Global Business – Market Bull Breaths Financial Market News

Pharma Companies Generate $90B From Best Selling Drugs of 2018

Fatimah Aminu — Tue, 05 Mar 2019 20:44:27 +0000

The top 10 best selling drugs in 2018 generated $90 billion in revenues for large pharma companies
This comes at a time when many of the top drug makers are facing pressures about drug pricing

AbbVie’s (NYSE:ABBV) arthritis drug Humira remains the best selling drug in the world with over $20B in sales, more than double the second place Eliquis.

Combined, the top 10 best selling drugs in 2018 generated over $90B in revenues. Many of the drug developers, including Bristol-Myers Squibb (NYSE:BMY) and Merck (NYSE:MRK) are facing scrutiny for pricing drugs north of $100,000/year in the USA when in other countries the same drugs sell for a fraction of the costs.

Article by: Mick Ross
Mick is currently a full-time investor and formerly a buy-side analyst (2yrs) covering healthcare companies. Before that, he was a salesperson at a bulge-bracket firm, based in Dallas, Texas. Mick blogs to clarify and synthesize his investment thought process and to elicit feedback; additionally he likes to connect with other investors and swap ideas.

These Countries Are Pushing For Censored Internet

Francisco Cortez-Delgado — Tue, 05 Mar 2019 19:23:36 +0000

With upcoming elections, countries like India, China and Nigeria are proposing censorship controls in place to limit connectivity and access for their citizens.
This is a business risk that may impact operations of global tech giants like Google and Facebook

The internet has been a driving force for global connectivity allowing the rise of today’s tech giants like Facebook (NASDAQ:FB) and Google (NASDAQ:GOOG). Due to the interconnected nature of the internet, these companies have been able to conduct business internationally across all countries.

However, several countries are putting censorship controls in place to limit connectivity and access. With upcoming elections for many countries, worries of foreign tampering have caused some to consider extreme measures.

India announced a proposal that would install a Chinese-style censorship ahead of its elections. These proposed rules would allow Indian officials to demand that big web platforms remove content they deem bad for society.
Russia has considered creating an autonomous internet only for its citizens in the event that the country is cut off from other networks. Citing cyberdefense concerns, Russia has plans to temporarily disconnect from internet as a way to test their defense.
Congo & Nigeria have used censorship to manipulate elections
China has long blocked access to certain sites from being accessed within its borders. The use of VPNs to go around these barriers has been deemed illegal.

The isolating tactics by some of these countries goes against the fundamental belief of the open worldwide web. Such moves stall development and prove to be a business risk that the giant tech companies may soon deal with on a global scale.

Article by: Francisco Cortez – Delgado
I graduated from Queen’s University with a Master’s of Political Studies. The intertwined world of politics and economics intrigue me. My favourite stories to cover are the ones that show how a few selected officials can impact nationwide macro-economic policies. I also follow the broader markets and FOREX.

Tesla Dominates EV Market in 2018

Mick Ross — Mon, 04 Mar 2019 15:34:39 +0000

EV sales surged 74% in 2018 to a total 1.26M around the world. Atop the list was Tesla’s Model 3

EV sales surged 74% in 2018 to a total 1.26M around the world. Atop the list was Tesla’s Model 3 with 138,000 cars. At number 2, with 92,000 units, was BAIC EC, the Chinese manufacturer.

Tesla’s Model 3 outsold its nearest competitor by about 50% in its first full year on the market.

Even with pressure on their financials, Tesla seems to be dominating the EV market with two models in the top 5. This 2018 data comes around the same time as Elon Musk projected the company to sell 500,000 vehicles in 2019. Tesla is also planning to shut down retail locations as a cost cutting measure to focus funds on bringing their cheaper $35,000 model into the market.

Recreational Drug Prices Are Up Around The World

Francisco Cortez-Delgado — Fri, 22 Feb 2019 15:55:38 +0000

Bloomberg’s “Vice Index” tracks the price of recreational drugs around the world. In the US, street drug prices are up 40%.

Each year, Bloomberg looks at the price of recreational drugs to see how they have risen in price. Bloomberg’s “Vice Index” is a basket made up of opioids, cocaine, cannabis and amphetamine-type stimulants (ie. ecstasy and meth).

