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Wednesday, January 22, 2025

Queens locals beg federal immigration authorities to end ‘lawlessness’ by homeless migrants

 Queens locals fed up with the conditions along Roosevelt Avenue are hoping the new Trump administration will help “clean up” the area besieged by crime they say has been committed by homeless migrants.

A group of residents, including ex-Democratic state Sen. Hiram Monserrate, penned a letter Tuesday to President Trump’s border czar Tom Homan, requesting federal assistance after claiming state and local leaders weren’t doing enough to improve safety.

“The situation here in Corona, Jackson Heights and Elmhurst is outrageous,” read the letter to Homan, who’s been tasked by Trump to oversee a mass deportation operation.

“Over the past seven months our community has risen up to confront a wave of lawlessness in our community that landed here about a year and a half ago.”

Queens residents in Corona begged for federal intervention Tuesday to help improve their communities.Paul Martinka

The Roosevelt Avenue corridor has faced homelessness and ongoing lawlessness by dozens of migrants, including drug dealing, harassment and theft, as well as lesser crimes like drinking in the open, littering and public urination, locals said during a Tuesday press conference.

There have been instances of assault and also a series of brothels that have destroyed residents’ sense of safety and their quality of life, community leaders added.

The problems have long plagued the corridor and surrounding areas, which has been chronicled in The Post.

One barber shop even closed down because 50 homeless people set up in front of the storefront, making it impossible for the business to survive.

“They couldn’t compete with the vagrants because the barbers would have 10-20 vagrants using drugs and drinking right here,” Monserrate said of Los Primos Barber Shop where the press conference took place in front of.

Locals say migrants have hurt the quality of life in the area.Paul Martinka

“This should not be happening anywhere in America, much less Queens County,” he added.

A tiny park in Corona, The American Triangle, is also blocked off, community advocates pointed out.

“Take a guess why it’s barricaded? Because the vagrants were using it as their home and bathroom. They took the triangle away from our community and the police were not capable of removing them…so we barricaded it,” the former pol said.

“Can you imagine that the triangles in our community have to be barricaded to keep us safe from the vagrants?”

Monserrate, who was expelled from the state senate in 2010 after he was convicted of a misdemeanor assault charge involving his ex-girlfriend, said he and other activists want the Department of Homeland Security to visit their neighborhoods to “determine the level of criminality and take action as they deem appropriate,” including deportation.

Advocates want federal officials to descend on the area.Paul Martinka

The letter by Monserrate, now a Democratic district leader in the area, and Mauricio Zamora, of community group Neighbors of the America Triangle, is making a direct plea to the feds because sanctuary city laws prevent local authorities from working with Immigration and Customs Enforcement.

While the city and state have added more cops in the community, it hasn’t resolved the issues afflicting the corridor, according to the letter.

Zamora said Tuesday he and his neighbors don’t oppose immigration.

The neighborhood has been besieged with crime and gross behavior.Paul Martinka
“I am an immigrant, but these people do damage and harm to the community,” he said, adding women have to cross the street because they know they’ll be harassed.

“I’ve been living in this community for a long time and I do not feel safe,” longtime Corona resident Toni Diaz also said. “We need, we want the federal government to come here and clean up our area.”

https://nypost.com/2025/01/21/us-news/ny-locals-plead-immigration-authorities-to-help-clean-up-roosevelt-avenue-corridor/

J&J guidance disappoints

 Johnson & Johnson (JNJ) beat on fourth quarter and full-year 2024 results, but its stock traded down on Wednesday morning to about $143 per share.

Several negative impacts were highlighted in the look-back and look-ahead on an earnings call, despite the company beating Wall Street expectations on revenue by $70 million and reporting results on earnings per share in line with estimates.

J&J reported total sales of $88.8 billion for 2024, up 4.3% compared to 2023. That includes slowing COVID-19 vaccine sales — a theme other vaccine makers are expected to see with a slower start to the respiratory virus season this year.

The company reported earnings per share of $5.79 for 2024, up 11% year over year.

