Gapping down
In reaction to earnings/guidance:
- PHG -16%, JEF -2.4%, DGX -1.9%, UTRS -0.7%
Other news:
- HYZN -10.7% (discloses that it received a subpoena from the SEC for production of documents and information including related to the allegations made in the report issued by Blue Orca Capital)
- BIIB -9% (Medicare proposes to cover Aduhelm only for patients in clinical trials according to NYT)
- IAG -5.8% (reports FY21 production and FY22 production guidance)
- RC -4% (prices offering of 7 mln shares of common stock for gross proceeds of $108.9 mln)
- LLY -3.6% (in sympathy with BIIB news)
- NSR -3.4% (entered into an agreement with a syndicate of underwriters that have agreed to buy on a bought deal basis 4400000 common shares at C$9.10 per Common Share)
- ACRS -2.8% (Chief Medical Officer has stepped down; also provides R&D update)
Analyst comments:
- KTOS -3.8% (downgraded to Neutral from Buy at Goldman)
- PYPL -1.9% (downgraded to Hold from Buy at Jefferies)
- PFC -1% (downgraded to Neutral from Overweight at Piper Sandler)
- LUV -0.6% (downgraded to Peer Perform from Outperform at Wolfe Research)
Gapping up
In reaction to earnings/guidance:
- INMD +5.1%, PRCT +4.1%, ICLR +3.3%, VAPO +3%, IART +2.7% (guides Q4 revs slightly above consensus; also announces $125 share repurchase authorization), .
Other news:
- DNA +7.2% (expects to meet or exceed 2021 performance targets)
- SRLP +5.5% (receives takeover proposal at $16.50/unit)
- ATAI +3.9% (announces FDA Investigational New Drug (IND) clearance for PCN-101 R-ketamine program)
- PSTL +3.7% (provides an update on its portfolio)
- MFG +3.6% (acquires Capstone Partners)
- ALLY +2.6% (approves $2 bln share repurchase program; also increases dividend)
- RDFN +2.3% (to acquire Bay Equity Home Loans for $135 in cash and stock)
- CROX +2% (CEO appears on CNBC: says Wall Street may not fully appreciate HeyDude acquisition)
- PEI +1.7% (reports holiday traffic and progress on key strategic initiatives)
- X +1.3% (announces new steel production facility)
- APAM +1.3% (reports December AUM)
Analyst comments:
- WOLF +4.3% (upgraded to Overweight from Equal Weight at Wells Fargo)
- LC +3% (upgraded to Buy from Neutral at Janney)
- LAC +2.8% (upgraded to Outperform from Market Perform at Cowen)
- AMBA +2.7% (upgraded to Overweight from Equal Weight at Wells Fargo)
- DASH +2.4% (upgraded to Outperform from In-line at Evercore ISI)
- SNOW +2.4% (upgraded to Overweight from Equal Weight at Barclays)
- TTWO +1.4% (upgraded to Outperform from Market Perform at BMO Capital Markets)
- WFC +1% (upgraded to Overweight from Neutral at Piper Sandler)
Early premarket gappers
- Gapping up:
- SRLP +6.9%, PRCT +4.1%, PSTL +3.7%, MFG +3.6%, ALLY +2.9%, IART +2.7%, X +2%, APAM +1.3%, NVAX +1.3%, GKOS +1.2%, GM +1.2%, BZFD +1.1%, CROX +0.9%, AB +0.7%, C +0.6%
- Gapping down:
- PHG -14.9%, BIIB -9.8%, RC -4.3%, NSR -3.4%, ACRS -2.8%, LLY -2%, RDFN -0.6%
Arabelle turbines: General Electric and EDF agree on the sale price
The American conglomerate, which has wanted for two years to separate from its steam turbine activity (formerly Alstom), has reached an agreement with the French energy company who will spend a little more than one billion euros to acquire this entity. which manufactures nuclear turbines in particular.
It's just a matter of days. According to several sources contacted by Challenges, General Electric (GE), which for two years has wanted to separate from its steam turbine business (ex-Alstom), has finally reached an agreement with EDF on the sale price which should slightly exceed the billion euros. The formalization of the sale of this strategic entity which manufactures nuclear turbines in particular should take place by early February on the occasion of the arrival in France of the CEO of GE, Larry Culp. "EDF and GE are OK on the price, there are only tiny details to settle concerning the perimeter of the acquisition", specifies a person familiar with the file. At the same time, GE commissioned the consulting firm Experconnect at the start of the year to identify and reflect on GE Steam Power positions (the steam turbine entity) that would not be taken over by EDF.
