WEBVTT - Abivax Plunges, BAT Dips, Entain Gains

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Well, let's take a look at some of the stocks

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<v Speaker 3>on the move today in Europe. I'm te Ada Bay

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<v Speaker 3>with Caroline Hapka, and we're joined by Bloomberg reporter Chloe Melly.

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<v Speaker 2>Chloe Abbyvas.

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<v Speaker 3>It's still plunging this morning after difficulties in a key

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<v Speaker 3>drug trial. Can tell us more?

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<v Speaker 1>Yeah, a huge, huge drop for that biotech company this

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<v Speaker 1>morning after what had been actually a really big rally

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<v Speaker 1>that started last year. So it had this very promising

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<v Speaker 1>drug to treat bowel disease inflammatory bow disease, and investors

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<v Speaker 1>analysts had expected that this that there could be maybe

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<v Speaker 1>big takeover offers to come after the trial results because

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<v Speaker 1>it was that promising, with some names mentioned like Pfizer, AstraZeneca,

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<v Speaker 1>Eli Lilly as potential suitors. But now we have the

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<v Speaker 1>trial results and it was more more effective than expected.

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<v Speaker 1>But Abuve's also reported cancer cases in several patients, and

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<v Speaker 1>it's worth noting that the cancers might not be related

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<v Speaker 1>at all to the treatment itself, and the company said

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<v Speaker 1>there was no evidence of a relationship there, but this

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<v Speaker 1>still complicates that path to regulatory approval quite a bit,

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<v Speaker 1>and so shares us thinking this morning very strongly on

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<v Speaker 1>the back of this and andless. I've been divided on

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<v Speaker 1>what exactly this means for the company. Some are saying

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<v Speaker 1>that it will be difficult to move past this. Others

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<v Speaker 1>are saying that it's maybe more just noise than anything else.

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<v Speaker 1>But this is going to be important for that sector

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<v Speaker 1>because this inflammatory bower disease market is actually expected to

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<v Speaker 1>grow very significantly, and it's considered to be a really

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<v Speaker 1>major area of growth for Big Family, Big Farmer going

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<v Speaker 1>forward as well.

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<v Speaker 3>Yeah.

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<v Speaker 4>Absolutely. I mean it comes in a week where there's

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<v Speaker 4>been so much attention on cancer drugs, isn't it. I mean,

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<v Speaker 4>Bloomberg's got a very interesting story about the drug to

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<v Speaker 4>convert pancreatic cancer that's been so hugely successful Revolution Medicines, Inc.

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<v Speaker 4>You know, and apparently this idea of molecular glue it

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<v Speaker 4>could be a whole new world, couldn't it for cancer treatments.

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<v Speaker 4>It's quite startling. Let's also think though about British American

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<v Speaker 4>tobacco accelerating its shift towards smoke free products. How investors

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<v Speaker 4>reading that.

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<v Speaker 1>Yeah, So actually Beat shares are a little bit weaker

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<v Speaker 1>this morning because consumers are still trading down and that's

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<v Speaker 1>hurting margins. But I think what's more interesting in what

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<v Speaker 1>you've just touched on is that Beauty is successfully managing

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<v Speaker 1>that pivot away from cigarettes. And so one area that

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<v Speaker 1>they're doing very well in is what it calls new

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<v Speaker 1>category products. That includes three main things. There's the vapes

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<v Speaker 1>with the Views brand, nicotine pouches to the Velo Plus brand,

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<v Speaker 1>and then heated tobacco sticks. So that's something called glow.

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<v Speaker 1>And these new categories are growing much faster than expected

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<v Speaker 1>and doing very well in the US market in particular actually,

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<v Speaker 1>where there's really a booming market for nicotine pouches in particular,

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<v Speaker 1>and in fact Beat is winning quite a lot of

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<v Speaker 1>market share there against its main competitors in that space,

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<v Speaker 1>and the main competitor being Philip Morris with what it has,

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<v Speaker 1>which is Zin pouches. But Vello isn't as bad for

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<v Speaker 1>dry mouth apparently according to consumers, it has a bigger

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<v Speaker 1>and nicotine hit as well, so it's winning over more

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<v Speaker 1>and more consumers in the US and that will be

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<v Speaker 1>more and more important for Beat as the global cigarette

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<v Speaker 1>volumes continue to decline, actually even faster than expected, so

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<v Speaker 1>it really needs that reinvention in that pivot towards towards

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<v Speaker 1>those smoke free products.

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<v Speaker 3>Yeah, Clary, I noticed that you've titled business smoke Free

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<v Speaker 3>Search in today's edition of the London Rush, so very

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<v Speaker 3>appropriate there. But lastly, Ntain, what's the latest on the

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<v Speaker 3>moves there this morning?

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<v Speaker 1>Yeah, very strongly for that company, extending gains from yesterday

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<v Speaker 1>because MGM Resorts received a takeover offer and so MGM

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<v Speaker 1>is Intain's partner in their joint venture called bet MGM,

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<v Speaker 1>which it does online betting, and this is saying that

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<v Speaker 1>a change of control at MGM could be a catalyst

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<v Speaker 1>for Ntaine and could lead to maybe a new strategy

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<v Speaker 1>at BTMGM. Some even say it raises the possibility of

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<v Speaker 1>a follow on transaction for that business, and so that

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<v Speaker 1>could also be a boost for Retain, and that is

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<v Speaker 1>quite important for that company because it's facing quite a

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<v Speaker 1>few challenges. It's got new taxes in the UK and

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<v Speaker 1>also the rise of prediction markets like polymarket, which creates

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<v Speaker 1>this kind of new competition as well. So definitely a

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<v Speaker 1>potential transaction.

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<v Speaker 2>To keep an eye on the stock Movers report from

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