EU HEALTHCARE: Roche: Direct-to-Patient Selling (ROSW; Aa2/AA/AA)
Potentially positive for the industry
• Roche have been in talks with the US Govt about cutting out the middle-men (Pharma Benefits Managers, PBMs).
• In the analyst call, Thomas Schinecker CEO said that PBMs take more than 50% of the profitability. This would enable consumers to benefit from lower prices without destroying the incentive for drug innovation.
• BMY & PFE announced that they would sell Eliquis direct-to-consumers last week.
• Whilst this does help Trump from the angle of reducing prices, the other argument is about security of supply. Roche announced a $50bn capital investment programme in the US. Other companies have also invested heavily.
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Historical bullets
GILTS: Opening Calls
Gilt calls, 93.33/93.45 range.
GILT TECHS: (U5) Bullish Outlook
- RES 4: 94.15 2.000 proj of the May 22 - 27 - 29 price swing
- RES 3: 94.00 Round number resistance
- RES 2: 93.73 1.764 proj of the May 22 - 27 - 29 price swing
- RES 1: 93.51/93.68 High Jun 24 / 13
- PRICE: 93.47 @ Close Jun 24
- SUP 1: 92.51 20-day EMA
- SUP 2: 92.23 Low Jun 16 and a key short-term support
- SUP 3: 91.56 Low Jun 9
- SUP 4: 91.44 Low Jun 8
A bullish condition in Gilt futures remains intact and recent weakness appears to have been a correction. This week’s strong gains reinforce the current bullish theme. Key short-term support has been defined 92.23, the Jun 16 low. A break of this level is required to undermine a bull theme and signal scope for a deeper retracement. On the upside, sights are on 93.68, the Jun 13 high and bull trigger.
EQUITIES: EU Cash Opening Calls
Estox 50: +0.42%, Dax: +0.45%, CAC: +0.23%, FTSE +0.19%, SMI +0.37%.
