1 00:00:03,279 --> 00:00:06,680 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,720 --> 00:00:09,760 Speaker 1: dot Com, the Radio plus Globile last and on your radio. 3 00:00:10,039 --> 00:00:14,200 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters 4 00:00:14,200 --> 00:00:17,160 Speaker 1: on Katherine Cowderie and mixed. Close. As the SMP five foundered, 5 00:00:17,200 --> 00:00:20,040 Speaker 1: pulled back Froben's all time high, and the NASDAK gained, 6 00:00:20,320 --> 00:00:24,200 Speaker 1: scoring another record, Treasuries rallied while the dollar fell. Disappointing 7 00:00:24,239 --> 00:00:27,360 Speaker 1: retail sales added to speculation, but the Federal Reserve will 8 00:00:27,400 --> 00:00:29,480 Speaker 1: be in no rush to raise interest rates this year. 9 00:00:29,880 --> 00:00:32,520 Speaker 1: Data showed sales at retailers were little change in July, 10 00:00:32,640 --> 00:00:35,800 Speaker 1: as wholesale prices unexpectedly fell by the most and almost 11 00:00:35,800 --> 00:00:39,000 Speaker 1: a year. Futures traders now see forty two percent odds 12 00:00:39,000 --> 00:00:41,120 Speaker 1: of the US rate high this year. That's down from 13 00:00:41,200 --> 00:00:44,360 Speaker 1: forty nine percent yesterday. We check the markets every fifteen 14 00:00:44,360 --> 00:00:47,400 Speaker 1: minutes throughout the trading day. Dow Industrial iverage fell thirty 15 00:00:47,440 --> 00:00:49,479 Speaker 1: seven points, a loss of two tenths of a percent, 16 00:00:49,760 --> 00:00:52,200 Speaker 1: to close out the week at eighteen thousand, five hundred 17 00:00:52,280 --> 00:00:55,360 Speaker 1: seventy six. SMP five thundered down two points a tenth 18 00:00:55,360 --> 00:00:59,560 Speaker 1: of a percent four then ASTAT gained four points at 19 00:00:59,600 --> 00:01:02,720 Speaker 1: nine one tenth of a percent. I closed at fifty 20 00:01:02,800 --> 00:01:05,720 Speaker 1: two thirty two West Texas Intermediate crude oil up a 21 00:01:05,800 --> 00:01:10,080 Speaker 1: dollar sixteen and barrel two point seven sixty five spot 22 00:01:10,160 --> 00:01:14,479 Speaker 1: goled down eight dollars at one and the tenure treasury 23 00:01:14,520 --> 00:01:16,559 Speaker 1: of fifteen thirty seconds with the yield of one point 24 00:01:16,959 --> 00:01:21,480 Speaker 1: zero percent. And that's a Bloomberg business flash. You're listening 25 00:01:21,560 --> 00:01:25,080 Speaker 1: to taking stock with Pim Fox and Kathleen Hayes on 26 00:01:25,240 --> 00:01:30,080 Speaker 1: Bloomberg Radio. All right, I want to take stock of 27 00:01:30,440 --> 00:01:34,160 Speaker 1: the biotech sector. It's been all over the map lately, 28 00:01:34,280 --> 00:01:36,760 Speaker 1: but cell side analysts continue to love this. So let's 29 00:01:36,800 --> 00:01:40,640 Speaker 1: bring in Steve Brozac right now, President and managing partner 30 00:01:40,840 --> 00:01:46,440 Speaker 1: w BB Securities. Also a marine, also active in the 31 00:01:46,480 --> 00:01:50,480 Speaker 1: political space. Also apparently, were you an Olympic fencer, Steve, 32 00:01:51,760 --> 00:01:54,600 Speaker 1: I was actually competing on the Junior Olympic side, but 33 00:01:55,280 --> 00:01:58,040 Speaker 1: just watching Olympics now and my former coaches, the American 34 00:01:58,120 --> 00:02:00,800 Speaker 1: coach and one of the guys that they I competed against, 35 00:02:00,840 --> 00:02:02,840 Speaker 1: his son just won the silver and men's foil. So 36 00:02:03,200 --> 00:02:05,640 Speaker 1: that's that's an aside. How's that? I feel like