Core Viewpoint - dsm-firmenich has agreed to divest its Animal Nutrition & Health (ANH) business to CVC Capital Partners for an enterprise value of approximately €2.2 billion, which includes an earnout of up to €0.5 billion, while retaining a 20% equity stake in the divested companies [1][2]. Group 1: Transaction Details - The divestment of ANH follows the sale of Feed Enzymes activities to Novonesis for €1.5 billion in 2025, marking a strategic shift for dsm-firmenich to focus solely on consumer sectors in nutrition, health, and beauty [2]. - The total enterprise value of ANH, including the previous sale, amounts to €3.7 billion, reflecting a 10x EV/Adjusted EBITDA multiple [2][5]. - dsm-firmenich expects to receive approximately €1.2 billion post-transaction, with an estimated €0.6 billion in net cash proceeds and a vendor loan note of €0.1 billion [5][12]. Group 2: Business Structure and Operations - ANH will be divided into two standalone companies: the "Solutions Company" and the "Essential Products Company," both based in Kaiseraugst, Switzerland [5]. - The Solutions Company will focus on Performance Solutions, Premix, and Precision Services, while the Essential Products Company will handle Vitamins, Carotenoids, and Aroma Ingredients [5]. - dsm-firmenich will enter into a long-term supply agreement for vitamins with the Essential Products Company to ensure continuity in supply for human and pet food applications [5]. Group 3: Financial and Strategic Implications - The transaction is expected to result in a non-cash impairment of around €1.9 billion in 2025 before taxes, with additional cash tax and transaction costs of €0.2 billion anticipated in 2026 [12]. - dsm-firmenich plans to initiate a share repurchase program worth €0.5 billion in Q1 2026 and aims to maintain a stable dividend of €2.50 per share, with a policy of progressively increasing dividends over time [3][4]. - The CEO of dsm-firmenich emphasized that this divestment represents the final step in their strategic roadmap, aiming to accelerate growth and create long-term value for stakeholders [7].

Core Viewpoint - Biotalys has entered a strategic partnership with 21st.BIO to enhance the production of its protein-based biocontrol solutions, aiming for commercially competitive costs and efficient large-scale manufacturing [1][2][3]. Group 1: Partnership Details - The collaboration will utilize 21st.BIO's advanced precision fermentation platform, which has been refined over four decades and is proven in commercial use [2]. - This partnership is expected to strengthen Biotalys' AGROBODY platform and support the development of its product portfolio, including the upcoming commercial product EVOCA™ NG [3][4]. Group 2: Product Development and Market Strategy - EVOCA NG is designed to control fungal diseases such as Botrytis and powdery mildew, targeting a combined market of approximately USD 1.2 billion in the U.S., Europe, and Brazil [7]. - Biotalys anticipates a shorter regulatory review process for EVOCA NG due to its similarity to the previously approved EVOCA product [8]. Group 3: Financial and Funding Plans - Biotalys confirms its cash runway extends into May 2026 and is considering additional financing options, including equity from institutional investors, to support the commercialization of EVOCA NG and further development of its AGROBODY biocontrols [5][6].

Group 1: Core Themes and Investment Strategies - UBS emphasizes selective overweights in growth themes while balancing valuation protection and risk defense strategies amid moderate economic growth, persistent inflation, and geopolitical and technological changes [1] - The report identifies seven key themes for investment, focusing on technology stocks, artificial intelligence, electrification, European consumer potential, European and Japanese bank stocks, defensive stocks, and gold-related stocks [1][2][3][4] Group 2: Technology and AI Focus - UBS adopts a cautious stance on technology stocks, highlighting Microsoft, Amazon, TSMC, Tencent, and strategically SAP, while being cautious on Apple, Tesla, and ad-based business models [1] - The report underscores the importance of reasonably valued pure data center stocks and emphasizes application scenarios benefiting various sectors, including food retail and financial institutions [2] Group 3: Electrification and European Consumer Insights - UBS believes electrification is still in its early stages, with only 20% of global energy consumption coming from electricity, which needs to rise to 55%-70% by 2050 [2] - The report highlights potential surprises from European consumers in 2026, focusing on banks, retail, and consumer-centric companies like Ryanair and Accor [2][3] Group 4: Banking Sector Outlook - UBS remains optimistic about European and Japanese bank stocks for the third consecutive year, citing strong macroeconomic fundamentals and valuation support [3] - The report suggests that bank stock valuations should adjust to reflect their superior fundamentals and potential earnings compared to historical averages [3] Group 5: Defensive Stock Recommendations - UBS recommends buying undervalued defensive stocks, including household products, medical devices, and food retail, due to concerns over high valuations in cyclical stocks [4] - The report highlights a preference for gold mining equipment companies over gold equities as a hedge against currency devaluation and sovereign credit rating risks [4] Group 6: Investment Style Preferences - UBS continues to overweight low PEG, low leverage, and upward earnings revision factors, while also favoring quality stocks with reasonable valuations [4] - The report suggests a slight overweight in small-cap stocks relative to large-cap stocks in Europe and the UK due to their lower valuations [4]