Meanwhile, fourth quarter earnings were mixed, with $22 billion in sales, up 5.3% year over year, and earnings per share down 17% from the prior year at $1.41.

But the good news is somewhat tempered by the ongoing talc case, which has weighed on its growth potential. A lawsuit in Texas is set to begin hearings on Feb. 18 and last up to a month thereafter.

"From there, the company anticipates the plaintiff lawyers to appeal this decision (if positive) to the 5th circuit in Texas, which was noted as being potentially more favorable on the requirement of bankruptcy (with the added difference of this being a pre-packaged bankruptcy)," JPMorgan analysts wrote in a recent note to clients.

Ahead of earnings, Bank of America Securities analysts lowered their price target for the company for 2025 from $166 per share to $160 over ongoing concerns from the talc lawsuit.

In addition to the lawsuit, J&J anticipates some negative impact from foreign exchange for the year as well as slower medical device sales, with China's slowdown in procedures weighing on the company's potential revenues.

The company is transitioning into a competitive market, as generics launch for its blockbuster anti-inflammatory arthritis drug Stelara. The drug is also now facing pricing pressures from a newly negotiated price with Medicare, one of its largest customer bases.

Meanwhile, its growth in the fourth quarter came from its multiple myeloma drug, Darzalex, and several cancer drugs. The combined sales of the top six drugs totaled roughly $4.5 billion, or about 20% of revenues for the quarter.

Coherent Introduces Pin-Hole Array Biochips for Medical Diagnostics

 Coherent Corp. (NYSE: COHR), a global leader in laser and photonic solutions, today announces the launch of new pin-hole array biochips for medical diagnostics, with a focus on gene sequencing applications. Developed by the Coherent advanced optics team, this groundbreaking approach consolidates the entire production process, addressing key challenges in cost, efficiency, and supply chain management for professionals in the diagnostic field.

Pin-hole array biochips are indispensable tools in applications such as medical diagnostics, disease prediction, clinical treatment, drug development, and food safety testing. The increasing demand for biochips that combine precision, reliability, and scalability underscores the strategic importance of the advanced optics platform.

Coherent prompted the highly integrated approach from custom wafer processing, Cr patterning, advanced semiconductor photolithography, and high-precision assembly in house.

https://www.globenewswire.com/news-release/2025/01/22/3013373/11543/en/Coherent-Introduces-Pin-Hole-Array-Biochips-for-Medical-Diagnostics.html

Abbott Labs 4Q Sales Underwhelm Amid Diminished Demand for Covid-19 Related Sales

 Abbott Laboratories posted lower-than-expected sales in its latest quarter, dented in part by diminished demand for Covid-19 testing-related products.

The healthcare-products manufacturer logged fourth-quarter earnings of $9.23 billion, or $5.27 a share, compared to $1.59 billion, or $1.91 cents a share, a year earlier.

Stripping out certain one-time items, earnings came in at $1.34 a share. Analysts polled by FactSet expected $1.33 a share.

Sales rose 7.2% to $10.97 billion from $10.24 billion. Analysts polled by FactSet expected $11.03 billion.

Excluding Covid-19 testing-related sales, Abbott said sales grew around 10%.

"Sales growth and earnings per share growth in the fourth quarter were the highest of the year," said Chief Executive Robert Ford.

Abbott forecast adjusted earnings per share in the first quarter to come in between $1.05 and $1.09. Analysts polled by FactSet expect $1.11 a share.

For full-year 2025, the company forecast organic sales growth between 7.5% and 8.5% as well as adjusted earnings per share in the range of $5.05 and $5.25. Analysts polled by FactSet expect $42 billion in sales and adjusted earnings of $5.16 a share.

https://www.morningstar.com/news/dow-jones/202501223612/abbott-labs-4q-sales-underwhelm-amid-diminished-demand-for-covid-19-related-sales

Almost 5 Years into $5B Galapagos Partnership, Gilead Execs Start Over With New Spinoff

 

Five years ago, Gilead signed a massive deal with Galapagos. After a restructuring, the pharma is still hunting for the potential it saw at the original signing.

