BreakingViews : Gene in a bottle, Bayer’s M&A comeback is reassuringly expensive

Bayer’s M&A comeback is reassuringly expensive. The German drugs-to-seeds conglomerate is buying privately held Asklepios BioPharmaceutical, a gene therapy specialist, for up to $4 billion. Although the price is high, it strengthens Bayer’s position in a promising sector, and will help take the focus off its disastrous Monsanto acquisition.

Werner Baumann has few reasons to cheer. The Bayer chief executive said last month he does not expect any sales growth next year, as the crop science business bought from Monsanto for $66 billion in 2016 is struggling. He is still trying to finalise an $11 billion settlement with claimants who argue that a weedkiller acquired in that same acquisition gave them cancer.

Baumann at least is getting ahead of the next problem: the pharma division, which made up 40% of sales in 2019. Bayer’s two-star drugs, anti-clotting medication Xarelto and eye medicine Eylea, are coming off patent in the next five years, forcing it to buy new products.

Moving aggressively into gene therapy makes sense. The new technology allows doctors to treat diseases such as cancer by injecting DNA into the patient to replace or counter a defective gene. The number of gene therapy trials has more than doubled in the past 10 years, according to Gene Medicine. There are concerns over pricing – treatment can cost as much as $1 million per year – but the market is forecast to rise 10-fold to nearly $36 billion between 2019 and 2027, according to Fortune Business Insights.

Asklepios already makes treatments for rare diseases including muscular dystrophy. But its star attraction is probably its manufacturing capability. That may give Bayer protection from rising costs and delays caused by the rapid growth in new therapies, allowing it to steal a lead over rivals. Gene therapy groups can wait up to three years to get drugs made from third party manufacturers, UBS reckons.

This explains the juicy price. Asklepios does not disclose revenue or profit numbers, but was valued at around $800 million in 2019, when TPG Capital bought in, just a fifth of the full price Bayer may have to pay if all goes well. That suggests Baumann may have a while to earn a decent return. However, unlike the Monsanto deal, Bayer’s latest acquisition is at least unlikely to do much harm.

WWD : Italian Emerging Brands Find Opportunities in Affordable Luxury

Italian Emerging Brands Find Opportunities in Affordable Luxury
Finding the right balance with a catchy aesthetic, good pricing and high-end quality is emerging as a top priority for Italy's new talents.

MILAN— Affordable luxury seems to be the most appealing market segment for emerging Italian brands.
Instead of prioritizing creative fantasies and indulging in expensive fabrics and treatments, up-and-coming designers are trying to find a balance between aesthetics, quality and prices.
If Italy, along with Paris, has for many years been the center of luxury labels, the country’s emerging brands now seem to be more interested in dressing real people than in building ivory towers of creativity and exclusivity.
“Positioning the brand in the affordable luxury segment is definitely the easiest way for emerging brands to find a place in the most prestigious stores next to established luxury labels,” said Milan-based showroom owner Riccardo Grassi. “I think that in the future there will be an increased appetite for brands offering products with a designer’s aesthetic but with accessible pricing.”


“I think there is space in the market for new brands offering more competitive prices compared to big luxury players,” said Aldo Gotti, general manager of high-end retailer Modes. “I believe that the search for this type of positioning doesn’t curb creativity, but actually it enables these brands to be more in line with the current market situation.”


But is there a risk that these Italian emerging brands are labeled simply as pure commercial players? Grassi thinks so. “Abroad, our national designers and labels are seen as very commercial,” he said. “The problem is that here we are not a strong culture when it comes to communication and marketing. For years, the Italian fashion market has been dominated by major designers and the industry didn’t nourish a new roster of talents. However, there are really good designers in our country, and the Asian markets, as well as online retailers, are really good opportunities for them to grow internationally.”
A look from the Ardusse spring 2021 collection. Courtesy of Ardusse
Featuring an average retail price of 350 euros, the debut collection of Adamo, a brand founded during the lockdown by Andrea Adamo, emerged as one of the more interesting labels available at Milan’s showrooms for spring 2021. “Prices are very competitive and the production is 100 percent made in Italy,” highlighted Adamo, who cut his teeth at Elisabetta Franchi before working in the eveningwear division of Roberto Cavalli. Other roles were at Zuhair Murad in Paris, as head designer celebrities and special projects for Dolce & Gabbana, and, most recently, at Ingie Paris.
Grounded in a genderless and inclusive aesthetic, Adamo offers ribbed knits and jersey pieces in a restrained color palette and crafted via a seamless technology. They “are designed to be like a second skin. That’s why I chose only skin tones,” the designer explained.
Harnesses with inlaid bras and stirrup leggings, as well as knits with sensual cutouts, are the key pieces of a versatile collection that immediately attracted the interest of major international retailers, Modes included, as Gotti revealed. “I think that nowadays the concept of men’s and women’s collections cannot exist anymore; I feel that the ultimate goal of clothes is to make us feel comfortable with ourselves, no matter what, beyond any established stereotypes,” said the designer.


