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Wednesday, April 3, 2024

How lame was Joe Biden in his latest call with Xi Jinping?

 President Biden informed his Chinese counterpart, Xi Jinping, of the US position on several issues during a call Tuesday, the White House said; Xi’s response was essentially, “F-U.”

No, Xi didn’t use those exact terms.

But close enough.

Biden emphasized the importance of “peace and stability across the Taiwan Strait,” “the rule of law and freedom of navigation in the South China Sea” and America’s “commitment” to denuclearizing North Korea, the White House reported.

And he raised “concerns” over climate change, China’s “support for Russia’s defense industrial base” and its “unfair trade policies,” etc., etc.

Yet Xi, per Beijing’s readout afterward, “stressed” that Taiwan was a “red line that must not be crossed.”

He threatened that, “in the face” of (supposed US) efforts to encourage Taiwan independence, “China is not going to sit on its hands.”

Xi accused Washington of adopting “a string of measures to suppress China’s trade and technology development” and slapping “Chinese entities” with sanctions — which is “creating risks.”

If Washington insists “on containing China’s high-tech development and depriving China of its legitimate right to development,” Xi lectured Biden, “China is not going to sit back and watch.”

Indeed, the two nations could “slide into conflict.”

The Chinese account paints Biden as defensive, saying he reiterated the US objective “not to change China’s system” and that Washington doesn’t support “Taiwan independence” but rather “follows the one-China policy.”

Which side’s “readout” is more accurate?

Consider their respective records of action.

China provokes Taiwan incessantly, sends fentanyl ingredients to Mexico, utterly abandons its treaty promises to let freedom ring in Hong Kong, deploys spy balloons over America, aids Russia in its war on Ukraine, claims the South China Sea is its territory, pumps ever more carbon into the air despite John Kerry’s pleas . . . 

The list is positively endless.

Biden, meanwhile has taken not one meaningful public step that’s led to China to stand down: The White House didn’t even let Americans know about the spy balloon until regular citizens spotted it.

Maybe Beijing has damning dirt on the Biden family’s multimillion-dollar “business” dealings in China, or perhaps the president plays rabbit simply because he always fears overseas “escalation.”

Whether it’s words or actions, the bottom line remains: Xi bullies, and Biden just blathers.

https://nypost.com/2024/04/02/opinion/dont-count-on-joe-bidens-call-with-chinas-xi-jinping-to-do-any-good/

Lake Street Capital Boosts Envoy Medical (NASDAQ:COCH) Price Target to $6

 Envoy Medical (NASDAQ:COCH - Get Free Report) had its target price boosted by research analysts at Lake Street Capital from $3.00 to $6.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Lake Street Capital's price target would indicate a potential upside of 23.97% from the stock's current price.

https://www.marketbeat.com/instant-alerts/nasdaq-coch-boost-price-target-2024-04-03/

Atai upped to Buy from Hold by Maxim

 Target $6

https://finviz.com/quote.ashx?t=ATAI&p=d

Asensus: KARL STORZ to provide up to $20 m in bridge financing

  Asensus Surgical, Inc. (NYSE American: ASXC) (“Asensus” or the “Company”), a medical device company that is digitizing the interface between the surgeon and the patient, today announced that it has entered into a non-binding letter of intent (the “letter of intent”) with KARL STORZ SE & Co. KG, an independent, family-owned global medical technology company (“KARL STORZ”) to engage in diligence and negotiations regarding the terms of a potential transaction whereby KARL STORZ may acquire Asensus. Entry into the letter of intent follows an extensive period of consideration of various strategic alternatives by Asensus, including potential collaboration and licensing transactions, a go-it-alone strategy dependent upon raising significant additional equity capital, a sale of the Company and other potential business development transactions.

The Company’s Board of Directors has approved entry into the letter of intent, which includes KARL STORZ’ proposal to acquire 100% of the issued and outstanding shares of Asensus’ common stock for a purchase price of $0.35 per share in cash. This represents a 66.7% premium to the closing price of Asensus common stock on the NYSE American exchange on April 2nd, 2024. KARL STORZ has communicated that the proposed purchase price represents its “best and final” offer to the Company.

The letter of intent provides that during an exclusivity period of up to ten weeks Asensus will not engage in negotiations for alternative transactions. During the exclusivity period, KARL STORZ will be conducting diligence and the parties will be negotiating a definitive merger agreement. Both the Company and KARL STORZ have the option to terminate pursuit of the proposed transaction. In conjunction with the letter of intent, Asensus has entered into a fully secured Promissory Note (the “Bridge Loan”) with KARL STORZ. The Bridge Loan will enable Asensus to receive a loan of up to $20 million from KARL STORZ to support the Company’s operations through the exclusivity period, signing of a definitive merger agreement, if any, and close of the proposed transaction, if the proposed transaction proceeds and is approved by stockholders.   The Bridge Loan will provide up to $10 million of liquidity during the exclusivity period. If a definitive merger agreement is successfully negotiated and executed, additional funding in an aggregate amount of up to $10 million will be available under the Bridge Loan to fund operations while the Company pursues stockholder approval. Today the Company is filing a Current Report on Form 8-K to describe the Bridge Loan transaction, including the security interests being provided.

