Online drug retailer Zur Rose shares soar as it sells Swiss business

 Zur Rose (ROSEG.S) unexpectedly agreed to sell its Swiss business to Migros subsidiary Medbase in order to focus on expanding in Germany, the Swiss online drug retailer said on Friday, sending its shares soaring on their best day ever.

The proceeds of the transactions are estimated at 360 million Swiss francs ($393.87 million), it added.

According to preliminary figures released in January, Germany represented a little more than half of Zur Rose's revenue in 2022, while Switzerland contributed around a third, with year-on-year revenue rising by 9.5%.

"The proceeds will leave the company largely net debt-free" Jefferies said of the sale.

Zur Rose's stock was up 33% at 0852 GMT, after jumping as much as 92.31%. In 2022 the stock lost 70% of its value due to delays in the introduction of e-prescriptions in Germany.

Zur Rose said in a statement that the sale and subsequent concentration of its business activities will strengthen its position in the 50 billion euro pharmacy market in Germany and additional European countries. It said it saw "enormous potential with the rollout of electronic prescriptions in Germany".

https://www.reuters.com/markets/deals/online-drug-retailer-zur-rose-shares-soar-it-sells-swiss-business-2023-02-03/

US Firms Investing Billions In China’s AI Sector: Report

 by Andrew Thornebrooke via The Epoch Times (emphasis ours),

U.S. companies were involved in at least 37 percent of the total investment transactions in China’s artificial intelligence (AI) sector between 2015 and 2021, according to a new report.

The report (pdf), published by the Georgetown University Center for Security and Emerging Technology, found that $40.2 billion in investment transactions into Chinese AI companies had American backing, though it was unclear what percentage of that amount was made by U.S. investors or their overseas counterparts.

The money was given to 251 Chinese AI companies, primarily as venture capital angel, seed, and pre-seed stage investments.

There are risks with such investments, the report noted, as they are generally accompanied by other intangible benefits in which U.S. expertise is delivered to China-based companies.

“While Crunchbase data suggests that U.S. outbound investment into Chinese AI companies is limited, such financial activity, commercial linkages, and the tacit expertise that transfers from U.S.-based funders to target companies in China’s booming AI ecosystem carry implications that extend beyond the business sector,” the report said.

“Earlier stage VC investments in particular can provide intangible benefits beyond capital, including mentorship and coaching, name recognition, and networking opportunities. As such, U.S. outbound investment in Chinese technology, and particularly AI, merits additional attention and tracking.”

US Firms Funding Chinese AI Companies

American investments in China-based AI companies have come under fire in recent years due to the amount of control exercised over such companies by China’s communist regime.

The Chinese Communist Party (CCP), which rules China as a single-party state, has implemented several laws that require China-based companies to make all data in their possession available to the regime upon request.

This means that any data or technologies developed by China-based companies with U.S. backing could directly be used by the CCP to improve upon its military capabilities, in line with the regime’s “military-civil fusion” strategy.

Moreover, such investments directly fuel China’s efforts to overtake the United States as the lead technological power.

This is demonstrated by the value of the investments being made by U.S. sources into China’s AI companies. Whereas investment transactions involving U.S. funding sources only made up 17 percent of the total number of transactions made, the report said, those transactions accounted for 37 percent of the total funding value of all such transactions.

Notably, the U.S. investments also include major funding for Chinese companies whose research could tangibly benefit the Chinese military’s pursuit of AI and autonomous systems.

“Some of the largest investments include Goldman Sachs’ solo investment in 1KMXC, an AI-enabled robotics company, as well as an investment by three U.S.-based VC firms in Geek+, an autonomous mobile robot company,” the report said.

https://www.zerohedge.com/political/us-firms-investing-billions-chinas-ai-sector-report

Structure Therapeutics Announces Pricing of Upsized IPO

 Structure Therapeutics Inc. (NASDAQ: GPCR), a clinical-stage global biopharmaceutical company developing novel oral small molecule therapeutics for metabolic and pulmonary diseases, today announced the pricing of its upsized initial public offering of 10,740,000 American depositary shares (ADSs), each representing three ordinary shares, at a public offering price of $15.00 per ADS. The aggregate gross proceeds to Structure Therapeutics from the offering are expected to be $161.1 million before deducting underwriting discounts and commissions and offering expenses. In addition, Structure Therapeutics has granted the underwriters a 30-day option to purchase up to an additional 1,611,000 ADSs at the initial public offering price, less underwriting discounts and commissions. All of the ADSs are being offered by Structure Therapeutics. The shares are expected to begin trading on the Nasdaq Global Market on February 3, 2023 under the ticker symbol “GPCR.” The offering is expected to close on February 7, 2023, subject to the satisfaction of customary closing conditions.