A bag by Frenzlauer for spring 2021. Courtesy of Frenzlauren
In the same sales space, Milan’s 247 Showroom, accessories brand Frenzlauer displayed bags made in Italy, mixing minimal elegance and high-end materials at retail prices spanning from 390 euros to 590 euros. After a few test seasons online, the label founded by Francesca Neri kicked off wholesale distribution in 2018 and its collections are available in leading retailers worldwide, including Rinascente, Modes, Saks Fifth Avenue, Le Bon Marché, Boutique One in Dubai and Tomorrowland in Japan, among others.
“The main goal has always been to create bags for the everyday life, highly versatile and that can be easily used in many different occasions,” explained Neri, a management engineering graduate who collaborated with several design teams before establishing her own firm.
Playing with sober tones, unfussy silhouettes and supple leathers, Frenzlauer combines more constructed styles with soft, cloud-like designs.
“The next step would be to introduce a line of leather capes,” Neri revealed.
Emerging designer Gaetano Colucci left nothing to chance for the launch of his fashion line Ardusse, even though he “wanted to channel a sort of escapism, creating my own Arcadia,” he said, looking at pastoral poetry from ancient Greece as his main source of inspiration for the debut collection.
Produced by established manufacturing company Pattern, Ardusse’s first collection bowed last month during Milan Fashion Week with a physical show. It was conceived to be positioned in the designer luxury sector but with more affordable prices – from 180 euros for T-shirts to 2,000 euros for outerwear.
“I wanted the pieces to be highly versatile, the idea is of a genderless look,” explained Colucci, who while studying economics at the Luiss University in Rome and then at Stanford University in California continued to nourish his childhood dreams of being a designer.
Inspired by the pastoral world described by the poet Theocritus, Colucci delivered a collection in which natural textures and dyes, along with light, sorbet tones and relaxed silhouettes, offered an interesting interpretation of key men’s wear pieces, which can be worn by women, too. Rich jacquards, poetic prints, crochet details, as well as sophisticated knits and revisited tailoring created a wardrobe that integrated creative touches into wearable designs.
“I wanted to evoke that type of sophisticated elegance portrayed in the vintage images of Neapolitan men from the Forties and the Fifties,” Colucci said.
A look from Feel Me Fab for spring 2021. Courtesy of Feel Me Fab
Versatility is key in the beachwear collections from Milan-based label Feel Me Fab, which aims to dress women of all ages, body types and sizes. When at the end of 2016 Veronica Vangelisti and Sofia Turconi met at the Massimo Alba brand, they decided to launch their own swimwear brand, but wanted it to be as inclusive as possible.
“Even if at that time inclusivity and diversity were not the hot topics that they are now, we immediately felt the need to create pieces which felt comfortable and flattering,” Vangelisti explained. “For many women, wearing a swimsuit at the beach is quite a delicate moment and we want to support them.”
For this reason, Feel Me Fab combines high-quality materials, spanning from an Italian cotton voile to a Spanish Lycra with a silk-like effect, with shapes studied to exalt feminine curves, offering the right coverage and support where it’s needed.
Showing exclusive prints, created by Turconi, who also worked in the textile division of Ralph Lauren in New York, Feel Me Fab swimwear pieces retail from 145 euros to 210 euros, while cover-ups and dresses sell from 190 euros to 410 euros. “We like to create items which can be worn season after season and when it comes to dresses, tops and bottoms that can be also worn in the city, while keeping that breezy, joyful beach spirit,” Turconi said.
This fall, Feel Me Fab — which is available online, as well as at about 40 stores worldwide, mainly in resort destinations — is introducing a see now-buy-now capsule of printed velvet frocks, skirts and pants.
