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AbbVie will pay around $10 billion to add a potential blockbuster cancer treatment as cheaper versions of the drugmaker’s all-time best seller, Humira, cut into sales. But company leaders cautioned Thursday that a return on the deal they announced for drug developer ImmunoGen will take time to develop. The deal delivers Elahere, an ImmunoGen ovarian cancer treatment that AbbVie says could eventually reap billions of dollars in annual sales and drive long-term revenue growth. AbbVie has been dealing this year with cheaper competition for its top seller, the autoimmune disease treatment Humira. AbbVie and ImmunoGen said Thursday that the boards of both companies have approved the transaction.

Persons: AbbVie, Elahere, Humira, ImmunoGen Organizations: Food and Drug Administration, Inc Locations: U.S, Waltham , Massachusetts, Chicago , Illinois

☆ Air France-KLM announces a 1.3 billion euros financing agreement with Apollo
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +1 min

A logo is seen on the facade of Air France-KLM building during the presentation of the group's annual results in Paris, France, February 17, 2023. REUTERS/Benoit Tessier/File Photo Acquire Licensing RightsOct 26 (Reuters) - Air France-KLM (AIRF.PA) announced on Thursday a new financing agreement between one of its affiliate and funds and entities managed by Apollo Global Management (APO.N) in a bid to strengthen its balance sheet. The 1.3 billion euros ($1.37 billion) financing will be accounted as quasi-equity under IFRS accounting standards, the airplane carrier said in a statement. Apollo has an option to increase the nominal amount to up to 1.5 billion euros, Air France-KLM said. For Air France-KLM, this is the second cash injection from Apollo after a $560 million agreement in July.

Persons: Benoit Tessier, Victor Goury, David Gregorio Our Organizations: Air France, KLM, REUTERS, Apollo Global Management, Group, Thomson Locations: Air, Paris, France

Savings accounts are low interest rate-bearing deposits offered by Indian banks, forming a third of their total deposits. Public sector banks offer interest rates between 2.70% to 4% on savings deposits, while large private banks offer rates between 3% to 4.50%. Savings deposits rate of banks vs RBI's repo rateThe RBI has been nudging banks at meetings to raise savings deposit rates and may need to push them again if required, the same source said. The RBI said in its monetary policy report that while the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, savings deposit rates have remained almost unchanged. Yes Bank (YESB.NS), Kotak Mahindra Bank (KTKM.NS) and IndusInd Bank (INBK.NS) are among lenders that have recently said they have no plans to raise savings deposit rates.

Persons: Anushree, Siddhi Nayak, Swati Bhat, Nivedita Organizations: Reserve Bank of India, REUTERS, Rights, Savings, Reuters, Yes Bank, Kotak Mahindra Bank, IndusInd Bank, Siddhi, Thomson Locations: New Delhi, India, Rights MUMBAI

☆ The AI industry's dog-eat-dog race for compute power will see financial institutions launch 'GPU debt funds' in the next 12 months, VC firm predicts
▼ + stars: | 2023-10-12 | by ( Riddhi Kanetkar | ) www.businessinsider.com time to read: +3 min

Generative AI startups have particularly benefited from the boom, attracting more than $18 billion in VC funding in 2023, according to Air Street Capital's State of AI report, released on Thursday. One of the main challenges facing AI startups right now is that they need to process large amounts of data in order to generate their high quality output. An alternative could be that financial institutions, such as banks, launch GPU debt funds that replace VC equity dollars that would otherwise be spent on compute funding, the report's authors predicted. GPU debt funds are also an attractive option for regulators, who are "keen to encourage responsible non-dilutive funding," which usually "carries fewer regulatory requirements than equity financing," Benaich said. "I don't think GPU debt funds are going to happen overnight, but with interest rates still high, private credit is becoming increasingly appealing," Benaich told Insider.

