Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Well, let's take a look at some of the stocks
Speaker 3: on the move today in Europe. I'm te Ada Bay
Speaker 3: with Caroline Hapka, and we're joined by Bloomberg reporter Chloe Melly.
Speaker 2: Chloe Abbyvas.
Speaker 3: It's still plunging this morning after difficulties in a key
Speaker 3: drug trial. Can tell us more?
Speaker 1: Yeah, a huge, huge drop for that biotech company this
Speaker 1: morning after what had been actually a really big rally
Speaker 1: that started last year. So it had this very promising
Speaker 1: drug to treat bowel disease inflammatory bow disease, and investors
Speaker 1: analysts had expected that this that there could be maybe
Speaker 1: big takeover offers to come after the trial results because
Speaker 1: it was that promising, with some names mentioned like Pfizer, AstraZeneca,
Speaker 1: Eli Lilly as potential suitors. But now we have the
Speaker 1: trial results and it was more more effective than expected.
Speaker 1: But Abuve's also reported cancer cases in several patients, and
Speaker 1: it's worth noting that the cancers might not be related
Speaker 1: at all to the treatment itself, and the company said
Speaker 1: there was no evidence of a relationship there, but this
Speaker 1: still complicates that path to regulatory approval quite a bit,
Speaker 1: and so shares us thinking this morning very strongly on
Speaker 1: the back of this and andless. I've been divided on
Speaker 1: what exactly this means for the company. Some are saying
Speaker 1: that it will be difficult to move past this. Others
Speaker 1: are saying that it's maybe more just noise than anything else.
Speaker 1: But this is going to be important for that sector
Speaker 1: because this inflammatory bower disease market is actually expected to
Speaker 1: grow very significantly, and it's considered to be a really
Speaker 1: major area of growth for Big Family, Big Farmer going
Speaker 1: forward as well.
Speaker 3: Yeah.
Speaker 4: Absolutely. I mean it comes in a week where there's
Speaker 4: been so much attention on cancer drugs, isn't it. I mean,
Speaker 4: Bloomberg's got a very interesting story about the drug to
Speaker 4: convert pancreatic cancer that's been so hugely successful Revolution Medicines, Inc.
Speaker 4: You know, and apparently this idea of molecular glue it
Speaker 4: could be a whole new world, couldn't it for cancer treatments.
Speaker 4: It's quite startling. Let's also think though about British American
Speaker 4: tobacco accelerating its shift towards smoke free products. How investors
Speaker 4: reading that.
Speaker 1: Yeah, So actually Beat shares are a little bit weaker
Speaker 1: this morning because consumers are still trading down and that's
Speaker 1: hurting margins. But I think what's more interesting in what
Speaker 1: you've just touched on is that Beauty is successfully managing
Speaker 1: that pivot away from cigarettes. And so one area that
Speaker 1: they're doing very well in is what it calls new
Speaker 1: category products. That includes three main things. There's the vapes
Speaker 1: with the Views brand, nicotine pouches to the Velo Plus brand,
Speaker 1: and then heated tobacco sticks. So that's something called glow.
Speaker 1: And these new categories are growing much faster than expected
Speaker 1: and doing very well in the US market in particular actually,
Speaker 1: where there's really a booming market for nicotine pouches in particular,
Speaker 1: and in fact Beat is winning quite a lot of
Speaker 1: market share there against its main competitors in that space,
Speaker 1: and the main competitor being Philip Morris with what it has,
Speaker 1: which is Zin pouches. But Vello isn't as bad for
Speaker 1: dry mouth apparently according to consumers, it has a bigger
Speaker 1: and nicotine hit as well, so it's winning over more
Speaker 1: and more consumers in the US and that will be
Speaker 1: more and more important for Beat as the global cigarette
Speaker 1: volumes continue to decline, actually even faster than expected, so
Speaker 1: it really needs that reinvention in that pivot towards towards
Speaker 1: those smoke free products.
Speaker 3: Yeah, Clary, I noticed that you've titled business smoke Free
Speaker 3: Search in today's edition of the London Rush, so very
Speaker 3: appropriate there. But lastly, Ntain, what's the latest on the
Speaker 3: moves there this morning?
Speaker 1: Yeah, very strongly for that company, extending gains from yesterday
Speaker 1: because MGM Resorts received a takeover offer and so MGM
Speaker 1: is Intain's partner in their joint venture called bet MGM,
Speaker 1: which it does online betting, and this is saying that
Speaker 1: a change of control at MGM could be a catalyst
Speaker 1: for Ntaine and could lead to maybe a new strategy
Speaker 1: at BTMGM. Some even say it raises the possibility of
Speaker 1: a follow on transaction for that business, and so that
Speaker 1: could also be a boost for Retain, and that is
Speaker 1: quite important for that company because it's facing quite a
Speaker 1: few challenges. It's got new taxes in the UK and
Speaker 1: also the rise of prediction markets like polymarket, which creates
Speaker 1: this kind of new competition as well. So definitely a
Speaker 1: potential transaction.
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