Wandering creative director Giorgia Gabriele Courtesy of Wandering
In order to meet the new needs of her customers, Giorgia Gabriele, who established the Wandering women’s affordable luxury label in 2016, for spring set aside the traditional embroideries that defined her feminine creations to focus on more essential and unfussy designs.
“First of all, it takes time to make embroideries and after the lockdown it would have been easier for the production to respect schedules with simpler designs. But also, I’m aware that this situation changed consumers’ perspective a bit and I wanted to find a different, more immediate and fresher way to convey the same message of femininity and elegance,” said the designer.
Renouncing embroideries, Wandering also made its retail prices even more competitive, with frocks selling from 250 euros to 850 euros. “Finding the perfect balance between high quality and correct pricing has always been one of our main goals,” said Gabriele, who in 2016 signed a licensing agreement with manufacturing firm Jato for the production and distribution of the brand’s collections.
Recently, Wandering introduced knitwear in feminine styles with strong shoulders and sensual cutouts, and is focusing on revisiting tailored designs. “I think that despite the overall complicated situation, women currently have the desire to make some purchases for themselves, but at the same time, they don’t want to buy pieces they can wear only a couple of times, but they are more interested in versatile garments that they can sport in different occasions and moments of the day.”
Wandering is available at about 60 top stores, including Saks Fifth Avenue, Printemps, Tsum, Rinascente and Ssense.
Federica Tosi for spring 2021 Courtesy of Federica Tosi
Good prices, savvy commercial development and fresh design are the key features behind the success of emerging label Federica Tosi, according to Grassi, who started selling the line two seasons ago.
“It’s the right brand for this moment and I don’t refer to the pandemic,” Grassi said, explaining that Federica Tosi is performing well in Europe and Asia and also has strong potential to do well in the U.S. when the situation there returns to normal.
Established by the namesake Roman designer in 2016, Federica Tosi offers affordable luxury women’s collections of versatile everyday pieces with a twist. Distributed in about 100 stores in the world, the brand, which employs around 600 people between the headquarters in Rome and the factory in Apulia, emerged in the wholesale arena with feminine tailoring constructions and leather crafted for pieces spanning from 700 euros to 900 euros, while silk items go from 280 euros to 320 euros.
Despite the crisis connected with the global pandemic, Federica Tosi saw its spring orders increase compared to the same season last year and is gearing up to debut its online store in 2021. “The goal is to create a directly operated e-commerce, where consumers can not only buy our products, but where they can know more about the brand and establish a direct interaction with us,” Tosi explained.
Violante Nessi’s bestsellers. Courtesy of Violante Nessi
E-commerce is the most efficient and successful sales channel for designer Violante Nessi, who founded the namesake affordable luxury brand in London two years ago. The collection, all crafted in Italy, targets “those sophisticated girls who don’t buy fashion-fashion, are not so obsessed with big brands and look for clothes that make feel them pretty and comfortable,” explained Nessi, who worked in New York at Marc Jacobs and Proenza Schouler and in London at Tom Ford before launching her own line.
Listing the Matisse light wool flared pants enriched with eight front buttons, as well as the Yayoy sweaters with puffy shoulders and a wrap effect on the bodice as its bestsellers, which are also available at the brand’s store in London, Violante Nessi features competitive prices, with pants retailing at 335 euros, knitwear at 385 euros and evening dresses up to 700 euros. While mainly relying on a direct-to-consumer business, the brand is creating partnerships with select retailers, including leading Italian boutique Ratti.

