Monday's Headlines: Microsoft Buys Stake in London Stock Exchange
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
DocuSign (DOCU) +12.4%
Baozun (BZUN) +12.0%
THOR Industries (THO) +4.2%
Tesla, Inc. (TSLA) +3.2%
Netflix (NFLX) +3.1%
Moving Down ⬇️
Lululemon (LULU) -12.8%
Etsy (ETSY) -5.7%
2U (TWOU) -5.1%
DraftKings (DKNG) -4.4%
Amgen Close to Deal for Horizon Therapeutics 🥼
Amgen is close to finalizing a deal to acquire Horizon Therapeutics, according to reports.
The Wall Street Journal previously reported that Horizon was in talks with Amgen, Johnson & Johnson, and Sanofi. Johnson & Johnson pulled out of negotiations earlier this month. On Sunday, French pharmaceutical company Sanofi said it too had walked away from the deal.
It is believed that an acquisition by Amgen could be announced today. The deal could be worth more than $20 billion, making it the largest pharmaceutical acquisition of the year. In October, Amgen completed the acquisition of ChemoCentryx for $3.7 billion.
Horizon — which is headquartered in Ireland — develops drugs to tackle autoimmune diseases. Its primary drug, Tepezza, treats thyroid eye disease and saw sales double last year. The company brought in $3.23 billion in revenue in 2021, but management believes Tepezza itself could bring in more than $4 billion in sales if it gets approval in Europe and Japan.
It’s been a busy year for healthcare acquisitions as weak market conditions have made smaller companies more attractive to major players. Johnson & Johnson recently struck a $16 billion deal with medical device maker Abiomed.
Amgen stock is currently up 31% for the year. Horizon shares are up 12% in pre-market trading.
Microsoft Buys Stake in London Stock Exchange 📈
Microsoft has announced a major partnership with the London Stock Exchange Group (LSEG), which will see the two firms pen a 10-year deal along with the tech giant buying a 4% stake in the exchange. The deal will see LSEG avail of a new data infrastructure, as well as analytics and modeling through Microsoft Azure, AI, and Teams. LSEG shares are up 4% today on the news.
The partnership stipulates that LSEG will spend at least $2.8 billion over the next decade on Microsoft Cloud products. Microsoft exec Scott Guthrie will also be appointed as a non-executive director of LSEG.
The multi-billion dollar stake in the exchange will allow Microsoft to flex its expertise further in the financial world, with CEO Satya Nadella excited about the prospect:
“Advances in the cloud and AI will fundamentally transform how financial institutions research, interact, and transact across asset classes, and adapt to changing market conditions.”
Rivian Pauses Partnership with Mercedes-Benz 🚘
Electric-vehicle maker Rivian has said it has paused negotiations with Mercedes-Benz over a deal to co-produce vans. In September, the two companies announced they would hold talks to produce electric vehicles at a Mercedes plant in Poland.
Rivian now believes that deal would not be suitable given macroeconomic conditions and its need to conserve cash to fulfill other obligations.
“The pausing of this partnership reflects our process of continually evaluating our major capital projects, while taking into consideration our current and anticipated economic conditions,” Rivian said in a statement.
Rivian went public in November 2021 and was touted as one of the best positioned disruptors of the auto-industry. Since then the company has struggled to make good on its plans — cutting guidance due to supply chain woes. It also increased the price of its electric SUVs, including for customers that had already placed reservations.
This summer, the company laid off around 6% of its global workforce and took on cost-cutting measures to preserve cash. A more affordable vehicle, the R2, has also been delayed to 2026.
Rivian has said it will focus on its current projects, which includes a deal with Amazon, but would be willing to explore a joint-venture with Mercedes at a later stage.
Shares of the company are down nearly 80% from its IPO. The stock is currently trading down 4% on the announcement.