Since the controversial sale, in 2014, of the energy pole of Alstom to GE, supported at the time by Emmanuel Macron who was Deputy Secretary General of the Elysee (2012-2014), then Minister of the Economy (2014-2016 ), this subject is explosive. While in seven years, the American giant has cut 5,000 jobs in France, including 1,200 in Belfort, the Élysée and Bercy have been working for months on this operation. "The need to strengthen our strategic sectors and our industry, which the pandemic has come to remind us with force, led us to this capital takeover, confides a ministerial source. In the summer of 2020, the Elysee decided to step up to speed higher by asking EDF to recover this activity. "
Macron also expected in Belfort
However, the French energy company was not initially favorable to this operation. He wanted to spend less than a billion euros for a division valued at 1.5 billion during the takeover by GE. One of the sticking points was that GE intended to improve its assets and order book. However, EDF did not want to pay twice, as a customer, then as a buyer. Given the amount of the check that is about to pay the tricolor group, it is not said that he has totally obtained what he wanted. "The negotiations were long but somewhere everyone knew the outcome, continues the connoisseur of the aforementioned file. GE really wanted to sell and the State really wanted to buy."
The latter, which owns more than 80% of EDF, is not doing a bad job, however, as the nuclear market is very dynamic. While orders for turbines for thermal power plants have plummeted due to the decline in coal, nuclear has accounted for the bulk of recent Steam orders. This was notably boosted by the Hinkley Point megaproject, which should bring in $ 1.9 billion to GE, and by the commercial success of the Russian giant Rosatom, with which GE collaborates for the Akkuyu plants in Turkey, and Paks, Hungary. The realization of this very political file is in any case expected with a firm footing at the Elysee Palace, where a trip by the Head of State to Belfort has been preparing for many months to celebrate the "French industrial reconquest."
>>> Up
* ABB PT upgraded from 31 to 32 CHF at Deutsche BAnk
* EDP Renovaveis Raised to Outperform at Exane; PT 23.50 euros
* DSM Raised to Market Perform at Bernstein; PT 188 euros
* Hansa Biopharma Raised to Buy at Carnegie; PT 120 kronor
* Hansa Biopharma Raised to Buy at Carnegie; PT 120 kronor
* Lloyds PT Raised to 93 pence from 90 pence at Citi
* Naturgy Cut to Reduce at Kepler Cheuvreux; PT 24 euros
* NatWest PT Raised to 375 pence from 355 pence at Citi
* Orsted Raised to Neutral at Exane; PT 720 kroner
* PGE Raised to Buy at Citi
* Telefonica Deutschland Raised to Buy at BofA; PT 2.90 euros (+)
* Valeo Raised to Neutral at Exane; PT 30 euros
* Voltalia Raised to Neutral at Exane; PT 18.70 euros
>>> Down
* CIE Automotive Cut to Hold at Kepler Cheuvreux; PT 30 euros
* EasyJet Cut to Hold at Deutsche Bank; PT 680 pence
* Epiroc Cut to Hold at Handelsbanken; PT 240 kronor
* FD TECHNOLOGIES CUT TO SELL VS HOLD AT BERENBERG, PT 1,600P
* Ferguson Cut to Hold at HSBC; PT 13,575 pence
* Fiserv Cut to Hold at Jefferies; PT $115
* Fiserv Cut to Hold at Jefferies; PT $115
* Frontier Developments Cut to Hold at Jefferies; PT 1,800 pence (+)
* PayPal Cut to Hold at Jefferies; PT $200
* Sika Cut from Buy to Hold at Stifel, PT 380 vs 400CHF
* SpareBank 1 Nord Norge Cut to Hold at SEB Equities
* Tryg Cut to Hold at HSBC; PT 175 kroner
