US HEALTHCARE: AbbVie: M&A Speculation
Jan-07 20:10
(ABBV; A3 Pos/A- /NR)
#MNI #Healthcare
- ABBV is reportedly in talks to buy Revolution Medicines with a rumored purchase price of ~$20bn. Revolution has three drugs in various trial stages to treat an array of oncology diseases with the first likely in pancreatic cancer.
- We do note that Revolution Medicines did sign an agreement with Royalty Pharma (RPRX) for daraxonrasib for $2bn which entitles RPRX to a portion of royalty revenues going forward.
- If we assume ABBV funds the entire $20bn rumored purchase price with debt, we see leverage in FY26 ending at ~2.8-3.0x which is up slightly from ~2.5x currently.
- We believe a deal of this size could be accommodated within the current A3/A- ratings and wouldn't expect any rating actions.
- We note this drug would bolster ABBV's leading oncology platform and would help offset the loss of Keytruda patents starting in 2028.
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EURJPY TECHS: Bull Flag
Dec-08 20:00
- RES 4: 184.34 2.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 3: 183.90 Bull channel top drawn from the Feb 28 low
- RES 2: 183.07 2.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 1: 182.01 High Nov 20 and the bull trigger
- PRICE: 181.27 @ 16:44 GMT Dec 8
- SUP 1: 180.17 20-day EMA
- SUP 2: 178.98/178.18 Low Nov 14 / 50-day EMA
- SUP 3: 177.15 Low Nov 10
- SUP 4: 175.87 Bull channel support drawn from the Feb 28 low
EURJPY is in consolidation mode and the latest pause in the trend appears to be a flag formation - a trend continuation signal that reinforces the bull theme. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. A continuation of the trend would signal scope for a climb towards 184.00, the top of a bull channel drawn from the Feb 28 low. First key support lies at 180.17, the 20-day EMA.
US TSY FUTURES: BLOCK: Mar'26 30Y Ultra-Bond Sale
Dec-08 19:42
- -1,500 WNH6 118-08, sell through 118-09 post time at 1432:26ET, DV01 $272,500.
- The 30Y Ultra contract trades 118-08 last (-13)
US TSY OPTIONS: Feb'26 10Y Ratio Put Spread
Dec-08 19:34
- 11,187 TYG6 110.5/112.5 3x2 put spds, 109 net ref 112-10
