Industry News & Trends Recap: January Week 3
Industry News & Trends Recap: January Week 3
Here, our team has rounded up some of the notable industry news from the past week for the following industries:
Table of contents
- Finance, PE & VC News
- Legal News
- Healthcare & Life Sciences News
- Luxury & Retail News
- Tech & A.I. News
Finance, PE & VC News
1.
PE Investors to Return to China in Search of M&A Deals in 2024
After three years of decline, global and domestic private equity investors are returning to the Chinese mergers and acquisitions (M&A) market, driven by signs of economic recovery. Bain & Co reports a shift in investor focus towards improving profitability and revenue in portfolio firms.
Read the full article about PE investors in China
2.
Southeast Asia’s PE Investors See Potential in Healthcare, Energy & Digital Infrastructure
Private equity (PE) investors in Southeast Asia (SEA) are poised to increase their investments in 2024, and investors are showing a strong interest in the healthcare and clean energy sectors. A growing confidence in public equities is expected to positively influence private market investments as well.
Read the paid article about SEA’s investment sectors
3.
Billionaire Howard Lutnick Takes on Exchange Giant CME
Howard Lutnick, the billionaire chairman and CEO of Cantor Fitzgerald, is set to challenge the finance sector’s giants with his latest venture, FMX Futures Exchange. Approved by regulators on January 22, FMX aims to launch a new market for interest-rate futures in mid-2024, a domain currently dominated by CME Group, which controls over 99% of the U.S. interest-rate futures trading volume.
Read the full article about Howard Lutnick
4.
Crypto’s HashKey Raises US$100 Million, Attains Unicorn Status
HASHKEY Group, which operates one of Hong Kong’s two licensed cryptocurrency exchanges, has achieved ‘unicorn’ status with a valuation exceeding US$1 billion, following a successful funding round that raised nearly US$100 million. The funding attracted both existing and new investors, with the leading investor rumoured to be OKX Ventures, the investment arm of the OKX digital asset exchange. HASHKEY plans to use the funds to develop a Web3 ecosystem and licensed products in Hong Kong.
Read the full article about HashKey
5.
Former JPMorgan Banker Appointed Chairman at Singapore Gulf Bank
Edmund Lee, a former JPMorgan Chase and Co vice-chairman for Asia-Pacific (APAC) and senior country officer for Singapore, has been appointed as the chairman of Singapore Gulf Bank (SGB), a digital bank under WHAMPOA Group based in Bahrain. His appointment follows the recruitment of Ali Moosa, another JPMorgan alum, as SGB’s executive vice-chairman.
Legal News
1.
Lawyers’ Use of AI Drives Ethics Rule Changes
The Florida Bar, following California’s lead, has issued guidelines on the ethical use of artificial intelligence (AI) by lawyers, signalling a growing trend among state bar associations in the U.S. These guidelines, which aim to address the evolving role of AI in legal practices, stress the importance of maintaining professional judgment and responsibility when utilising AI tools like chatbots for legal work.
2.
Former Chief Executive of EAM SingAlliance (Hong Kong) Heads City’s Wealth Academy to Woo Family Offices
Angel Chia, a veteran with over two decades of experience in the financial industry, has been appointed as the executive director of the Hong Kong Academy for Wealth Legacy (HKAWL). Her role is to advance Hong Kong’s position as a regional hub for managing multigenerational wealth. Chia’s background includes serving as the former chief executive of EAM SingAlliance (Hong Kong) and working in various financial sectors in Hong Kong, Singapore, Taipei, and New York.
3.
K&L Gates Boosts Finance Practice in Singapore with New Hires
K&L Gates has bolstered its finance practice in Singapore with the addition of two new partners, Samuel Kolehmainen and Duc Nguyen, previously from Herbert Smith Freehills. Their joining underlines the firm’s commitment to enhancing its asset finance practice and focus on the transport sector, particularly in Southeast Asia and beyond.
4.
HKIAC Appoints A&O Partner as New Secretary-General
5.
