WEBVTT - GSK Deal, Fevertree Up, Seraphim Soars

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.680 --> 0:00:18.919
<v Speaker 3>Let's take a look now at some stocks on the

0:00:18.960 --> 0:00:21.960
<v Speaker 3>move in Europe. I'm to you added by with Stephen

0:00:22.000 --> 0:00:25.960
<v Speaker 3>Carroll and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,

0:00:26.120 --> 0:00:31.040
<v Speaker 3>let's start with GSK. How are investors digesting the latest

0:00:31.160 --> 0:00:32.640
<v Speaker 3>m and a news to do with the company.

0:00:32.960 --> 0:00:34.920
<v Speaker 1>Yeah, well, so I'll start with the news that we

0:00:34.960 --> 0:00:37.440
<v Speaker 1>can get into the share price reaction because it's quite

0:00:37.440 --> 0:00:41.480
<v Speaker 1>an interesting one. So GSK have agreed to buy new Valain.

0:00:41.600 --> 0:00:46.320
<v Speaker 1>So this is a clinical stage biopharmaceutical firm based in Massachusetts.

0:00:46.360 --> 0:00:48.960
<v Speaker 1>So a US based firm that's for ten point six

0:00:49.040 --> 0:00:52.040
<v Speaker 1>billion US dollars. It's one of its largest ever deals,

0:00:52.080 --> 0:00:54.760
<v Speaker 1>a huge deal for GSK, not exactly known for its

0:00:54.840 --> 0:00:58.560
<v Speaker 1>risk taking. It's also the first major deal under its

0:00:58.600 --> 0:01:02.080
<v Speaker 1>new CEO, joined at the beginning of this year and

0:01:02.560 --> 0:01:06.800
<v Speaker 1>essentially is trying to revitalize the company bolster its pipeline.

0:01:06.800 --> 0:01:09.880
<v Speaker 1>There's a lot of investor fears about the drugs GSK

0:01:10.000 --> 0:01:14.120
<v Speaker 1>has in development, you know whether whether they'll be enough. Essentially,

0:01:14.280 --> 0:01:17.880
<v Speaker 1>so this is push further into oncology via this deal,

0:01:17.920 --> 0:01:22.440
<v Speaker 1>so cancer drugs, So through buying neuvelent, they'll gain access,

0:01:22.520 --> 0:01:26.560
<v Speaker 1>particularly to two experimental medicines they're in late stage trials.

0:01:26.920 --> 0:01:28.480
<v Speaker 1>So when you look at it on the face of it,

0:01:28.480 --> 0:01:30.640
<v Speaker 1>it seems, you know, this is a this is a

0:01:30.720 --> 0:01:33.240
<v Speaker 1>kind of a big, bold step. It's a push into oncology.

0:01:34.440 --> 0:01:38.400
<v Speaker 1>Seemingly positive shares, however, fell this morning are falling. They

0:01:38.440 --> 0:01:40.560
<v Speaker 1>fell as much as three point nine percent in morning trading,

0:01:41.160 --> 0:01:43.200
<v Speaker 1>actually making it the worst performer on the stock six

0:01:43.319 --> 0:01:47.440
<v Speaker 1>hundred healthcare index across Europe. Analysts are essentially saying it's

0:01:47.480 --> 0:01:50.000
<v Speaker 1>a big price. The deal size is larger than expected,

0:01:50.320 --> 0:01:54.000
<v Speaker 1>and that leaves little room for missteps by GSK. And

0:01:54.040 --> 0:01:57.240
<v Speaker 1>they're also saying that it doesn't give GSK any blockbuster assets,

0:01:57.280 --> 0:02:00.200
<v Speaker 1>so the upside of the deal is quite capped and

0:02:00.280 --> 0:02:03.160
<v Speaker 1>banking on you know, these two experimental medicines that are

0:02:03.160 --> 0:02:03.840
<v Speaker 1>still in trial.

0:02:04.920 --> 0:02:08.919
<v Speaker 2>Okay, so that's the GSK story this morning. Fever Tree

0:02:08.919 --> 0:02:11.480
<v Speaker 2>meanwhile showing you don't need alcohol to have a good.

0:02:11.320 --> 0:02:14.679
<v Speaker 1>Time, no exactly. So they've had an update ahead of

0:02:14.680 --> 0:02:19.440
<v Speaker 1>the ADM today all very positive essentially so on track

0:02:19.520 --> 0:02:23.440
<v Speaker 1>to me expectations. They've extended the buyback program program that's

0:02:23.440 --> 0:02:27.360
<v Speaker 1>by another thirty pounds. They've also said quite interestingly that

0:02:27.400 --> 0:02:30.160
<v Speaker 1>they're well hedged from a cost perspective in light of

0:02:30.200 --> 0:02:34.359
<v Speaker 1>all the geopolitical backdrops intentions going on at the moment.

