WEBVTT - Novo Plunges, Beazley Gains, Carlsberg Rises

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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>But let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon. Luise, good morning.

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<v Speaker 3>Let's start then with the big mover. Novo Nordisk shares

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<v Speaker 3>down eighteen percent this morning, exactly.

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<v Speaker 4>Yeah.

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<v Speaker 1>Essentially, investors have been shocked this morning by Novo.

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<v Speaker 4>They've forecast a very steep.

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<v Speaker 1>Decline in sales, so they're expecting that sales could fall

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<v Speaker 1>by as much as thirteen percent this year, and List

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<v Speaker 1>is saying even the most skeptical among them didn't anticipate

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<v Speaker 1>this big of a drop, essentially adding to evidence of

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<v Speaker 1>the challenges in the industry. In the a BT drug industry,

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<v Speaker 1>there's a lot of price competition, partly under pressure from

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<v Speaker 1>the US government to cut drug prices.

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<v Speaker 4>There's also a lot of competition.

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<v Speaker 1>You know, Nova have been fighting for market share with

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<v Speaker 1>Eli Lilly in the.

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<v Speaker 4>US, their their key rival.

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<v Speaker 1>But then on top of that, there's also kind of

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<v Speaker 1>smaller companies selling cheaper copycup versions of their BC drugs,

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<v Speaker 1>so there's a lot of competition as well as the

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<v Speaker 1>price war. Nova have already been struggling and they've already

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<v Speaker 1>been trying to turn it around. So under their CEO,

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<v Speaker 1>he's cut jobs, he's changing management at the top. He's

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<v Speaker 1>already has in trying to instill a culture that's more

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<v Speaker 1>kind of performance orientated. But this, this forecast this morning

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<v Speaker 1>really did did shock investors. The CEO was on Bloemboat

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<v Speaker 1>TV earlier and he did try to kind of reassure

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<v Speaker 1>with some positivity in the long term.

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<v Speaker 4>So he was hailing their recent.

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<v Speaker 1>Launch of their pill version of their drug and saying

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<v Speaker 1>that you know, longer term there would be more positivity

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<v Speaker 1>and the focus now is on transforming and developing new products.

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<v Speaker 1>But as I say, investors and shares are really plunging

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<v Speaker 1>on that news that sales forecast.

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<v Speaker 3>Yeah, indeed, a different story though from the UK specialty

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<v Speaker 3>ensure Beasley It shares are up by eight point four

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<v Speaker 3>percent some m and a news and focus.

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<v Speaker 1>Indeed, they finally agreed to an offer from Zurich Insurance,

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<v Speaker 1>so the Swiss based insurance. This is a sweetened offer

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<v Speaker 1>of eight billion pounds, and the two sides have reached

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<v Speaker 1>this agreement in principle.

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<v Speaker 4>This has been a long running saga. So this is.

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<v Speaker 1>Zurich's sixth bid over the past year. These bees bids

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<v Speaker 1>were made public in January, but this is their sixth

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<v Speaker 1>one and the previous ones have all been rejected by

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<v Speaker 1>Beasley for undervaluing it. So the latest price that they

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<v Speaker 1>have agreed to now is a sixty percent premium to

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<v Speaker 1>the closing price to Bezy's closing price the day before

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<v Speaker 1>the offer became public, as I say that was in January.

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<v Speaker 4>This premium is pretty.

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<v Speaker 1>Unusual for a foot teen hundred companies, so it's a

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<v Speaker 1>very high premium. Analyst is saying, you know, it appears generous,

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<v Speaker 1>so perhaps those price they've now agreed to this deal,

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<v Speaker 1>and they're saying that combined these two companies will have

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<v Speaker 1>fifteen billion dollars of grossert and premiums. It's going to

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<v Speaker 1>be based in the UK, and BZ shares hit a

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<v Speaker 1>record high that they've already they've already been soaring since

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<v Speaker 1>the offers and the approaches from Zurich were made public,

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<v Speaker 1>but they soared once more again this morning. So hit

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<v Speaker 1>a record high and also lifted the sector. So Hisscocks

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<v Speaker 1>for example, also rose and Zurich also rose as well

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<v Speaker 1>on the back of this this deal, So quite an

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<v Speaker 1>exciting bit of activity.

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<v Speaker 4>Who said insurance was boring?

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<v Speaker 3>Well, indeed, insuring against excitement, Some could argue, let's talk

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<v Speaker 3>a little bit about Carlsburg though as well. Their shares

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<v Speaker 3>are hired this morning almost three percent. That's despite a

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<v Speaker 3>cautious outlook.

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<v Speaker 1>Indeed, Yeah, so they've widened their operating profit outlook compared

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<v Speaker 1>to last year. So it's expecting organic growth of two

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<v Speaker 1>to six percent in twenty twenty six, and if you

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<v Speaker 1>compare that's last year the range was three to five percent,

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<v Speaker 1>So they've widened that, essentially reflecting a cautious stance over

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<v Speaker 1>future demand for drinks. Obviously, consumer habits are changing. People

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<v Speaker 1>are shifting away from alcohol towards you know, lower or

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<v Speaker 1>no alcohol alternatives. And then on top of that, there's

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<v Speaker 1>also kind of rising prices and consumer habits in that sense,

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<v Speaker 1>and then dealing with tariff. So the CEOs worn that

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<v Speaker 1>demand for beer in the Western markets remains subdued and

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<v Speaker 1>he doesn't see a more positive stance for the global

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<v Speaker 1>consumer as well. He does see some growth in the

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<v Speaker 1>more premium ends and as I say, in alcohol free categories,

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<v Speaker 1>so two different ends.

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<v Speaker 4>And Carlsberg I've already been trying to.

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<v Speaker 1>Mitigate this, so they've been moving and diversifying away from

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<v Speaker 1>beer but widen profit outlook.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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