WEBVTT - Keurig Dr Pepper Soars; Carter's Falls; Avidity Biosciences Rallies

0:00:02.520 --> 0:00:07.360
<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.

0:00:16.600 --> 0:00:18.400
<v Speaker 1>Let's take a look at some of the stocks on

0:00:18.600 --> 0:00:21.000
<v Speaker 1>the move today on Paul Sweeney alongside Norm Me, Linda,

0:00:21.239 --> 0:00:23.360
<v Speaker 1>and we're joined by Bloomberg's Lise Mattail. Lisa, what are

0:00:23.400 --> 0:00:24.080
<v Speaker 1>you looking at all right?

0:00:24.079 --> 0:00:27.319
<v Speaker 3>We're starting with Carog, Doctor Pepper, Taker KDP. Their shares

0:00:27.360 --> 0:00:29.479
<v Speaker 3>have been up as much as eight percent, so a

0:00:29.520 --> 0:00:32.479
<v Speaker 3>few things. Sales for the third quarter beat estimates. It

0:00:32.600 --> 0:00:34.800
<v Speaker 3>raised its full year sales outlook to be in that

0:00:34.920 --> 0:00:38.640
<v Speaker 3>high single digit range. US coffee sales, which had trunk

0:00:38.680 --> 0:00:42.000
<v Speaker 3>actually for the ten previous quarters, grew one a half percent.

0:00:42.520 --> 0:00:45.040
<v Speaker 3>The focus, though, is really turning to this acquisition of

0:00:45.120 --> 0:00:49.080
<v Speaker 3>Dutch coffee company JdE Pete. It basically announced that the

0:00:49.159 --> 0:00:51.479
<v Speaker 3>eighteen billion dollar deal back in August, and now it

0:00:51.560 --> 0:00:55.600
<v Speaker 3>says it's raising seven billion dollars from Apollo and KKR

0:00:55.680 --> 0:00:59.040
<v Speaker 3>to help finance that acquisition. Investors are going to like

0:00:59.080 --> 0:01:00.800
<v Speaker 3>that because they had come turns that it was going

0:01:00.840 --> 0:01:03.320
<v Speaker 3>to be taking on too much debt from that, but

0:01:03.400 --> 0:01:05.679
<v Speaker 3>carried Doctor Pepper. They planned to separate their beverage and

0:01:05.720 --> 0:01:08.800
<v Speaker 3>their coffee business by the end of twenty twenty six.

0:01:09.440 --> 0:01:12.600
<v Speaker 3>Wow shares of KDP down about fifteen percent so far

0:01:12.640 --> 0:01:12.959
<v Speaker 3>this year.

0:01:13.040 --> 0:01:15.959
<v Speaker 1>Yeah, I'd like doctor Pepper, but I don't drink it

0:01:15.959 --> 0:01:17.600
<v Speaker 1>that often, so not your go to.

0:01:17.840 --> 0:01:19.759
<v Speaker 3>It's not a good in rotation.

0:01:19.840 --> 0:01:21.119
<v Speaker 1>Once, so all I'll throw it in there.

0:01:21.160 --> 0:01:23.680
<v Speaker 3>See, I'm more on the coffee side of things.

0:01:24.880 --> 0:01:28.959
<v Speaker 1>Doctor Pepper's big in Texas. That's where it's from originally.

0:01:29.040 --> 0:01:29.680
<v Speaker 1>So there you go.

0:01:29.800 --> 0:01:37.920
<v Speaker 3>I did right, So yes, Baby oh from right right.

0:01:38.760 --> 0:01:42.000
<v Speaker 3>So we have Baby Power Company Carters. This is ticker

0:01:42.240 --> 0:01:44.520
<v Speaker 3>cri I. Their shares have been down as much as

0:01:44.560 --> 0:01:48.560
<v Speaker 3>seven percent, and they say basically that tariffs are dragging

0:01:48.600 --> 0:01:50.760
<v Speaker 3>down its earnings. They said they can expect to win

0:01:50.800 --> 0:01:53.840
<v Speaker 3>car a pretax earnings impact from additional tariffs of about

0:01:54.040 --> 0:01:57.120
<v Speaker 3>two hundred million to two hundred and fifty million dollars

0:01:57.120 --> 0:01:59.760
<v Speaker 3>a year. They said their full year guidance would also

0:02:00.080 --> 0:02:02.560
<v Speaker 3>main suspended. But here's like the bigger news when you

0:02:02.600 --> 0:02:04.400
<v Speaker 3>look into it. It said it's going to close about one

0:02:04.520 --> 0:02:07.559
<v Speaker 3>hundred and fifty stores in North America after their lease

0:02:07.640 --> 0:02:09.960
<v Speaker 3>is expire of the next three years, and that's up

0:02:09.960 --> 0:02:13.680
<v Speaker 3>from a previous target of one hundred stores. They also

0:02:13.760 --> 0:02:17.040
<v Speaker 3>plan to reduce their office workforce by about fifteen percent.

