(AOF) – Eurofins Scientific (+4.82% to 46.35 euros) begins the session among the main gains on the Parisian market. After an initial review of Muddy Waters’ claims, the Bioanalytical Services Group believes that “the entire allegations and insinuations contained therein are inaccurate, irrelevant, biased and/or misleading.”
Yesterday Eurofins Scientific shares fell 16% after Muddy Waters’ sell recommendation. According to the latter, “Eurofins’ financial statements may contain significant overstatements of profits, cash balances and other asset values.”
“Many of MW’s erroneous and misleading claims have already been addressed in detail by Eurofins in multiple communications following previous disparaging reports about short sellers,” the company stressed. The company had already suffered attacks from the hedge fund ShadowFall Fund in June 2019.
Eurofins Scientific “will provide detailed rebuttals and facts regarding the long list of insidious allegations contained in the report in due course.”
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Oncology, priority of pharmaceutical giants
Sanofi’s stock market disappointment recorded at the end of October 2023 underlines the new direction for the group, which has now set oncology as its number 1 priority. Efforts in this segment, where therapies are advancing the fastest, notably involve investments in R&D which weigh on profitability. Sanofi therefore announced a drop in its earnings per share in 2024 and the abandonment of its objective of an operating margin of 32% in 2025. Merck has just unveiled a new alliance. It will pay up to $22 billion to the Japanese group Daiichi Sankyo as part of a partnership on experimental cancer treatments. While some experts estimate that the United States represents nearly half of global oncology spending (drugs and treatments), or $196 billion in 2022, Chinese spending in this area has more than doubled in five years, going from 5 to 11.8 billion dollars.