WWD : Paris Fashion Week Confirms the Power of the Runway

Paris Fashion Week Confirms the Power of the Runway
Brands that staged hybrid events, combining a physical show and digital elements, fared better than those opting for an online presence.

PARIS — The runway show is not going anywhere, judging from the feedback on the most recent Paris Fashion Week.

Brands that staged hybrid events, blending a physical fashion show and digital elements, fared better globally than those opting for a strictly online presence, data from various sources showed.

“While social media interest in Paris Fashion Week significantly decreased this year compared to last, the designers who did have the most success on social media were those who scaled back their presentation the least,” noted Tracy David, chief marketing officer at data and analytics firm ListenFirst.

“With the pandemic with us for the foreseeable future, designers that are able to find safe and creative ways to return spectacle to the runway will generate the most social media interest around upcoming fashion events,” she added.

Along with growing experience of trying new formats came some insights into best practices. Among the key takeaways: videos should last at least five minutes, and influencers can participate without being present.

Paris Fashion Week generated the highest earned media value of the four spring 2021 fashion weeks, according to media monitoring and analysis firm DMR Group. It had the most visibility on the web, and also dominated on social media.

The digital hub for PFW drew a total of 230,000 visitors, up from 202,000 for the combined haute couture and men’s fashion weeks in July, and tallied 606,000 page views, up from 490,000 in July, according to preliminary figures provided by the Fédération de la Haute Couture et de la Mode.

The federation, French fashion’s governing body, worked with its partner Launchmetrics, the data research and insights company, to improve the navigability of the site, clarify the calendar page, and make the magazine section more fluid.

Pascal Morand, executive president of the federation, said the platform had created a level playing field for participating brands, noting the effectiveness of the system of amplification and partnerships that was put in place.

“What we saw is that even if some big brands overperformed, all brands were satisfied with the result,” he said. “This hybrid system amplified the resonance for every participant, including less visible brands. There is a principle of fairness in the Paris calendar.”

Dior was once again the top-ranking brand in terms of Media Impact Value, as tracked by Launchmetrics. Next in the ranking were Louis Vuitton and Chanel. The three brands were among the 18 houses that held runway shows, albeit with drastically reduced guest lists.

“Paris and Milan are really the most protected when it comes to what a fashion week should look like, and the sacredness of these kind of historic events in our industry,” said Alison Bringé, chief marketing officer of Launchmetrics.

“And what was so incredible was that, when our industry was pushed into this kind of corner on how we would manage in the wake of this pandemic, the creativity of the industry really showed,” she added, noting there was an acceleration in digital transformation in the space of just a few months.

“Some of our biggest challenges were answered through a pandemic, and this is just the beginning of what brands can start to create,” Bringé said.

She noted that luxury houses have become better at leveraging their own social media platforms, with the most successful opting for a selective approach, rather than flooding Instagram with posts and show images.

Dior’s most highly rated post featured Jisoo, a member of the South Korean girl group Blackpink, and generated $614,000 in MIV, more than twice the amount of the brand’s most successful post from the fall 2020 show. Overall, average MIV for Dior’s posts was up 33 percent.

ListenFirst found that Chanel and Louis Vuitton topped the chart for social engagement, while Balenciaga rounded out the top three with its fashion film. The others, in descending order, were Balmain, Givenchy, Loewe, Hermès, Kenzo, Chloé and Miu Miu.

There were 18,192 tweets using the hashtag #PFW between Sept. 28 and Oct. 6, only a fraction of the 139,403 tweets last year between Sept. 23 and Oct. 1, it said.

Chanel’s top-performing post showed the brand name mocked up like the Hollywood sign, announcing that its spring 2021 show would air live on Instagram Stories. It garnered almost 222,000 likes.

Chanel was one of several brands that partnered with social media stars to create videos on YouTube that showed them getting glammed up to take in the show remotely. Its video with Dixie D’Amelio, featuring a special appearance by Camila Coelho, has garnered almost 3.5 million views.

Derek Blasberg, head of fashion and beauty at YouTube, which is also a partner of the French fashion federation, said it doesn’t release viewing figures immediately after the shows because they have a long shelf life.

“A lot of other platforms focus on immediate viewership, and YouTube has a much longer tail. We see more than half of viewership for fashion shows happening at least a month after the shows are uploaded. So we don’t really look even at our numbers, we do our audits later in the season,” he said.

“People who come to YouTube, they want to see the entire show, they want to see every single look. They want the real fashion experience,” Blasberg added.

He noted, for example, that Gucci garnered a few hundred thousand views for its fall 2020 shows in the first week after it aired in February. In the six months since, it has racked up 3.6 million views.