that's 37 00:02:05,680 --> 00:02:09,440 Speaker 1: close enough. Junior Olympics is close enough. To Olympics. You know, right, 38 00:02:09,520 --> 00:02:13,239 Speaker 1: I agree, right, but that doesn't work in investing, which 39 00:02:13,320 --> 00:02:16,560 Speaker 1: is why you want a professional. Right. Okay, So you're 40 00:02:17,080 --> 00:02:21,280 Speaker 1: a biotech and healthcare banker here, um, talk to me 41 00:02:21,360 --> 00:02:23,799 Speaker 1: about some of the deals you maybe maybe see on 42 00:02:23,960 --> 00:02:26,639 Speaker 1: the horizon. This year has been a kind of a 43 00:02:26,760 --> 00:02:29,000 Speaker 1: slow deal year compared to the records that we saw 44 00:02:29,160 --> 00:02:32,280 Speaker 1: last year. Yeah, and it's it's one of these situations 45 00:02:32,280 --> 00:02:34,400 Speaker 1: where you've got a tale of the best and the worst. Um. 46 00:02:34,600 --> 00:02:36,920 Speaker 1: You know, We've got three companies that we look at 47 00:02:37,040 --> 00:02:38,840 Speaker 1: right now that I was looking to talk about, one 48 00:02:38,919 --> 00:02:41,399 Speaker 1: of which is an antibiotics company, and it's obviously something 49 00:02:41,480 --> 00:02:45,760 Speaker 1: that's really critical. The company is called Sempra and they 50 00:02:45,800 --> 00:02:49,760 Speaker 1: were on taking stock just about two years ago. And frankly, 51 00:02:49,840 --> 00:02:53,560 Speaker 1: it's a it's a critical antibiotics play. Asked about what 52 00:02:53,639 --> 00:02:56,320 Speaker 1: the company does because taking a look at the Semperate 53 00:02:56,360 --> 00:03:00,560 Speaker 1: it's down twenty five nearly so far this year. Based 54 00:03:00,600 --> 00:03:03,560 Speaker 1: in Chapel Hill, North Carolina, right, and what they what 55 00:03:03,720 --> 00:03:06,480 Speaker 1: they have is the next generation Z pack. It is 56 00:03:06,560 --> 00:03:10,959 Speaker 1: the same sorry, um uh siro meycn is like the 57 00:03:11,040 --> 00:03:14,960 Speaker 1: mainstay everyone every most A lot of people can relate 58 00:03:15,040 --> 00:03:18,120 Speaker 1: to taking a pill twice and then four or five 59 00:03:18,200 --> 00:03:22,720 Speaker 1: days of pills after that to deal with antibotic bacterial infections. 60 00:03:23,160 --> 00:03:26,799 Speaker 1: It's it's the main stay of antibotics, but unfortunately resistance 61 00:03:26,840 --> 00:03:30,079 Speaker 1: in the United States alone. So UM, this company, what 62 00:03:30,240 --> 00:03:32,639 Speaker 1: they did and what they've done is they've developed a 63 00:03:32,720 --> 00:03:36,280 Speaker 1: new antibotic called Solothera, which they're looking to introduce after 64 00:03:36,360 --> 00:03:40,840 Speaker 1: after approval of course, uh, for dealing with community acquired pneumonia. 65 00:03:40,960 --> 00:03:43,440 Speaker 1: But the real key here is that it's applicable for 66 00:03:43,560 --> 00:03:46,320 Speaker 1: just about every other kind of bacterial infection. So basically, 67 00:03:46,360 --> 00:03:48,560 Speaker 1: when you have the flu and you're dying, at least 68 00:03:48,720 --> 00:03:50,520 Speaker 1: in on the Upper East Side in New York, you 69 00:03:50,600 --> 00:03:52,160 Speaker 1: go to your doctor to give you a Z pack 70 00:03:52,440 --> 00:03:54,520 Speaker 1: and you're gonna be just fine. Um. But a lot 71 00:03:54,560 --> 00:03:57,360 Speaker 1: of people have have developed a resistance to that, and 72 00:03:57,560 --> 00:04:02,800 Speaker 1: so Solithera is expected to what work in place of 73 00:04:02,880 --> 