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By Swissquote Analysts
Published on 11.05.2022
Morning news

Pfizer to acquire HBM portfolio company Biohaven Pharmaceuticals in USD 11.6 billion deal

Topic of the day

HBM Healthcare Investments today announces that its portfolio company Biohaven Pharmaceuticals (NYSE: BHVN) will be acquired by Pfizer (NYSE: PFE) for USD 11.6 billion in cash. The acquisition price of USD 148.50 per Biohaven share represents a premium of approximately 78 percent to the closing share price on 9 May 2022. Biohaven shareholders will also receive shares in "New Biohaven", a new publicly traded company that will retain Biohaven's non-CGRP pipeline compounds in development. HBM Healthcare Investments holds around 0.45 million shares in Biohaven with a total value of USD 67 million based on the acquisition price. Following the acquisition of Sierra Oncology by GlaxoSmithKline in April and of Zogenix by UCB in January, this is the third acquisition from HBM Healthcare Investments' portfolio of listed companies in the current calendar year 2022.

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Swiss stocks

After six days of losses in a row, the Swiss stock market closed with gains on Tuesday. The SMI gained 0.9 per cent to 11,542 points. Among the 20 SMI stocks, there were 16 price gainers and four price losers. 38.41 (previously: 41.14) million shares were traded. Cyclical stocks were among the most sought-after. ABB gained 1.2 per cent and Geberit 3.3 per cent. Holcim was also well in the market, up 2.2 per cent. Statements by JSW Chairman Sajjan Jindal to the Financial Times had a supporting effect. There he had held out the prospect of a bid for Holcim's India business, specifically Ambuja Cement and ACC, for 7 billion dollars. According to Reuters, Adani Group is also said to be interested. The value of the deal could therefore be much higher and even double the volume, it said, referring to an insider. AMS-Osram rose by 1.4 per cent. The company is divesting its dynamic lighting business.

International markets


European equity markets closed higher on Tuesday, buoyed by bargain-basement buying after yesterday's decline, but investor appetite remains dampened by inflation fears. The Stoxx Europe 600 index gained 0.7% to 420.3 points. In Paris, the CAC 40 and the SBF 120 gained 0.5% each. In Frankfurt, the DAX 40 rose 1.2%, while in London, the FTSE 100 gained 0.4%. Bayer AG said Tuesday that profit rose in the first quarter as performance was driven by its crop science and consumer health divisions, and backed guidance for the full year. The German pharmaceutical and chemical conglomerate posted net profit of 3.29 billion euros ($3.47 billion) from EUR2.09 billion in the previous-year period. Earnings before interest, taxes, depreciation and amortization before special items were EUR5.25 billion, up from EUR4.12 billion, while sales increased to EUR14.64 billion from EUR12.33 billion, the company said. Schaeffler AG said late Monday that it expects operating profitability to decline this year, as first-quarter adjusted earnings fell despite higher revenue. The German auto-parts supplier’s quarterly earnings before interest, taxes and special items fell to 258 million euros ($272.5 million) compared with EUR397 million a year ago. The three-month EBIT margin before special items was 6.9% down from 11.2% the year prior.

United States

U.S. stocks swung between gains and losses on Tuesday as uncertainty over inflation, interest rates and the economy continued to weigh on the market. All three major indexes opened higher, with the technology-heavy Nasdaq Composite up 2.8% at one point. By late morning, stocks had mostly erased those gains and appeared on track to extend a brutal three-day slide. But as the afternoon wore on, investors turned their attention to Wednesday's report on consumer prices and the possibility that inflation may be peaking -- and stocks rebounded again. The S&P 500 closed up 9.81 points, 0.2%, at 4001.05, a day after the broad index slumped 3.2% to its lowest level for the year. The Nasdaq Composite Index climbed 114.42 points, or 1%, to 11737.67. "The market was taking too negative of a read on the consumer-price index, leading to the afternoon recovery," said Matt Peron, director of research at Janus Henderson Investors. The Dow Jones Industrial Average fell for a fourth straight trading session, hitting a 52-week low. It closed down 84.96 points, or 0.3%, at 32160.74. Peloton Interactive fell $1.23, or 8.7%, to $12.90 after reporting declining sales and mounting losses as the stationary-bike maker struggles with the return to prepandemic consumer habits. Duke Realty rose $1.87, or 3.9%, to $49.58 after Prologis said it had made an offer to buy the real-estate investment trust for about $23.7 billion. Prologis fell $6.96, or 5.3%, to $125.41.


At midweek, no uniform trend can be discerned on the stock exchanges in East Asia and Australia. In China, consumer and producer prices rose slightly more than expected on an annual basis. However, inflation as measured by producer prices slowed somewhat on a monthly basis in April. This raises hopes that the Chinese central bank (PBoC) could loosen its monetary policy somewhat.


The yield on the U.S. benchmark 10-year Treasury note edged down to 2.990% from 3.080% on Monday.


Citi lowers the Zalando target to EUR 37 (48) – Neutral

BoA lowers the Deutsche Bank target to EUR 11 (11.70) – Neutral

UBS lowers the Eon target to EUR 10.25 (11) – Neutral

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