Glaxo in $1 B Deal with Novartis, Royal Vopak Profit Surges 17%

Nigel Thomas
21 Aug, 2015
New York City

European markets accelerated decline on the growing worries in the euro zone and deepening correction in commodities. Glaxo divest its rights to a drug for auto-immune diseases to Novartis for

[R]4:00 PM Frankfurt – European markets accelerated decline on the growing worries in the euro zone and deepening correction in commodities. Glaxo divest its rights to a drug for auto-immune diseases to Novartis for £637 million. Royal Vopak profit surged 17%. Vitol agreed to acquire 50% stake in VTTI for $830 million.[/R]

Financial markets in the euro zone accelerated weekly decline and commodities deepened losses in the year.

In London trading, FTSE 100 index dropped 104.49 or 1.6% to 6,263.25 and in Frankfurt the DAX index slipped 108.48 or 1.1% to 10,322.41.

In Paris, CAC 40 index slumped 59.43 or 1.2% to 4,725.02.

For the week, FTSE 100 index declined 4.4% and the DAX index plunged 6% and the CAC 40 index plummeted 4.7%.

CPPGroup Plc soared 40% to 11.52 pence after the U.K.-based business support services provider said revenues in the first-half ending in June plunged 23% to £45.2 million from £58.7 million in a year ago period.

Net in the period swung to a profit from a year ago to £17.1 million compared to a loss of £2.7 million and diluted earnings per share swung to 2.48 pence from a diluted loss per share of 1.58 pence.

GlaxoSmithKline Plc slumped 2.1% to 1,342 pence after the U.K.-based pharmaceutical company agreed to divest its rights to a drug for use in treating auto-immune diseases including multiple sclerosis to Switzerland-based healthcare company Novartis AG for up to £637 million or $1 billion plus royalties.

Novartis will pay the royalties of up to 12% to Glaxo and the transaction is expected to complete by the end of 2015.

Spire Healthcare Group Plc plunged 13.1% to 349 pence after the U.K.-based medical and diagnostic services provider said revenues in the first-half ending in June jumped 7.8% to £449.8 million from £417.2 million in a year ago period.

Net in the period swung to profit from a year ago to £30.8 million compared to a loss of £7.8 million and diluted earnings per share swung to 7.7 pence from a diluted loss per share of 3.1 pence.

Koninklijke Vopak N.V tumbled 15.4% to €38.03 after the Netherlands-based oil and chemical storage and logistic company reported revenues in the first-half ending in June soared 8% to €700.7 million form €647.2 million in a year ago period.

Net profit in the period surged 17% from a year ago to €162.4 million compared to €138.3 million and diluted earnings per share jumped to €1.12 from €0.99.

Vitol Holding B.V, the Netherlands-based privately held petroleum products trader’s subsidiary agreed to acquire 50% stake in oil storage and terminals company VTTI BV for $830 million to expand the asset.