* Zynga Cut to Hold at Truist Secs; PT $10
>>> Initiation
>>> Initiation
* Humble Group Rated New Buy at Carnegie; PT 33 kronor
* Iveco Rated New Buy at Intesa Sanpaolo; PT 16.90 euros (+)
* Lemonsoft Rated New Hold at Danske Bank Markets; PT 17 euros
* STS Holding Rated New Buy at Goldman; PT 30.80 zloty
>>> Call
* STS Holding Rated New Buy at Goldman; PT 30.80 zloty
>>> Call
* EasyJet Cut to Hold at DB on Valuation, Higher Fleet Costs (+)
* European Retail REITs Nursing Virus Wounds May Attract Predators
* European Retail REITs Nursing Virus Wounds May Attract Predators
* Grafton Trading Update Shows Strong End to Year, Goodbody Says (+)
* Just Eat Order Growth Deceleration Was Expected, Citi Says (+)
* Lloyds Street-High Target Upped at Citi on Loan Growth, Rates
* SMCP Meeting News a Positive in Transition Saga: Jefferies (+)
* Value May ‘Shine’ After Underperformance, Say Citi Strategists '+)
* VAT Shown Higher Premarket; Vontobel Notes Beat in Order Intake (+)
- Adyen (1N8 TH) +3.1%
- Watch European Tech Stocks After Powell Fueled Nasdaq Rally
- Rio Tinto (RIO1 TH) +3%
- Watch European Miners as Nickel Extends Rally, Iron Ore Rises
- Imperial Brands (ITB TH) +2.2%
- BHP Group PLC (BIL TH) +2.1%
- ASML (ASME TH) +2.1%
- BAT (BMT TH) +1.5%
- Kering (PPX TH) +1.4%
- Siemens Gamesa (GTQ1 TH) +1.3%
- L’Oreal (LOR TH) +1.3%
- Novo Nordisk (NOVC TH) +1.3%
- Accor (ACR TH) -0.8%
- Telefonica (TNE5 TH) -0.8%
- Philips (PHI1 TH) -7.2%
- Philips Prelim 4Q Revenue About EU4.9B, Est. EU5.22B
- Royal Philips Blames Supply Chain Woes, Recall for Sales Decline
DAX:
- Delivery Hero (DHER TH) +1.7%
- Porsche SE (PAH3 TH) +1.1%
- Siemens (SIE TH) +1%
- SAP (SAP TH) +0.9%
- Watch European Tech Stocks After Powell Fueled Nasdaq Rally
MDAX:
- Teamviewer (TMV TH) +7%
- TeamViewer Prelim FY Adjusted Ebitda EU254M to EU257M
- Telefonica Deutschland (O2D TH) +1%
- Thyssenkrupp (TKA TH) +1%
- ProSieben (PSM TH) +0.8%
- Aixtron (AIXA TH) +0.8%
- Watch European Tech Stocks After Powell Fueled Nasdaq Rally
SDAX:
- GFT (GFT TH) +2.7%
- About You (YOU TH) +2.3%
- Encavis (ECV TH) +1.9%
- Encavis Asset Management Buys 56.3MW Spanish Solar Park
- SMA Solar (S92 TH) +1.8%
- LPKF (LPK TH) +1.6%
- Hochtief (HOT TH) -1.5%
>>> Up
* ABB PT upgraded from 31 to 32 CHF at Deutsche BAnk
* EDP Renovaveis Raised to Outperform at Exane; PT 23.50 euros
* DSM Raised to Market Perform at Bernstein; PT 188 euros
* Hansa Biopharma Raised to Buy at Carnegie; PT 120 kronor
* Hansa Biopharma Raised to Buy at Carnegie; PT 120 kronor
* Lloyds PT Raised to 93 pence from 90 pence at Citi
* Naturgy Cut to Reduce at Kepler Cheuvreux; PT 24 euros
* NatWest PT Raised to 375 pence from 355 pence at Citi
* Orsted Raised to Neutral at Exane; PT 720 kroner
* PGE Raised to Buy at Citi
* Valeo Raised to Neutral at Exane; PT 30 euros
* Voltalia Raised to Neutral at Exane; PT 18.70 euros
>>> Down
* CIE Automotive Cut to Hold at Kepler Cheuvreux; PT 30 euros
* EasyJet Cut to Hold at Deutsche Bank; PT 680 pence
* Epiroc Cut to Hold at Handelsbanken; PT 240 kronor
* FD TECHNOLOGIES CUT TO SELL VS HOLD AT BERENBERG, PT 1,600P
* Ferguson Cut to Hold at HSBC; PT 13,575 pence
* Fiserv Cut to Hold at Jefferies; PT $115
* Fiserv Cut to Hold at Jefferies; PT $115
* PayPal Cut to Hold at Jefferies; PT $200
* Sika Cut from Buy to Hold at Stifel, PT 380 vs 400CHF
* SpareBank 1 Nord Norge Cut to Hold at SEB Equities
* Tryg Cut to Hold at HSBC; PT 175 kroner
* Zynga Cut to Hold at Truist Secs; PT $10
>>> Initiation
