DexCom to Offer $1.0 Billion of Convertible Senior Notes

 DexCom, Inc. (Nasdaq: DXCM) ("Dexcom") announced today that it intends to offer, subject to market conditions and other factors, $1.0 billion aggregate principal amount of Convertible Senior Notes due 2028 (the "notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Dexcom also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period from, and including, the date on which the notes are first issued, up to an additional $150.0 million aggregate principal amount of notes.

The notes will be senior, unsecured obligations of Dexcom, and interest will be payable semi-annually in arrears. The notes will mature on May 15, 2028, unless earlier converted, repurchased or redeemed in accordance with the terms of the notes. Prior to 5:00 p.m., New York City time, on the business day immediately preceding February 15, 2028, the notes will be convertible at the option of holders of the notes only upon satisfaction of certain conditions and during certain periods, and thereafter, the notes will be convertible at the option of holders at any time until 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the maturity date, regardless of whether such conditions have been met. Upon conversion, the notes may be settled in shares of Dexcom’s common stock, cash or a combination of cash and shares of Dexcom’s common stock, at the election of Dexcom. Prior to May 20, 2026, the notes will not be redeemable. On or after May 20, 2026, and prior to February 15, 2028, Dexcom may redeem for cash all or part of the notes, at its option, subject to a partial redemption limitation, if the last reported sale price of Dexcom’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Dexcom provides notice of redemption.

https://finance.yahoo.com/news/dexcom-announces-proposed-offering-1-110000256.html

1/3 of US nurses plan to quit profession

 Almost a third of the nurses in the United States are considering leaving their profession after the COVID-19 pandemic left them overwhelmed and fatigued, according to a survey.

The survey of over 18,000 nurses, conducted by AMN Healthcare Services Inc in January, showed on Monday that 30% of the participants are looking to quit their career, up 7 percentage points over 2021, when the pandemic-triggered wave of resignations began.

The survey also showed that 36% of the nurses plan to continue working in the sector but may change workplaces.

"This really underscores the continued mental health and well-being challenges the nursing workforce experiences post pandemic," AMN Healthcare CEO Cary Grace told Reuters in an interview.

The survey showed there are various changes needed, with 69% of nurses seeking increased salaries and 63% of them seeking a safer working environment to reduce their stress.

This comes at a time hospital operator and sector bellwether HCA Healthcare Inc indicated a recovery in staffing situation.

While a shortage of staff in hospitals has been an issue for a couple of years, it gained traction globally in late 2021 and hit a peak early last year following a large number of resignations due to burn out.

The staffing crisis drove up costs at hospital operators, while boosted profits at medical staffing providers such as AMN Healthcare.

https://finance.yahoo.com/news/one-third-us-nurses-plan-104016877.html

Gilead and US Government square up in court over PrEP

 Gilead Sciences will go to court this week to argue that it does not need to pay the US Government a share of the profits it has made on the use of its HIV drugs for pre-exposure prophylaxis (PrEP).

The start of proceedings in a Delaware federal court will see the drugmaker try to overturn patents claimed by the US Department of Health and Human Services (HHS) on PrEP in the hope of fending off a claim for more than $1 billion in unpaid royalties and damages.

The four patents were awarded to the Centres for Disease Control and Prevention (CDC) in 2015 and cover two-drug PrEP regimens based on emtricitabine and tenofovir or a tenofovir prodrug, according to court documents.

The HHS had been negotiating with Gilead in an attempt to reduce the cost of providing Truvada for PrEP, but in 2021 those talks reportedly failed, and the government reported to legal action to press its case, claiming the company had ignored the contribution made by its scientists.

Gilead countersued shortly thereafter, saying the patents were invalid, and won a preliminary judgment in a separate lawsuit in 2022 that the government had breached its obligations by not giving the company sufficient notice of its intention to file the patents.

The judge in that case found that the CDC applied for its first patent in 2006, but didn’t inform Gilead until 2014.

Truvada (emtricitabine/tenofovir disoproxil fumarate) was approved for HIV PrEP in 2012, and while it is also used as a treatment for people with HIV infection, it is thought that the lion’s share of its sales come from prophylactic use. Sales ramped up quickly to nearly $3 billion before generic competition emerged in 2021, and sales quickly fell, coming in at $314 million last year.

Gilead launched a new drug for PrEP, based on the tenofovir prodrug tenofovir alafenamide, called Descovy in 2019, which has now grown into a $1.7 billion product worldwide - $1.4 billion of that from the US market – thanks to its improved safety over Truvada.

The outcome will be closely watched, given that it strikes at the heart of the role of taxpayer-funded R&D in pharmaceutical research and whether it should be reimbursed – an issue that came to the fore with the development of a number of drugs and vaccines used to mitigate the COVID-19 pandemic.