Asensus and KARL STORZ plan to work diligently during the exclusivity period to negotiate and finalize a definitive merger agreement. If a definitive merger agreement is entered into, Asensus will work expeditiously to secure stockholder approval of the transaction and to close the transaction in accordance with the terms of the definitive merger agreement.

A Transaction Committee of the Board of Directors has been formed to consider the terms of a definitive merger agreement and to make a recommendation to the full Board of Directors for approval prior to execution of any definitive merger agreement and submission of the proposed transaction to stockholders for a vote.

https://www.globenewswire.com/news-release/2024/04/03/2856954/0/en/Asensus-Surgical-Inc-Announces-Non-Binding-Acquisition-Proposal-and-Exclusivity-Arrangement-with-KARL-STORZ-SE-Co-KG.html

Ligand to Launch of Pelthos Therapeutics to Aid Commercialization of Skin Virus Med

 Ligand Pharmaceuticals (Nasdaq: LGND) today announced the launch of Pelthos Therapeutics (Pelthos), a biopharmaceutical company, and the appointment of seasoned industry executive Scott Plesha to the role of Chief Executive Officer.

Pelthos is committed to commercializing innovative, safe, and efficacious therapeutic products to help patients impacted by diseases with limited treatment options. The company’s lead product is ZELSUVMI™ (berdazimer) topical gel, 10.3%, for the treatment of molluscum contagiosum (molluscum) in adults and pediatric patients one year of age and older.ZELSUVMI has received a Novel Drug designation from the U.S. Food and Drug Administration and is the first and only approved topical prescription medication that can be applied by patients, parents, or caregivers at home, outside of a physician's office, or other medical setting to treat this highly contagious viral skin infection. The product was developed using Pelthos’ proprietary nitric oxide-based technology platform, NITRICIL™. ZELSUVMI is expected to be available in the United States in late 2024.

Ligand acquired the rights to ZELSUVMI and all the assets related to the NITRICIL technology platform from Novan, Inc. in September 2023.

“ZELSUVMI is a highly differentiated product that we believe will bring significant improvements to the lives of patients living with tremendous unmet needs,” said Todd Davis, CEO of Ligand. “We are excited for the launch of Pelthos, the commercialization of ZELSUVMI, and the advancement of the company under Scott’s leadership.”

https://www.businesswire.com/news/home/20240403857451/en/Scott

FibroGen to meet FDA on Phase 1 prostate cancer with adverse events

 

  • FG-3246 demonstrated efficacy in adenocarcinoma selected cohorts receiving biologically active doses of FG-3246 at ≥ 1.2 mg/kg in heavily pre-treated, biomarker unselected patients:
  • Median radiographic progression free survival of 8.7 months
  • PSA50 response in 36% of patients
  • Confirmed radiographic objective response rate of 20%, with a median duration of response of 7.5 months
  • FG-3246 demonstrated an acceptable safety profile; adverse events consistent with those observed in other antibody drug conjugate therapies with a MMAE payload
  • Company plans to meet with the U.S. Food and Drug Administration (FDA) to discuss development pathway; Phase 2 initiation is anticipated in 2H 2024

WTF Is Going On With Services PMI Prices-Paid?

 Following the mixed picture on Manufacturing PMIs (ISM up, S&P Global down), but strong impulse in prices in both surveys; today's Services PMIs offered no more clarity at all...

  • S&P Global's Services PMI printed 51.7 final for March (flat to the flash print) but down from February's 52.3 - that is the lowest Services print since December
  • ISM's Services PMI disappointed, printing 51.4 in March from 52.6 in February (and below 52.8 exp).

So both weak at the headline level (which fits with recent weakness in 'soft' survey data).

Source: Bloomberg

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

"The US service sector reported a further rise in business activity in March, adding to signs that the economy enjoyed robust growth in the first quarter. Combined with an acceleration of growth in the manufacturing sector, the latest services PMI data point to GDP having risen at an approximate 2% annualized rate in the first three months of the year.

"Confidence in the outlook for the coming year has also lifted higher, which should help to sustain solid growth into the second quarter.

But there is a major problem looming for Powell and his pals...

"The sustained upturn is being accompanied by renewed upward price pressures, however, with wage growth in particular driving costs higher.

Rising raw material and fuel prices are also adding to cost burdens, which is in turn driving average selling prices for goods and services higher at a rate not seen since July of last year.

Both manufacturers and services providers alike are seeing intensifying cost and selling price inflation rates, which is likely to feed through to higher consumer price inflation in the near term."

That surge in prices fits with a resurgent trajectory for wage growth (from ADP) but, as always, the data is there to baffle you with bullshit.

The ISM Service Prices Paid print plunged to 53.4... the lowest since March 2020...

So, take your pick: either Services prices are rising at the fastest pace since July (S&P Global)... or they are rising at the slowest pace since March 2020 (ISM).

Does this sound like prices are plunging?

Continued inflationary pressure across multiple clinical device categories as contracts expire or are renewed.” [Health Care & Social Assistance]

"Public opinion on the value of higher education compared to the cost is having an impact on our enrollment.” [Educational Services]

Oh and if Prices are plunging, why are barely any of the components down in price?

And then there's manufacturing prices (which ISM sees rising)...