>>> Initiation
* Humble Group Rated New Buy at Carnegie; PT 33 kronor
* Lemonsoft Rated New Hold at Danske Bank Markets; PT 17 euros
* STS Holding Rated New Buy at Goldman; PT 30.80 zloty
>>> Call
* European Retail REITs Nursing Virus Wounds May Attract Predators
* STS Holding Rated New Buy at Goldman; PT 30.80 zloty
>>> Call
* European Retail REITs Nursing Virus Wounds May Attract Predators
Asian stocks followed a rebound in the U.S. after Federal Reserve Chair Jerome Powell reassured investors the central bank will tackle inflation to extend the economic expansion. Hong Kong shares rose to the highest in about five weeks. Chinese technology stocks rallied as cheap valuations and the prospect of looser monetary conditions enticed buyers. Japan also gained, and Chinese shares edged higher after an inflation report fueled rate-cut calls to cushion an economic slowdown in the world’s second-largest economy. U.S. futures fluctuated after the S&P 500 halted a five-day slide and the Nasdaq 100 outperformed. Treasuries found support after a solid three-year note sale. The yield on the 10-year note held a drop, while the curve flattened. The dollar resumed a slide, while oil prices held gains. Powell told the Senate Banking Committee that officials won’t hesitate to act if needed to contain price pressures. He also said the Fed will probably start shrinking its balance sheet this year. He noted the runoff would be quicker than the last time the central bank reduced asset purchases because the economy was in a much stronger position. The next focus for traders is Wednesday’s U.S. consumer price index print that is expected to show unrelenting price pressure. Strategists from Goldman Sachs Group Inc. to UBS Global Wealth Management seem unperturbed by equities’ rocky start to 2022, reiterating their bullish calls on bets that stocks can weather higher rates and rising bond yields. Elsewhere, Bitcoin traded above $42,500 after its roughest start to a year and ominous technical indicators. US After Hours BIIB -7.1% falls as Medicare reportedly to limit coverage for Aduhelm; LLY -1.7% down in sympathy; SRLP +7.3% gets takeout bid
Nikkei +1.92% Hang Seng +2.60% CSI +0.91% Shanghai +0.76% Shenzen +1.32%
Eur$ 1.1374 CNH 6.3699 CNY 6.3645 JPY 115.34 GBP 1.3644 CHF 0.9234 RUB 74.3430 TRY 13.7403 WTI$ 81.38 +0.20% Gold 1,821.28 -0.02% BTC 42,665 -0.05% ETH 3,228 -0.10%
S&P +0.16% Nasdaq +0.25% EuroStoxx +0.82% FTSE +0.68% Dax +0.68% SMI+0.52%
Macro :
- Brevan Howard Makes Hedge Fund Clients Commit Cash For Longer
- Brevan Howard Makes Hedge Fund Clients Commit Cash For Longer
- Nickel and EV Battery Stocks Rise as Metal Hits Nine-Year High
- Jeffrey Gundlach’s ‘Just Markets’ Webcast: TOPLive Takeaways
Keep an eye on :
Keep an eye on :
- ANA SM : *ACCIONA PLANS TO PLACE 8% STAKE IN RENEWABLES UNIT: CINCO DIAS
- AAPL US : Apple Officials Held Meetings With Korean Auto Parts Makers: ET
- BO DC : *Bang & Olufsen Backs FY Guidance
- BDEV LN : Barratt Holders Offer Up to 9m Shares via Goldman Sachs: Terms
- BDEV LN : Barratt Holders Offer Up to 9m Shares via Goldman Sachs: Terms
- CCL LN : Carnival Corp. Unit Pleads Guilty to Probation Violation: DOJ
- CLIN LN : Triton’s $2 Billion Takeover of U.K.’s Clinigen Supported by ISS
- COR PL : Corticeira Amorim Agrees to Acquire 50% of Saci for EU49m
- DISH US : DirecTV, Dish in Merger Talks Again: New York Post
- ECV GY : Encavis Asset Management Buys 56.3MW Spanish Solar Park
- EQNR NO : Equinor Books $1.8 billion Impairment Cost at U.K. Oil Field
