Wall Street forecasts windfall for big US banks from Fed plan to ease leverage rule

 Large U.S. global banks can expect as much as $6 trillion in additional balance sheet capacity and billions in freed up capital under a Federal Reserve plan to relax leverage rules, Wall Street brokerages estimated on Thursday.

The U.S. Fed unveiled a proposal on Wednesday that would overhaul how much capital large global banks must hold against relatively low-risk assets, as part of a bid to boost participation in U.S. Treasury markets.

Shares of JPMorgan Chase (NYSE:JPM) advanced 1.3%, Morgan Stanley 1.2% and Goldman Sachs 1.6%, while Bank of America added 1% and Citigroup (NYSE:C) 1.5%. The S&P 500 Banks Index, which tracks large-cap U.S. lenders, rose 1.4%.

The plan, approved by a 5-2 Fed vote, marks the first in a possible series of deregulatory moves led by the central bank’s new vice chair for supervision, Michelle Bowman.

The proposal would reform the so-called "enhanced supplementary leverage ratio" so that the amount of capital banks must set aside is directly tied to how large a role each firm plays in the global financial system.

"SLR reform is the first of many capital proposals we expect over Michelle Bowman’s tenure," Morgan Stanley analysts led by Betsy Graseck wrote in a note. It forecast that the proposal could free up $185 billion for banks under its coverage.

TREASURY MARKET BOOST?

The supplementary leverage ratio requires banks to hold capital against all assets equally, including low-risk U.S. Treasuries - an approach critics said could discourage banks from holding government debt and limit their role in key funding markets.

Goldman Sachs analysts expects the rule change to free bank balance sheets by up to $5.5 trillion.

"The changes to the SLR calculation should increase the availability (and potentially lower the cost) of short-term, secured financing for market participants, improving liquidity in financial markets and the U.S. treasury market in particular."

Fed officials described the changes as a necessary fix to a rule introduced after the 2008 crisis, saying the leverage requirement had grown over time to occasionally limit bank activity, especially as government debt surged in recent years.

"The Fed’s proposal to calibrate eSLR should give the banking system meaningful capacity to expand its balance sheet in low-risk assets," analysts at brokerage Barclays said.

"It makes sense for banks to utilize the theoretical leverage capacity as long as the return from investing in low-risk assets/activity is sufficient," they said.

https://www.investing.com/news/stock-market-news/fed-plan-to-ease-leverage-rule-offers-windfall-for-big-us-banks-morgan-stanley-says-4113045

'Deals ‘restored identity’ of UK, PM says as trade plan unveiled'

 Prime Minister Sir Keir Starmer has said the trio of recent UK trade deals has “restored our identity” in a “volatile world”, as the Government laid out its new plan to better protect firms from rising threats to global trade.

Since Donald Trump’s tariff announcements in April, the UK has reached new agreements with the US, India and the EU.

Sir Keir said the deals showed “that even in this volatile world, Britain is proudly, unashamedly, defiantly even, open for business, and today’s trade strategy builds on that”.

The Government’s Trade Strategy aims to boost opportunities for UK businesses, particularly in the service sector, to export internationally, and vows to protect domestic firms from global threats to free trade.

It comes at a time of heightened uncertainty following Donald Trump’s tariff announcements in April, which have hiked charges on most US imports in a bid to boost home-grown production and support US businesses.

In the paper, ministers pledge to “confront the threat that protectionism poses to the UK by significantly upgrading our trade defence toolkit”.

US President Donald Trump (left) holding a UK-US trade deal with Prime Minister Sir Keir Starmer (Stefan Rousseau/PA)

This includes clamping down on unfair trading practices, such as the “dumping” of goods at low costs in foreign markets, which is believed to disadvantage domestic businesses.

In the wake of the tariff announcements, some British retailers raised concerns that Chinese products were being rerouted from the US and deposited on UK and European online marketplaces like Shein and Amazon.

