Swiss pharmaceutical company Novartis has announced plans to acquire Seattle, US-based biotechnology firm Chinook Therapeutics in a $3.5 billion deal to expand its pipeline of advanced-stage drugs and a new type of treatment for the rare severe kidney disease IgAN using the drugs atrasentan and zigakibart. The acquisition process is expected to close in the second half of 2023, with shareholders receiving $3.2 billion, or $40 per share, and contingent value rights of up to $300 million. Stock reacted positively to the news, even hitting an all-time high last month. The company has seen its stock value increase more than 430 times since it went public in 1995. Current plans show a promising future for the company.
(1 EURO = 0.97 CHF)
Novartis' stock performance over the past five years. (Source: Google) *
Novo Nordisk plans investment in Denmark
Danish pharmaceutical company Novo Nordisk has announced a significant investment of DKK 15.9 billion (USD 2.29 billion) to expand its Denmark plant. Demand for products used to treat serious chronic diseases is growing and the company plans to meet it with this investment in a plant focused on major biologically active pharmaceutical ingredients (APIs). The company has experienced supply constraints for semaglutide, which is used in the manufacture of popular diabetes drugs Ozempic and Wegovy, due to high demand. It will therefore reduce the supply of initial doses of Wegovy in the US in an effort to meet this demand. Construction of the new facility is already underway and production of the API ingredients is scheduled to begin in 2029, a process that is key to the company's continuous product development pipeline. The stock has seen nice steady growth in recent years, which the company presents as a stable investment opportunity. *
(EUR 1 = DKK 7.45)
Novo Nordisk's stock performance over the past five years. (Source: Google) *
BioNTech in court over COVID-19 vaccines
The German pharmaceutical company BioNTech has been sued by a German woman, whose identity is protected by law, and who allegedly suffered side effects after being vaccinated with the COVID-19 vaccine. She is seeking at least EUR 150 thousand in damages from the company for physical harm relating to upper body swelling or sleep disturbance and unspecified material damage. German pharmaceutical law states that manufacturers are liable for damages only if medical science proves that their products cause disproportionate harm compared to their benefits. According to the company, the case is not substantiated and confirms the positive benefits of its vaccine, which it holds a marketing authorisation for the German market with Pfizer. The European Medicines Agency (EMA) has reaffirmed the safety of approved COVID-19 vaccines, including BioNTech's Comirnata. There are approximately 250 similar indictments in Germany.
BioNTech's stock performance over the past five years. (Source: Google) *
Olivia Lacenova, principal analyst at Wonderinterest Trading Ltd.
* Past performance is no guarantee of future results
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