Law Firms Jockey for Payments Action
The growth of the payments and fintech sector has led to a competitive landscape among law firms seeking to meet the rising demand for legal expertise in this area. Firms that pioneered payments law, like Paul Hastings, Alston & Bird, and Ballard Spahr, have expanded their specialisation, becoming breeding grounds for talent and targets for poaching by other firms like Troutman Pepper and Steptoe. This trend is not limited to U.S.-based firms; international firms are also actively building their presence in the payments and fintech space.
Read the full article about the talent demand
Healthcare & Life Sciences News
1.
Sandoz to Buy Eye Drug Cimerli in $170 Million Deal
Coherus Biosciences has agreed to sell its approved biosimilar drug Cimerli and related staff to Sandoz for $170 million in cash. This transaction includes Cimerli’s license, product inventory, as well as sales and reimbursement employees. This sale aligns with Coherus’ strategic shift from biosimilars to developing cancer immunotherapies, a move initiated in 2021 with the acquisition of an experimental PD-1 inhibitor for nasopharyngeal carcinoma. The deal, expected to close in the first half of 2024, will provide Coherus with the necessary funds for its oncology ventures and reduce overhead costs and staffing, reflecting a focus on its core therapeutic area in oncology.
Read the full article about Sandoz’s deal
2.
Gene Therapy Biotech Jaguar Spins Out New Manufacturing Company
Jaguar Gene Therapy spins out a new company, Advanced Medicine Partners, to specialise in manufacturing cell and gene therapies. This new entity, supported by investors like Deerfield Management and Arch Venture Partners, will provide manufacturing services not only to Jaguar but also to other Deerfield-backed companies and several biotech and pharmaceutical clients. The spinout, led by former Jaguar COO Andrew Knudten, aims to address challenges in producing cell and gene therapies, particularly in scaling up for larger clinical trials and commercial sales.
Read the full article about Jaguar’s company
3.
Growing Interest in the Weight Loss Drug Market
The weight loss drug market is poised for growth, with numerous companies vying to enter this lucrative space. The market is currently led by Novo Nordisk and Eli Lilly, but other large drugmakers like Pfizer, Roche, and Amgen are also strategising to join. However, lesser-known companies like Boehringer Ingelheim, Terns Pharmaceuticals, Viking Therapeutics, Structure Therapeutics, and Altimmune are also making significant strides. These smaller players, alongside established giants, indicate a dynamic and expanding market for weight loss drugs.
Read the full article about the weight loss drug market
4.
Biotech M&As Heat Up
Biotech M&As are experiencing a resurgence driven by rising interest rates and new challenges. The end of the last decade saw a peak in pharmaceutical M&A, with large companies frequently acquiring young biotech firms, particularly in fields like cancer, rare diseases, and immune system disorders. These areas were marked by significant clinical trial victories and substantial profits. Now, there’s renewed activity in dealmaking, especially in sectors like obesity and innovative technologies like antibody-drug conjugates. Even neuroscience, which had seen a decline in interest from major drugmakers, is attracting investments again.
Read Biopharmadive’s article and the paid article on Wall Street Journal
5.
Renewed Interest in Psychiatry Drug M&A
The biotech industry is witnessing renewed interest in mergers and acquisitions (M&A), particularly in the field of psychiatry drug development. This resurgence is evidenced by AbbVie and Bristol Myers Squibb’s recent multibillion-dollar acquisitions of companies developing new schizophrenia drugs. These deals signal a broader industry shift, with larger pharmaceutical firms revisiting brain disease research due to recent scientific breakthroughs.
Read the full article about psychiatry drug M&A
Luxury & Retail News
1.
LVMH’s Arnault to Nominate Sons for Company’s Board
Bernard Arnault, the head of LVMH (Moët Hennessy Louis Vuitton) plans to propose his sons, Alexandre and Frederic, for the company’s board. The nominations are part of Arnault’s broader strategy of involving his children in key roles within the company and would solidify the family’s control and succession plans within LVMH.
Read the full article about LVMH’s leadership
2.