Persons: we've, Nathan Benaich, Benaich, It's Organizations: Street, Nvidia, Air Street Capital, Street Capital Locations: Street Capital's

☆ Bristol-Myers Squibb to acquire Mirati in up to $5.8 billion deal
▼ + stars: | 2023-10-09 | by ( Michael Erman | ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsOct 8 (Reuters) - Bristol-Myers Squibb (BMY.N) on Sunday said it will acquire cancer drugmaker Mirati Therapeutics (MRTX.O) for up to $5.8 billion, diversifying its oncology business and adding drugs it hopes can help offset expected lost revenue from patent expirations later this decade. Bristol will pick up Mirati's portfolio drugs that target the genetic drivers of specific cancers including its lung cancer drug, Krazati, which was approved in December. The company said that it will buy Mirati for $58 per share in cash, or around $4.8 billion. Mirati has around $1.1 billion in cash on hand, so "we're paying essentially $3.7 billion enterprise value...we think with that we've gotten a very attractive deal," Lenkowsky said. Last year, Bristol acquired drug developer Turning Point Therapeutics for $4.1 billion in cash to help bolster its arsenal of cancer drugs.

Persons: Bristol Myers, Dado Ruvic, Adam Lenkowsky, Mirati, we've, Lenkowsky, Chris Boerner, Giovanni Caforio, Boerner, Lavanya Ahire, Lisa Shumaker, Diane Craft, Andrea Ricci, Michael Perry Organizations: Bristol, Bristol Myers Squibb, REUTERS, Myers Squibb, Therapeutics, U.S . Food, Drug Administration, Bristol Myers, Thomson Locations: Bristol, U.S, New York

☆ Redburn Atlantic downgrades Spotify, cites risks to audiobook expansion plans
▼ + stars: | 2023-10-09 | by ( Brian Evans | ) www.cnbc.com time to read: +1 min

Spotify's latest move to expand its audiobook offerings to subscribers isn't without risks, according to Redurn Atlantic. The firm downgraded the music streaming giant to neutral and lowered its price target to $160 from $170. "In total this could erase 200bp of gross margin. Furthermore, we estimate that new subscribers that immediately take up audiobooks would generate negative gross margins." "Amazon's Audible is currently the market leader in audiobooks and there is a risk it would bundle it up with music, diminishing the competitive advantage and the pricing power of Spotify," Pustula said.

Persons: Agnieszka Pustula, Pustula, — CNBC's Michael Bloom Organizations: Spotify, Amazon, Amazon Music Locations: Australia

☆ Bristol-Myers Squibb to acquire Mirati in $5.8 billion deal
▼ + stars: | 2023-10-08 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsOct 8 (Reuters) - Bristol-Myers Squibb (BMY.N) on Sunday said it will acquire Mirati Therapeutics (MRTX.O) in a transaction that values the cancer drugmaker at up to $5.8 billion. The company said that it will buy Mirati for $58 per share in cash. Mirati stockholders will receive one non-tradeable contingent value right for each Mirati share held, potentially worth $12.00 per share in cash, representing an additional $1 billion of value opportunity, the company added. Bristol-Myers Squibb will finance the transaction with a combination of cash and debt, the company said in a statement. Last year, Bristol-Myers acquired drug developer Turning Point Therapeutics for $4.1 billion in cash to help bolster its arsenal of cancer drugs.

Persons: Bristol Myers, Dado Ruvic, Myers, Chris Boerner, Giovanni Caforio, Boerner, Lavanya Ahire, Lisa Shumaker, Diane Craft, Andrea Ricci Organizations: Bristol, Bristol Myers Squibb, REUTERS, Myers Squibb, Mirati Therapeutics, Bristol Myers, Therapeutics, Thomson Locations: Bristol, U.S, New York

It is the second time in less than a year that Rivian is issuing such a green bond, which raises capital from investors seeking to back climate-focused projects. The company had issued a $1.3 billion convertible green bond in March to support the launch of its smaller R2 vehicle family. The company beat estimates in the third quarter by producing 16,304 vehicles and delivering 15,564 vehicles to customers. As of Sept. 30, Rivian had about $9.1 billion in cash on its balance sheet, down from $10.2 billion in June. The current median price target for the 24 analysts covering Rivian's shares is $30, with a "buy" recommendation, LSEG data showed.