Gilead had reached an inflection point with Galapagos. The original assets that had attracted the Big Pharma to sign a deal worth more than $5 billion in 2019 had failed. A new leadership team helmed by Johnson & Johnson alum Paul Stoffels was entrenching Galapagos into cell therapy, but Gilead already had this space covered with Kite Pharma, which it acquired in 2017 for nearly $12 billion. So a decision had to be made on how to move forward.

The long-term partners announced on January 8 the intention to separate Galapagos into two, leaving the emerging cell therapy pipeline in the hands of the original company and creating a new one with €2.45 billion ($2.5 billion) in capital to find new areas to pursue. Gilead is calling itself a “collaboration partner” with the new entity and will retain a 25% share in both companies.

“At the time, we were intrigued by their scientific platform,” Gilead CEO Daniel O’Day said of the original Galapagos deal at a reporter roundtable at the J.P. Morgan Healthcare Conference. “And like a lot of things that happen in the industry, many of their lead targets, you know, were not successful. We were at a stage with the new management in Galapagos where we needed to decide how to create the most opportunity for patients moving forward.”

Which leaves a key question. What has Gilead achieved for its money after four and a half years with Galapagos? The original option, license and collaboration agreement (OLCA) was split between a whopping $3.95 billion upfront and a $1.1 billion equity investment for 25% of the biotech.

Negotiating the split from the Gilead side was Chief Financial Officer Andy Dickinson, who said the goal was to use Galapagos’ remaining capital to create value for its shareholders—Gilead included. Dickinson contended that there is $2.5 billion in capital that isn’t being used to its fullest potential as Galapagos pursues its new pipeline.

“We really needed to have a focused management team and a separate board that is looking at driving additional acquisitions and partnerships, and by separating the companies, we can accomplish both of those,” Dickinson said at the JPM event. As for Gilead’s relationship with the spinoff company (referred to for now as SpinCo), the original partnership terms from the OLCA apply. As the new company brings on assets, the partnership will need to be renegotiated, the CFO explained.

“The simple takeaway is, it is a unique structure, we think elegant. It fits the circumstances and should allow us to drive additional value creation for both sets of shareholders over time.”

Put plainly, Gilead didn’t need what Galapagos was cooking up in cell therapy. When asked if there could have been some synergies between the two program, Kite Executive Vice President Cindy Perettie said the manufacturing strategy being pursued by Galapagos was not a match for what Gilead is doing with its approved products. Galapagos is using “point of care” production, which means setting up manufacturing hubs close to hospitals to improve turnaround time. But Kite is already getting Yescarta to patients in 14 days, which Perettie said is the fastest in the industry.

“We feel like right now we’ve got a situation where our turnaround times are nicely on par, and so we haven’t moved into the point of care space,” Perettie told reporters at the roundtable.

Gilead is giving up its rights to the cell therapy programs but still has a stake in those efforts with its 25% ownership, Dickinson clarified.

BioSpace, Annalee Armstrong

The Unknowns of the Split

Presenting at the J.P. Morgan conference, Galapagos’ management team described the complex transaction as a way to allow the original company to focus on its manufacturing platform and next-generation cell therapies. Galapagos will come away with enough cash runway to last into 2028, while SpinCo, expected to formally launch in mid-2025, will have enough capital to invest in one or more assets, CEO Stoffels said in his remarks, according to a transcript of the speech.

“Over the last few years, there have been significant advances in science, technology, clinical development of new medicines. But unfortunately, the capital markets have been very tight over this time period, leaving many companies struggling for financing,” said Galapagos CFO Thad Huston. “This has led some companies to have to sell off promising assets or search for strategic alternatives to further the development of their clinical programs.”

SpinCo emerges as a company with the funds to pick up those orphaned assets, Huston explained. “SpinCo, together with Gilead as our collaboration partner, will have significant cash to support the development of new biotech companies to help bring innovative therapies to patients all over the world facing high unmet medical needs.”