Core Insights - The article discusses the optimization solutions for poultry gut health, focusing on feed additives, nutritional strategies, and management practices to enhance digestive health and reduce disease risks [1][3][4]. Market Overview - The poultry industry has undergone significant changes due to genetic improvements and fluctuations in feed ingredient prices, leading to increased demand for enhanced nutritional and management practices [3]. - The global demand for antibiotic-free (ABF) poultry has surged, with over 50% of chicken production in the U.S. adhering to "no antibiotics ever" (NAE) programs [3][4]. - The market for poultry gut health optimization solutions is projected to reach $4.882 billion by 2024, with a compound annual growth rate (CAGR) of 8.86% [10]. Current Development - There has been a surge in the development of alternative gut health optimization solutions, including probiotics, prebiotics, enzymes, organic acids, and plant-based products [4]. - Regulatory support for antibiotic alternatives is increasing, particularly in Europe and North America, driving the adoption of gut health optimization solutions [6]. - Innovations in feed additives are aiding poultry producers in optimizing feed efficiency and improving overall flock health [4][6]. Future Trends - The adoption of ABF production methods is on the rise, driven by consumer demand for antibiotic-free meat, which will propel the development of alternative gut health solutions [5]. - There is a growing emphasis on sustainability and animal welfare, leading to increased demand for solutions that improve feed conversion rates and reduce waste [5]. - The market is expected to expand globally, particularly in developing regions like Asia and Africa, as poultry consumption increases [5]. SWOT Analysis - **Strengths**: Regulatory support for antibiotic alternatives, growing demand for antibiotic-free poultry, and advancements in microbiome science [6]. - **Weaknesses**: High initial investment costs for implementing advanced gut health solutions and the complexity of managing gut health due to various influencing factors [7]. - **Opportunities**: Expanding global market, potential for innovative product development, and integration with digital solutions for improved gut health management [8]. - **Threats**: Increasing market competition and rapidly changing consumer preferences that may disrupt traditional poultry markets [9]. Market Segmentation - Probiotics and prebiotics currently dominate the market, accounting for approximately 40.73% of the share, as they are crucial for improving gut microbiota and overall poultry health [15]. - Broilers represent the largest demand source, making up about 68.80% of the market, due to their rapid growth and high feed conversion efficiency [17].

Group 1: International Expansion - The company has established a marketing network covering over 60 countries and regions, enhancing its international presence through participation in industry exhibitions and targeted channel development [3] - The company is actively pursuing international certifications for multiple products to boost global brand recognition [4] - The partnership with Coherent is expected to accelerate market penetration and brand internationalization in the dairy sector [8] Group 2: Financial Performance - In Q3 2025, the company achieved a revenue of 186 million yuan, a year-on-year increase of 17.45% [4] - The net profit attributable to shareholders reached 18.02 million yuan, a significant increase of 362.49% year-on-year [4] - Non-recurring gains and losses impacted net profit by approximately 14.29 million yuan, primarily from asset disposals and government subsidies [4] Group 3: Pet Business Development - The company plans to expand its pet business into areas such as elderly disease prevention and pet consumption, building a diversified business ecosystem [5] - The pet diagnostics segment is projected to exceed 13 million yuan in revenue in 2024, indicating strong growth potential [6] Group 4: Strategic Partnerships - The agreement with Coherent, effective from June 16, 2025, sets a sales target of 73.06 million euros (approximately 600.83 million yuan) for the period from 2025 to 2029 [6] - The collaboration is expected to leverage Coherent's extensive customer base and sales network, enhancing the company's market reach [8] Group 5: Product Offerings and Market Solutions - The company provides comprehensive food safety testing solutions across the supply chain, ensuring high-quality standards in various food sectors [8] - The rapid testing technology is applicable to the prepared food industry, offering solutions for detecting mycotoxins, pesticide residues, and other contaminants [8]

>> NEWSMAKERS AND MARKET MOVERS, THIS IS "THE PULSE WITH FRANCINE LACQUA. " FRANCINE: GOOD MORNING, EVERYONE. WELCOME TO "THE PULSE. " THE U.S. SUPREME COURT APPEARS SKEPTICAL PRESIDENT TRUMP'S SWEEPING GLOBAL TARIFFS AS JUSTICES SUGGESTED HE HAD OVERSTEPPED HIS AUTHORITY WITH SIGNATURE ECONOMIC POLICY. IN THE HEARING YESTERDAY, THE COURT HINTED IT WAS READY TO PUT SIGNIFICANT LIMITS ON TRUMP'S FAR-REACHING AGENDA. LET'S GET YOU BRENDAN MURRAY THE OUR TRADE COVERAGE HERE. TO TARIFFS OR NOT TARIFF, I THOUGHT ...