Meanwhile, the strategy outlines measures to make it easier for UK firms to export, including reducing barriers to trading overseas and improving access to finance.

Sir Keir suggested he would pursue a series of small deals rather than solely focusing on major trade agreements with countries.

“But perhaps most importantly, in this uncertain and challenging world, we will also give ourselves new powers on trade defence,” he said.

“To make sure that if your businesses are threatened by practices like dumping, that we have the right powers to defend you.”

Business Secretary Jonathan Reynolds said the strategy would sharpen the UK’s trade defence (Stefan Rousseau/PA)

Business and Trade Secretary Jonathan Reynolds said: “The UK is an open trading nation but we must reconcile this with a new geopolitical reality and work in our own national interest.

“Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before.”

In the plan, the Government pledged to introduce new laws to expand its power to respond to unfair trade practices, guarding under-threat sectors such as steel.

Mr Reynolds said that a “central problem is a lot of global overcapacity, mainly coming from China, and some associated countries” in relation to steel production.

“If we want a steel industry in any Western European economy we’ve got to take appropriate measures to defend that,” he said.

“We obviously have a relatively smaller steel industry… I’m doing some work on that to make sure it doesn’t get any smaller.”

The Government has said it wants to hear from steel producers and businesses across the supply chain about how future trade measures and safeguards should be shaped.

Mr Reynolds stressed that leaders would “not sit by idly while cheap imports threaten to undercut UK industry”.

https://uk.finance.yahoo.com/news/trio-trade-deals-restored-identity-101257079.html

Pfizer's Hympavzi Hits Key Goals in Hemophilia With Inhibitors

 Pfizer said a late-stage study of its Hympavzi hemophilia drug met its key goals in patients with the blood-clotting disorder who have inhibitors that can render some treatments ineffective.

Pfizer on Thursday said the Phase 3 study of Hympavzi in patients 12 and older with hemophilia A or B with inhibitors met its primary endpoint and key secondary bleeding endpoints, showing a statistically significant and clinically meaningful reduction in annualized bleeding rate compared to on-demand treatment.

The New York drugmaker said it plans to discuss the study data with regulatory authorities with the goal of initiating regulatory filings.

Pfizer said about 20% of people with hemophilia A and 3% of those with hemophilia B are unable to continue taking factor replacement therapies because they develop inhibitors, or antibodies, that neutralize the therapies.

Hympavzi, a once-weekly subcutaneous treatment, is already approved in the U.S. and Europe for patients living hemophilia A or B without inhibitors.

https://www.morningstar.com/news/dow-jones/202506263367/pfizers-hympavzi-hits-key-goals-in-hemophilia-with-inhibitors

Boston Scientific exceeds analysts' estimates for seven straight quarters

 Boston Scientific has kicked off 2025 with impressive momentum, highlighted by strong financial results and strategic partnerships. The company's latest earnings report reveals substantial growth in revenue and profit, fueled by innovative medical devices and expanded market reach. Notably, revenues exceeded analysts' expectations for the seventh straight quarter. Its Q1 25 results led to the stock rising, prompting analysts to increase their target prices.

Boston Scientific Corporation, established in 1979, is dedicated to the development and manufacturing of medical devices across various fields such as cardiology, endoscopy, urology, peripheral interventions, and neuromodulation. Its primary aim is to create innovative products that enhance patient care, ensuring better clinical outcomes and patient safety. The company offers technologies that support procedures for heart disease, chronic pain, and several other conditions requiring minimally invasive treatments. The company has around 53,000 employees.

Boston Scientific operates within two main segments: Cardiovascular and MedSurg. In FY 24, the Cardiovascular segment accounted for 64.2% of total sales, with Cardiology contributing 49.8% and Peripheral Interventions adding 14.4%. The MedSurg segment made up 35.8% of total sales, with Endoscopy representing 16%, Urology 13.1%, and Neuromodulation 6.6%. Geographically, the company's revenue distribution is as follows: the US (61%), Europe/Middle East/Africa (19.3%), Asia/Pacific (16%), and Latin America/the Caribbean (3.7%).

