🧪 Big Pharma’s Big Opportunity

Plus, Apple's surprising sales boost in Chinese markets

Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟨 | US Stocks Were Mixed on Tuesday. The Nasdaq Composite closed above 17,000 for the first time, while the Dow slid 200 points and the S&P 500 hovered around flat. This comes amid increased concerns over rising treasury yields and reservations from members of the Federal Reserve around rate cuts.

  • 📈 | One Notable Gainer: US Cellular’s stock jumped 18% after T-Mobile announced plans to acquire the company in a deal worth $4.4 billion to improve coverage in rural areas.

  • 📉 | One Notable Decliner: Shares of DraftKings dropped 10% after the Illinois Senate hiked taxes on online sports betting by 140% in the state’s new budget.

  • 🧪 | Tomorrow's Trade: Big Pharma’s Big Opportunity. Scroll down for more.

Plus, are you curious to see an exclusive look inside Lionsgate? Check out our partner.

YESTERDAY’S POLL RESULTS

🟨🟨⬜️⬜️⬜️⬜️ In 2024

🟩🟩🟩🟩🟩🟩 In 2025

🟨🟨🟨🟨🟨⬜️ 2026 or beyond

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

POAHF (+6%) Porsche revealed a new hybrid version of its iconic 911 sports car that will have a starting price of $164,900 (CNBC)

MRNA (-8%) Shares of Moderna traded lower today after spiking last week amid concerns over a potential bird flue pandemic (Benzinga)

NVDA (+7%) Nvidia traded over $1,100 for the first time thanks to Musk’s xAI receiving funding, which boosted enthusiasm around AI investments (YF)

AMD (+3%) Advanced Micro Devices claims it holds a 33% share in the server CPU market as it prepares to launch its next-gen “Turin” processors (YF)

NCLH (+4%) Mizuho Securities upgraded Norwegian Cruise Line Holdings from Neutral to Buy, citing a streamlined business due to recent cost cuts (Barron’s)

TOGETHER WITH TIICKER

Lionsgate (NYSE: LGF.A) already announced its highly-anticipated fiscal 4Q24 earnings last week — but the legendary studio’s can’t-miss event takes place tomorrow. 

For shareholders of fan-first, brand-first public companies, TiiCKER offers unprecedented access and more than a hundred exclusive perks served up weekly.

Tune into TiiCKER’s latest one-of-a-kind web event: an hour-long post-earnings Q&A with Lionsgate’s Head of Investor Relations, Nilay Shah.

Want to know the studio’s 5-year vision? Curious if recent growth can continue? Or just wondering when the next John Wick is coming out? 

Investors and fans alike can’t miss this intimate, exclusive look inside Lionsgate. The event is tomorrow, May 29, at 1:30 PM PT (4:30 PM ET), so there’s no time to waste.

OVERHEARD ON THE STREET

CNBC: Fed’s Kashkari wants to see “many more months” of positive inflation data before a rate cut, saying the central bank could even hike rates.

Bloomberg: Apple saw a sales rebound in China last month, with a 52% rise in shipments amid a flurry of discounts from retail partners.

Axios: OpenAI announced that it's establishing a new safety committee and also confirmed that it has begun training its next big model.

CNN: In other AI news… Elon Musk’s xAI firm raised another $6 billion from investors, boosting its valuation to $24 billion.

Reuters: Toyota showcased its next-generation engine that can adapt to different fuels, doubling down on a strategy to sell more than just EVs.

TOMORROW’S TRADE IDEA, TODAY

medical syringe GIF by Li-Anne Dias

A New Kind of Treatment

A new kind of cancer treatment is being developed, and big pharma is going all in. According to RBC Capital Markets, the treatment could represent a $25 billion market. 

The treatment is called targeted radiopharmaceutical therapy, or TRT. It works by attaching a radioactive particle directly to cancer cells, allowing for the delivery of radiation directly to a tumor. 

Experts say it’s still in the early stages of development, but it holds a lot of potential. Wall Street views it as a catalyst for mergers and acquisitions, with four acquisitions already announced in the last few months.

Acquisitions Everywhere

Novartis (NVS) is responsible for the most recent acquisition, and the company already owns two other targeted radiotherapies. Novartis agreed to purchase Mariana Oncology for $1 billion earlier this month. According to Oppenheimer (OPY) analyst Jeff Jones, this acquisition provides Novartis with increased “discovery capabilities.” 

Eli Lilly (LLY) completed an acquisition of its own late last year, buying radiopharmaceutical company Point Biopharma for $1.4 billion. The company also announced last week that it will pay $60 million to Aktis Oncology to use its miniprotein platform to develop anticancer radiopharmaceuticals. 

Not to be outdone, Bristol-Myers Squibb (BMY) purchased RayzeBio for $4.1 billion in February. The biotech company is in the late stages of developing a targeted radiopharma therapy.

Changing the Game

There’s a lot of excitement surrounding TRT, and for good reason. Some doctors believe it could be used to treat any type of cancer that can be treated with radiation therapy.

According to Jones, companies could utilize years of cancer research to identify opportunities and put the new treatment to work. 

Big pharma is scrambling to scoop up companies that will provide a piece of the pie. Investors can get in on the action as well.

Which company do you think will outperform over the next 12 months?

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TOGETHER WITH TIICKER

Lionsgate (NYSE: LGF.A) already announced its highly-anticipated fiscal 4Q24 earnings last week — but the legendary studio’s can’t-miss event takes place tomorrow. 

For shareholders of fan-first, brand-first public companies, TiiCKER offers unprecedented access and more than a hundred exclusive perks served up weekly.

Tune into TiiCKER’s latest one-of-a-kind web event: an hour-long post-earnings Q&A with Lionsgate’s Head of Investor Relations, Nilay Shah.

Want to know the studio’s 5-year vision? Curious if recent growth can continue? Or just wondering when the next John Wick is coming out? 

Investors and fans alike can’t miss this intimate, exclusive look inside Lionsgate. The event is tomorrow, May 29, at 1:30 PM PT (4:30 PM ET), so there’s no time to waste.

ON OUR RADAR

Reuters: China has set up its third planned state-backed investment fund to boost its semiconductor industry, with a registered capital of $47.5 billion.

CNN: A United Airlines flight aborted takeoff yesterday after the pilot of the Airbus A320 reported an engine fire.

Reuters: US trading has transitioned to a T+1 settlement cycle to improve efficiency. However, the move could initially cause transaction failures.

Fortune: The DOJ claims that thousands of North Koreans have stolen Americans’ identities and taken remote-work jobs at Fortune 500 companies.

NAR: According to the National Association of Realtors, home prices climbed to record highs in April with a median home price of $407,600.

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