10 February 2023 – PepsiCo, AbbVie, & Globus Medical

Happy Friday, everyone! ??

The week is nearly over! But, before we wind down for the weekend, let us mark a productive Friday by catching up with the latest corporate happenings. On Thursday, indexes edged lower as investors contemplated the pathway for the Fed Reserve. The Dow lost 0.7%, the S&P 500 shed 0.9%, and NASDAQ dropped 1%.

Stocks reversed their gains from the start of this year after stronger-than-expected jobs reports and signs that the Fed’s war against inflation may go on for years, not months. Investors also look to a mixed earnings season, where 70% of the S&P 500 companies that reported Q4 financials beat analyst predictions. Alternatively, the 10-year Treasury note yield rose to 3.682%, while the Brent crude index slid to $84.50 a barrel.

All this and more in today’s 5-minute read!

PepsiCo tops Wall Street predictions with higher prices on snacks and sodas

? PepsiCo, Inc. (PEP) | $172.78?(0.95%) ??

In 2022, PepsiCo (PEP) weathered the broad economic storm by raising prices on its products multiple times. The move set the snack maker up for success in the fourth quarter, with profits topping estimates. Revenue stood at $28 billion, while net income dropped to $518 million. Still, adjusted earnings, at $1.67 a share per share, beat estimates. PepsiCo raised annual dividends by 10% to %5.06 a share. Leading with consistent customer demand, PepsiCo says no more price hikes are in its near future!

AbbVie slashes Humira prices to retain its market position in the healthcare world

? AbbVie Inc. (ABBV) | $148.70?(2.84%) ??

Now that cheaper competitor rheumatoid arthritis drugs are entering the market, AbbVie (ABBV) is reducing the price of its drug Humira to keep its rivals at bay. The drug maker expects Humira sales to fall by 37% in 2023 to $13.7 billion, alongside a steep decline in earnings. However, offering discounts for Humira sellers will keep sales relatively afloat, partly due to the deals with health plans and pharmacies. Even when Humira sales give out, AbbVie has its superior immunology drugs to fall back on!

Globus Medical prepares to acquire NuVasive in a $3 billion all-stock deal

? Globus Medical Inc. (GMED) | $62.97 ?(18.18%)??

On Thursday, Globus Medical (GMED) announced its upcoming acquisition of NuVasive (NUVA) for $3 billion in stock. The merger would enable Globus Medical to expand its reach in the spinal device market, allowing it to compete with giants like Johnson & Johnson (JNJ). Once the deal is finalized, NuVasive shareholders will hold 0.75 of a Globus share and approximately 28% of the merged company. After wooing NuVasive several times since 2021, Globus Medical can finally attain its goal in the middle of 2023!