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Monday, February 27, 2023

Blair Cautions Investors On Overreacting To 'Early-Stage' Pfizer/Seagen Talks

 

  • In a news article by the Wall Street Journal, Pfizer Inc  is reportedly in early-stage talks to acquire Seagen Inc  for over $30 billion.
  • In June last year, the Wall Street Journal reported that Merck & Co Inc  showed interest in buying Seagen
  • In the article, the deal was reported to be a price of at least $200 a share, equivalent to roughly $40 billion or more.
  • William Blair writes that since the discussions between Seagen and Pfizer are reported to be "early stage" in nature, it cautions investors not to overreact to the news. 
  • Keeping its top pick, the analyst reiterates its Outperform rating on Seagen.
  • If the deal happens, with the M&A process, there will be several hurdles to overcome (including FTC concerns), and the entire process could take months to materialize. 
  • The analyst says it would be surprised by a decision to sell the company unless it transacts at or above the previously reported price of $40 billion (or $215 per share)
  • William Blair's bullish thesis is based on the long-term growth potential, driven by approved products—Adcetris, Padcev, Tukysa, and Tivdak; and expanding late- and early-phase assets within the company's pipeline. 
  • Although, the analyst said some volatility is expected due to the potential of Padcev to disrupt the urothelial carcinoma space with the upcoming approval on or before April 21.

ROCHE HOLDINGS AG : Receives a Buy rating from Berenberg

 Berenberg is positive on the stock with a Buy rating. The target price is unchanged and still at CHF 350.

https://www.marketscreener.com/quote/stock/ROCHE-HOLDING-AG-9364975/news/ROCHE-HOLDINGS-AG-Receives-a-Buy-rating-from-Berenberg-43099287/

GSK upped to Buy from Sell by Goldman

 GSK: Goldman Sachs upgrades from Sell to Buy. The target price remains set at GBp 2000.

https://www.marketscreener.com/quote/stock/GSK-PLC-9590199/

Zelensky Says Ukraine Is Preparing To Attack Crimea

 by Dave DeCamp via AntiWar.com,

Ukrainian President Volodymyr Zelensky said Friday that Ukraine is preparing to launch attacks to recapture Crimea by forming new military units and sending troops to train in other countries.

“There are military steps, and we are preparing for them. We are ready mentally. We are preparing technically: with weapons, reinforcements, the formation of brigades, in particular the assault brigades, of different categories and nature,” Zelensky said at a press conference, according to the Ukrainian news agency Ukrinform.

According to Ukrinform, Zelensky said Ukrainian troops were being sent to train in other countries to learn how to use new weapons. “We have to be ready. Then, there will be corresponding fair de-occupation steps and, God willing, they will be successful,” he added.

Zelensky and other top Ukrainian officials have maintained that kicking Russia out of Crimea is one of their war goals, but Russia controls a good portion of territory to the north of Crimea in the Kherson Oblast. The Pentagon has also assessed it’s unlikely Ukraine can take the peninsula, which Russia has controlled since 2014.

Despite the Pentagon’s assessment, Biden administration officials still say they would support Ukrainian attacks on Crimea. “Russia has turned Crimea into a massive military installation … those are legitimate targets, Ukraine is hitting them, and we are supporting that,” Victoria Nuland, the US undersecretary of state for political affairs, recently said.

The US backing Ukrainian attacks on Crimea would risk a major escalation with Moscow, a fact that even Secretary of State Antony Blinken has recognized by calling the peninsula a “red line” for Russian President Vladimir Putin. 

The Russian leader has shown a willingness to escalate the war over attacks on Crimea, as Russia’s bombardment of Ukrainian infrastructure didn’t start until after the truck bombing of the Kerch Bridge, which connects Crimea to the Russian mainland.

Russia annexed Crimea in 2014 following the US-backed coup in Kyiv that ousted former Ukrainian President Viktor Yanukovych. Polling since then has shown the majority of people living on the peninsula are happy that they joined the Russian Federation.

https://www.zerohedge.com/geopolitical/zelensky-says-ukraine-preparing-attack-crimea