Today is Thursday, December 30, 2021.
Biogen’s Possible Suitor is Samsung
Shares of Biogen (Nasdaq: BIIB) jumped 9.46% on Wednesday due to news that Samsung BioLogics (KRX: 207940) is in negotiations to buy the biotechnology company, according to a report from Korea Economic Daily.
Details: The deal could value Biogen at about $42 billion, even though the company is currently worth less than $35 billion. However, Samsung BioLogics has denied the media report about the acquisition, according to Reuters.
Background: Biogen’s stock reached a 2021 high in June after its Alzheimer’s drug received approval from U.S. regulators. However, after European regulators criticized the drug’s performance, Biogen slashed the drug's price in half. Since June, the stock has dropped 37%.
Big Picture: It’s big news for Biogen to get acquired and for Samsung to make waves in the biotechnology space. There’s a potential for this acquisition to spur future deals in the industry.
Final Thoughts: Before these negotiations get finalized, will Biogen’s stock continue to jump?
Notable Earnings Today: N/A.
Notable IPOs Today: Hunt Companies Acquisition Corp. I (NYSE: HTAQ), Douglas Elliman Inc. (NYSE: DOUG), Apeiron Capital Investment Corp. (NYSE: APN), Green Visor Financial Technology Acquisition Corp. I Class A Ordinary Shares (Nasdaq: GVCI), DP Cap Acquisition Corp I Class A Ordinary Shares (Nasdaq: DPCS), Aetherium Acquisition Corp. Unit (Nasdaq: GMFIU), LAMF Global Ventures Corp. I Class A Ordinary Shares (Nasdaq: LGVC), Talon 1 Acquisition Corp. Class A Ordinary Shares (Nasdaq: TOAC), Cactus Acquisition Corp. 1 Limited Class A Ordinary Share (Nasdaq: CCTS), Digital Health Acquisition Corp. Common Stock (Nasdaq: DHAC), Investment Managers Series Trust II (Nasdaq: PPI).
Notable Equity Crowdfunding Campaigns Ending Today: Skunk Brothers Spirits (StartEngine), AdWallet (StartEngine), Steamlytics (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Chicago PMI (9:45 a.m ET).
ESG Investing Became More Mainstream in 2021
Environmental, social, and governance (ESG) investing is not new, but the trend took off in 2021.
Definition: ESG investments are defined by investors who are focused on companies with good ethics and good plans focusing on sustainability. Lots of new investors are seeking companies that have these good values and brokerages are offering financial products to meet that investor demand.
Catalyst: In the past year, an increased focus on climate change and social justice coupled with new retail investors has resulted in higher demand for ESG investment opportunities.
Statistics: The ESG investments market will reach $53 trillion by 2025, according to Bloomberg.
Final Thoughts: While there are some criticisms about the true impact of ESG investing, it is a trend that is still growing.
Didi’s Revenue Drops Due to Regulatory Crackdown
Ride-hailing business Didi Global (NYSE: DIDI) said that its year-over-year revenue declined 1.7% in the quarter on Wednesday, mainly because of a cybersecurity probe in China.
Financials: Didi’s sales totaled $6.6 billion in the quarter and the company reported a loss of $4.7 billion, according to Bloomberg.
Background: After Didi listed on the New York Stock Exchange in June, Chinese regulators forced the company to remove its app from mobile app stores due to cybersecurity concerns. A few weeks ago, the company announced plans to delist from the NYSE and move to the Hong Kong exchange instead.
Numbers: Since its IPO in June, shares of Didi are down 68%.
Final Thoughts: Didi is not the only Chinese tech company that is facing regulatory headwinds.
Trends to Watch
Special Delivery: Every DoorDash employee, from engineers to CEO, will make deliveries (CNN)
So Meta: The Metaverse Isn’t Quite Ready for You, but Your Investment Is Welcome (The Wall Street Journal)
Crypto King: Ether Beats Bitcoin in 2021 as Volatility Suddenly Takes a Bite (Bloomberg)
Blame All Around: Cryptocurrency prices fall in December, and investors blame omicron, climate change (CNBC)
Equity Crowdfunding News: Wefunder Reports Blowout Year of Investment Crowdfunding, Plans European Expansion (Crowdfund Insider)
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