In 2019, recreational drug prices are up around the world. Americans would need to pay $846, the third-highest price in the world. This is up more than 40% from 2018 and is behind only Australia and New Zealand, which were $1,263 and $1,075 respectively.

Transportation costs and annual earnings are likely the top reasons for added costs. Latin America, Middle East and Africa, where parts of the drugs used for the basket are made, were the cheapest regions.

OPEC+ Countries Falling Short on Oil Production Cuts

Francisco Cortez-Delgado — Wed, 20 Feb 2019 12:55:15 +0000

Nations that vowed to cut oil production have not lived up to their word
The oversupply of oil has caused the commodity to fall 27% from a peak of $76 in September 2018 to a current price of $56/barrel

There’s a global surplus of oil, and in recent months some of the biggest producers have been promising to cut their output. An alliance of 21 nations known as OPEC+ is trying to remove about 1.2 million barrels/day to provide greater balance to the market.

Among them are OPEC members including Nigeria, Saudi Arabia and the United Arab Emirates, as well as non-members such as Malaysia, Mexico and Russia.

However, only 10 of the nations have achieved at least 100% of their target, while the others have fallen short. Below is a percentage of cutback target reached.

Notably, UAE (94%), Saudi Arabia (130%) and Kuwait (116%) have hit their target while Iraq (-11%), Nigeria (-102%) and Russia (18%) are not even close.

The price of crude oil will continue to struggle with an overflowing supply from countries that refuse to cut production.

Automakers Facing Bleak Prospects in Major Markets

Mick Ross — Tue, 19 Feb 2019 14:59:17 +0000

Auto sales are down in China due to a slowing economy and US trade war
In major developed markets such as Europe and North America, competitive threats from ride-sharing services have lowered the need for owning a vehicle
Investors of General Motors, Tesla and Ford should be wary

The number of cars sold in China has fallen again, after the first annual slump in more than two decades. January’s drop of 17.7% in vehicle wholesales (below) was accompanied by an eighth consecutive monthly decline in retail sales.

Automakers are facing headwinds in all major markets. Chinese sales are down as the world’s second-largest economy slows and the trade war with the US drags.

The markets in Europe and North America are also shrinking as the increasing availability of ride-hailing and car-sharing services like Uber and Lyft makes it less necessary to own a vehicle.

These threats pose a problem for automakers already relying on razor thin profit margins. General Motors (NYSE:GM), Tesla (NASDAQ:TSLA) and Ford (NYSE:F) are all reporting profit margins lower than 5%.

Security Concerns and International Disputes Slowing 5G Rollout

Francisco Cortez-Delgado — Mon, 18 Feb 2019 14:43:25 +0000

Rolling out in 2019 & 2020, 5G, the fifth generation wireless system will succeed 4G, which was first introduced in 2009
At 10GB/second, 5G could end up being 100x faster than 4G
Citing security concerns, countries have banned largest 5G equipment maker which could slow the advancement of the technology

A full decade after the commercialization of 4G, the next generation of mobile networks will start rolling out globally. With 5G, a full HD movie could be downloaded in seconds or up to 100x faster than the prior 4G version.

5G will also promote the growth of internet of things (IoT). It increases transmission speed and total bandwidth which will be needed to accommodate the added demand from “smart” objects like vehicles, appliances and clothing, all of which are getting online by communicating with one another.

While 5G will bring more devices online, it will also significantly increasing security worries. By 2024, mobile networks will carry 5x the amount of data that they carry today. During this time, more than 22 billion gadgets will be connected to the internet. The potential for security breaches will increase, as a result.

Some nations are worried that Chinese 5G equipment, chips and software could be outfitted to spy on other nations. In recent months, counties like Australia, USA and several European nations have banned Huawei and ZTE Corp from supplying 5G wireless equipment to its telecommunication operators, citing national security.

These bans and restrictions may cause the US and EU nations to fall behind in the global 5G race. Currently, China, South Korea and Japan are expected to lead the 5G rollout. The US-led crackdown on Huawei could place US & EU nations behind.