Analysts adjust target prices

Boston Scientific released its Q1 25 results on April 23, 2025, with revenue up 20.7% y/y, reaching $4,660m, driven by increased market penetration and advanced medical devices and technologies. Operating income rose by 35.2% to $937m, with margins expanding by 215bp to 20.1%. Net profit increased by 36.4% to $674m. Notably, the company marked the seventh consecutive quarter surpassing analyst revenue expectations. Following the announcement, the stock experienced a 4% uptick. In response, Jefferies adjusted its stock price target to $125, while Leerink Partners raised theirs to $118.

Strategic agreement

Boston Scientific has entered into an agreement with Bittium to acquire electrocardiogram (ECG) measuring devices for monitoring cardiac arrhythmias. The deal, worth between $30m and $45m, depending on its scope and implementation, will see revenue recognized gradually from 2025 to 2028. In addition, Boston Scientific and Bittium Biosignals will continue their collaborative efforts in the joint development of customized ECG technologies, further enhancing our capabilities in cardiac care.

Notable improvement in ROE

Boston Scientific has posted a strong revenue CAGR of 12.1% over FY 21-24, reaching $16.8bn, driven by product portfolio enhancement through innovative medical devices. Operating income rose at a CAGR of 18.1% over the same period to $3bn in FY 24, with margin expanding by 103bp to 17.9%. Net income rose at a CAGR of 21.2% to $1.9bn in FY 24.

Strong performance led cash from operations to rise from $1.9bn to $3.4bn over the last three years (FY 21-24). Total debt increased from $9.5bn to $11.2bn by end-FY 24. Consequently, the gearing ratio improved from 57.3% to 51%. Moreover, ROE improved from 6.5% to 8.9% in FY 24.

In comparison, the company’s local peer Intuitive Surgical, Inc., rose with a revenue CAGR of 13.5% over FY 21-24, reaching $8.4bn in FY 24. Operating income grew at a CAGR of 9.2% to $2.4bn. Net income rose at a CAGR of 10.9%, reaching $2.3bn.

Looking ahead, analysts anticipated revenue CAGR of 12.2% over FY 24-27, reaching $23.7bn. In addition, analysts expect EBIT CAGR of 14.2% to $6.7bn, with margins expanding 146bp to 28.5% in FY 27. Net income CAGR of 30.5% to $4.1bn. Likewise, analysts estimate an EBIT CAGR of 15.3% and a net profit CAGR of 13.1% for Intuitive Surgical.

Promising analyst ratings

Over the past year, the company's stock has delivered impressive returns of approximately 35.7%, thanks to a strong earnings trajectory. In comparison, Intuitive Surgical’s stock delivered lower returns of about 21.9% over the same period.

Boston Scientific is currently trading at a P/E of 54.3x, based on FY 25 estimated EPS of $1.9. This is lower than its 3-year historical average of 76.2x and Intuitive Surgical’s valuation of 74.5x. Likewise, the company is currently trading at an EV/EBIT multiple of 30x, based on FY 25 estimated EBIT of $5,393m, which is lower than its 3-year historical average of 26.4x and that of Intuitive Surgical (54.5x).

Boston Scientific is almost universally liked by 34 analysts; 23 of them have ‘Buy’ ratings, eight of them have ‘Outperform’ ratings and three have ‘Hold’ rating, with an average target price of $117.6, implying 12.9% upside potential.

Overall, the company reported strong Q1 25 results, with significant revenue and profit growth driven by product innovation and market expansion. The company’s consistent performance and strategic initiatives have positioned the company for continued growth and success. With strong financial results, innovative product development, and promising partnerships, the company is well-equipped to maintain its upward trajectory.

