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Wednesday, August 2, 2023

AmerisourceBergen forecasts upbeat annual profit as weight-loss drugs lift results

 Drug distributor AmerisourceBergen raised its full-year profit forecast on Wednesday, as soaring demand for weight-loss drugs and specialty medicines helped soften the blow from a fall in COVID-related drug sales in the third quarter.

Weight-loss drugs have seen overwhelming demand in the United States where more than 40% of the population grapples with obesity, according to government data.

The company now expects 2023 adjusted earnings in the range of $11.85 to $11.95 per share, compared with its prior forecast of $11.70 to $11.90 per share. Analysts were expecting an annual profit of $11.86 per share, according to Refinitiv data.

On an adjusted basis, AmerisourceBergen earned $2.92 per share in the third quarter, beating estimates of $2.82.

The company also said it will change its name to Cencora effective Aug. 30.

AmerisourceBergen has been looking to diversify its specialty services, through which it distributes branded, specialty and generic drugs apart from over-the-counter healthcare products.

The Pennsylvania-based company acquired a minority stake in OneOncology for around $685 million in April, adding a network of cancer specialists to its portfolio of physician management services.

AmerisourceBergen reported U.S. revenue of $59.9 billion in the third quarter, up over 12% from a year earlier. Analysts had expected $57.58 billion.

Total sales came in at $66.95 billion, beating estimates of $63.95 billion.

https://finance.yahoo.com/news/amerisourcebergen-forecasts-upbeat-annual-profit-113542191.html

GSK sues Pfizer in US for patent infringement over RSV vaccine

 British biopharmaceutical giant GSK sued Pfizer in a U.S. court on Wednesday, alleging that Pfizer's respiratory syncytial virus (RSV) vaccine Abrysvo violates GSK's patent rights in its rival RSV shot Arexvy.

In the lawsuit brought in federal court in Delaware, GSK said New York-based Pfizer's vaccine infringes four of its patents related to the antigen its shots use to fight the respiratory disease.

Pfizer said in a statement that it is "confident in its intellectual property position" and will "strongly defend" its right to bring Abrysvo to patients.

Both vaccines were approved by the U.S. Food and Drug Administration in May for use in adults over age 60. They are the first vaccines approved to prevent RSV, which causes around 14,000 deaths in adults 65 and older in the United States annually, according to government estimates.

Pfizer and GSK are running a tight race to tap into the RSV vaccine market, which could exceed $10 billion by 2030, according to analysts. The vaccines are part of both companies' strategies to replace aging drugs that will face cheaper generic competition.

A GSK spokesperson said in a statement that intellectual property protections are the "foundation of research-based companies' ability to drive innovation," and that the lawsuit should not affect GSK's ability to launch Arexvy.

GSK said in the lawsuit that Pfizer began working on its RSV program as early as 2013, at least seven years after GSK. The lawsuit said Pfizer knew of GSK's patented technology since at least 2019, when it began challenging the validity of European versions of the patents.

https://finance.yahoo.com/news/gsk-sues-pfizer-us-patent-133328693.html

Fitch highlighted Jan. 6 insurrection in talks with Treasury ahead of US downgrade

 Fitch made its decision to downgrade the U.S. credit rating due to fiscal concerns and a deterioration in U.S governance as well as polarization which was reflected in part by the Jan. 6 insurrection, Richard Francis, a senior director at Fitch Ratings, told Reuters on Wednesday.

In a move that took investors by surprise, Fitch downgraded the United States to AA+ from AAA on Tuesday, citing fiscal deterioration over the next three years and repeated down-to-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills.

The agency based its decision in part due to a perceived deterioration in U.S. governance, which it said gave less confidence in the government’s ability to address fiscal and debt issues, Francis said.

That deterioration, as well as increased polarization in the country’s political climate, was reflected in the Jan. 6 insurrection, which the agency highlighted in discussions with the Treasury. Fitch held meetings with Treasury ahead of the downgrade.

"It was something that we highlighted because it just is a reflection of the deterioration in governance, it's one of many," he said.

"You have the debt ceiling, you have Jan. 6. Clearly, if you look at polarization with both parties ... the Democrats have gone further left and Republicans further right, so the middle is kind of falling apart basically," Francis said.

The move made Fitch the second major rating agency after Standard & Poor’s to strip the United States of its triple-A rating.

Fitch’s call drew criticism from U.S. Treasury Secretary Janet Yellen, who called it "arbitrary and based on outdated data."

https://finance.yahoo.com/news/exclusive-fitch-decision-cut-u-135117483.html

Syneos Holders Approve Agreement with Private Investment Consortium

 Syneos Health, Inc. (Nasdaq: SYNH) (“Syneos Health” or the “Company”), a leading fully integrated biopharmaceutical solutions organization, today announced that the Company’s stockholders approved an agreement to take the Company private through an acquisition by a consortium of private investment firm affiliates comprised of Elliott Investment Management L.P., Patient Square Capital, and Veritas Capital at a special meeting of stockholders held earlier today. As previously announced, under the terms of the agreement, Syneos Health stockholders will receive $43.00 in cash for each share of Syneos Health common stock owned at the closing of the transaction, if completed.

https://finance.yahoo.com/news/syneos-health-stockholders-approve-agreement-124700540.html

Illinois college ordered to pay Christian student $80K for silencing conservative views

 An Illinois college has settled with a conservative, Christian art student who claimed the school censored her speech and discriminated against her after complaints from classmates.