There’s a lot that is yet to be revealed about SpinCo—beyond its name—such as the management team and board that will lead it. Gilead will offer two representatives to the board, which is expected to have nine seats total with five independent members. Huston promised that the team in charge of the new company will be “very, very experienced in business development, obviously, drug development, and they’ll look for acquiring assets.”

Huston did suggest that “oncology, immunology and virology in other areas of high unmet need” will be the focus of the asset hunt, perhaps even “Phase II and beyond.” Pressed for more detail on what kind of transactions SpinCo could execute, Huston said gaining ownership of the assets through royalties or other means would be the goal.

“The team, I think, has with this capital, in this market condition, a tremendous opportunity to find more late-stage opportunities in the clinic,” Huston said.

Flashing back to 2019, O’Day had been CEO for just four months when the Galapagos partnership was announced. He professed confidence at the time that the partners would create value, describing this as a “one plus one equals three” kind of transaction. When asked why Gilead didn’t just buy Galapagos outright, O’Day explained that the goal was to keep Galapagos and its scientists independent but also, “We want to make sure that Gilead shareholders are protected with our investment.”

Executing on that protection in 2025 by helping to revamp the biotech it partnered with but did not acquire—along with its financial relationship with the resulting pair of companies—Gilead’s hunt for value goes on.

https://www.biospace.com/business/almost-5-years-into-5b-galapagos-partnership-gilead-execs-start-over-with-new-spinoff

David Beckham Vs Goliath

 By Michael Every of Rabobank

The world’s eyes remain fixed on the Goliath in Washington D.C.

President Trump now wants to urgently renegotiate the USMCA trade agreement with Canada and Mexico, which looming 25% tariffs are now also focused on: towards a further ring-fencing against transhipment from China, as seen with NAFTA > USMCA; or more US local content provision; or some kind of North American Union? In the economic statecraft toolkit ‘trade’ category that ticks the FTAs, tariffs, and non-tariff barriers boxes - and it may be getting results already: Korea Economic Daily reports Samsung and LG may move some home-appliance manufacturing from Mexico to the US.

Also on trade, Trump threatened additional 10% tariffs against China over fentanyl, as a warm-up for what will almost certainly be higher threatened tariffs over other issues. China is promising to buy more from the US to smooth relations. Again. Those who want to spend time fantasizing a ‘Farce Two Trade Deal’ are welcome to do so.

Within the economic statecraft ‘other’ category, fiscal policy opened a ‘tax war’. Trump ordered officials to investigate “whether any foreign countries are not in compliance with any tax treaty with the US or have any tax rules in place, or are likely to put tax rules in place, that are extraterritorial or disproportionately affect American companies”, and within 60 days to draw up retaliatory measures, including doubling the tax rate for foreign individuals and entities. This places the US in direct opposition to the OECD.

Trump also announced a $500bn ‘Stargate’ investment to maintain US AI supremacy, including in defence, and that he would like Elon Musk or Larry Ellison to buy TikTok and give 50% to the US government.  Where the Biden administration tried to break Big Tech up, Trump is taking the Chinese route in ensuring it works for US grand strategy.  

Moreover, newly sworn-in Secretary of State Rubio just communicated to all US diplomatic outposts that: “Every dollar we spend, every program we fund, and every policy we pursue must be justified with the answer to three simple questions" - Does the action make America safer, stronger, and more prosperous? Certain priorities will be replaced, certain issues deemphasized, and some practices we will cease altogether.” I had stressed that the key market question is now not “What is GDP?” but “What is GDP *for*?” Now we see what that ‘for’ is.

There are very few eyes on Davos, with empty seats, and awards being given to the footballer David Beckham and fashion designer Diane von Furstenberg, whose dresses retail for around $500.

Those who can ‘bend it’, real power, and real money are all in D.C., but we also heard from:

  • German Economy Minister Habeck, who warned Europe shouldn’t rely on US energy in case it blackmails it like Russia. Besides ensuring a trade war, the EU can then turn to Qatar, friendly with Iran and backing the Muslim Brotherhood, or to China’s green energy, and upstream-to-downstream supply chains that leave no upside for Europe. Habeck also stressed, “In a world in which we have to expect energy supply chains to be exploited for power politics, energy dependency is always a problem.” Which is why Germany turned off its nuclear plants. (And see our new report showing the green transition means higher EU inflation out to 2030.)