However, Boston Scientific encounters several risks that could impact its operations and growth. Regulatory adherence may delay product launches and affect revenue. Intense market competition pressures pricing and market share. Product liability claims pose financial and reputational threats. Continuous R&D investment is crucial for innovation and maintaining a competitive edge.

https://www.marketscreener.com/quote/stock/BOSTON-SCIENTIFIC-CORPORA-11935/news/Boston-Scientific-exceeds-analysts-estimates-for-seven-straight-quarters-50340583/

aTyr Pharma to join Russell 2000 and 3000 indexes

 Clinical stage biotechnology company aTyr Pharma, Inc. (NASDAQ:ATYR) is expected to be added to the Russell 2000 and Russell 3000 indexes, effective after market close on June 27, 2025, according to a company announcement. 

The Russell 3000 Index tracks the performance of the 3,000 largest publicly traded U.S. companies and serves as a benchmark for the U.S. equity market. The Russell 2000 Index, a subset of the Russell 3000, specifically tracks small-cap companies.

Membership in these indexes lasts for one year and includes automatic inclusion in appropriate growth and value style indexes. Investment managers and institutional investors commonly use Russell Indexes for index funds and as benchmarks for active investment strategies.

aTyr Pharma focuses on developing treatments derived from tRNA synthetase biology. The company’s lead therapeutic candidate, efzofitimod, is a biologic immunomodulator in clinical development for treating interstitial lung disease, which encompasses immune-mediated disorders that can cause inflammation and progressive fibrosis of the lungs.

https://www.investing.com/news/company-news/atyr-pharma-to-join-russell-2000-and-3000-indexes-93CH-4112576

CRISPR delays readout on heart disease trial

-New Phase 1 clinical data for CTX310™ continues to demonstrate dose-dependent reductions in triglycerides (TG) and low-density lipoprotein (LDL), with peak reduction of up to 82% in TG and up to 86% in LDL, with a well-tolerated safety profile-

-Complete Phase 1 data presentation for CTX310 anticipated at a medical meeting in the second half of 2025-

-Data update for CTX320™, targeting the LPA gene, now expected in the first half of 2026-

-Preclinical in vivo cardiovascular program CTX340™ advancing toward IND / CTA filings targeting refractory hypertension-

https://www.globenewswire.com/news-release/2025/06/26/3105698/0/en/CRISPR-Therapeutics-Reports-Positive-Additional-Phase-1-Data-for-CTX310-Targeting-ANGPTL3-and-Provides-Update-on-In-Vivo-Cardiovascular-Pipeline.html

ACIP Meeting Day 2 Begins With Infant RSV Recommendation for Merck

 

Day 2 of the highly anticipated first meeting of the revamped CDC vaccine advisory committee opened Thursday with a recommendation for Merck’s newly approved Enflonsia in young babies. 

On Wednesday, the CDC’s Advisory Committee for Immunization Practices ran out of time before two scheduled votes on respiratory syncytial virus medications. Tacking the votes onto the beginning of the second day, the committee approved a recommendation for Merck’s monoclonal antibody Enflonsia to cover babies less than eight months who are not protected by maternal antibodies. Enflonsia itself won FDA approval just two weeks ago.

“I move for approval of this draft recommendation language, over,” Robert Malone said.

The vote was 5-2 in favor of the recommendation, with Retsef Levi saying he did not think the shot was ready for recommendation, and Vicky Pebsworth voting no without explanation.

The second vote was on an updated Vaccines for Children (VFC) resolution for preventing RSV, which would make Enflonsia available in the VFC program. VFC is a federally funded program that began in 1993 to provide vaccines to children without health insurance.

“It is extremely important that VFC cover this product. It is very important to ensure equity so that all children have access to these monoclonal antibodies,” Meissner said.

The vote on Enflonsia access in VFC was 7-0, including Levi and Pebsworth.

https://www.biospace.com/live/cdc-vaccine-advisors-convene-for-first-meeting-since-rfk-jr-s-acip-overhaul