GSK's bepirovirsen gets FDA fast track, SSP buys Australia's ARE
London open
The FTSE 100 is expected to open 17 points higher on Monday, having closed down 0.3% on Friday at 7,572.58.
Stocks to watch
GSK announced on Monday that the US Food and Drug Administration (FDA) has granted fast track designation for bepirovirsen, an investigational antisense oligonucleotide (ASO) aimed at treating chronic hepatitis B (CHB). The FTSE 100 pharmaceuticals giant said the designation would accelerate the drug's development and review process, due to the severity of the condition and its unmet medical need. Bepirovirsen had shown promise in phase 2b trials, demonstrating the potential to achieve clinically meaningful functional cure responses when combined with existing oral antiviral therapies, which is particularly beneficial for patients with low baseline hepatitis B surface antigen levels.
Travel food outlet operator SSP Group on Monday said it had bought Airport Retail Enterprises in Australia for an undisclosed sum. Founded in 1971, privately-owned ARE is a food and beverage operator, with annualised sales in the region of AUD $200m (£100m) from 62 outlets, principally bars, casual dining restaurants and cafes, across seven Australian airports. SSP said the acquisition was part of its plan to accelerate growth in the Asia Pacific region and will see the group enhance its presence in Australia.
Tritax Big Box said it had agreed terms on a possible bid for UK Commercial Property REIT in an all-share deal worth £924m. The company on Monday said it had offered 0.444 new Tritax shares for every UKCP share, leaving it with 76.7 of the merged group and UKCM shareholders with the remainder. It also represents a 10.8% premium to UKCPs closing share price of 64.2 pence per share on February 9.
Newspaper round-up
Bosses at Fujitsu have collected about £37m in pay, bonuses and compensation for loss of office since the technology company won the contract to supply the software at the heart of the Post Office Horizon scandal, it has emerged. Accounts going back 25 years reveal the seven-figure sums paid out to executives of the UK division of the Japanese-owned technology company, even as more than 900 people were prosecuted as a result of flaws in the system their company supplied. – Guardian
A new scheme to fine water companies for providing poor service to customers has been dismissed as “nothing less than a gimmick” – as the money raised in fines will not go to consumers affected. On Monday, Ofwat unveiled sanctions for water companies that do not provide good communication and help to those who face problems such as having no running water. – Guardian
Vodafone has paid out more than $1bn in fees to advisers over the last two decades amid ambitious empire-building followed by a costly retreat. The British telecoms giant has spent huge sums on bankers and lawyers as part of long-running turnaround efforts, with data from Dealogic revealing that “in excess” of a billion dollars has been spent on advisors since 2000. – Telegraph
US private equity firm Kohlberg Kravis Roberts (KKR) is poised to take control of one of Britain’s largest smart meter suppliers after seeing off an attempt by its founders to scupper the deal. KKR is expected to reveal this week that more than 50pc of shareholders in Glasgow-based Smart Metering Systems have backed the takeover, giving them overall control. – Telegraph
The private equity owners of Shawbrook are seeking to revive plans for a float of the bank in a potential boost to the London stock market. Some City investors are understood to have been sounded out about a possible initial public offering of Shawbrook, which was bought by BC Partners and Pollen Street Capital for £868 million in 2017. – The Times
US close
The S&P 500 rose into new territory on Friday while the tech-heavy Nasdaq jumped over 1% after revisions to inflation data turned out to be nothing to worry about.
The S&P 500 finished up 0.57% at a fresh closing high of 5,026.61, closing above the key psychological mark of 5,000 mark for the first time.
The Nasdaq gained 1.25% to 15,990.66, finishing within 70 points of its record closing high of 16,057.44 reached in November 2021.
The Dow meanwhile slipped 0.14% to 38,671.69, pulling back after hitting a new record the previous session.
Ahead of the much-anticipated annual revisions to seasonal factors applied to consumer price index numbers, market chatter had been focused on the potential for upside risk to historic inflation figures over the past four years, clouding the outlook for future monetary policy.