Roivant announced a definitive agreement with Roche to acquire Telavant Holdings Inc., a Roivant company, owned by Roivant Sciences Ltd. and Pfizer Inc. Under the terms of the agreement, Roche will pay a purchase price of $7.1 billion upfront and a near-term milestone payment of $150 million. Roche will gain the rights to develop, manufacture, and commercialize RVT-3101 in the US and Japan to treat inflammatory bowel disease and potentially multiple other diseases. RVT-3101 is a Phase 3-ready antibody with first-in-class and best-in-disease potential, a novel mode of action, and strong Phase 2b data in ulcerative colitis. Roche will also obtain an option to enter into a global collaboration with Pfizer on a next-generation p40/TL1A-directed bispecific antibody, currently in Phase 1.

Once again, the Swiss stock market ended Friday's trading with marked decreases. The SMI lost 1 per cent to 10,349 points. Among the 20 SMI stocks, there were 18 price losers and two price winners. 26.45 (previously: 23.46) million shares were traded. Financial stocks recorded the highest losses. UBS's share price fell by 2.8 per cent. Insurers Swiss Life, Swiss Re and Zurich shed up to 3 per cent. The heavyweights Nestle (-0.3%), Novartis (+0.1%) and Roche (+0.2%), which had sold off the previous day, held up better than the broad market. The third-quarter figures of Sika (-0.6%) were received positively. ABB declined by 2.4 per cent, Holcim by 2.8 per cent and Geberit by 2.5 per cent. Among the small caps, Meyer Burger dropped 3.4 per cent. Like other shares in the solar sector, the stocks suffered from disappointing preliminary business figures released by the US company Solaredge.

The European stock markets fell sharply again on Friday, weighed down by the rise in bond yields since the start of the week as well as geopolitical risks. The Stoxx Europe 600 index slumped 1.4% to 433.7 points. In Paris, the CAC 40 and SBF 120 were each down 1.5%. The DAX 40 lost 1.6% in Frankfurt, while the FTSE 100 declined by 1.3% in London. Electrical supplies distributor Rexel (-5.7%) saw its sales suffer from negative currency and price effects in the third quarter. However, Rexel has confirmed its targets for the full 2023 financial year. Glass packaging manufacturer Verallia (-5%) forecast adjusted EBITDA of higher-than-expected €1.1 billion this year. L'Oréal (-1.5%) reported sales slightly below analysts' expectations in the third quarter, but the hardest part is probably yet to come, according to Deutsche Bank analysts. Vivendi (+2.9%) published third-quarter sales of €2.43 billion, up 3.1% on a like-for-like basis. Forvia (+0.6%) has confirmed its targets for 2023.

Stocks fell Friday, capping a week of losses for U.S. markets. The S&P 500 fell 1.3%. The tech-heavy Nasdaq Composite dropped 1.5%. The blue chip Dow Jones Industrial Average declined 287 points, or 0.9%. All three major indexes finished the week in the red. Investors grappled with a sharp increase in borrowing costs and the possibility of worsening violence in the Middle East. The 10-year Treasury yield has risen more than a full percentage point since the Federal Reserve last raised rates at the end of July, an unusually large jump in such a short time frame. The S&P 500 has gained 10% this year, but is down 7.5% since July 26. Financial stocks sputtered as more institutions reported third quarter results. Regions Financial declined 12% after earnings while American Express dropped 5.4%. The KBW Nasdaq Bank Index fell 3.1%. JPMorgan Chase stock fell 1.6%, declining for a fifth consecutive session. So far this earnings season, 86 companies within the S&P 500, or 17% have reported earnings, according to FactSet. Within that group, earnings have grown 4.9% from a year ago, and 73% have topped Wall Street forecasts, raising hopes that profits will grow this quarter for the first time in a year. Shares of solar product manufacturer SolarEdge Technologies fell 27%, the worst performer in the S&P 500, after the company said installations of its equipment were slowing. Rival Enphase Energy dropped 15%.

Stocks in Asia mostly fell on Monday. The losses are particularly marked in China, where the Shanghai Composite is down 0.8 per cent. There is no trading in Hong Kong because of the "Chung Yeung Festival" holiday. In Tokyo, the Nikkei-225 falls 0.7 per cent. The Kospi in Seoul is down 0.3 per cent. There, shares of Kiwoom Securities slump 22.9 per cent following the financial services provider's report of 494 billion won in outstanding debt late Friday.

U.S. government debt yields finished broadly lower on Friday, pulling the 10-year rate away from 5%, as tensions in the Middle East threatened to engulf the region. The 10-year yield nonetheless ended with its biggest weekly rise since April easing by 8 basis points on Friday to 4.912%, still close to its highest levels since 2007. The 2-year Treasury note yield fell by 10 basis points to 5.073%, still close to its highest level since 2006.

UBS downgrades Nestle target to CHF 121 (125) - Buy
Deutsche Bank lowers Roche target to 225 (250) CHF - Sell
Deutsche Bank upgrades Schindler target to CHF 209 (205) - Buy

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