Jefferies, SVB Securities, Guggenheim Securities, and BMO Capital Markets are acting as joint book-running managers for the offering.

https://www.biospace.com/article/releases/structure-therapeutics-announces-pricing-of-upsized-initial-public-offering/

Orexo submits New Drug Application for fentanyl overdose

 

• OX124 is designed to reverse the effects of the most powerful synthetic opioids, such as fentanyl
• Nine out of ten fatal opioid overdoses in the US involve synthetic opioids
• If approved, the US launch is expected to be initiated in H1 2024

https://www.biospace.com/article/releases/orexo-submits-new-drug-application-to-fda-for-ox124-a-high-dose-rescue-medication-for-opioid-overdose/

Celyad shifts away from clinical development

 Celyad Oncology has implemented a strategic shift from an organization focused on clinical development to one fully harnessing the true potential of its proprietary technology platforms and intellectual property

• The company is now prioritizing internal discovery endeavors to tackle the major current limitations of CAR T-cell therapies

• As of December 31, 2022, the Company ended the year with an unaudited treasury position of €12.4 million ($13.3 million)

https://finance.yahoo.com/news/celyad-oncology-provides-fourth-quarter-060000878.html

Sanofi forecasts moderate profit growth on Dupixent demand

 Sanofi forecast moderate earnings growth that undershot expectations, saying demand for bestselling asthma and eczema drug Dupixent would be partly offset by competition for its multiple sclerosis pill Aubagio and product launch costs.

The Paris-based drugmaker said on Friday it expected 2023 adjusted earnings per share to grow by a "low single digit" percentage, not taking into account an expected negative currency impact of between 3.5% and 4.5%.

Aubagio, with 2 billion euros ($2.2 billion) in sales last year, will face competition from cheaper products over the next few months after losing patent protection, Sanofi said.

At 0853 GMT, Sanofi shares were down 4.3% at their lowest since mid-November with JP Morgan analysts saying investors had expected a better 2023 outlook and a more benign view on foreign exchange headwinds.

The company reaffirmed its target to achieve sales of Dupixent, jointly developed with Regeneron, of 10 billion euros this year, up more than 20% from 8.29 billion euros in 2022.

Sanofi shares have yet to recover from a plunge in August following disappointing trial results of a once-promising breast cancer drug candidate put the strength of its development pipeline in doubt. Legal claims that heartburn drug Zantac caused cancer have also weighed on the stock.

Analysts have said that this year's expected market debut of two new products, to balance out reliance on Dupixent, would be important tests of the company's marketing prowess and a chance to regain investor confidence.

These products are haemophilia A treatment Altuviiio, requiring fewer injections than standard therapy, and Beyfortus from a partnership with AstraZeneca, which is a preventive once-a-year shot against the common RSV airways infection in infants.

https://finance.yahoo.com/news/1-sanofi-forecasts-moderate-profit-072924252.html

HHS weighs abortion access actions, including possible health emergency declaration

 The Biden administration is weighing additional actions to help people access abortions, which may include a public health emergency declaration.

The big picture: Both abortion rights advocates and Democratic lawmakers have urged the Department of Health and Human Services and President Biden to take such a step in response to the overturning of Roe v. Wade, which they say has created a "full-scale reproductive health crisis" across the U.S.

• The lawmakers argued that such a move would allow the administration to help support states that protect abortion, deploy Public Health Services Corps teams and give the government "the ability to accelerate access to new medications authorized for abortion."

What he's saying: "There are discussions on a wide range of measures ... that we can take to try to protect people's rights," HHS Secretary Xavier Becerra told Axios during a pair of Monday public events that touched on reproductive health access.

• "There are certain criteria that you look for to be able to declare a public health emergency. That's typically done by scientists and those that are professionals in those fields who will tell us whether we are in a state of emergency and based on that, I have the ability to make a declaration," Becerra added, when asked about a public health emergency declaration on abortion.
• He said that there hasn't been a "full assessment" on what a declaration on abortion would look like and whether conditions merit it, but there's still "an evaluation" on the topic.

Don't forget: "We are constantly exploring additional actions we can take to protect and expand access to reproductive health care, including abortion care, and are prioritizing the actions that can give us the highest impact and most durable solutions," an HHS spokesperson told Axios.

• Since Roe v. Wade was overturned, HHS has taken steps to protect reproductive health access, including issuing guidance saying that abortion care is protected in emergency situations and stating that birth control insurance coverage is guaranteed under federal law.

Of note: The White House has previously said that declaring a public health emergency did not "seem like a great option."

• But HHS has the authority when the secretary determines that a "disease or disorder presents a public health emergency."
• The designation has been broadly used to respond to natural disasters, the opioid crisis, as well as diseases like the coronavirus, per a report from the Network for Public Health Law.

How it works: An emergency declaration "would potentially make it easier for people who need to travel out-of-state to get abortions or to get abortion medication. It would make available funding that wouldn't otherwise be there to address those unmet needs," said Mary Ziegler, a professor of law the University of California, Davis, who specializes in abortion issues.

Zoom in: It's possible that an emergency declaration would make abortion medication more widely available.

• They could be considered as a "countermeasure needed to mitigate the effects of a health crisis resulting from abortion bans" under federal law, Rachel Rebouché, a professor of law at Temple University, told Ms. Magazine.
• "Providers offering medication abortion as a countermeasure could be shielded from liability and states would be preempted from applying their own laws to the actions of these providers working under a public health emergency," Rebouché added.

What we're watching: The declaration likely would be challenged in court.

• "It would be hard to imagine a federal court challenge to that ... ending well for the administration, but by the same token, it might have some value in the short term," Ziegler told Axios.

https://www.axios.com/2023/01/31/biden-public-health-emergency-abortion-dobbs