Beyond Yoga Names Ex-Athleta CEO and Gap Veteran as New CEO
Levi Strauss’ Beyond Yoga has appointed Nancy Green, former CEO of Athleta and Gap veteran, as its new chief executive, signalling a strategic move to scale up and stand out in the competitive athletic apparel market. This leadership change, effective February 1, aligns with Beyond Yoga’s goal to compete with established brands like Lululemon and emerging ones like Alo Yoga and Vuori.
Read the full article about Nancy Green’s appointment
3.
Chaumet Appoints Charles Leung as CEO
Hong Kong-born luxury industry veteran Charles Leung has been appointed as the new CEO of Chaumet, an LVMH-owned French jewellery brand. With his deep understanding of Chaumet and extensive global experience in China and Europe, Leung is expected to lead the brand successfully, especially as LVMH maisons increasingly focus on the Chinese market.
Read the full article about Charles Leung’s appointment
4.
Alibaba’s Online Flea Market Xianyu Launches Physical Store
Alibaba Group’s online second-hand goods trading platform, Xianyu, is set to open its first “all-category” physical store in the Gongshu district of Hangzhou, where Alibaba is headquartered. Launching in a renovated industrial estate, the Xianyu Recycle Shop will operate on a consignment model, offering a wide range of second-hand items, including apparel, fashion accessories, home appliances, and certain luxury goods. This move is part of CEO Eddie Wu Yongming’s goal to transform it into a comprehensive lifestyle platform for Chinese consumers.
Read the full article about Xianyu
5.
China’s Scrutiny of SHEIN
Singapore-based fast fashion company SHEIN is facing a cybersecurity investigation by the Cyberspace Administration of China (CAC), potentially jeopardising its plans for an Independent Public Offering (IPO) in the U.S. This scrutiny follows SHEIN’s filing with the China Securities Regulatory Commission, necessary for Chinese companies seeking overseas listings.
Read the full article about SHEIN’s probe
Tech & A.I. News
1.
Asia’s Data Boom Attracts Investors Worldwide
Global investors are increasingly focusing on Asia as a key market for data centre investments, driven by the region’s burgeoning computing and data storage needs. This surge in demand is attributed to the rise in AI applications, the expansion of cloud services by companies like Amazon and Google, and the growing population in Asia. Data centre demand in SEA and North Asia is projected to grow about 25% annually until 2028, outpacing the growth in the U.S.
2.
Tencent’s Riot Games to Retrench About 11% of Staff
Tencent Holdings’ subsidiary, Riot Games, plans to lay off approximately 11% of its workforce, totalling 530 employees. This move follows a trend in the gaming sector, where companies like Electronic Arts Inc. have also made cuts due to slow growth and high inflation impacting consumer spending on games.
Read the full article about Tencent’s retrenchment
3.
Zuckerberg Joins the Fray for AI
Mark Zuckerberg, CEO of Meta, is venturing into the development of artificial general intelligence (AGI). Meta’s AI research group, FAIR, will merge with the team building generative AI products to directly leverage Meta’s AI advancements for its billions of users. Zuckerberg is also gearing up for this challenge by acquiring significant computing power.
4.
ChatGPT CEO Aims for Billions in Capital to Fund AI Chip Factories
OpenAI CEO Sam Altman is reportedly seeking to raise billions of dollars to create a global network of factories for fabricating AI chips in collaboration with top chip manufacturers. This venture aims to address the major cost and limitation of running AI models, which require many high-powered chips. The competition to produce these advanced chips is intensifying, with companies like Microsoft, Amazon, and Google also developing their own custom AI chips.
Saudi Arabia has Ambitions to Become Middle East’s AI Tech Hub
Saudi Arabia is making a significant push to establish itself as a leading tech hub in the Middle East, focusing particularly on becoming a centre for AI technology. The country is diversifying its economy as part of its Vision 2030 strategy, moving away from heavy reliance on oil to sectors including technology and logistics. Saudi Arabia’s efforts to attract global talent and investment in AI are part of a broader plan to compete with traditional tech hubs like the United Arab Emirates.
Read the full article about Saudi Arabia’s plans
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