2024-03-25 13:03

March 25 (Reuters) - AbbVie (ABBV.N) , opens new tab will buy drug developer Landos Biopharma (LABP.O) , opens new tab for up to $212 million as the Humira-maker aims to expand its pipeline of medicines to treat immune system-related illnesses, the companies said on Monday. Landos is currently conducting a mid-stage study of its lead experimental drug NX-13 in a type of an inflammatory bowel disease called ulcerative colitis. AbbVie's blockbuster drug Rinvoq is approved to treat the disease while the company has also sought the U.S. Food and Drug Administration's approval for its other key drug Skyrizi. Under the deal, AbbVie will buy Landos for $20.42 per share in cash, or about $137.5 million in total. The offer marks a 161% premium to Friday's close of $7.83. Landos' shares surged to $22.13 before the bell after a short trading halt. AbbVie has also agreed to pay Landos shareholders an additional up to $11.14 per share, or around $75 million in total, contingent on certain clinical development milestones. The deal is expected to close in the second quarter, the companies said. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/abbvie-buy-landos-expand-pipeline-immunity-related-illnesses-2024-03-25/

2024-03-25 13:01

Calhoun to leave at end-2024, says decision was his Former Qualcomm CEO to chair board, find next CEO U.S. airline CEOs sought meetings with Boeing directors Ryanair, other customers praise shakeup Boeing shares close up 1.4% March 25 (Reuters) - Boeing (BA.N) , opens new tab CEO Dave Calhoun will step down by year-end in a broad management shakeup brought on by the planemaker's sprawling safety crisis exacerbated by a January mid-air panel blowout on a 737 MAX plane. In addition, board chair Larry Kellner and Stan Deal, head of the company's commercial planes business, are also leaving as Boeing's board tries to get control of the myriad issues that have shaken confidence in the iconic planemaker over several weeks. The January incident was the most recent in a series of safety crises that have shaken the industry's confidence in the planemaker and hampered its ability to increase production. Calhoun, 66, was brought in as CEO following a pair of crashes in 2018 and 2019 that killed nearly 350 people. Immediately after the Jan. 5 panel blowout, airline executives expressed support for Calhoun, but those good feelings ebbed after additional production delays and as regulators detailed quality problems at its key manufacturing hub outside Seattle. Some investors said the shake-up would not be enough to address these persistent issues. Boeing shares have lost roughly a quarter of their value since the incident. They closed up 1.4% Monday, off highs hit earlier in the day. "They need more than just a shakeup at the CEO and the chairman of the board level... they're just paralyzed from making decisions," said Robert Pavlik, senior portfolio manager at Dakota Wealth. "It's going to take a little bit more time for Boeing to get it straightened out." The company is in the midst of federal investigations and U.S. authorities curbed production while Boeing attempts to fix safety and quality problems. It is in talks to buy former subsidiary Spirit AeroSystems (SPR.N) , opens new tab to try to get more control over its supply chain. Michael O'Leary, head of Ireland's Ryanair (RYA.I) , opens new tab, a top Boeing customer, said Monday the airline welcomed the "much-needed" management changes at Boeing, calling the shakeup good for the planemaker's customers. Calhoun said he made the decision to step down. "It was me giving them notice that at the end of this year I plan to retire," Calhoun told CNBC. He said he wanted to stay to the end of the year to address quality issues. COO Stephanie Pope has been appointed to lead Boeing Commercial Airplanes, effective Monday. Steve Mollenkopf, former CEO of tech company Qualcomm (QCOM.O) , opens new tab, has been appointed new chair of the board and is leading the search for the next CEO. A source told Reuters Mollenkopf will join Kellner on planned meetings with major U.S. and foreign airline CEOs. QUESTIONS ABOUT MANAGEMENT Regulatory scrutiny illuminated troubling issues that caused investors and customers to lose confidence in the iconic manufacturer. A U.S. National Transportation Safety Board report of the Alaska Air incident found that the panel blowout was caused in part because several bolts meant to hold the plug in place were removed and not replaced - and there was no paperwork detailing what happened to those bolts. The head of the NTSB told lawmakers in early March that the company had not provided records the agency had requested. Following the incident, the FAA curbed Boeing production to 38 jets per month, but CFO Brian West said last week it had not reached that figure. He added the planemaker was burning more cash than expected this quarter. Last week, a group of U.S. airline CEOs sought meetings with Boeing directors without Calhoun to express frustration over the Alaska Airlines accident and management. Analysts and investors called the shakeup positive for Boeing, but stressed that much depends on Calhoun’s successor and changing the company’s culture from the top. Workers' representatives echoed that sentiment, pressing for a greater voice in management as one key union enters contract negotiations. "Our livelihoods are at stake, and that's precisely why we are seeking a seat on the board," said Jon Holden, president of the International Association of Machinists and Aerospace Workers District 751, which represents Seattle-area workers. "We firmly believe our voice and the voice of the engineers must be heard at the highest level of the company's decision-making process." United (UAL.O) , opens new tab said it “continues to root for Boeing’s success and we look forward to working with them during their leadership transition.” Delta (DAL.N) , opens new tab said it "will remain closely engaged with Boeing." Some suggested Spirit AeroSystems (SPR.N) , opens new tab CEO Patrick Shanahan, a former Boeing executive and U.S. government official, now tasked with a complex tie-up deal with the U.S. planemaker, was a possible successor to Calhoun. Shanahan's "sole priority remains building a culture of safety" at Spirit, spokesperson Joe Buccino said Monday. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/aerospace-defense/boeing-ceo-calhoun-step-down-2024-03-25/