Core Insights - Novonesis achieved 8% organic sales growth in the first nine months of 2025 and has raised its full-year outlook to 7-8% from the previous 6-8% [1][4] - The company reported a strong adjusted EBITDA margin of 37.3%, despite facing significant currency headwinds [1][2] Sales Performance - Organic sales growth was broad-based at 8%, with a slight negative impact from exiting certain countries of approximately 1 percentage point [1][2] - The Food & Health segment saw 9% organic sales growth, while Planetary Health recorded 8% [2] - Emerging Markets outperformed with 12% organic sales growth, compared to 6% in Developed Markets [2] Financial Metrics - Adjusted EBITDA margin improved to 37.3%, up by 130 basis points, while adjusted net profit increased by 22% [2] - Net Interest-Bearing Debt (NIBD) to EBITDA ratio stood at 2.0x, with free cash flow before acquisitions reported at EUR 668.4 million [3] 2025 Outlook - The company expects organic sales growth for the full year to be between 7-8%, with mid-single-digit growth anticipated for Q4 [4] - Excluding the impact of exiting certain countries, organic sales growth is projected at 8-9% for the year [4] - The adjusted EBITDA margin is expected to be at the lower end of the 37-38% range [4]

Core Insights - Noma and Novonesis are collaborating to enhance food flavors and create healthier products by merging culinary arts with bioscience [1][3][4] Company Collaboration - The partnership aims to unite influential chefs and leading scientists to translate lab innovations into culinary experiences [3][7] - Noma's founder, René Redzepi, emphasizes the importance of flavor in inspiring new eating habits and unlocking new culinary possibilities [4][6] Innovation and Approach - Noma utilizes fermentation to develop unique flavors, while Novonesis brings over 100 years of fermentation expertise to the collaboration [4][5] - The partnership focuses on local ingredients and community preferences, with Novonesis adjusting taste profiles using biosolutions [5][6] Product Development - The collaboration will explore new flavors, textures, and nutritional profiles, aiming to create products that are healthier and more flavorful [7] - Initial products from this partnership will be showcased at Gulfood Manufacturing in Dubai from November 4-6 [7]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Chemicals, specifically focusing on the Chinese chemicals market and its dynamics in relation to global trade tensions and government policies [2][8] Core Insights and Arguments - **Near-Term Trading Outlook**: Demand in the Chinese chemicals sector remains weak, but a slight improvement is expected in Q3 2025 compared to previous quarters. Aromatic chains are performing better than olefins, which are under price and margin pressure. TDI prices initially rose due to a force majeure event in Europe but later declined, while MDI demand is lukewarm, likely impacting Q3 results negatively [3][4] - **Impact of Trade Tensions**: Ongoing trade tensions between the US and China are expected to affect production in the white goods sector towards the end of 2025. Initial consumer subsidies of RMB300 billion for electronics and household goods led to front-loaded consumption in the first half of 2025, but expectations for the fourth quarter and into 2026 are weakening [4][5] - **Export Restrictions on Battery Materials**: China has intensified export restrictions on battery materials, including high energy density batteries and NCM materials, which were previously restricted in 2023. This trend is expected to continue impacting the market [5][6] - **Anti-Involution Policies**: The Chinese government is focused on controlling excess capacity, but the execution of these policies remains uncertain. The upcoming fourth plenary session of the 20th Central Committee may provide more clarity on these policies [6][10] - **Options for Capacity Management**: The government has three potential options for managing old capacity: forced closures, upgrading existing plants, or replacing old capacity with new. Some companies are already planning upgrades to allow for mixed feedstock, which could mitigate risks from geopolitical disruptions [10][11] - **Investor Sentiment**: While investor sentiment is improving, it remains relatively weak. Many investors are cautious about calling the bottom of the cycle, leading to expectations of range-bound stock performance over the next six months [11] Additional Important Insights - **Seasonality in Chemical Demand**: The typical seasonal strength in Q3 for chemicals is not as pronounced this year, indicating broader market challenges [3] - **Market Expectations**: There is a general expectation for price stabilization in the property market, but immediate effects are not anticipated [4] - **Government Actions**: The Chinese government’s approach to managing the chemicals sector is still evolving, with potential implications for future capacity and production strategies [6][10] This summary encapsulates the key points discussed in the conference call, highlighting the current state of the chemicals industry in China, the impact of trade tensions, and the outlook for investor sentiment and government policies.

Core Insights - Novonesis hosted Manufacturing Day to showcase the future of biomanufacturing and engage local students and educators in understanding the industry [1][2][7] Company Overview - Novonesis is a global leader in biosolutions, employing over 2,200 people across North America [4] - The Franklinton, North Carolina facility is the largest multipurpose enzyme manufacturing plant in the U.S., while the Blair, Nebraska site is the largest enzyme production facility dedicated to biofuels and animal health [4] - The West Allis, Wisconsin location is recognized as the largest fermentation site of lactic bacteria globally [4] Industry Context - The U.S. bioeconomy is valued at $210 billion and is projected to nearly double by 2030 [4] - The industry relies on microbes, enzymes, and proteins to innovate and create sustainable products across more than 30 sectors, including food and beverages, bioenergy, and agriculture [5] Workforce Development - The U.S. will need 3.8 million new manufacturing workers in the next decade, with nearly half of these positions likely to remain unfilled without enhanced training [6] - Novonesis collaborates with educational institutions to bridge the skills gap, co-founding the BioWork program to prepare students for entry-level roles in biotechnology and pharmaceutical manufacturing [6]