💊 $4.3B Biopharma Acquisition. Nigeria Stock Index Down 3%.
Impact Capital Markets #57 looks at HolonIQ's Nigeria stock index, major impact deals, M&A, and upcoming economic releases.
Selam ☕
📉 Today's Global Economic Update: Australia's Consumer Confidence Index declined by 1.8% month-on-month in March 2024, following a 6.2% increase in February. Although last month saw consumer sentiments improve, the March survey update showed that progress continues to be slow.
💊 Deal of the Day: Gilead Sciences acquired CymaBay Therapeutics, a biopharmaceutical company, for $4.3B.
What's New?
- 🦅 Nigeria. Nigeria stock index down 3%
- 💰 Funding. Precision meds, biotech, eco-sourcing & mineral exploration
- 💼 M&A. Deals in the biopharmaceutical sector
- 📅 Economics. Inflation, US GDP, personal income & spending + more
🦅 Nigeria Stock Index Down 3%
HolonIQ’s Nigeria stock index declined by 3% over the past year, reflecting a correction following economic reforms in the country. President Bola Tinubu’s policy decision to withdraw fuel subsidies had a chain reaction that led to 31.7% inflation levels in February 2024. The peg on Nigeria’s currency was also removed in 2023. Since then, it has observed declines of more than 200%, leading to higher import costs for businesses. This was compounded further by price increases as a result of inflationary effects globally. As firms grapple with this uncertainty, stocks in the index, including Guaranty Trust Holding Co. ($990M MCap) and Zenith Bank ($865M MCap), have observed declines.
On February 27th, the monetary board increased its interest rate by 400 bps to 22.75%. Monetary tightening has been in place since 2022 and has been welcomed by the IMF as a means of containing inflation levels. The high-interest rates will likely incentivize investors to move away from equities towards fixed income, similar to what was seen during Sri Lanka's economic crisis.
💰 Funding
💉 Mirador Therapeutics, a California-based precision medicine company, raised $400M Series A from ARCH Venture Partners to develop its therapeutic programs.
🧬 Edgewood Oncology, a Massachusetts-based biotechnology company, raised a $20M Series A from Alta Partners to advance its clinical pipeline of treatments for acute myeloid leukemia.
🌱 Circular, a California-based platform developed to simplify sustainable sourcing of post-consumer recycled (PCR) plastic, raised $10.5M to expand its team.
⛏️ Aberdeen Minerals, a UK-based mineral exploration company, raised $6.9M from Central Asia Metals to fund its battery mineral exploration programs.
💼 M&A
💊 Gilead Sciences, a California-based biopharmaceutical company, acquired CymaBay Therapeutics, a New Jersey-based biopharmaceutical company focused on developing therapies for patients with liver and other chronic diseases, for $4.3B.
🧬 AstraZeneca has entered into a definitive agreement to acquire Fusion Pharmaceuticals, a Canadian clinical-stage biopharmaceutical company developing radioconjugates, for approximately $2.4B.
📅 Economic Calendar
Inflation, US GDP, Personal Income & Spending + More
Tuesday, March 26th 2024
🇩🇪 Germany GfK Consumer Confidence Index, April
🇺🇸 US Durable Goods Orders Data, February
Thursday, March 28th 2024
🇺🇸 US Core PCE Price Index Data, February
🇺🇸 US GDP Growth Data, Q4
Friday, March 29th 2024
🇫🇷 France Inflation Data (Preliminary), March
🇮🇹 Italy Inflation Data (Preliminary), March
🇺🇸 US Personal Income & Spending Data, February
Monday, April 1st 2024
🇯🇵 Japan Tankan Large Manufacturers Index, Q1
🇨🇳 China Caixin Manufacturing PMI, March
🇺🇸 US ISM Manufacturing PMI, March
Tuesday, April 2nd 2024
🇦🇺 Australia RBA Meeting Minutes
🇩🇪 Germany Inflation Data (Preliminary), March
🇺🇸 US JOLTs Job Openings, February
Wednesday, April 3rd 2024
🇪🇦 Euro Area Inflation Data, March
🇺🇸 US ISM Services PMI, March
Friday, April 5th 2024
🇦🇺 Australia Balance of Trade Data, February
🇨🇦 Canada Balance of Trade Data, February
🇨🇦 Canada Employment Data, March
🇺🇸 US Employment Data, March
🇨🇦 Canada Ivey PMI, March
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