Investment Rating - The report maintains a positive outlook on the CXO sector for the year 2026, indicating strong demand and recovery in global orders [3][26]. Core Insights - Illumina's release of the Billion Cell Atlas marks a significant advancement in life sciences, transitioning from static genomic data to a comprehensive dataset that integrates AI for drug discovery [3][8]. - Regulatory developments in China and the US are accelerating drug approval processes, with China's implementation of eCTD and the US FDA's support for Bayesian methods enhancing clinical trial efficiency [3][23]. - The CXO sector is expected to see robust growth, supported by major players like Lonza and WuXi AppTec, who are expanding capacity and reporting increased order volumes [3][26]. Summary by Sections Industry Frontiers - Illumina's Billion Cell Atlas is the largest human genome perturbation dataset to date, aimed at accelerating drug discovery through AI [3][8]. - Regulatory dynamics indicate a race for faster drug approvals, with China's NMPA adopting eCTD and the FDA endorsing Bayesian statistical methods for clinical trials [3][23]. - The global order recovery is evident, with a positive outlook for the CXO sector throughout 2026, as major companies report growth and increased demand [3][26]. Capital Trends - GSK's acquisition of RAPT Therapeutics for $2.2 billion focuses on developing an anti-IgE monoclonal antibody for food allergies, highlighting the potential in the allergy treatment market [4][31]. - Novartis has entered a $1.5 billion agreement with SciNeuro to advance a new antibody project targeting Alzheimer's disease, indicating ongoing investment in neurodegenerative treatments [4][36]. Weekly Perspective - The report emphasizes the transition to an AI-driven era in drug discovery, suggesting that previous advantages in research may diminish as the landscape evolves [5][37]. - The demand for CXO services is expected to remain strong, driven by AI-enabled drug discovery and regulatory advancements [5][38].

Group 1 - The proposed sale of RAPT Therapeutics, Inc. to GSK plc involves shareholders receiving $58.00 in cash for each share of RAPT owned [1] - Kahn Swick & Foti, LLC is investigating whether the sale price adequately reflects the value of RAPT Therapeutics [1] - The transaction is structured as a tender offer, indicating that timing may be critical for shareholders [3] Group 2 - KSF is reaching out to shareholders who believe the transaction undervalues the company to discuss their legal rights [2] - Shareholders can contact KSF Managing Partner Lewis S. Kahn for more information regarding the proposed sale [2]

Core Insights - GSK plc has entered into a definitive agreement to acquire RAPT Therapeutics for an estimated equity value of $2.2 billion, which will enhance GSK's pipeline with RAPT's ozureprubart, a long-acting anti-IgE monoclonal antibody currently in phase IIb study for food allergy protection [1][6]. Company Summary - The acquisition is expected to close in the first quarter of 2026 and will strengthen GSK's respiratory, immunology, and inflammation pipeline [2][6]. - GSK will pay $58.00 per share to RAPT's shareholders, resulting in an upfront investment of $1.9 billion after accounting for cash acquired [4][6]. - GSK will gain global rights to the ozureprubart program, excluding certain regions in Asia, and will be responsible for success-based milestones and royalties to RAPT's partner [7]. Product Development - Ozureprubart is currently being evaluated in a phase IIb study for prophylactic protection against food allergens, with data expected in 2027 and phase III studies planned for at-risk adult and pediatric populations [8]. - The product is anticipated to enhance GSK's commercial presence in the allergy space, offering potentially less frequent dosing compared to current treatments [9]. Industry Context - The biotech and pharma sector is experiencing a surge in merger and acquisition activity as companies seek to diversify revenue streams amid declining sales of flagship drugs [10]. - Recent notable acquisitions in the industry include Merck's acquisition of Cidara Therapeutics for approximately $9.2 billion and J&J's acquisition of Halda Therapeutics for $3.05 billion, indicating a trend towards portfolio expansion and innovation [11][12].

Group 1 - Rapt Therapeutics' shares increased over 60% following the announcement of its acquisition by GSK for $2.2 billion [1] - Investors in Rapt will receive $58.00 per share, representing a premium of over 65% compared to the closing price on January 16, prior to the acquisition announcement [3] - The acquisition grants GSK global rights to ozureprubart, an experimental antibody treatment for food allergies, which is currently in phase 2 clinical trials [4] Group 2 - There is a significant unmet need for treatments targeting food allergies, with over 17 million people affected in the U.S., including 1.3 million with severe reactions [6] - Rapt's investigational treatment targets a protein responsible for approximately 94% of severe food allergies, indicating its potential impact on public health [6] - The deal is expected to close in the first quarter, pending regulatory approval [5]

Core Insights - Bristol Myers Squibb (BMY) and GSK PLC (GSK) are leading global biopharma companies with diverse portfolios [1][2] - BMY focuses on transformational therapies across various serious conditions, while GSK has strong positions in HIV, oncology, and respiratory diseases, along with a robust vaccine business [1][2] BMY Overview - BMY's growth portfolio includes drugs like Opdivo, Reblozyl, and Breyanzi, which have shown strong performance and contributed to top-line growth [4][7] - Opdivo sales are driven by its launch in MSI-high colorectal cancer and growth in non-small cell lung cancer, with global sales expected to increase in the high single-digit to low double-digit range by 2025 [5][6] - Reblozyl is annualizing over $2 billion in sales, significantly boosting BMY's revenue [7] - BMY's legacy portfolio is declining, with expectations of a 15-17% decrease in 2025, primarily due to generic competition [10][11] - The company is pursuing acquisitions to enhance its portfolio, including the recent acquisition of Orbital Therapeutics [12][14] GSK Overview - GSK's Specialty Medicines unit is experiencing strong sales growth, driven by successful launches in oncology and long-acting HIV medicines [15] - Key drugs like Nucala and Dovato are significant revenue drivers, with new products expected to further enhance growth [15][17] - GSK's vaccine portfolio is under pressure, but new approvals like Penmenvy are anticipated to help revive growth [18] - GSK has a deep pipeline with promising candidates in late-stage development, which should support future growth [19] Financial Estimates - BMY's 2025 sales are expected to decrease by 0.80%, while EPS is projected to increase by 460% due to low EPS figures in 2024 [20] - GSK's 2025 sales are estimated to grow by 6.92%, with EPS growth of 12.10% [21] Price Performance and Valuation - GSK shares have outperformed BMY over the past year, gaining 42.8% compared to BMY's loss of 3.1% [22] - GSK's shares trade at a forward P/E ratio of 9.85, slightly higher than BMY's 9.19 [23] - BMY offers a higher dividend yield of 4.56% compared to GSK's 3.53% [26] Investment Considerations - Both companies are considered safe investments in the biopharma sector, but GSK is viewed as a better pick due to its diversified portfolio and stronger recent performance [27][29]

