Novo Nordisk Shares Fall as Pharma Giant Announces $4.7 Billion U.S. Biotech Acquisition

Shares of Danish pharmaceutical leader Novo Nordisk slid by 2.4% on Thursday following its announcement to acquire U.S. biotech firm Akero Therapeutics in a multi-billion-dollar deal. The company plans to pay $54 per share, valuing Akero at $4.7 billion, with an additional $6 per share contingent value right, potentially adding another $500 million to the total offer. The acquisition underscores Novo Nordisk’s ongoing expansion into metabolic and liver disease treatments amid growing global competition in the biotech space.

In contrast, Akero Therapeutics’ shares jumped nearly 20% in U.S. pre-market trading, reflecting investor optimism about the acquisition. However, broader European markets were muted, with the pan-European Stoxx 600 edging 0.2% lower by midday in London. Market sentiment appeared mixed as investors digested corporate deals and regional economic developments.

A separate headline-grabber came from HSBC, whose London-listed shares tumbled over 6% after announcing a proposal to privatize its Hong Kong-based subsidiary, Hang Seng Bank. HSBC, which currently owns a 63% stake, said that if shareholders approve, Hang Seng will become a wholly owned subsidiary and be delisted from the Hong Kong Stock Exchange. The news pushed European banking stocks down 1.4%, signaling investor caution over the potential financial implications of the deal.

Elsewhere, European sentiment remained fragile as the EU proposed new tariffs on imported steel, raising rates from 25% to 50% on imports exceeding quota limits. Meanwhile, in France, attention turned to President Emmanuel Macron, who promised to name a new prime minister within 48 hours following the resignation of Sebastien Lecornu. Market watchers expect Macron’s choice to influence France’s policy direction and investor confidence, though the CAC 40 remained flat as investors awaited clarity.

Germany’s DAX inched up 0.2% despite a surprise 0.5% decline in exports in August, while the U.K.’s FTSE slipped 0.4% amid ongoing economic uncertainty. In Asia, SoftBank shares surged 13% after announcing a $5.4 billion acquisition of ABB’s robotics division, further cementing its ambitions in artificial intelligence and automation. Over in the U.S., S&P 500 futures ticked higher, extending Wall Street’s record-breaking rally.

source: cnbc