- ETEVP BB : Etex Buys Insulation Maker Ursa From Lone Star’s Xella; No Terms
- FB US : U.S. Gets ‘Second Time Lucky’ in Reviving Facebook Monopoly Case
- ITX SM : Fast Retailing, Which Operates Uniqlo Stores, Tipped to Post 1Q Net Profit Gain of 3.3%
- IIA AV : CPI Property Group to Publish Immofinanz Share Offer on Jan. 12
- TKWY NA : Just Eat Takeaway 4Q Orders Misses Estimates
- NDX1 GY : Nordex Gets 43 MW Order From RWE Renewables Iberia
- OVH FP : OVHcloud 1Q Rev. Rises 13.5% Like-for-Like, Keeps Targets
- PNDORA DC : Pandora Postpones Most of Chinese Investment, MarketWire Reports
- PHIA NA : Philips Prelim 4Q Revenue About EU4.9B, Est. EU5.22B, Blames Supply Chain Woes, Recall for Sales Decline
- PHNX LN : Phoenix Group Holder Swiss Re Offers About 66m Shares
- PMAG AV : Pierer Mobility Sees FY Revenue EU2.02B to EU2.04B, Est. EU2.03B
- PUUILO FH : Puuilo Holder Adelis Equity Partners Offers Shares: Terms --> Priced @ EU7.9/Share
- PUUILO FH : Puuilo Holder Adelis Equity Partners Offers Shares: Terms --> Priced @ EU7.9/Share
- RLF SW : Relief Acknowledges Lawsuit Filed by NeuroRx Over Pact Breach
- RXL FP : Rexel Boosts FY Same-day Sales Forecast
- ROG SW : Roche Starts Cobas Pulse System in Countries Accepting CE Mark
- SAN FP : Sanofi Expects First Interesting Omicron Vaccine Data By Spring
- STAN LN : StanChart Mulls Wealth Management Unit in China Expansion
- TW/ LN : Taylor Wimpey Holder Offers 85m Shares via Goldman Sachs: Terms
- TMV GY : TeamViewer Prelim FY Adjusted Ebitda EU254M to EU257M
- TSLA US : Teen Hacker Claims to Have Taken Control of 25 Teslas Worldwide
- VACN SW : VAT Prelim FY Adjusted Ebitda Margin Above 34%
- VOZ GY : Nickel and EV Battery Stocks Rise as Metal Hits Nine-Year High
Medicare to Pay for Biogen’s New Alzheimer’s Drug in Clinical-Trial Patients
The Centers for Medicare and Medicaid Services said it will cover the cost of the drug Aduhelm, but as part of further clinical testing
Medicare officials said they would cover Biogen Inc.’s BIIB 2.64% controversial Alzheimer’s disease drug Aduhelm on the condition that patients are in clinical trials and have early-stage symptoms.
The clinical trials are intended to gather evidence on the drug’s safety and effectiveness and would apply to similar drugs if they are approved, the Centers for Medicare and Medicaid said in a proposed policy issued Tuesday.
Patients enrolling in trials supported by the National Institutes of Health would also be eligible for coverage, according to CMS’s draft policy.
CMS said the Aduhelm studies must limit enrollment to patients in the early-stages of disease and have lab tests confirming that their brains have accumulated amyloid, a sticky protein linked to Alzheimer’s disease that Aduhelm is designed to clear. Medicare would pay for a single brain-amyloid scan under the policy.
A final decision is expected in April following an additional 30-day comment period in which members of the public can weigh in on the proposed coverage policy.
Aduhelm has the potential to help patients with Alzheimer’s, but also has the “potential for serious harm” because of its risk of side effects, which include headaches and small brain bleeds, said CMS Chief Medical Officer Lee A. Fleisher at a press briefing.
Biogen criticized the proposed coverage policy, saying in a statement that it “denies the daily burden of people living with Alzheimer’s disease” and “will exclude almost all patients who may benefit.”
