Bunzl H1 profits grow, Dechra buys California-based Med-Pharmex

Stocks to watch

Bunzl posted a jump in first-half profit and revenue as product cost inflation and volume growth more than offset the expected decline in Covid-19 related sales.

In the six months to 30 June, adjusted pre-tax profit grew 12.2% to £411.4m, with revenues up 16.1% at £5.7bn.

Dechra Pharmaceuticals said it has bought California -based veterinary pharmaceutical manufacturer Med-Pharmex for $260m (£221.5m).

It said Med-Pharmex is the acquisition referred to in the fundraising announcement it made in July as the “potential acquisition”.

Clinical trial results showed that AstraZeneca's Farxiga treatment against Type II diabetes significantly reduced the risk of cardiovascular death or worsening of heart failure in patients with mildly reduced or preserved ejection fraction.

HFpeF is a condition in which the left ventricle of the heart hardens, becoming less able to relax, which in turn provokes higher blood pressure.

The results of the third phase clinical trial were presented at the European Society of Cardiology Congress 2022 on Tuesday, simultaneous to their publication in the New England Journal of Medicine.

Newspaper round-up

Thousands of pubs face closure without urgent government support to soften the blow from soaring energy bills, the beer industry has said, putting jobs at risk in a sector still battling to recover from the Covid pandemic. The bosses of companies owning almost half of the UK’s 47,000 pubs said tenants were already giving notice because they could not cope with energy bills, which are due to rise more than fivefold in some cases. – Guardian

Soaring profits by Australian-based fossil-fuel exporters have renewed calls for the Albanese government to impose a tax on windfall earnings that have little to do with the companies’ performance. Independent senator David Pocock, the former Labor foreign minister Bob Carr and energy analyst Tim Buckley are among those pressing the government to match nations like the UK and Indonesia in clawing back some of the super-sized profits.- Guardian

Brussels is drawing up emergency plans to reduce the cost of energy, amid warnings from the boss of Shell that the gas crisis is set to last for several years. Ursula von der Leyen, president of the European Commission, said the bloc needed an “emergency instrument” to cope with the crisis and would try to break the link between gas and electricity prices which amplifies the impact of gas shortages. – Telegraph

Energy suppliers are demanding millions of pounds upfront from major high street firms as hefty deposits for gas and electricity bills risk triggering a business cash crunch. A number of energy providers, including SSE and EDF, are asking some firms for huge deposits to cover months of bills amid fears that the crisis will cause swathes of small businesses to collapse. – Telegraph

Britain will plunge into recession before the end of this year and the economy will keep contracting throughout 2023, Goldman Sachs has warned. The sharp downgrade on its previous predictions came alongside news that the number of high street stores closing continues to increase and that manufacturing insolvencies are soaring. – The Times

Thousands of foreign workers could be fast-tracked into the UK to help telecoms companies with the rollout of gigabit broadband because a shortage of skilled labour is holding back installation. In a letter to businesses involved, Priti Patel, the home secretary, wrote: “The Home Office is on standby to help you and your sub-contractors understand the immigration system and receive an expedited service.” – The Times

US Close

The Dow Jones Industrial Average closed down 0.6% while the S&P 500 fell 0.7%, and the Nasdaq ended 1% lower on Monday.