With IPO Nearing, People Spent $50B on Ubers in 2018

Mick Ross — Mon, 18 Feb 2019 14:43:23 +0000

Uber reported that total bookings for its ride-service and food-delivery businesses rose 45% from 2017
The company generated $11.3B in revenue by taking its cut, but it failed to show a profit

Uber Technologies Inc had $50 billion in total bookings for its ride-service and food-delivery businesses last year, up 45% over 2017. Uber’s full-year revenue for 2018 was $11.3 billion, up 43 percent.

Even with the impressive top-line growth, the company reported losses before taxes, depreciation and other expenses of $1.8 billion, an improvement over the $2.2 billion loss posted in 2017. With an IPO planned in 2019, analysts have projected that Uber’s valuation can top $100B.

Many investors are overlooking Uber’s lack of profits for top-line growth, betting that Uber can turn a profit with enough of a presence globally. Currently Uber is subsidizing ride costs to compete with alternative services such as Lyft and Ola in India. Still, Uber critics question whether the company’s business model is broken and if it can ever operate a profitable business.

The Biggest Cancer Company Of 2018 May Lose Its Throne in 2019

Fatimah Aminu — Fri, 15 Feb 2019 15:23:12 +0000

Roche was the best selling oncology company of 2018, with double the sales of second place Celgene
Bristol Myers Squibb acquired Celgene in early 2019, which will likely create the largest cancer company

Roche (OTC:RHHBY) generated over $25B in oncology sales for 2018 due to billion dollar drugs such as Rituxan, Herceptin and Avastin. Roche, however only saw a 2% growth in sales over 2017, which could indicate that its time as the top selling oncology company may be nearing an end.

Celgene, was in second place thanks to their blockbuster Revlimid, which is also the best selling cancer drug worldwide. Their oncology division grew sales at 17% over 2017.

In January 2019, Bristol Myers Squibb (NYSE:BMY) announced a mega-deal to acquire Celgene in a $74B deal. BMY was in 4^th spot in 2018 due to the rise of immue-oncology Opdivo.

Combined, the two companies are expected to overtake Roche as the number 1 selling cancer company globally, as early as 2019.

Article By: Fatimah Aminu
Fatimah is an experienced editor at various financial and consumer publishing houses. She obtained a master’s degree in Publishing from NYU, where she earned a bachelor of fine arts degree. She is currently earning a second masters degree at CUNY online in Psychology. Fatimah covers healthcare, cannabis and technology.

Renewable Energy Is The Future, But Do We Have Enough Resources to Fuel It?

Francisco Cortez-Delgado — Thu, 14 Feb 2019 15:08:40 +0000

EV and renewable energy are progressing, but we are far away from having the necessary technology to make these the widespread standards.

The renewable energy push is real and progressing daily. The global fleet of electric vehicles is expected to reach 125M by 2030. Today there are roughly 3M EVs on the roads globally. Solar energy is expected to become a top source of energy production in developed nations like Germany.

Panels and EVs are reliant on batteries to store the energy once it has been drawn from the sun or recharged from an EV charging stations. This brings up the importance of lithium and energy storage.

Lithium is an essential component of the renewable energy future because of its use in batteries that store electricity and energy. Thanks to its lightweight and highly reactive properties, lithium is a necessity for renewable energy to work on a grand scale. It’s currently used in the batteries of EVs and the battery storage components of solar panels.

When discussing the future of renewable energy, lithium’s scarcity is overlooked. If all the conventionally-fueled cars in the world were replaced with electric cars overnight, the global supply of lithium would be completely depleted in just approximately fifty years.

While both electric vehicles and renewable energy resources are still very far away from being widespread enough to threaten the world’s lithium stores in the near future, lithium itself is not really the point. It’s just one small problem that exemplifies a larger issue with renewable resources–they are not completely renewable, and we still haven’t discovered the technology to get around that fact.

Renewable energy still relies on several non-renewable resources. Solar panels, for example, can’t be made without the use of finite rare earth elements. Batteries, too, are completely dependent on finite earth-sourced materials for their fabrication.

Bottom line: EV and renewable energy are progressing, but we are far away from having the necessary technology to make these the widespread standards.