteran Martin Gilbert has vowed he will “never” sell his shares in fintech Revolut as he invests in a new fund aimed at buying stock from employees of fast-growing technology firms globally.

Gilbert, who is chair of London-based Revolut, is backing the LTC Invest fund V with two other entrepreneurs, contributing a combined $20mn, according to people familiar with the situation.

The fund will snap up stock in established tech companies from existing shareholders — such as fintech staff who took shares in their company — who are keen to sell, according to an investor presentation seen by the Financial Times.

But this could rule out highly valued companies such as Revolut, which secured a $45bn valuation at the end of last year, making it one of the most valuable fintech companies in Europe.

Gilbert told the FT in response: “I’ve no intention of ever selling my Revolut shares.”

Early Revolut investors and employees offloaded nearly $1bn worth of stock in a series of secondary share sales throughout the second half of last year. New buyers who sought exposure to the fintech included wealthy Goldman Sachs clients and Abu Dhabi’s sovereign fund Mubadala.

The presentation said that hundreds of billions of dollars “are locked in late stage technology companies” that had “fractured, multi-layered ownership”, with limited options for investors seeking to cash in their stake and exit.

The fund is being launched by the London Technology Club, a network of wealthy investors, entrepreneurs and institutions, with Gilbert’s backing, with a view to raising $250mn to invest. One of LTC Invest’s existing funds is a backer of Revolut.

LTC Invest, an offshoot of the technology club, is in the process of seeking regulatory approval as an investment manager for further fund launches, according to people familiar with the situation. Martin Gilbert will join the board of LTC Invest as chair of the investment committee, the people added.

The firm is led by Konstantin Sidorov, founder of the LTC network, and Denis Blank as chief investment officer. Blank reportedly left his job at Greek billionaire Maria Angelicoussis’s private investment firm in 2023 over a pay dispute, and formerly worked at Hermitage Capital, the investment fund co-founded by Bill Browder. Blank declined to comment.

According to LTC Invest’s presentation, start-ups backed by venture capital, rather than private equity, lack “any meaningful secondary market specialist buyers,” making it difficult for existing investors to exit.

It said that while firms backed by private equity companies were generally majority owned by one investor, companies backed by venture capital were usually owned by dozens, if not hundreds, of individual investors, who had their own need to sell stock at certain points.

The presentation noted that this “mismatch of supply of secondary shares and lack of dedicated capital” has created an opportunity to buy shares in late-stage technology companies at “distressed valuations”.