The company also said the policy would delay treatment for a progressive disease. “Hundreds of Alzheimer’s patients—the majority of whom are Medicare beneficiaries—are progressing each day from mild to moderate disease stages, where treatment may no longer be an option,” the company said.
Medicare’s requirement that patients receive treatment in clinical trials reflects the lingering uncertainty about Aduhelm’s true benefit to patients. Biogen prematurely halted its studies of the drug in 2019. Biogen executives soon after analyzed additional data and realized they had made a mistake and began talks with the Food and Drug Administration to salvage the trial data and ultimately seek approval.
Of the two studies, only one showed patients taking Aduhelm had a slowing in cognitive decline compared with patients receiving placebos. The conflicting results led to ongoing debate over whether the drug really works. As part of the FDA approval, Biogen and its partner Eisai Co. Ltd. are required to conduct an additional study as well.
Aduhelm has faced widespread criticism since its approval in June, in part because concerns that its price would balloon Medicare drug spending if millions of patients start taking it. This year, Medicare premiums for doctor benefits jumped nearly 15%, with about half of the increase caused by the need to pay for Aduhelm, according to CMS actuaries.
Biogen initially launched the drug at an average price per patient of $56,000 annually, but recently backtracked and slashed the list price in half to $28,200.
Some lawmakers including Sen. Bernie Sanders (I-Vt.) and Sen. Ron Wyden (D., Ore.) have asked the Biden administration to reassess the Medicare premium increases following Biogen’s price cut.
Ronald C. Petersen, director of the Mayo Clinic Alzheimer’s Disease Research Center, who has consulted for Biogen in the past, said the coverage policy would be a good compromise, allowing for at least some patients to receive treatment while helping to answer hotly contested scientific questions.
“What they’ve outlined here is a structured means of gathering important clinical data on the utility of this class of drugs,” Dr. Petersen said. “The million dollar question is, is it clinically efficacious?”
Still, the policy could mean that it won’t be easy for many patients to receive treatment if they live in an area where there isn’t an eligible clinical trial, he added.
CMS officials said it would be up to “stakeholders” such as doctors and clinics to devise clinical trials that meet the agency’s requirements if they want to receive Medicare reimbursement. Biogen’s planned confirmatory trial could also be eligible for acceptance by CMS, said Tamara Jensen, director of the CMS coverage and analysis group.
The policy wouldn’t necessarily require studies to have a placebo arm, a CMS spokesman said.
Medicare coverage is crucial for Aduhelm’s future because most of the patients eligible to take it are covered under the federal health program for people over 65 years and the disabled.
Also, many private health insurers take their cues about whether to pay for medicines from Medicare’s coverage policies.
The policy has important implications for other companies, such as Eli Lilly & Co., that are developing amyloid-clearing drugs that could come on the market in the years to come.
Biogen shares fell 7.3% in after-hours trading on Tuesday; Lilly shares fell 1.7%.
Aduhelm has had scant uptake since the FDA approved it in June 2021 despite opposition from a panel of outside advisers and some of the agency’s own scientists and senior leaders.
Without a national coverage decision, Aduhelm coverage requests are currently handled on a case-by-case basis by regional contractors that administer benefits on behalf of the government. That will remain the case until Medicare issues a final coverage policy, a Biogen spokeswoman said.
Many doctors and hospitals have opted to wait for Medicare’s decision before prescribing and administering Aduhelm, which requires monthly intravenous infusions administered by a healthcare professional.
Part of the hesitancy is that Aduhelm is a “buy and bill” product that hospitals or clinics purchase and pay for upfront, and then seek reimbursement later from patients’ insurance after they have been infused with the medication.
Hospitals are reluctant to provide expensive drugs like Aduhelm if they aren't sure they will get paid back.
Meanwhile, some hospitals have said they won’t provide the drug at all, citing uncertainty about its safety and effectiveness.
The FDA cleared Aduhelm’s use under a special process called “accelerated approval” intended to help patients with serious diseases get promising new drugs faster and before they are definitively proved to be effective in clinical trials.
The FDA has said that it used the accelerated approval process for Aduhelm because of lingering uncertainty about its benefit to patients. The agency is requiring Biogen to complete an additional study to confirm its effectiveness; if the study fails, the agency can theoretically pull the drug off the market.