HIV patient advocates have long argued that the CDC patents could be used to help bring the price of Truvada down and make it more affordable for people at higher risk of contracting the virus.

https://pharmaphorum.com/news/gilead-and-us-government-square-court-over-prep

More than 90% of Apple's production is still in China. Why Morgan Stanley says that's a problem

 Investors are cooling their heels with a Fed decision one day away. Markets are largely counting on a one-and-done playbook, but note the curveball we got from Down Under where the Aussie central bank delivered a rate-hike shocker

Shifting gears, our call of the day from Morgan Stanley warns of hurdles to come for tech companies such as Apple (AAPL), and rewards for others amid shifting global supply chains.

As lead equity analyst Shawn Kim and his team explain, the pandemic exposed vulnerabilities in supply chains, driving companies to "re-shore" key manufacturing, or relocate to perceived friendlier countries.

Take the semiconductor sector, where U.S. and China frictions have heated up in recent years. "Complete decoupling would resemble the 1980s, when the competitive intensity between the U.S. and Japan in the semiconductor industry skyrocketed," said the analysts, who say limiting the flow of technology could slice 16% from the 2030 global information and communications technology market total addressable market.

The meat of this report talks about what's in store for specific companies, and what investors should know, broken down by those potentially at risk and those that could benefit. Here's the at-risk list:

As for those potential beneficiaries:

Last word from the analysts at Morgan Stanley: "It will take many years to shift the supply chain, and the U.S. will remain dependent on China in many areas. However, investing in the technology sector now requires a change in thinking to navigate the economic implications of multipolarization. Investors need to consider the broad investment themes associated with geopolitical risks rather than just taking a bottom-up view."

https://www.morningstar.com/news/marketwatch/2023050273/more-than-90-of-apples-production-is-still-in-china-why-morgan-stanley-says-thats-a-problem

Pfizer beats profit estimates as new drugs offset COVID products slump

 Pfizer Inc on Tuesday beat analysts' estimates for first-quarter profit as strong demand for its recently acquired products and pneumococcal vaccines helped offset the impact from declining sales of its COVID-19 products.

The drugmaker is under pressure to spend the windfall gains from strong demand for its COVID products during the pandemic to mitigate a looming patent cliff for some of its top drugs, as well as a steep decline in COVID-related sales.

Pfizer expects 2023 to be a "transition year" for its COVID products, before potential returning to growth in 2024.

Sales of its COVID-19 vaccine Comirnaty and antiviral treatment, Paxlovid, came in at $7.1 billion for the quarter.

Sales from its family of pneumococcal vaccines were $1.59 billion for the quarter, slightly above estimates of $1.58 billion, according to Refinitiv estimates.

Shares of the company rose nearly 2% before the bell.

Excluding items, the U.S. drugmaker earned $1.23 per share for the quarter ended March 31, compared with estimates of 98 cents, according to Refinitiv estimates.

The drugmaker reaffirmed its annual profit forecast of $3.25 to $3.45 per share.

https://finance.yahoo.com/news/pfizer-beats-profit-estimates-strong-105128844.html

Sage Update and Results

 New Drug Application (NDA) for zuranolone in the treatment of Major Depressive Disorder (MDD) and Postpartum Depression (PPD) under priority review by U.S. Food and Drug Administration (FDA) with a PDUFA date of August 5, 2023

Sage and Biogen progressing key commercial preparations to support a potential launch of zuranolone in late 2023, following DEA scheduling period, if approved and expected timelines are met

Continued progress across pipeline with nine studies advancing across neuropsychiatry and neurology

Data demonstrating severe economic burden associated with depression presented at the Academy of Managed Care Pharmacy and The Professional Society for Health Economics and Outcomes Research

https://finance.yahoo.com/news/sage-therapeutics-announces-first-quarter-103000882.html

Pfizer Q1 results

 

• First-Quarter 2023 Revenues of $18.3 Billion

  • Expected Decline in Comirnaty(1) Revenue Drove 26% Operational Decrease in First-Quarter 2023 Revenues

  • First-Quarter 2023 Revenues from Comirnaty(1) and Paxlovid of $7.1 Billion

  • Excluding Contributions from Comirnaty(1) and Paxlovid, Revenues Grew 5% Operationally

• First-Quarter 2023 Reported Diluted EPS(2) of $0.97, a Year-Over-Year Decline of 29%, and Adjusted Diluted EPS(3) of $1.23, a Year-Over-Year Decline of 24%

• Pfizer Reaffirms Full-Year 2023 Financial Guidance(4)

• Pfizer Continued to Make Significant Progress Toward an Unprecedented Number of Anticipated New Product and Indication Launches; Milestones Include FDA Approvals for Zavzpret, Cibinqo for Adolescents and Prevnar 20 in Pediatric Patients

https://finance.yahoo.com/news/pfizer-reports-first-quarter-2023-104500937.html