2024-03-25 12:49

March 25 (Reuters) - Boeing Co (BA.N) , opens new tab CEO Dave Calhoun will step down by year-end, in a broad management shakeup brought on by the planemaker's sprawling safety crisis stemming from a January mid-air panel blowout on a 737 MAX plane. COMMENTARY ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER AT DAKOTA WEALTH "They need more than just a shake-up at the CEO and the chairman of the board level... they're just paralyzed from making decisions." "I think Dave Calhoun is being targeted as the scapegoat, not necessarily by only the board, but by the government." "The bounce is going to be short lived... It's going to take a little bit more time for Boeing to get it straightened out, but the company certainly will not be going out of business, the government won't allow that to happen. Boeing needs the government, and the government needs Boeing." CAMERON DAWSON, CHIEF INVESTMENT OFFICER, NEWEDGE WEALTH "Clearly there is a relief rally that there could be some cultural change happening at Boeing. We've long thought that the issues at Boeing have been seated in cultural challenges." "Everything from the laser focus just on cash flow to moving headquarters away from the base of manufacturing. At the end of the day, Dave Calhoun was as much of an insider as if he had worked at Boeing because he came from GE and was on the board for a long time." "Boeing clearly needs a shift in culture, which is likely why the shares are up this morning. Challenges will still persist though. In the short term, there are a lot of things that Boeing has to address on the safety side which are not fixed overnight. But clearly the market is seeing this as at least a step in the right direction." RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY "It was a foregone conclusion that they need to make a change. The shareholders are glad to see the company recognize that." "The new management will need to take a fresh approach to Boeing. It will take time for those plans to be revealed. There maybe some clearing of costs prior to the new management coming in, so things could look a little worse before they look a little better. Overall, it's a net positive for the stock." DAVID WAGNER, PORTFOLIO MANAGER, APTUS CAPITAL ADVISORS, CINCINNATI, OHIO "It's never a good sign when a CEO leaves.. this is just a headline and will not affect the structural lack of oversight problems that continue to plague the name." Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/aerospace-defense/view-boeing-ceo-step-down-management-shakeup-2024-03-25/

2024-03-25 12:06

March 25 (Reuters) - Axsome Therapeutics (AXSM.O) , opens new tab said on Monday its experimental therapy cut the frequency of disruptive episodes of muscle weakness tied to a sleep disorder called narcolepsy in a late-stage trial. The New York-based company is looking to expand its reach in the market for treatments against the chronic neurological disorder that causes excessive daytime sleepiness and inadvertent naps. Shares of the company, which had a market capitalization of $3.8 billion as of Friday's close, rose 4.8% to $84.49 in premarket trading. Axsome's other drug, Sunosi, is approved to improve wakefulness in adults with excessive sleepiness from either narcolepsy or sleep apnea. Around 70% of patients with narcolepsy also experience cataplexy episodes, according to U.S. government data, which can cause slurred speech or muscle weakness triggered by intense emotions. In the study, the therapy AXS-12 reduced cataplexy attacks by 83% versus 56% for a placebo in a study with 90 patients of narcolepsy with cataplexy, meeting the trial goal. AXS-12 also reduced symptoms of narcolepsy such as excessive daytime sleepiness and inadvertent naps, while improving concentration and memory. Narcolepsy effected around 44 people per 100,000 people in the United States in 2016, according to U.S. government data. Other treatments include Axsome's (AXSM.O) , opens new tab Sunosi, Harmony Biosciences' (HRMY.O) , opens new tab Wakix, which is also approved for patients with cataplexy, and generic drugs such as modafinil and armodafinil, among others. If approved, AXS-12 is expected to earn $314.8 million in sales in 2030, according to LSEG data. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/axsome-therapeutics-sleep-disorder-therapy-succeeds-late-stage-trial-2024-03-25/