Persons: Rivian, Elliot Johnson, it's, Johnson, Robert Scaringe, Garrett Nelson, Nelson, Chibuike Oguh, Abhirup Roy, Lance Tupper, Alexandra Hudson, Diane Craft, David Gregorio Our Organizations: Rivian Automotive Inc, Reuters, Evolve, Tesla Inc, EV, Thomson Locations: Irvine , California, Georgia, Atlanta, New York, San Francisco

☆ Something is breaking in financial markets — Here's what's behind the sell-off
▼ + stars: | 2023-10-03 | by ( Jeff Cox | ) www.cnbc.com time to read: +7 min

Brendan McDermid | ReutersThat cracking sound in financial markets isn't the typical kind of break, where one asset class or another fractures and gives way. "The cost of capital is going up, companies are going to have to refinance at a higher rate." That sentiment was buttressed this week, when at least four central bank officials either endorsed hikes or indicated that higher rates would be staying in place for an extended period. Consumers, for one, are feeling the squeeze of higher rates on everything from mortgages to credit cards to personal loans. "Now, at some point, my guess is that markets will eventually get to cheap enough levels where you'll bring buyers in.

Persons: Brendan McDermid, Quincy Krosby, Krosby, Larry McDonald, Treasurys, McDonald, It's, Joseph LaVorgna, LaVorgna, Donald Trump, I've Organizations: New York Stock Exchange, Federal Reserve, Treasury, LPL, Labor Department, Wall, P Bank ETF, Congressional, Treasury Department, The, White House, National Economic Council, Nikko Securities Locations: New York City, Washington, U.S

☆ How much is Hulu worth? As Disney gears up to buy Comcast's share of the streamer, analysts say Bob Iger may have to pay a hefty price.
▼ + stars: | 2023-09-05 | by ( James Faris | ) www.businessinsider.com time to read: +10 min

When it comes to Hulu, value is in the eye of the holder. However, Comcast claims Hulu is worth double what Disney is saying, according to Bloomberg — even in a tough media environment. "It's what would a willing buyer in a robust auction pay," Roberts said of Hulu's valuation at a MoffettNathanson conference in May. Another way to value Hulu is by comparing its EV-to-subscriber ratio with that of Netflix. By buying all of Hulu, Disney can position itself for the next big trend in media, Noell said.

Persons: Bob Iger, Bloomberg —, Peacock, Brian Roberts, Roberts, financials, maven, Hulu, Tim Nollen, Netflix's, Nollen, Iger, Matthew Thornton, who's bullish, Barton Crockett, Crockett, Brandon Nispel, Nispel, Jason Bazinet, Bazinet, Davis Noell, Noell Organizations: Disney, Comcast, Hulu, Bloomberg, Wall Street, Macquarie, Netflix, Rosenblatt Securities, Citigroup, Star Wars, Marvel, Providence Equity Partners Locations: Hulu

☆ JPMorgan says this engineering stock is poised for a turnaround
▼ + stars: | 2023-08-22 | by ( Brian Evans | ) www.cnbc.com time to read: +1 min

Emerson Electric is on the verge of a turnaround, according to JPMorgan. The multinational is headquartered in Missouri and provides engineering services. He also said fiscal 2024 estimates look conservative for Emerson, which provides engineering services for large-scale markets and consumers. Emerson Electric has ticked down 1% in 2023. EMR YTD mountain Emerson Electric stock.

Persons: Emerson, Stephen Tusa, Tusa, — CNBC's Michael Bloom Organizations: Emerson, JPMorgan, AspenTech, Emerson Electric Locations: Missouri

☆ This industrial gets an upgrade but is 'not managed the way I like,' Jim Cramer says
▼ + stars: | 2023-08-22 | by ( Jeff Marks | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. Watch Emerson Electric JPMorgan on Tuesday upgraded Emerson Electric (EMR) to overweight, or buy, form hold. Still, Jim Cramer said Tuesday that the company is "not managed the way I like it to be." As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .

Persons: Jim Cramer, it's, Emerson, Jim, We'll, Mary Dillon, Jim Cramer's Organizations: CNBC, Watch Emerson, Nasdaq, Treasury, West Texas, Watch Emerson Electric JPMorgan, Emerson, JPMorgan, National Instruments, Sporting, Club, Nvidia Locations: Danaher

☆ Here are Tuesday's biggest analyst calls: Apple, Nvidia, Zoom, Amazon, Bowlero, Lululemon & more
▼ + stars: | 2023-08-22 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Bank of America reiterates Lululemon as buy Bank of America said it's standing by its buy rating on the stock heading into earnings next week. Bank of America adds Jazz Pharmaceuticals to the US1 list Bank of America added the pharmaceutical company to its top picks list. "We initiate coverage of The Madison Square Garden Entertainment Co. (MSGE) with a Buy rating and a 12-month price objective (PO) of $41, implying ~30% potential upside." Bank of America initiates Gulfport Energy as buy Bank of America said the energy company is undervalued. Stifel reiterates Bowlero as buy Stifel said it's standing by its buy rating on the bowling company.

Persons: Morgan Stanley, Lululemon, LULU, Bernstein, Emerson, Raymond James, Apple, it's, Stifel, Jefferies, Goldman Sachs, JEF Organizations: Bank of America, Jazz Pharmaceuticals, Inc, UBS, GXO Logistics, Mobility, RBC, JPMorgan, Emerson, Mizuho, Edison, FOUR, Apple, Nvidia, AppLovin, Garden Entertainment, The, Garden Entertainment Co, Energy, Xcel Energy, Minnesota & Locations: China, The Madison, Minnesota, Minnesota & Colorado

The maker of Tre model electric trucks has decided to make battery electric trucks only to order and focus on hydrogen fuel cell trucks. The company laid off 270 employees in June and liquidated assets of a recently acquired battery maker last month. Nikola forecast third-quarter revenue of $18 million to $28 million, compared with estimates of $34.5 million, according to Visible Alpha. Other electric vehicle (EV) startups also have toiled to ramp up production, meet delivery targets and raise funds as cash reserves dwindled. Separately, Nikola reported a narrower second-quarter loss as lower production of its Tre battery-electric trucks in the April-June period helped keep costs in check.

Persons: Stephen Girsky, Brendan McDermid, Nikola, NKLA.O, Michael Lohscheller, Girsky, Tre, Trevor Milton, Akash Sriram, Abhirup Roy, Will Dunham, Anil D'Silva, Sriraj Kalluvila, David Gregorio Our Organizations: VectolQ, Reuters, of Autonomous Vehicles, REUTERS, U.S, General Motors, Friday's, Nikola, Fisker, Thomson Locations: New York City, U.S, Phoenix, Bengaluru, San Francisco

Nikola's investors on Thursday approved a proposal that will allow the company to issue more shares. The maker of Tre model electric trucks has been trying to pivot to hydrogen fuel cell technology. Nikola forecast third-quarter revenue of $18 million to $28 million, compared with estimates of $34.5 million, according to Visible Alpha. It had cash and cash equivalents of $226.7 million at the end of the second quarter, compared with $441.8 million, a year earlier. The company laid off 270 employees in June and liquidated assets of a recently acquired battery maker last month.

Persons: Stephen Girsky, Brendan McDermid, Nikola, okayed, Michael Lohscheller, Girsky, Tre, Trevor Milton, Akash Sriram, Abhirup Roy, Anil D'Silva, Sriraj Kalluvila, David Gregorio Our Organizations: VectolQ, Reuters, of Autonomous Vehicles, REUTERS, General Motors, Thomson Locations: New York City, U.S, Bengaluru, San Francisco

☆ Wall Street analysts are conflicted on AMD after its earnings
▼ + stars: | 2023-08-02 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

AMD may be nearing the end of its rally, according to some Wall Street analysts. Following the earnings report, Bank of America reiterated its neutral rating on the stock while lifting its price target by just $2 to $132. Although the firm raised its price target to $115 from $110, it still remains 2.2% below Tuesday's close. We also thought investors would eventually tire of the expensive valuation of AMD stock and we were wrong on that count as well. AMD shares gained 1.2% Wednesday during premarket trading.