Core Insights - GSK has agreed to acquire RAPT Therapeutics from Forbion Growth Fund III for a total transaction value of $2.2 billion, marking a significant strategic move in the life sciences sector [1][2]. Group 1: Acquisition Details - The acquisition of RAPT Therapeutics represents the second exit for Forbion Growth Fund III, following the previous acquisition of Astria Therapeutics by BioCryst for $920 million in October 2025, indicating strong momentum for the fund [2]. - The transaction is expected to close in the first quarter of 2026, pending customary conditions [5]. Group 2: RAPT Therapeutics and Its Pipeline - RAPT's lead therapeutic candidate, ozureprubart, is a long-acting monoclonal antibody aimed at neutralizing IgE, which is crucial in severe allergic diseases. This candidate has the potential to significantly change the treatment landscape for allergies and immunologic conditions, including chronic spontaneous urticaria (CSU) [3]. - Ozureprubart is currently in late-stage clinical development, with a Phase 2b trial ongoing for food allergies and a Phase 3 trial for CSU expected to start in 2026 [3]. Group 3: Forbion's Investment Strategy - Forbion Growth Fund III focuses on backing differentiated, late-stage assets that have clear clinical value and strategic relevance, demonstrating a disciplined approach to capital deployment in public markets [4]. - The successful outcome of this acquisition highlights the importance of early engagement, active ownership, and a long-term perspective in building positions in high-quality companies [4].

Core Viewpoint - GSK is acquiring RAPT Therapeutics for $2.2 billion, leading to a 63.7% increase in RAPT's stock price [1] Company Summary - GSK's acquisition of RAPT Therapeutics is valued at $2.2 billion [1] - Following the announcement, RAPT Therapeutics' stock experienced a significant increase of 63.7% [1]

Market Overview - U.S. stock futures experienced a decline ahead of the market opening, with the Nasdaq 100 futures down 1.72%, S&P 500 futures down 1.39%, and Dow futures down 1.24% [1] - European stock indices also fell, with the Euro Stoxx 50 index dropping over 1% [1] - Japanese government bond yields surged, with 30-year and 40-year bond yields rising at least 28 basis points, indicating significant selling pressure [1] Geopolitical Events - The market is expected to face a series of geopolitical challenges, particularly with the U.S. Supreme Court's decision on tariff legality pending [2] - President Trump is scheduled to deliver a speech at the Davos summit, which investors will closely monitor for signals regarding the Greenland issue [2] Commodity Market - Spot gold and silver reached historical highs, with gold priced at $4,700 per ounce and silver at $95 per ounce, driven by rising geopolitical tensions [6] Company News - Quantinuum, a quantum computing company, is reportedly moving forward with an IPO, aiming for a valuation of $15 billion to $20 billion and seeking to raise $1.5 billion [8] - GSK announced the acquisition of Rapt Therapeutics for $2.2 billion, with a purchase price of $58 per share, representing a 65% premium over the previous closing price [9] - Applovin's stock fell over 7% following a short report alleging systemic compliance risks and significant financial crimes [10] - Sony plans to divest its television business by forming a joint venture with TCL, where TCL will hold a 51% stake and Sony will hold 49% [12] - Moderna reported that its mRNA cancer therapy, when combined with Merck's Keytruda, reduced the risk of recurrence or death in high-risk melanoma patients by 49% [13]

Group 1 - GSK has agreed to acquire RAPT Therapeutics for a total valuation of $2.2 billion, with RAPT's stock price rising nearly 64% to $57.40 following the announcement [1] - GSK will pay RAPT shareholders $58.00 per share, leading to an expected upfront investment of $1.9 billion after deducting cash from the acquisition [1] - The acquisition is expected to be completed in the first quarter of 2026 and will be recorded as a business combination by GSK [1] Group 2 - GSK will gain global rights to the ozureprubart project, excluding certain regions in Greater China, and will be responsible for milestone payments and royalties to RAPT's partner, Shanghai Jeyou Pharmaceutical Co. [2] - GSK's Chief Scientific Officer, Tony Wood, highlighted ozureprubart as a promising new therapy with "best-in-class" potential, offering long-lasting protection for food allergy patients with a dosing schedule of every 12 weeks, compared to existing therapies that require biweekly injections [2]

20 January 2026 Agreement to acquire RAPT Therapeutics Lead asset: ozureprubart, a potential best-in-class, long-acting anti-IgE monoclonal antibody for food allergy gsk.com Speakers Luke Miels Chief Executive Officer Tony Wood Chief Scientific Officer Disclosure statement This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer or a recommendation to sell securities, nor is it a substitute for the tender offer materials that Redrose Acquisitio ...