The S&P Select Biotech Index remained above the 50-day moving average as investors look forward to this Wednesday's CPI data to refine expectations for rate cuts.
The recent volatility spike has raised the stakes for economic data as the inevitable pivot point is approached. A hot core reading of 0.3 or above has the potential to cause significant disruption as the Fed's dual mandate will be under the spotlight and the Fed put will be questioned. An in line reading around 0.2 should help calm markets, while an upside surprise of 0.1 or lower has the potential for a risk on rally as super-sized Fed cuts will be expected in short order.
SMID biotech EPS came to a close with clear signs of life for companies beating expectations. Should macro picture align with these positive micro updates there very well may be breakout potential for the sector for the first time in a while.
M&A:
Crown Laboratories (private) announced the acquisition of Revance Therapeutics (RVNC) for $924 million. The deal will pay shareholders $6.66 per share in cash representing an 89% premium to the prior days closing price
Merck (MRK) to acquire investigational CD19xCD3 bispecific B-cell depletion therapy CN201 from China based Curon Biopharmaceutical (private) for upfront payment of $700 million in cash, plus earnouts of up to $600 million
Pharmacosmos A/S (private) announced a deal to buy G1 Therapeutics (GTHX) for $405 million, a 68% premium to the prior closing price. GTHX's Cosela is FDA approved to decrease chemo induced myelosuppression in patients with small cell lung cancer
Clinical:
Apellis Pharmaceuticals (APLS) announced positive data form Pegcetacoplan in C3G and Primary IC-MPGN, kidney diseases with no approved treatments
Elevation Oncology (ELEV) crashed >50% on announcing Phase 1 data with ADC EO-3021 targeting Claudin 18.2 that showed 20% ORR across all 15 patients treated (n=3 responses seen out of n=7 in Claudin >20% patients and 0% in the remaining n=8 patients). Earlier data out of China with the asset showed higher response rates approaching 50% in a similar population
Cabaletta Bio (CABA) disclosed a grade 4 case of ICANS in a refractory lupus nephritis (LN) patient following an infusion of CABA-20 that sent shares below cash value
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