A Match Made in RNAi
*looking up what RNAi means so I sound intelligent while writing this article*
Shares of Dicerna Pharmaceuticals (DRNA) skyrocketed to the tune of +78.49% during Thursday’s trading session following an announcement that the company’s research partner, Novo Nordisk (NVO), would be acquiring them for $3.3B. Dicerna develops “investigational ribonucleic acid interference (RNAi) therapeutics.”,or, in layman’s terms, is a technology that silences or renders genes responsible for disease ineffective.
- The deal will allow Dicerna to continue using Novo’s proprietary GalXC RNAi platform that could help the company develop treatments for diseases like Type II Diabetes and obesity. *pretending I didn’t just eat cookies at 10am*
- Novo will offer $38.25/share in cash and will be financed mainly by debt.
- The deal is expected to close in Q4 2021, which we are currently in, and according to Novo, would have an initial negative impact on profit growth in 2022.
- Despite the costs associated with the acquisition of Dicerna, Novo does not expect their profit outlook for 2021 or the company’s share buyback program to be affected. *scratches head*
- Shares of NVO closed Thursday up a whopping 0.52%.
Like every other time in human history when there is a positive event, satan’s helpers *read lawyers* have to get involved. Following Thursday’s news of the deal, the global investor rights law firm of Halper Sadeh LLP issued a press release stating that they are investigating whether the sale price of $38.25/share is fair to Dicerna shareholders. And this, ladies and gentlemen, is why we can’t have nice things. I’m keeping an eye on DRNA and NVO for any news regarding the deal that may emerge in the coming days or weeks.
When the chips are
not even a little bit down
^ Nvidia after every earnings call
Nvidia surpassed $800B in market cap Thursday after beating quarterly earnings estimates again (and again and again), raising murmurs that the computer chip manufacturer could be the first $1T semiconductor company. The star of the earnings-call was NVID’s data center, which grew its revenue 55% this quarter.
- Their gaming sector wasn’t anything to scoff at either, beating expectations by $40M and continuing to net the lion’s share of the company’s revenue. Let’s check in on the gaming sector at Nvidia HQ.
- Nvidia has Meta to thank for some of the recent surge, as the metaverse is likely to increase demand for cloud computing processors and utilize Nvidia’s Omniverse, a software platform used to create virtual spaces. Guess everyone’s just spitting verses out here.
- NVID stock was up 8.25% when markets closed Thursday, and is up 141.54% YTD. Their astronomical growth has led some to speculate that it could become the biggest company on the planet.
Most thought that Nvidia couldn’t meet their targets this quarter, but they said f*ck that noise and vaulted an almost impossibly high bar. To pull it off again next quarter, they’ll need to do something really bigâ€“ like, oh, I don’t know, acquire British chip designer Arm for $40B. The deal’s far from a sure thingâ€“ it rang antitrust bells the world overâ€“ but if it somehow gets the regulatory green light, NVID may well keep its ridiculously hot streak alive.
Store Closing, Everything Must Go
^ my friends and I doing yoga at one of the HealthHubs
CVS Health (CVS) is taking the wrecking ball to its retail footprint, announcing plans to close 900 stores over the next three years. The company’s rationale behind the move is customer behavior shifting to online, and this surely has nothing to do with the hordes of shoplifters targeting drug stores in cities like San Francisco and Chicago in recent months. CVS shares were up 2.81% on the day, continuing a strong 2021 where they have risen 40%.
- CVS will focus on store concepts such as MinuteClinic (think: urgent care) and Pornhub HealthHub, which focus on screening for chronic ailments and offer space for wellness activities like yoga.
- The company apparently doesn’t think ‘rona vaccines will be an annuity that continuously drives consumers into stores to buy candy bars and toothpaste after receiving their quarterly boosters.
- CVS will take an impairment charge of about $1B in fiscal Q4 tied to the announcement.
While no specific store locations were disclosed, it doesn’t take a high priced consultant to point out that closing stores in areas hard hit by shrinkage (the actual retail term used to describe theft) could offset redevelopment costs in transforming traditional stores to HealthHubs. Whether or not people indeed go to the drug store for yoga remains to be seen.