  • EU President Von der Leyen, who argued, “I believe that we must engage constructively with China – to find solutions in our mutual interest. 2025 marks 50 years of our union’s diplomatic relations with China. I see it as an opportunity to engage and deepen our relationship with China, and where possible, even to expand our trade and investment ties. It is time to pursue a more balanced relationship with China, in a spirit of fairness and reciprocity.” Is this the EU attempting to show the US it has options? It does – but bad and worse. If Europe thinks it can resist ‘America First’ by moving closer to China, it has a realpolitik lesson looming. Trump is merely mirroring Chinese policy. Moreover, reports of US “economic warfare” are desperately naïve about history: all Trump is doing so far is to act for the US in a zero-sum sense; if he wanted to actively move against Europe using economic statecraft, it would be devastating.

  • Ukrainian President Zelenskyy, who also had strong words for Europe: “Europe needs to learn how to fully take care of itself, so that the world can’t afford to ignore it… We need a united European security and defence policy, and all European countries must be willing to spend as much on security as is truly needed, not just as much as they’ve gotten used to during years of neglect. If it takes 5% of GDP to cover defence, then so be it, 5% it is." Or there is always the “slow agony” that Draghi promised, which could now be a lot faster, especially as “European competitiveness has one foot in the morgue,” as Nokia’s CEO warns.

Of course, in the Bible, little David slays mighty Goliath. That’s a long (sling) shot in 2025, requiring the deep, blind faith that only neoclassical economists retain. I would be strongly backing Goliath.

https://www.zerohedge.com/markets/david-beckham-vs-goliath

PJM Grid Declares "Max Generation Alert" As Polar Vortex Unleashes Mini Ice Age

 Global warming alarmists, such as Greta Thunberg, Al Gore, and the entire Democratic Party (and their far-left MSM cheerleaders), have been awfully quiet as parts of the Lower 48 experience what feels like a "mini ice age." 

A blizzard blanketed regions from Texas to Florida on Tuesday, while a polar vortex continues funneling Arctic air into the eastern half of the US, sending heating demand through the roof and placing power grids on high alert

PJM Interconnection, which coordinates the movement of wholesale electricity and ensures power supplies for 65 million people in all or parts of 13 eastern and Midwest US states and DC, issued a Level 1 emergency and "Maximum Generation Alert." 

PJM anticipates that electricity demand across its power grid footprint today will approach its all-time winter peak of 143,295 MW, last recorded on February 20, 2015.

The alert was issued ahead of "continued cold conditions" and "energy demand expected Wednesday and an increased amount of electricity being exported to neighboring regions, who are also experiencing the extreme winter weather," PJM wrote in a statement. 

"The alert also serves to notify neighboring regions that exports of electricity outside of the PJM footprint may need to be curtailed and they should plan accordingly," PJM explained. 

PJM added color to what a Level 1 alert means:

"When a grid operator foresees or is experiencing conditions where all available resources are committed to meet electricity load, firm transactions, and reserve commitments, and is concerned about sustaining its required contingency reserves," adding, "to notify external systems that sales may need to be recalled." 

According to Bloomberg data, the average Lower 48 temperatures have averaged well below a 30-year trend for much of January. 

"Over 40 million people are experiencing temperatures at or below 0ºF this morning, and 10 million are at or below -10ºF...incredible," private weather forecaster BAMWX meteorologist Kirk Hinz wrote on X. 

BAMWX forecasted "another blast of winter arrives to start February." 

As for the Mid-Atlantic region, Goldman warned late last year that new AI data centers were creating capacity constraints on the grid. 

Latest reporting on the polar vortex and energy markets:

Just how fragile are power grids? We'll find out this week. 

https://www.zerohedge.com/weather/pjm-grid-declares-max-generation-alert-polar-vortex-unleashes-mini-ice-age