Between New York, London, Milan and Paris, YouTube hosted 209 shows this season, and 108 of those brands were posting for the first time on the platform. As a result, it has compiled some tips for success.

Brands can boost engagement by flagging their shows using the YouTube Premieres feature, and interacting with their audience in comments and live chat. Titles should be optimized for search engines, and videos should be at least five minutes long.

The most-viewed brands created three to five pieces of additional content, such as behind-the-scenes footage, around their shows. However, Blasberg acknowledged it was harder for brands to amplify their shows with most of the usual social media stars and influencers grounded.

“But I was happy to see that some brands and some creators were managing to do that from home,” he said, noting that brands relinquished more control than they would have in the past. “It’s definitely easier now. I think brands have more trust in what creators are doing. Like, ‘You know your audience better than we do.’”

Globally, he believes the subdued season has opened the playing field not just for new influencers, but also models and designers who would not otherwise have enjoyed the same spotlight. Blasberg noted that the YouTube fashion vertical listed everyone on the Paris calendar in running order.

“So suddenly, Dior was next to a new brand that probably would not have had the same eye share as Dior, but as we consume all these shows digitally and with limited resources around models and creators, I definitely think that we all saw some things that maybe we wouldn’t have noticed in previous seasons, including influencers, including models, and including the designers themselves,” he said.

NY Post : Apple’s big supplier Foxconn faces China-based rival to make iPhones

Apple’s top iPhone maker has a major competitor on its heels — and it’s based in China.

Taiwan-based Foxconn — which has long been the go-to manufacturer for generations of iPhones — has set up a task force to fend off the growing threat from China’s Luxshare, according to a report.

Foxconn founder Terry Gou is personally spearheading the project, Reuters reported, as Luxshare is poised to become the first mainland China-headquartered company to assemble iPhones.

Gou’s task force is specifically looking into whether Luxshare — which was best known for making Apple’s AirPods and currently only brings in 5 percent of Foxconn’s revenue — is being boosted by the Chinese government.

While the US-China trade war and the coronavirus have intensified pressure on global supply chains, an increasingly acrimonious tech feud between the countries has also prompted Beijing to boost its tech sector — and Luxshare’s growth trajectory fits into that mould.

“Luxshare is set to rise,” one source with knowledge of the situation told Reuters, calling it “just a matter of how fast it could be.”

Luxshare in July acquired two smaller factories belonging to Taiwanese iPhone assembler Wistron in China. The deal could help Luxshare capture up to 30 percent of iPhone production within the next five years, according to Fubon Research.

One of the sources called it a “formidable opponent”, and said Foxconn has been conducting extensive research on Luxshare, aiming to “defeat it completely.”

Reuters also reported that Luxshare had been actively poaching from Foxconn. In one case, Luxshare offered $75,000 cash as a relocation subsidy for a senior Foxconn employee to move family from Taiwan to China.

David Collins, a manufacturing consultant based in Taipei and Kunshan, says that Chinese firms see a prime opportunity to attack.

“Foxconn’s share price is down roughly 50 percent from two years ago,” he said. “They see blood in the water.”

FT : EU takes step to ease jitters over dual listings after Brexit

EU takes step to ease jitters over dual listings after Brexit
European investors will be allowed to trade sterling-quoted shares of EU companies

The EU markets regulator has taken steps to partly assuage investor concerns about trading after Brexit by indicating EU investors will be able to trade sterling-quoted shares of European companies listed in London.

The European Securities and Markets Authority on Monday made the policy change because of concerns among businesses and some EU governments that the bloc’s regulations could fragment the share market and cut European companies out of deep pools of capital in London.

The Paris-based agency said that trading of EU shares on a UK exchange in pounds will be exempt from an EU rule, known as the share trading obligation, which determines which venues investors can use to trade.

That means EU investors will still be able to trade dual-listed companies like AstraZeneca, Relx, Tui, British Airways parent IAG and G4S in London as those companies are listed in sterling. However many Irish companies, like Ryanair, Kingspan and Bank of Ireland will remain vulnerable as they trade in euros.

One industry lobbyist in Brussels said it was “the narrowest of accommodations”, adding that it “does not solve what Ireland needs”. Another described it as “pretty underwhelming”. 