00:04:06,120 Speaker 1: it exactly. Um. It's expected to go out there and 74 00:04:06,280 --> 00:04:08,960 Speaker 1: to be the go to drug for not just the 75 00:04:09,040 --> 00:04:11,560 Speaker 1: infectious disease doctors, but all the doctors that are out 76 00:04:11,640 --> 00:04:14,280 Speaker 1: there that are dealing with people that frankly are are 77 00:04:14,760 --> 00:04:18,560 Speaker 1: significantly sick and or have other uninary tract infections. Or 78 00:04:18,600 --> 00:04:21,839 Speaker 1: other types of infections where they are just not getting better. 79 00:04:22,480 --> 00:04:25,160 Speaker 1: Is it worth the dollars to share? No, I think 80 00:04:25,200 --> 00:04:26,720 Speaker 1: it's worth a lot more than that. As a matter 81 00:04:26,720 --> 00:04:29,560 Speaker 1: of fact, When when data came out, the stock went down, 82 00:04:29,680 --> 00:04:32,360 Speaker 1: but it went down because some analysts didn't understand what 83 00:04:32,440 --> 00:04:34,760 Speaker 1: they were seeing on the data side, and they finally 84 00:04:34,800 --> 00:04:38,799 Speaker 1: have started to The analytical community has finally started to understand, 85 00:04:39,279 --> 00:04:41,840 Speaker 1: and what you're now seeing is the stock pushing its 86 00:04:41,880 --> 00:04:45,760 Speaker 1: way back based on the fact that people and investors 87 00:04:45,839 --> 00:04:48,480 Speaker 1: particularly are beginning to understand that this drug will be 88 00:04:48,600 --> 00:04:52,080 Speaker 1: approved and that it is critically important in the healthcare 89 00:04:52,160 --> 00:04:54,520 Speaker 1: armamentarian for doctors today. So I don't want to spend 90 00:04:54,560 --> 00:04:57,000 Speaker 1: the whole the whole day on this, but basically, if 91 00:04:57,200 --> 00:05:00,320 Speaker 1: that drug gets through its lithera, then I'm saying a 92 00:05:00,400 --> 00:05:06,200 Speaker 1: big drug maker comes in and takes out Sempra, because candidly, 93 00:05:06,720 --> 00:05:09,120 Speaker 1: this drug was one of those drugs where people just said, oh, 94 00:05:09,200 --> 00:05:11,160 Speaker 1: you can't get a new antibiotic approved, and this will 95 00:05:11,160 --> 00:05:13,640 Speaker 1: be the first one in a generation. Because you really 96 00:05:13,720 --> 00:05:16,040 Speaker 1: do want to see this company go out there and 97 00:05:16,160 --> 00:05:18,560 Speaker 1: get other drugs into this system, and that's the critical 98 00:05:18,600 --> 00:05:21,159 Speaker 1: need right now. Turn your attention now, so you too, 99 00:05:21,400 --> 00:05:28,800 Speaker 1: h T two biosystems. This is developing innovative diagnostic products. Um, 100 00:05:28,920 --> 00:05:31,800 Speaker 1: it is critical that we understand what we're treating. And 101 00:05:31,880 --> 00:05:35,480 Speaker 1: in this case, T two is that paradigm shift. Right now, 102 00:05:35,640 --> 00:05:37,599 Speaker 1: you're going to the hospital and you start to present. 103 00:05:37,760 --> 00:05:39,520 Speaker 1: You know, you're in the intensive care unit and you 104 00:05:39,680 --> 00:05:42,160 Speaker 1: have like a fungal infection. It takes three to five 105 00:05:42,240 --> 00:05:44,120 Speaker 1: days for them to culture and figure it out. It's 106 00:05:44,240 --> 00:05:46,880 Speaker 1: ninety year old technology. T two goes out there and 107 00:05:46,960 --> 00:05:49,360 Speaker 1: within three to five hours can tell you exactly what 108 00:05:49,520 --> 00:05:55,000 Speaker 1: it is within specificity because of mr I technology. And 109 00:05:55,160 --> 