Persons: Vivek Arya, Harlan Sur, Sur, Ross Seymore, Goldman Sachs, Toshiya Hari, Morgan Stanley, doesn't, Joseph Moore, Moore, Christopher Danely, Danely, —, Michael Bloom Organizations: AMD, Bank of America, JPMorgan, Deutsche Bank, Data, Citi Locations: 2H23

☆ Google, Microsoft, and Meta can't stop talking about A.I. — here's why Apple rarely mentions it
▼ + stars: | 2023-07-28 | by ( Kif Leswing | ) www.cnbc.com time to read: +6 min

Stefani Reynolds | AFP | Getty ImagesMicrosoft, Google and Meta are rallying everyone around AI, even though the future is murkyGoogle launched Bard AI, it's own chatbot to rival Microsoft and OpenAI's ChatGPT. Google, for example, has announced its plans to revamp its search engine using an AI model called Search Generative Experience. Google and Pichai say that the company's text-generating AI models will make its search engine better and could even answer questions that normal Google search can't. Zuckerberg was effusive about AI technology and its applications in virtual reality, ad targeting and recommending content from accounts users don't follow. UBS analyst Lloyd Walmsley wrote this week that generative AI was still an "overhang" over Google.

Persons: Tim Cook, Narendra Modi, Stefani Reynolds, ChatGPT, Jonathan Raa, OpenAI's, Amy Hood, we'll, Nadella, Pichai, it's, Zuckerberg, Meta, Bing, Gartner, Mark Murphy, Laura Martin, Lloyd Walmsley, monetization, Walmsley, Scott Olson Organizations: India's, White, AFP, Getty, Microsoft, Google, Nurphoto, Meta, Apple, Big Tech, Nvidia, Venture, JPMorgan, UBS Locations: Washington ,, iPhones, Brussels, Belgium, Chicago

☆ Astra plans a reverse stock split, seeks to raise up to $65 million in offering
▼ + stars: | 2023-07-10 | by ( Michael Sheetz | In Michaeljsheetz | ) www.cnbc.com time to read: +1 min

Spacecraft engine manufacturer and small rocket builder Astra plans to conduct a reverse stock split at a 1 to 15 ratio, the company disclosed in a securities filing Monday. Astra also seeks to raise up to $65 million through an "at the market" offering of common stock, the filing said. Astra's filing said the reverse stock split is expected to take place on or before October 2, after its board approved the plan July 6. The company previously outlined a reverse split as part of its plan to avoid delisting by the Nasdaq exchange. Functionally, a reverse split, often done as a 1 for 10, would mean a $3 stock, for example, would become $30 a share.

Organizations: Astra, Nasdaq

☆ Coloplast buys fish skin woundcare firm for up to $1.3 billion
▼ + stars: | 2023-07-07 | by ( ) www.reuters.com time to read: +1 min

COPENHAGEN, July 7 (Reuters) - Coloplast (COLOb.CO) has agreed to buy Iceland-based Kerecis, a biologic wound care firm that uses fish skin to develop tissue-transplant products, for up to $1.3 billion, the Danish medical equipment maker said on Friday. "Kerecis represents an attractive opportunity to strategically strengthen Coloplast's presence in the advanced wound care market by entering the high-growth, U.S.-centric biologics segment," the Danish firm said in a statement. Coloplast said it expected the acquisition to be marginally dilutive to earnings in the short term but increasingly accretive from 2026-2027 onwards. As a result of the deal, Coloplast raised its long-term organic growth guidance to 8-10% from 7-9% previously, it said. Kerecis has developed and patented a technology platform based on intact fish skin from wild Atlantic cod, which is being used to treat burns and other complex acute and chronic wounds including diabetic, venous, trauma, and surgical wounds.