0:02:17.080 --> 0:02:19.240
<v Speaker 3>We're hearing that a lot from companies, cutting about three

0:02:19.320 --> 0:02:23.360
<v Speaker 3>hundred positions, and they expect that reduction to create about

0:02:23.360 --> 0:02:27.120
<v Speaker 3>thirty five million dollars in annual savings starting next year.

0:02:27.320 --> 0:02:29.040
<v Speaker 3>So that's some big news from Carters.

0:02:29.720 --> 0:02:32.120
<v Speaker 1>I mean, that's I can't imagine. That's what we won

0:02:32.240 --> 0:02:36.200
<v Speaker 1>for our American businesses. This company's based in Atlanta, Georgia.

0:02:36.760 --> 0:02:38.640
<v Speaker 1>Is that the effect of Terrace that we want on.

0:02:38.919 --> 0:02:42.440
<v Speaker 3>I haven't seen Carters in a while. Well, yeah, I've

0:02:42.480 --> 0:02:44.280
<v Speaker 3>seen a lot of their stores. Clothing. I know, it's

0:02:44.360 --> 0:02:46.680
<v Speaker 3>interesting thing, but it's still it's still out there and

0:02:46.720 --> 0:02:48.399
<v Speaker 3>we haven't talked about it much. But yeah, their shares

0:02:48.440 --> 0:02:51.000
<v Speaker 3>have been taking a hit two permit, so we go

0:02:51.120 --> 0:02:54.280
<v Speaker 3>from children's clothing to let's go to pharma. We have

0:02:54.320 --> 0:02:58.880
<v Speaker 3>a video Avidity Biosciences. It's Sticker r n A and

0:02:58.960 --> 0:03:01.200
<v Speaker 3>their shore. It's really their shares have been storing as

0:03:01.280 --> 0:03:04.640
<v Speaker 3>much as forty three percent. So the news behind it

0:03:04.680 --> 0:03:06.919
<v Speaker 3>is that you have Swiss drug maker Novartis. They've agreed

0:03:06.960 --> 0:03:09.680
<v Speaker 3>to buy the company. It's a twelve billion dollar deal.

0:03:09.800 --> 0:03:13.440
<v Speaker 3>You like the mergers. It's Novartis's biggest acquisition in more

0:03:13.480 --> 0:03:16.440
<v Speaker 3>than a decade, so it's big news for them. It's

0:03:16.520 --> 0:03:20.680
<v Speaker 3>also adding several potential treatment starts portfolio because Novartis it's

0:03:20.720 --> 0:03:23.760
<v Speaker 3>facing a lot of competition from those cheap generics later

0:03:23.840 --> 0:03:26.880
<v Speaker 3>this year, especially for its three key drugs that's like

0:03:26.880 --> 0:03:30.720
<v Speaker 3>it's heart medicine includes as well, so Avidity. They're developing

0:03:30.760 --> 0:03:35.480
<v Speaker 3>experimental drugs to treat diseases including neuromuscular illness. But Novarta

0:03:35.520 --> 0:03:38.360
<v Speaker 3>says two to three Avidity drugs they're expected to launch

0:03:38.400 --> 0:03:40.840
<v Speaker 3>before twenty thirty. They say they have a multi billion

0:03:40.920 --> 0:03:43.760
<v Speaker 3>dollar sales potential, so they really see a lot in

0:03:43.800 --> 0:03:46.800
<v Speaker 3>this company. And then as part of this deal, a

0:03:46.840 --> 0:03:50.080
<v Speaker 3>Vidy's going to separate its early stage cardiology programs into

0:03:50.120 --> 0:03:52.640
<v Speaker 3>a new company and some of all of that which

0:03:52.840 --> 0:03:55.280
<v Speaker 3>a Vidy can sell to a third party. So there's

0:03:55.360 --> 0:03:57.800
<v Speaker 3>kind of a lot behind this. But I mean, you

0:03:57.920 --> 0:04:00.160
<v Speaker 3>just heard a lot of biotech m and a's like

0:04:00.160 --> 0:04:03.720
<v Speaker 3>from large for companies buying smaller drug makers, you know,

0:04:03.760 --> 0:04:06.360
<v Speaker 3>with this innovative technology so they can help them like

0:04:06.360 --> 0:04:08.720
<v Speaker 3>boost their revenue. You know, older drugs are losing those

0:04:08.760 --> 0:04:10.680
<v Speaker 3>patent protection and that's the real issue.

0:04:10.680 --> 0:04:15.960
<v Speaker 2>Here the stock Moover's report from Bloomberg Radio. Check back

0:04:15.960 --> 0:04:18.200
<v Speaker 2>with us throughout the day for the latest roundup of

0:04:18.240 --> 0:04:21.560
<v Speaker 2>companies making news on Wall Street and for the latest

0:04:21.560 --> 0:04:25.760
<v Speaker 2>market moving headlines. Listen to Bloomberg Radio Live, catch us

0:04:25.800 --> 0:04:29.520
<v Speaker 2>on YouTube, Bloomberg dot com, and on Applecarplay and Android

0:04:29.560 --> 0:04:31.560
<v Speaker 2>Auto with the Bloomberg Business app.