0:02:34.880 --> 0:02:38.880
<v Speaker 1>Essentially two main things. So one they've made quite good

0:02:38.919 --> 0:02:42.679
<v Speaker 1>progress on integration with US Mulsen cause obviously that partnership

0:02:42.720 --> 0:02:45.680
<v Speaker 1>was announced a while ago, so progress on that and

0:02:45.720 --> 0:02:48.640
<v Speaker 1>that further push into the US is going well. And

0:02:48.680 --> 0:02:51.560
<v Speaker 1>then also a progress on push more into soft drinks.

0:02:51.600 --> 0:02:53.400
<v Speaker 1>They've been putting quite a lot of empsis not just

0:02:53.440 --> 0:02:56.000
<v Speaker 1>on being a tonic maker, but also being pushed into

0:02:56.000 --> 0:02:58.320
<v Speaker 1>soft drinks. As you say, don't need alcohol to have

0:02:58.360 --> 0:03:00.680
<v Speaker 1>a good time. So analysts are welcome it. They say

0:03:00.680 --> 0:03:05.560
<v Speaker 1>there's no low lights to the update. Those profits from

0:03:05.560 --> 0:03:07.800
<v Speaker 1>that partnership in the US will be a meaningful cushion

0:03:08.639 --> 0:03:11.800
<v Speaker 1>given as I say, all that volatility that backdrop, so

0:03:11.840 --> 0:03:15.000
<v Speaker 1>it's a confident message. Shares up over eight percent to

0:03:15.080 --> 0:03:16.120
<v Speaker 1>the highest in a month.

0:03:16.639 --> 0:03:21.280
<v Speaker 3>Wow. So from alcohol to space craze that seems to

0:03:21.280 --> 0:03:24.600
<v Speaker 3>be coming to the UK who is benefiting from this

0:03:24.800 --> 0:03:25.640
<v Speaker 3>market lift off.

0:03:25.880 --> 0:03:28.600
<v Speaker 1>Yeah, so slightly niche one. It's a foot seat all

0:03:28.639 --> 0:03:32.280
<v Speaker 1>share company called Serophim Space Investment Trust, but an interesting

0:03:32.320 --> 0:03:34.280
<v Speaker 1>story this morning. So their shares up as much as

0:03:34.280 --> 0:03:38.600
<v Speaker 1>twenty six percent, the biggest jump in three years. That's

0:03:38.760 --> 0:03:41.040
<v Speaker 1>after they said that the value of they're holding in

0:03:41.120 --> 0:03:44.120
<v Speaker 1>ice Eye, which is a finished company, doubled after ice

0:03:44.200 --> 0:03:47.400
<v Speaker 1>I had a funding round. So this is benefiting them.

0:03:47.440 --> 0:03:51.000
<v Speaker 1>It's also benefiting other companies like molten Ventures also listed,

0:03:51.080 --> 0:03:53.400
<v Speaker 1>also an investor in ICEI. They're gaining as much as

0:03:53.400 --> 0:03:57.400
<v Speaker 1>twelve percent this morning. So I is a finish satellite startup.

0:03:58.120 --> 0:04:01.080
<v Speaker 1>Essentially they provide you know, weather and earth observation data

0:04:01.080 --> 0:04:05.040
<v Speaker 1>to governments and businesses. They've raised money and new funding

0:04:05.120 --> 0:04:08.040
<v Speaker 1>round and their evaluation is at more than ten billion euros.

0:04:08.040 --> 0:04:11.560
<v Speaker 1>This is boosting Seraphim's Space Investment Trust this morning, molten

0:04:11.640 --> 0:04:15.480
<v Speaker 1>Ventures and others as well. And also you know, there's

0:04:15.520 --> 0:04:19.400
<v Speaker 1>been some quite positive messaging going forward for ICEI. They

0:04:19.440 --> 0:04:22.720
<v Speaker 1>say that well, already they've been quite critical in Ukraine,

0:04:22.720 --> 0:04:25.680
<v Speaker 1>helping them identify Russian military movements. They're now involved in

0:04:25.720 --> 0:04:28.440
<v Speaker 1>the Middle East. They say that there's seven European governments

0:04:28.480 --> 0:04:31.920
<v Speaker 1>that have bought their systems, so revenue is going to

0:04:32.000 --> 0:04:33.920
<v Speaker 1>roughly double this year. So well, we keep an eye

0:04:33.960 --> 0:04:36.880
<v Speaker 1>on seraphims Space in particular to see if you know,

0:04:37.120 --> 0:04:39.520
<v Speaker 1>there's an even further boost to today's share gifts.

0:04:40.320 --> 0:04:44.360
<v Speaker 2>The Stock Mover's report from Bloomberg Radio. Check back with

0:04:44.440 --> 0:04:47.039
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:47.080 --> 0:04:50.159
<v Speaker 2>making news on Wall Street and for the latest market

0:04:50.200 --> 0:04:54.680
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:54.760 --> 0:04:58.279
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:58.320 --> 0:04:59.839
<v Speaker 2>the Bloomberg Business app.