2024-03-25 11:50

May 21 (Reuters) - Ukraine has stepped up attacks on Russian fuel facilities in recent weeks, sending drones as far as 1,500 km (930 miles) to hit a major oil refinery in the Urals region. Following is a list of oil refineries and terminals attacked in the past month: GAZPROM NEFTEKHIM SALAVAT Gazprom Neftekhim Salavat oil processing, petrochemical and fertiliser complex in the Urals region of Bashkortostan has stopped its catalytic cracker after being attacked by a drone on May 9, two sources familiar with the matter told Reuters. The catalytic cracker is part of gasoline production chain responsible for 600,000 metric tons of output at Salavat which in total is capable of producing about 1.5 million tons of gasoline a year. Salavat complex refinery runs totalled 6.498 million tons in 2023, or some 2.36% of overall oil processing in Russia. TUAPSE Rosneft's (ROSN.MM) New Tab, opens new tab Black Sea oil refinery in Tuapse resumed operations on Sunday after a drone attack on May 17, an industry source familiar with the plant's work told Reuters. Sources have said that drones damaged a unit that produces liquefied petroleum gas (LPG). The Tuapse plant, which has a processing capacity of 240,000 barrels of oil per day, was also struck by a drone in January and resumed work around the end of April, industry sources said. The plant produces naphtha, fuel oil, vacuum gasoil and high-sulphur diesel, supplying fuel mainly to Turkey, China, Malaysia and Singapore. In 2023, the plant processed 9.322 million metric tons of crude oil, producing 3.306 million tons of gasoil and 3.123 million tons of fuel oil. VOLGOGRAD Lukoil (LKOH.MM) New Tab, opens new tab last week restarted a key production unit at its Volgograd refinery, the largest in southern Russia, which was shut this month after being damaged in a drone attack, two industry sources told Reuters on Monday. The plant, with production capacity of some 300,000 bpd, caught fire on May 12 following a drone strike, local officials said. Sources said the CDU-1 unit had been damaged in the attack. NOVOROSSIISK PORT, TERMINALS The Importpischeprom oil products terminal at Russia's Black Sea port of Novorossiisk resumed fuel loadings on May 18 after suspending operations following a drone attack a day earlier, according to industry sources and LSEG data. Novorossiisk is Russia's largest port on the Black Sea, and a key outlet for crude oil and oil product exports and transit in Russia's south. The Importpischeprom terminal exports light oil products as well as fertilizers and vegetable oils. A drone attack on Novorossiisk on May 17 hit the Importpischeprom terminal and Sheskharis oil harbour, sources said and video shared on social media showed. The port was shut soon after the attack, but resumed oil loadings from the Sheskharis oil harbour and fuel oil terminal later the same day, according to industry sources and LSEG data. Novorossiisk also loads oil from Kazakhstan and Azerbaijan, and handles grain, coal, mineral fertilizers, timber, containers, food and chemical cargoes. Russia's Urals, Siberian Light and Kazkahstan's KEBCO oil grades loadings from Novorossiisk are planned at 2.3 million tons (543,000 bpd) in May. SLAVYANSK Slavyansk oil refinery, located in the Krasnodar region, was damaged after a weekend drone attack, state-run TASS reported on Monday, citing a company security official. The refinery also caught fire on Saturday after a drone attack. The blaze was extinguished and there were no casualties, the district administration said. Slavyansk refinery is a private plant with a capacity of around 100,000 bpd. Sign up here. https://www.reuters.com/business/energy/russian-refineries-targeted-by-ukraines-drones-2024-03-25/

2024-03-25 11:27

WASHINGTON, March 25 (Reuters) - Shares of United Airlines (UAL.O) , opens new tab closed down 3.4% on Monday after the U.S. Federal Aviation Administration (FAA) said over the weekend it was increasing its oversight of the carrier following a series of recent safety incidents. On Saturday, the FAA said it would initiate a formal evaluation to ensure the Chicago-based airline was complying with safety regulations and said the FAA may delay future United certification projects "based on findings from oversight." Reuters reported Saturday the FAA could potentially not approve allowing customers on United's new planes or new routes. The FAA and United declined to comment. The formal evaluation, the Air Line Pilots Association (ALPA) the union representing United pilots said Monday, is an type of audit that U.S. carriers undergo every few years and United most recently had one in 2018. "This is an opportunity to identify the opportunities for improvement within our operation, identify changes to mitigate operational risk, and poise our airline for success by managing those changes effectively," ALPA said Monday. ALPA said it is unclear if the FAA will pause any United certification activities. "What we do know is that Boeing delivery delays could have an impact, just as any softening of the economy or any temporary pause in certification activities," ALPA said. United has experienced several safety incidents in the past two weeks. On March 15, an external panel was found missing from a United aircraft when it landed in Oregon, prompting an FAA investigation. Before that incident, a United Airlines-operated Boeing (BA.N) , opens new tab 737 MAX rolled onto the grass in Houston. A United-operated Boeing 777-200 bound for Japan also lost a tire after takeoff from San Francisco and was diverted to Los Angeles, where it landed safely. United said Friday that over the next several weeks employees will see more of a presence by the FAA "in our operation as they begin to review some of our work processes, manuals and facilities." Earlier this month, United also said that its Boeing deliveries were going to be "way behind this year," adding that it was "impossible to say when MAX 10 is going to get certified." Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/aerospace-defense/united-airlines-shares-fall-after-us-faas-increases-oversight-2024-03-25/