EU HEALTHCARE: Merck & Co (MRK): Merck $32bn Potential M&A
(MRK; Aa3/A+/NR)
• FT is now reporting that Merck is in talks to buy Revolution Medicines.
• The deal could be valued at up to $32bn
• The WSJ had been reporting that AbbVie was the suitor. This could get competitive.
• Revolution Medicine is developing treatments for RAS Mutations in Cancer, an area which has largely been difficult to solve.
• Merck has a significant patent cliff with Keytruda and Gardasil losing exclusivity ~2028. These represent 56% of sales.
• Recent M&A from Merck includes Cidara $9.2bn; Verona $10bn; SpringWorks $3.4bn in the past 12 months.
• $32bn would be ~1.3x EBITDA. The company raised $8bn to pay for Cidara.
• Issuance would be the immediate concern.
FT Link
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BTP TECHS: (H6) Impulsive Bear Wave
- RES 4: 121.33 High Oct 21 and a key resistance area
- RES 3: 121.37 High Nov 13
- RES 2: 121.24 High Nov 26
- RES 1: 120.17/77 Low Nov 20 / High Dec 3
- PRICE: 119.62 @ Close Dec 9
- SUP 1: 119.34 Low Dec 9
- SUP 2: 119.30 1.618 proj of the Nov 13 - 20 - 26 price swing
- SUP 3: 119.12 1.764 proj of the Nov 13 - 20 - 26 price swing
- SUP 4: 118.84 2.000 proj of the Nov 13 - 20 - 26 price swing
BTP futures have this week traded through an important support at 120.17, the Nov 20 low. This highlights the fact that a bearish phase remains in play for now, signalling scope for a deeper short-term retracement. The impulsive sell-off on Monday opens 119.30 next, a Fibonacci projection. The contract is oversold, a recovery would allow this set-up to unwind. Initial firm resistance to watch is 120.17, the Nov 20 low.
EURJPY TECHS: Clears The Bull Trigger
- RES 4: 184.34 2.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 3: 184.21 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: 182.64 High Dec 09
- PRICE: 182.32 @ 07:04 GMT Dec 10
- SUP 1: 180.50 20-day EMA
- SUP 2: 178.98/178.47 Low Nov 14 / 50-day EMA
- SUP 3: 177.15 Low Nov 10
- SUP 4: 176.08 Bull channel support drawn from the Feb 28 low
The trend needle in EURJPY continues to point north and a fresh cycle high this week reinforces current conditions. Moving average studies are in a bull-mode position too, highlighting a dominant uptrend. The cross has cleared 182.01, the Nov 20 high and bull trigger. The breach confirms a resumption of the uptrend. Sights are on 184.21, the top of a bull channel drawn from the Feb 28 low. First key support is 180.50, the 20-day EMA.
MNI: NORWAY NOV CPI-ATE -0.3% M/M, +3.0% Y/Y
- MNI: NORWAY NOV CPI-ATE -0.3% M/M, +3.0% Y/Y
- NORWAY NOV CPI +0.1% M/M, +3.0% Y/Y