00:05:57,880 Speaker 1: so what, uh is this already out there? Is this 110 00:05:57,960 --> 00:06:00,800 Speaker 1: already working or do they still have to get it 111 00:06:00,880 --> 00:06:04,680 Speaker 1: approved or get convinced hospitals to buy it. Disney Hospitals 112 00:06:04,800 --> 00:06:06,719 Speaker 1: is the next step there in twenty hospitals right now 113 00:06:06,800 --> 00:06:10,120 Speaker 1: and growing. Uh, you're looking at a situation where more 114 00:06:10,160 --> 00:06:14,600 Speaker 1: Americans die from SEPs from sepsisce and prostate cancer, breast 115 00:06:14,640 --> 00:06:17,000 Speaker 1: cancer and AIDS combined. So if you look at it, 116 00:06:17,120 --> 00:06:20,320 Speaker 1: this is a critical next step. And the other part 117 00:06:20,440 --> 00:06:23,480 Speaker 1: is the same technology and the same development pattern also 118 00:06:23,560 --> 00:06:29,039 Speaker 1: applies for bacterial culture, bacterial analysis and for blood things. 119 00:06:29,120 --> 00:06:31,440 Speaker 1: So this is the kind of technology that we we'd 120 00:06:31,520 --> 00:06:34,239 Speaker 1: like to see go into the next generation and start 121 00:06:34,320 --> 00:06:36,880 Speaker 1: to help out doctors and not just in the hospitals, 122 00:06:36,920 --> 00:06:40,680 Speaker 1: but eventually everywhere. All right, that's uh T two. I 123 00:06:40,760 --> 00:06:44,440 Speaker 1: beg your pardon. That's um uh Systems as symbol as 124 00:06:44,520 --> 00:06:47,160 Speaker 1: T T O O OMIS. I want to give you 125 00:06:47,200 --> 00:06:50,800 Speaker 1: a chance just to tell us quickly about um Omeris. 126 00:06:51,960 --> 00:06:53,920 Speaker 1: They've got an approved product that they've worked through the 127 00:06:54,120 --> 00:06:57,600 Speaker 1: entirety of this of the clinical approval system called Omidria, 128 00:06:57,880 --> 00:07:01,039 Speaker 1: and it's used to go out there and facilitate eye surgery. 129 00:07:01,240 --> 00:07:05,240 Speaker 1: It reduces the inflammation and it also reduces um any 130 00:07:05,360 --> 00:07:07,960 Speaker 1: kind of pain outcomes. So you know, you look at 131 00:07:07,960 --> 00:07:13,400 Speaker 1: America Grain cataract surgery, um is excuse me, a blockbuster 132 00:07:13,560 --> 00:07:16,200 Speaker 1: potential and you see that. You know, the market right 133 00:07:16,240 --> 00:07:19,640 Speaker 1: now is over a billion dollars with more than three 134 00:07:19,680 --> 00:07:22,560 Speaker 1: million patients needing lens replacements. So this is one of 135 00:07:22,600 --> 00:07:24,920 Speaker 1: those products that is starting to make its way into 136 00:07:25,280 --> 00:07:28,360 Speaker 1: into the ophthalmological surgical system. I want to thank you 137 00:07:28,520 --> 00:07:31,440 Speaker 1: very much for sharing the information with us. Steve Brozac 138 00:07:31,600 --> 00:07:34,880 Speaker 1: is the president and managing partner of w BB Securities, 139 00:07:34,920 --> 00:07:41,080 Speaker 1: talking about Sempra, T two Bioscience Biosystems and Omaris. Thanks 140 00:07:41,160 --> 00:07:48,000 Speaker 1: for listening. This is Bloomberg coming up. Bloomberg Laws brought 141 00:07:48,040 --> 00:07:50,480 Speaker 1: you by cash pro, the cash management platform from Bank 142 00:07:50,560 --> 00:07:52,840 Speaker 1: of America Merrill Lynch. Cash Pro lets you stay on 143 00:07:52,920 --> 00:07:56,120 Speaker 1: top of your working capital in real time. It's totally 144 00:07:56,200 --> 00:07:58,880 Speaker 1: pro business. That's the power of global connections.