2024-07-08 14:36

July 8 (Reuters) - Eli Lilly (LLY.N) New Tab, opens new tab agreed to buy Morphic Holding (MORF.O) New Tab, opens new tab for $3.2 billion in cash, the companies said on Monday, beefing up its portfolio of inflammatory bowel disease (IBD) drugs and expanding its footprint in the multi-billion dollar market. Shares of Waltham, Massachusetts-based Morphic surged nearly 75% to $55.62 in morning trading on Lilly's offer of $57 per share, which represents a 79% premium to the stock's last closing price. Through the deal, Lilly will procure an experimental oral IBD treatment that offers patients a more convenient dosing option compared to other injectable therapies, including its IBD drug Omvoh that was approved last year. Along with Lilly, other drugmakers such as Abbvie Inc (ABBV.N) New Tab, opens new tab, Pfizer (PFE.N) New Tab, opens new tab and Johnson & Johnson (JNJ.N) New Tab, opens new tab are also jostling for a share of the bowel disease market. IBD collectively refers to two conditions - Crohn's disease and ulcerative colitis- that are characterized by chronic inflammation of the gastrointestinal tract and are caused by abnormal reactions of the immune system. Lilly counts its IBD drug, Omvoh, among its future growth drivers, besides its blockbuster weight loss treatment Zepbound and diabetes drug Mounjaro. Morphic's lead drug MORF-057 is being tested in three mid-stage studies to treat two bowel conditions called ulcerative colitis and Crohn's disease. Morphic is also developing other drugs, which are being tested in animals or test tube experiments, for autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases and cancer. The companies expect the acquisition to close in the third quarter of 2024. The deal fits into Lilly's plans to diversify beyond obesity and adds to its string of recent "bolt-on" deals, said BMO analyst Evan Seigerman, referring to acquisitions below the $10 billion range. The Morphic deal comes after a spate of acquisitions by Lilly last year such as its $2.4 billion buyout of Dice Therapeutics and $1.4 billion agreement for Point Biopharma Global . Sign up here. https://www.reuters.com/markets/deals/eli-lilly-acquire-morphic-holding-32-billion-2024-07-08/

2024-07-08 14:35

CAIRO, July 8 (Reuters) - Egypt's current account deficit more than tripled to $17.1 billion in the first nine months of fiscal 2023/24 compared to $5.3 billion a year earlier as oil exports plunged by $7.2 billion to $4.6 billion, the central bank said on Monday. Meanwhile, imports of oil products rose by $1.5 billion and those of natural gas rose by $268.2 million in the July-March period, as the North African country grapples with power shortages while a heatwave drives up demand for cooling. Suez Canal revenues declined to $5.8 billion in the July-March period compared with $6.2 billion in the same period the previous year. The decline came during Jan-March 2024 with revenues decreasing by 57.2 percent to $959.3 million against $2.2 billion in the corresponding period a year earlier, the central bank said. "This decrease stemmed primarily from the Red Sea maritime traffic disruptions which forced several commercial shipping companies to divert their shipping routes," the central bank added in its report. The Iran-backed Houthis, who control Yemen's most populous regions, have been attacking vessels in the Red Sea region in what they describe as acts of solidarity with Palestinians in the Israel-Hamas war in Gaza. Egypt's net foreign direct investments inflows tripled to $23.7 billion from $7.9 billion in the same period a year earlier. While remittances from Egyptian workers abroad decreased to $14.5 billion from $17.5 billion, tourism revenues saw a slight increase to $10.9 billion from 10.3 billion a year earlier. Egypt's fiscal year ends June 30. Sign up here. https://www.reuters.com/world/africa/egypts-july-march-current-account-deficit-triples-cbank-says-2024-07-08/

2024-07-08 12:47

July 8 (Reuters) - Airlines in the United States canceled more than 1,300 flights on Monday as Hurricane Beryl intensified and made landfall in Texas. A total of 1,354 flights were canceled and 773 flights were delayed as of 8.16 a.m. ET, according to flight tracking website FlightAware. United Airlines (UAL.O) New Tab, opens new tab led the list with 405 flights canceled, followed by Southwest Airlines (LUV.N) New Tab, opens new tab at 268. Southwest said it was monitoring the situation and has proactively adjusted its flight schedule on Monday in Houston and south Texas due to the hurricane. Both United New Tab, opens new tab and Southwest New Tab, opens new tab also issued travel advisories citing Hurricane Beryl impacting flights in airports including Austin, Corpus Christi, Harlingen and Houston among others in the region. Beryl, the season's earliest Category 5 hurricane on record, made landfall near the coastal town of Matagorda in Texas early in the day, pounding the coast with dangerous storm surges, the U.S. National Hurricane Center (NHC) said. The largest ports in Texas also closed operations and vessel traffic on Sunday after Beryl intensified. The Federal Aviation Administration on Friday warned New Tab, opens new tab of thunderstorms impacting travel across the country. Sign up here. https://www.reuters.com/business/aerospace-defense/us-airlines-cancel-over-1300-flights-due-hurricane-beryl-2024-07-08/

2024-07-08 12:18

July 8 (Reuters) - Bitcoin miner Bitfarms (BITF.TO) New Tab, opens new tab, has appointed insider Ben Gagnon as its new chief executive officer to oversee a strategic review and navigate a dispute with its biggest shareholder, Riot Platforms (RIOT.O) New Tab, opens new tab. Gagnon's promotion comes months after Bitfarms' plans for a smooth leadership transition ran into difficulties. Former CEO Geoff Morphy, whose departure New Tab, opens new tab was announced in March, was to remain in his role while a search for a replacement was conducted. But the company accelerated New Tab, opens new tab his termination in May, days after he filed a lawsuit claiming $27 million in damages for breach of contract and wrongful dismissal. Bitfarms said the claims were "without merit". Gagnon's appointment could help reassure investors of Bitfarms as he has previous experience as CEO. Most recently Bitfarms' chief mining officer, Gagnon founded and operated two bitcoin miners prior to joining the company in 2019. He has also worked intimately with every department in Bitfarms, the company said New Tab, opens new tab on Monday. The company has been reviewing its strategic alternatives and is at loggerheads with its biggest shareholder Riot. Bitfarms rebuffed Riot's $950 million offer saying it undervalued the company and adopted a "poison pill" to fend off a hostile takeover. Riot withdrew the offer but is seeking three board seats at Bitfarms. It has said it is "ready to engage" with the company's reconstituted board about a potential transaction. Sign up here. https://www.reuters.com/technology/bitfarms-names-new-ceo-guide-it-through-strategic-review-2024-07-08/

2024-07-08 12:09

July 8 (Reuters) - India's fuel consumption rose by 2.6% year-on-year to 19.99 million metric tons in June from a year earlier, data from the Petroleum Planning and Analysis Cell of the oil ministry showed on Monday. WHY IT IS IMPORTANT India is the world's third-biggest oil importer and consumer. The data is a proxy for the country's oil demand. KEY QUOTE Prashant Vasisht, vice president and co-head, corporate ratings at India Credit Rating Agency (ICRA), said there had been solid economic growth in India, "and there was a lot of tourist activity this year as compared to last year. Jet fuel has been gradually improving ... In the power sector the power supplies were more regular, leading to the farming and agricultural sector being well supplied and that has also led to less dependence on diesel." BY THE NUMBERS Total consumption totalled 19.99 million metric tons in June, up from 19.48 million tons last year, data showed. Demand was down 3.5% on a monthly basis from the 20.72 million metric tons consumed in May. Sales of diesel, mainly used by trucks and commercially run passenger vehicles, fell 5% month-on-month to 7.98 million tons in June. It was up 1% from a year earlier. Sales of gasoline rose 4.6% from the previous year to 3.30 million tons, although sales dropped 4.8% from May levels. Demand for bitumen, used for making roads, gained by more than 4% annually. Cooking gas, or liquefied petroleum gas, sales rose by 3.2% to 2.31 million tons, while naphtha sales gained by 1.4% to about 1.07 million tons, compared with last June, the data showed. Fuel oil use increased by nearly 5% year-on-year in June. CONTEXT Asia's third-largest economy is the fastest-growing among major peers and grew 8.2% in the last fiscal year, but GDP was expected to slow modestly this fiscal year. Activity in India's manufacturing sector rebounded in June as output increased on robust demand, leading to the fastest rate of hiring in more than 19 years, despite inflationary pressures remaining elevated, a survey showed. DOMESTIC SALES (in million tons) Sign up here. https://www.reuters.com/business/energy/indias-june-fuel-demand-edges-up-26-2024-07-08/

2024-07-08 12:01

HOUSTON, July 8 (Reuters) - The Texas energy industry was evaluating the impact from Hurricane Beryl on Monday after the powerful storm lashed the U.S. Gulf Coast, closing key shipping ports and hitting the oil refining and production sectors. Beryl made landfall near the coastal town of Matagorda, Texas, on Monday morning, packing maximum sustained winds of 80 mph (129 kph) and posing problems for the heart of the country's energy sector. The storm had strengthened to a Category 1 hurricane before landfall, but was downgraded to a tropical storm mid-morning and began weakening throughout the day. It is forecast to move across eastern Texas and into the Lower Mississippi Valley and Ohio Valley later in the week, according to the U.S. National Hurricane Center (NHC). Texas is the largest U.S. oil and gas producing state, accounting for some 40% of the country's oil output and 20% of gas production. U.S. crude futures settled 83 cents lower at $82.33 a barrel on Monday as hopes of a ceasefire deal in Gaza eased global supply concerns and capped gains driven by storm-related disruptions. U.S. fuel futures were also trading lower as major refineries along the Gulf Coast so far appeared to see minimal impacts from the storm. "Since the storm has threaded the needle between the two major production hubs in Corpus Christi and Houston, it seems that the threat of regional supply disruptions has passed," said fuel marketer TAC Energy, noting that only Phillips 66's (PSX.N) New Tab, opens new tab Sweeny, Texas, facility was in the immediate path of the storm. Phillips 66 said its Sweeny and Lake Charles, Louisiana refineries had power and were operating. More than 2.7 million homes and business in Texas were without power on Monday afternoon, according to PowerOutage.us. CenterPoint Energy, which provides power to the southern and eastern parts of the state, had 2.2 million customers without electricity, the company said, warning that outages may last for several days. Heavy winds swept through Houston on Monday as streets and waterways flooded, according to Reuters witnesses and images on social media. At least two people had died in the Houston area as a result of falling trees during the storm, according to Harris County Sheriff Ed Gonzalez. ENERGY INDUSTRY HIT The ship channel that leads to the Port of Corpus Christi, the country's leading crude oil export hub, reopened on Monday afternoon after having no significant impact from the storm. The port and the channel had closed on Sunday. At least three vessels entered the Corpus Christi bay on Monday, ship tracking data on Kpler and LSEG showed. Gibson Energy (GEI.TO) New Tab, opens new tab said its Gateway crude export terminal in Corpus Christi was operational. Enbridge (ENB.TO) New Tab, opens new tab, which also runs crude oil export facilities near Corpus Christi, said all of its assets, with the exception of its Tres Palacios gas storage facility, were operational. Terminal operations at the Port of Houston will remain closed on Tuesday as it continues to assess and repair damage on Monday afternoon, the port said in a statement. "We are still dealing with rain and wind," a spokesperson said. The port closure left a few vessels stranded off Galveston, said Rohit Rathod, an analyst at energy data firm Vortexa, adding that congestion should ease from Tuesday without a major impact on weekly trade flows. Shell (SHEL.L) New Tab, opens new tab and Chevron (CVX.N) New Tab, opens new tab said they had shut production or evacuated personnel from their Gulf of Mexico offshore platforms. The U.S. Gulf of Mexico produces some 1.8 million barrels per day of oil, roughly 14% of total U.S. output. It was not immediately clear how much production had been shut in as a result of Beryl. Freeport LNG, the third-largest liquefied natural gas facility in the U.S., said over the weekend it had ramped down production and it would resume operations after the storm had passed. Formosa Plastics, meanwhile, experienced a malfunction with a gas compressor system during a shutdown for the storm at its Point Comfort facility, according to a state regulatory filing. Formosa said it has temporarily shut down operations at its Point Comfort plant site, and it is actively monitoring the situation. Refiner Citgo Petroleum Corp reduced production over the weekend at its 165,000 barrel-per-day Corpus Christi plant, sources said. Marathon Petroleum (MPC.N) New Tab, opens new tab declined to comment on its 585,000-bpd Galveston Bay refinery operations. Chevron did not provide specific comments on the status of its Pasadena refinery southeast of Houston, and LyondellBasell (LYB.N) New Tab, opens new tab declined to comment on its 268,000-bpd Houston refinery. Sign up here. https://www.reuters.com/business/energy/texas-energy-industry-braces-beryl-storm-gathers-strength-2024-07-08/