🧬 China Biotech Declines 30%. 55M+ VC Funding.
Impact Capital Markets #102 looks at our China Biotech Stock Index, major impact deals, M&A, and upcoming economic releases.
Hallo 🦁
📉 Today's Global Economic Update: In May 2024, Germany's Ifo Business Climate indicator held steady at 89.3, matching April's figure and falling short of expectations. The failure to meet expectations suggests, a potential slowdown in the economic recovery.
🩺 Deal of the Day: Spectrum. Life, an Irish mental health tech company, raised $18.4M for digital health initiatives.
What's New?
🧬 China Biotech. China biotech declines 30%
💰 Funding. Mental health, fleet management, green logistics + more
💼 M&A. Healthcare services and power management
📅 Economics. US GDP, Euro area inflation, balance of trade + more
🧬 China Biotech Declines 30%
The China Biotech index has been experiencing a persistent downward trend, currently down 30% from a year ago. This decline in Chinese biotech companies, exemplified by firms like WuXi AppTec Co ($17B MCap) is largely attributed to the US extending its crackdown on Chinese firms to the biotechnology sector. A proposed bill prohibits federally funded medical providers from contracting with certain Chinese biotech firms due to national security concerns. Moreover, there has been a substantial reduction in funding for biotech, especially from US venture capital funds, which have slashed investment in Chinese biotech groups by over half in the past two years. Additionally, growth is slowing alongside the fall in demand for COVID-19 vaccines.
The financial impact of these developments is evident in the stock market, with significant drops in share prices. This decline in trend has been identified in key stocks in the index, such as Imeik Technology Development Co Ltd ($9B MCap), Shanghai Fosun Pharmaceutical Co Ltd. ($8B MCap), and China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. ($8.5B MCap), which showed a year-over-year decline of 39%, 37%, and 9%, respectively. The trend reflects the challenges the sector is facing and indicates investors are bracing for a difficult period ahead.
💰 Funding
🩺 Spectrum.Life, an Irish mental health tech company, raised $18.4M from Act Venture Capital for digital health initiatives.
🚗 Zypp Electric, an Indian fleet management startup, raised a $14M Series C from ENEOS to expand operations.
🚚 Shipzero, a green logistics startup, raised an $8.7M Series A from ETF Partners to expand its transport emissions management platform.
🔋 Turno, an Indian commercial EV distribution and financing company, raised $5.5M to meet working capital needs.
⚡ Delta Green, a Czech energy startup, raised $2.4M to integrate renewable resources into the grid and balance it with a virtual battery.
💼 M&A
🏥 The New Frontier Group, a Chinese private healthcare service provider, acquired the Hong Kong Integrated Oncology Centre, a cancer treatment center.
⚡ Eaton, an Irish intelligent power management company acquired Exertherm, a UK-based thermal monitoring solutions provider.
📅 Economic Calendar
US GDP, Euro Area Inflation, Balance of Trade + More
Wednesday, May 29th 2024
🇯🇵 Japan Consumer Confidence Index, May
🇩🇪 Germany GfK Consumer Confidence, June
🇩🇪 Germany Inflation Data Preliminary, May
Thursday, May 30th 2024
🇺🇸 US GDP Growth Data, Q1
🇨🇳 China NBS Manufacturing PMI, May
Friday, May 31st 2024
🇫🇷 France Inflation Data Preliminary, May
🇪🇦 Euro Area Inflation Data (Flash), May
🇮🇹 Italy Inflation Data Preliminary, May
🇮🇳 India GDP Growth Data, Q1
🇨🇦 Canada GDP Growth Data, Q1
🇺🇸 US Core PCE Price Index, April
🇺🇸 US Personal Income & Spending, April
Monday, June 3rd 2024
🇺🇸 US ISM Manufacturing PMI, May
Tuesday, June 4th 2024
🇺🇸 US JOLTs Job Openings, April
🇦🇺 Australia GDP Growth Data, Q1
Wednesday, June 5th 2024
🇨🇦 Canada BoC Interest Rate Decision
🇺🇸 US ISM Services PMI, May
🇦🇺 Australia Balance of Trade Data, April
Thursday, June 6th 2024
🇪🇦 Euro Area Deposit Facility Data
🇪🇦 Euro Area ECB Interest Rate Decision
🇪🇦 Euro Area ECB Press Conference
🇨🇦 Canada Ivey PMI s.a, May
🇨🇳 China Balance of Trade Data, May
Friday, June 7th 2024
🇩🇪 Germany Balance of Trade Data, April
🇨🇦 Canada Balance of Trade Data, April
🇨🇦 Canada Employment Data, May
🇺🇸 US Employment Data, May
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