Before the bell: U.S. government shutdown nearing its end

Pfizer wins the bidding war for Metsera, and Sofina benefits from Lenskart’s successful IPO.

U.S. stock markets opened lower on Friday, weighed down by weak consumer confidence data and the ongoing government shutdown, but eventually closed roughly flat. There were, however, some notable losers among individual names. Game developer Take-Two Interactive Software plunged 8% after announcing that the long-awaited Grand Theft Auto VI would be released later than expected. Nvidia lost as much as 5% during the session after its CEO said the company is barred from selling chips to China — and has no plans to do so — before closing unchanged. Over the weekend, a group of Democratic senators rebelled against the shutdown, taking the first concrete step toward ending it. That should lift market sentiment in the coming days.

In Asia this morning, markets are trending higher: Hong Kong’s Hang Seng Index is up 1.5%. China reportedly plans to allow Nexperia to resume chip exports to Europe — a first step to prevent further disruption in the auto sector, potentially positive news for chipmakers like Melexis and X-FAB. Later today, results are expected from Barrick Gold, CoreWeave, Occidental Petroleum and Plug Power.

The struggle of the desperate

In the pharmaceutical world, there’s one thing you must always keep an eye on: when key drug patents expire. Once exclusivity ends, so-called generics can enter the market, typically at much lower prices. That pushes down both prices and market share for the branded drug — the so-called patent cliff. Two companies facing that issue are Pfizer and Novo Nordisk. Pfizer’s breast cancer drug Ibrance generates more than 4 billion dollar a year, but its patent expires in 2027. That puts pressure on the CEO to pursue acquisitions. The company has now made a 10 billion dollar offer for Metsera, a promising biotech working on obesity drugs. Novo Nordisk, meanwhile, faces a similar challenge. In China, its patent for semaglutide — the key compound in its diabetes treatments — expires in 2026, with major patents in the U.S. and Europe expiring in 2031 and 2032. Both companies were locked in a bidding war for Metsera, which Pfizer won this weekend for 10 billion dollar. It’s an expensive deal, analysts say, but one that may buy Pfizer a piece of its future.

A successful listing in the East

Spaarvarkens is currently back in Asia, which gives us a front-row seat to follow the local markets here. Today, we were particularly watching the IPO of Lenskart, which also has a Belgian connection: in 2019, Sofina bought a stake in the Indian eyewear producer. At first glance, an Indian eyeglass retailer may sound like a dull investment — but it isn’t. Anyone spending time in Asia knows how limited access to proper eye care still is. With the rise of screens, eyesight is deteriorating fast, creating massive demand for affordable eyewear. With over 2,000 stores in India and 650 international outlets, Lenskart is well-positioned to meet that need. Its IPO gives Sofina the option to monetize its stake more easily in the future, should it wish to. The listing turned out to be a success: after an initial 12% dip, the stock now trades about 2.5% higher.

Did you know…

the Nexperia conflict isn’t fully resolved, even if China allows exports again? The company’s Chinese headquarters is still claiming millions in unpaid balances from Nexperia Netherlands. Until that dispute is settled, the Nexperia saga will continue to haunt Europe’s auto industry.