Persons: Coloplast, Kerecis, Louise Breusch Rasmussen, Anna Ringstrom, Mark Potter Organizations: Thomson Locations: COPENHAGEN, Iceland, Danish, U.S

☆ We hear about companies reporting adjusted earnings all the time. Why do they do that?
▼ + stars: | 2023-06-29 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

This week's question: When reporting non-GAAP earnings, how do companies determine the numbers that are not generally accepted and how reliable they are? It also increases free cash flow, which is operating cash flow less capital expenditures. But many companies add back what was expensed for non-GAAP earnings. Restructuring charges are another item often added back to determine adjusted non-GAAP earnings results. This week's question: When reporting non-GAAP earnings, how do companies determine the numbers that are not generally accepted and how reliable they are?

Persons: Jim Cramer, Don, Jim Cramer's, Jim Organizations: Financial, Industry, billings, Club, Microsoft, Apple, Jim Cramer's Charitable, CNBC

☆ Aston Martin pulls out of slow lane in EV race
▼ + stars: | 2023-06-26 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 26 (Reuters Breakingviews) - Aston Martin Lagonda’s (AML.L) route to viability is a brain-teaser worthy of Q, James Bond’s quartermaster famous for turning everyday objects into whizzy tools. The 2.6 billion pound carmaker’s latest deal with $11 billion Lucid (LCID.O) shows the marque made famous by the fictional spy is, however, making progress. The deal with Lucid – majority-owned by the PIF, handily enough – will make Aston’s ambition to roll out its first electric vehicle by 2025 more credible. The deal sent Aston shares up over 9% in early Monday trading. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Aston Martin Lagonda’s, Q, James Bond’s, Aston, Lawrence, –, Mercedes, Neil Unmack, George Hay, Oliver Taslic Organizations: Reuters, Jefferies, Public Investment Fund, Porsche, Mercedes, Benz, U.S, Aston, Twitter, Canada, Siemens, Telecom Italia, Vivendi, Thomson

☆ Morgan Stanley says this HVAC stock lacks near-term catalysts
▼ + stars: | 2023-06-08 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Carrier Global 's long-term potential is currently overshadowed by a catalyst-free near term, Morgan Stanley warned. Analyst Joshua Pokrzywinski downgraded the HVAC stock to equal weight from overweight and cut his price target by $2. "But view the lack of near-term catalysts and relative resilience vs. other HVAC names as an opportunity to focus elsewhere for the next few quarters." Pokrzywinski said recent portfolio announcements put the company on track for "significant growth acceleration and rerating potential" in the next one to two years. Still, he said a pure-play HVAC business could rerate as high as Trane levels, which would mean an upside of 18% to Carrier's valuation.

Persons: Morgan Stanley, Joshua Pokrzywinski, Pokrzywinski, Emerson, He's, CNBC's Michael Bloom Organizations: Carrier, Viessmann, Fire, Security, General Electric, European Commission

☆ Cramer says snap up this leading medtech stock — wishes he could buy shares too
▼ + stars: | 2023-06-08 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +6 min

GE Healthcare (GEHC) shares are sliding Thursday, giving Club members an opportunity to invest in the medical-technology company at an increasingly attractive valuation. The noise around this transaction seems to be dragging down GE Healthcare shares. Thursday's declines push GE Healthcare shares below our cost basis of $79.47, which typically is a welcome development for a newer, smaller position. Essentially, what's happening now is General Electric is exchanging more than a quarter of its GEHC shares in a deal with Morgan Stanley. So, it's hardly a surprise to see General Electric monetizing some of its GE Healthcare stake to improve its balance sheet.

Persons: Jim Cramer, we're, we'd, Jim, Electric's, isn't, Morgan Stanley, Larry Culp, Global's, dilutive, Jim Cramer's, Yi Haifei Organizations: GE Healthcare, Electric, GE, CNBC, General Electric, GE Vernova, Intel, