EU HEALTHCARE: Healthcare: Week in Review
• Astra Zeneca followed Pfizer in securing a 3-year reprieve from Section 232 tariffs. AZN will sell drugs at up to an 80% discount on the TrumpRx platform. The company is already committed to a $50bn investment in the US.
• Merck KgaA stated an increased appetite for M&A in their Capital Markets Day. The recent Springworks deal only moved leverage by 0.5x. The company has completed several transactions in the past which moved leverage into the 3-4x range. It has always been disciplined at subsequent debt reduction.
• Johnson & Johnson reported sales up 5.4% organically with Oncology up 21%. Margins grew by 60bps. The company also announced that it would spin-off Orthopaedics – 10% of sales – to focus on better areas. We estimate that net leverage is around ~0.9x currently.
• Sartorius had strong results and increased guidance. By reported numbers, leverage should fall from 4.0x to 3.5x over 2025. This has been too slow for S&P but at least it is falling. Bonds were 3bps tighter on the results.
• Novo Nordisk made an opportunistic acquisition of the rights to a rare disease treatment for only $340m upfront cost. Milestone payments could total $2.1bn for a drug which may see peak annual sales of around $3bn. Novo and Eli Lilly were under pressure on Friday following Trump comments about weight-loss drug pricing.
• EssilorLuxottica reported strong sales.
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US 10YR FUTURE TECHS: (Z5) Bull Mode
- RES 4: 114-10 High Apr 7 (cont.)
- RES 3: 114-10 1.0% 10-dma envelope / High Apr 7 (cont.)
- RES 2: 114-00 Round number resistance
- RES 1: 113-29 High Sep 5
- PRICE: 113-19 @ 11:06 BST Sep 17
- SUP 1: 112-28 20-day EMA
- SUP 2: 112-05+ 50-day EMA
- SUP 3: 111-13+ Low Aug 18 and a key support
- SUP 4: 110-25 Low Aug 1
A bull-mode condition in Treasury futures remains intact. Note that the recent impulsive rally signalled an acceleration of the uptrend. Also, moving average studies are in a bull-mode position, highlighting a dominant uptrend. This suggests scope for an extension through 114-00 next and a test of 114-10, the Apr 7 high (cont). Initial firm support to watch is 112-28, the 20-day EMA.
EU-BILL AUCTION RESULTS: 3/6/12-month EU-bills
| Type | 3-month EU-bill | 6-month EU-bill | 12-month EU-bill |
| Maturity | Dec 5, 2025 | Mar 6, 2026 | Sep 4, 2026 |
| Amount | E800mln | E800mln | E965mln |
| Target | E1.0bln | E1.0bln | E1.0bln |
| Previous | E817mln | E894mln | E997mln |
| Avg yield | 1.936% | 1.964% | 2.003% |
| Previous | 1.946% | 1.968% | 1.982% |
| Bid-to-cover | 2.35x | 2.63x | 2x |
| Previous | 1.85x | 1.83x | 1.67x |
| Previous date | Sep 03, 2025 | Sep 03, 2025 | Sep 03, 2025 |
MNI EXCLUSIVE: MNI Speaks to Former Chinese Policy Advisors on US-China TikTok
- A former Chinese policy advisor provides insight into the significance of this week's China U.S. Tik-Tok deal in Spain. On MNI Policy MainWire now, for more details please contact sales@marketnews.com