Normally, EU investors can only buy and sell stocks in countries Brussels has deemed as having a regulatory and supervisory system as rigorous as the EU's own — a system known as “equivalence”.

London is the biggest share trading centre in Europe, handling more than a quarter of the €40bn daily market. Without equivalence, some of that business will move to Amsterdam and Paris because EU-based institutions will be barred from trading in London.

Esma estimated the policy change announced on Monday accounted for less than 1 per cent of total EU trading. There were fewer than 50 companies trading in London with an EU identification code, known as an ISIN, it said.

So far the European Commission has given no indication as to whether a decision on equivalence will be forthcoming for the UK, and it has instead warned that a lack of clarity about the details of Britain’s future regulatory regime have made such assessments difficult. 

Banks, high-frequency traders and asset managers across Europe had been losing hope in recent weeks that London and Brussels would agree to keep the cross-border share trading market intact beyond January.

The commission told the Financial Times last week that equivalence assessments “are challenging because they will have to be forward-looking, taking into account overall developments, including any intention by the UK to diverge from EU rules”. 

But the ambiguity has worried EU national governments, which last month discussed enacting emergency legislation to stave off the threat to dual listed shares — prompting complaints from the commission that such a move would send a signal of weakness at a sensitive moment in the Brexit talks. It turned to Esma to come up with a solution.

Esma insisted on Monday it had done “the maximum possible” to minimise market disruption. However the agency warned that its UK counterpart, the Financial Conduct Authority, needed to make similar concessions with its own rules for the solution to work. 

The comments reflect the risk that traders could, in theory, be faced with conflicting EU and UK rules on dual-listed shares unless both sides grant the necessary regulatory permissions.

The FCA said it considered mutual equivalence the best solution for the market. “However, we note Esma’s latest interpretation of the scope of the EU [share trading obligation], and we will set out our approach in due course,” it said.

FT : Activist fund targets St James’s Place

Activist fund targets St James’s Place
PrimeStone criticises UK’s largest wealth manager for failing to deliver value to shareholders

St James’s Place, the UK’s largest wealth manager, has been targeted by activist investment fund PrimeStone Capital for its high cost base and for failing to deliver value to shareholders.

On Monday, London-based PrimeStone, which was founded by three former executives at private equity firm Carlyle Group, unveiled a 1.2 per cent stake in the wealth manager, a holding worth almost £61m.

In a letter, which was sent to SJP’s board of directors and published on PrimeStone’s website, the activist group criticised SJP’s “bloated organisational structure,” “excessive executive pay” and struggling Asia operation for hurting shareholder returns.

SJP, known for its expensive management fees, has come under fire as higher-cost asset managers face intense pressure to deliver value while cheaper investment platforms such as Vanguard and AJ Bell scale rapidly in the UK.

PrimeStone partners Benoît Colas and Damian Hahnloser said in the letter: “It is time for the company to address its high cost base and change its culture . . . to deliver its full value-creation potential to long-neglected owners.”

SJP has more than doubled client assets under management in the past five years, from about £55bn in August 2015 to £115bn in August 2020, when the company reported its half-year results. The wealth manager is known for its actively managed funds, and the high premium it places on — and charges for — advice.

SJP’s profitability has declined by 20 per cent over the same five-year period as competitors Hargreaves Lansdown and AJ Bell have grown by more than 25 per cent, despite comparable net inflows of 2 per cent to 3 per cent per quarter, according to PrimeStone’s analysis.

Shareholder returns in SJP were just 2 per cent a year since 2015, PrimeStone said, below that of the FTSE 100.

PrimeStone also criticised SJP’s structure, noting that more than 120 employees have job titles that included “head of”.

“We struggle to understand how SJP can have that many departments to be headed,” said the activist investor.

One-quarter of SJP employees earn more than £89,000 a year — “a staggering statistic”, the letter said, and higher than the sector average of £67,000. SJP employs more than 1,300 people, according to company reports from 2019.

There are more than 80 people in the marketing team alone, despite SJP’s assertion that 90 per cent of new business comes from existing clients or client referrals, according to the activist.

PrimeStone said SJP’s Asia operation was lossmaking — pointing to £22m in annual losses and, the investment fund said, no path to profitability. “Only a lack of attention to shareholder value can explain the continued support given by SJP to this structurally unprofitable activity over so many years.”

SJP acknowledged the letter and said “it looks forward to commencing a dialogue” with PrimeStone. The wealth manager will report its third-quarter results on Tuesday.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:

  • SAP -20.4%, NRZ -4.2%, HAS -2.4%

M&A news:

  • CVE -5.9% (Cenovus Energy and Husky Energy combine in an all-stock transaction valued at $23.6 billion)

Select index ETFs showing weakness:

  • IWM -1.4%, SPY -1.1%, DIA -1.1%, QQQ -0.8%

Other news:

  • MBIO -7.8% (files for $100 mln mixed securities shelf offering)
  • HYLN -4.7% (files for 19,185,637 share common stock offering; also files for 132,637,517 share common stock offering by selling shareholders)
  • TPTX -3.7% (announces $400 mln commencement of public offering of common stock)
  • RVMD -3.4% (reports progress and expansion of combination strategy with RMC-4630; new clinical collaboration with AstraZeneca)
  • BA -1.6% (report that FAA determined that software fix for certain planes was not adequate)
  • TSLA -1.5% (details trends in cash flow, capital expenditures and operating expenses in 10-Q)
  • AYI -0.9% (files mixed securities shelf offering)

Analyst comments:

  • DQ -3.6% (downgraded to Neutral from Buy at ROTH Capital)
  • SPWR -2.7% (downgraded to Neutral from Outperform at Credit Suisse)
  • ASC -2% (downgraded to Hold from Buy at Pareto)
  • FSLR -1.8% (downgraded to Underperform from Neutral at Credit Suisse)
  • EXC -0.9% (downgraded to Neutral from Buy at Guggenheim)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:

  • BOH +2.9%, OTIS +1.6%, SMPL +1.6%

M&A news:

  • DNKN +17% (issues statement about possible acquistion; confirms that it has held preliminary discussions to be acquired by Inspire Brands)
  • SWI +4.7% (announces agreement to acquire SentryOne)
  • CCEP +1.3% (Coca-Cola European Partners made a non-binding proposal to acquire Coca-Cola Amatil Limited (CCLAY); reports Q3 update)

Other news:

  • GRTX +14.4% (Interim Data from First Cohort of Patients in Pilot Phase 1/2 Clinical Trial of GC4419 in Pancreatic Cancer)
  • MRTX +6% (reports investigational Adagrasib preliminary data demonstrating tolerability and durable anti-tumor activity)
  • GBT +3.4% (presented two abstracts at conference provide greater insight into the safety and efficacy of Oxbryta)
  • AMRN +2.4% (reports VASCEPA (icosapent ethyl) was found to significantly reduce cardiovascular events in patients with compromised renal function)
  • SYRS +2.3% (reports initial data from Phase 1 clinical trial of SY-5609; demonstrates proof of mechanism and support ongoing development)
  • VXX +2.3% (trading higher with futures under pressure)
  • EBON +2.1% (files for 5 mln share best-efforts offering and related warrants)
  • MRNA +1.2% (announces supply agreement with the ministry of public health to supply qatar with mRNA vaccine against COVID-19)
  • AZN +1% (confirms FDA authorises restart of the COVID-19 AZD1222 vaccine US Phase III trial)

Analyst comments:

  • PSO +4% (upgraded to Buy from Neutral at UBS)
  • RRC +0.9% (upgraded to Buy from Neutral at BofA Securities)
  • KTB +0.5% (upgraded to Buy from Underperform at BofA Securities)
  • FTI +0.5% (upgraded to Buy from Hold at Societe Generale)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • DNKN +18.3%, RVMD +5%, SWI +4.7%, GBT +3.4%, VXX +2.8%, SYRS +2.3%, BCLI +2.3%, EBON +2.1%, OTIS +1.3%, GRTX +1.1%, MRTX +1.1%, CE +0.8%, AZN +0.7%, CCEP +0.7%
  • Gapping down:
    • SAP -19.4%, MBIO -6.8%, CVE -4.3%, HYLN -3.7%, NRZ -2.6%, HAS -2%, BA -1.8%, IWM -1.5%, SPY -1.1%, DIA -1.1%, QQQ -0.9%