As part of the settlement won by Alliance Defending Freedom (ADF), three professors at Southern Illinois University Edwardsville (SIUE) will take mandatory training related to free speech on college campuses.

The settlement also stipulates that SIUE officials must revise their student handbook and policies to "ensure students with varying political, religious and ideological views are welcome in the art therapy program."

Officials also must pay $80,000 to dismiss the lawsuit successfully.

The court victory came just over a year after student Maggie DeJong received three "no-contact orders" from the school that prevented her from having direct or indirect communication with three students, who claimed her political viewpoints constituted "harassment" and "discrimination."

DeJong previously told "Fox & Friends First" that she routinely participated in class discussions on contentious topics such as race relations, religion, COVID-19 and censorship, typically offering a conservative perspective.

As her three-year graduate program drew to a close, DeJong received the no-contact order after her classmates had objected to social media posts she had made on abortion and defunding the police.

ADF Senior Counsel Tyson Langhoffer said DeJong upset classmates by defending Kyle Rittenhouse and denouncing critical race theory, eventually leading to the university-imposed orders that prohibited her from fully participating in class discussions.

The university also asked her peers to report her for "harmful rhetoric" and issued the orders without first allowing DeJong to defend her position, according to ADF.

University officials have since agreed to revise their policies to ensure students have "substantive and procedural protections" from no-contact orders.

Speaking with Fox News Digital, SIUE directed the news outlet to a statement from Chancellor James T. Minor, who urged people to "see beyond the sensationalism of clickbait, media reports and headlines in search of a more complete understanding of the facts."

In the statement, he affirmed that SIUE is "unequivocally committed to protecting First Amendment rights and does not have policies that restrict free speech nor support censorship."

"For decades, universities have embraced the challenge of vigorously protecting free speech while at the same time creating a safe learning environment for the expression of diverse views. Protecting these two principles can create tensions. For example, while the First Amendment protects free speech (no matter how offensive), it does not protect behavior on a campus that creates a pervasively hostile environment for other students. We accept that balancing these two deeply valued principles of free speech and a safe environment, in real-time, represent inherent complications for administering prudence," he added.

Minor also said this "delicate balance" invites debate about where such a "line should be drawn" in each unique case that in today’s world also typically involves social media.

In a Thursday press release, ADF Legal Counsel Mathew Hoffmann said, "Public universities can’t punish students for expressing their political and religious viewpoints. Maggie, like every other student, is protected under the First Amendment to respectfully share her personal beliefs, and university officials were wrong to issue gag orders and silence her speech."

Hoffman, in a statement to Fox News Digital, said: "Universities cannot censor students because of their religious or political views. But the University did just that by issuing unconstitutional no-contact orders against Maggie. This settlement helps ensure that what happened to Maggie will not happen to any other student. We are hopeful that this free speech victory opens universities to what they should be — marketplaces of ideas, not echo chambers for one ideology."

Contentious lawsuits involving Christian students and university officials have cropped up numerous times in the last several years. 

In April, America First Legal announced it had filed a lawsuit against County College of Morris (CCM) and its Dean of Students after a student was allegedly suspended by the New Jersey school for "hate speech" by citing religious scripture. 

https://www.foxnews.com/media/illinois-college-ordered-pay-christian-student-80k-silencing-conservative-views.amp

Wells Fargo, Bank of America to pay FDIC up to $3.7 b combined for bank failure special assessment

 Wells Fargo & Co. (WFC) said it will pay up to $1.8 billion to the Federal Deposit Insurance Co.'s deposit insurance fund as part of the government's special assessment following the regional-bank crisis earlier this year. Wells Fargo said it will expense the entire amount upon the FDIC's finalization of the rule. "The proposed rule may be changed prior to finalization and any changes may affect the timing or amount of the special assessment," Wells Fargo said in a filing late Tuesday. Bank of America Corp. (BAC) estimated its cost for the same effort would be $1.9 billion, according to a Monday filing.

https://www.morningstar.com/news/marketwatch/20230802339/wells-fargo-bank-of-america-to-pay-fdic-up-to-37-billion-combined-for-bank-failure-special-assessment

Carlyle Group stock drops after firm posts loss amid 'complex' economic backdrop

Carlyle Group Inc. (CG) stock was down 6.4% in premarket trades on Wednesday after the private equity firm swung to a second-quarter loss. Carlyle Group (CG) said it lost $88.4 million, or 27 cents a share, in the three months ended June 30, while in the year-ago quarter it reported net income of $245.4 million, or 67 cents a share. Second-quarter revenue fell to $462.1 million from $1.05 billion. Second-quarter distributable earnings totaled 88 cents a share, ahead of the analyst estimate of 67 cents a share. Fee-related earnings fell 12% to $207 million. Assets under management increased by 1% from the prior quarter to $385 billion. The firm's quarterly loss was driven by a $104 million investment loss related to its interest in Fortitude Re, a reinsurance business. CEO Harvey Schwartz said, "While the economic backdrop remains complex, and investor sentiment remains mixed, the peak of the inflation cycle may have passed." Schwartz said Carlyle Group is "cautiously optimistic" that activity levels will accelerate.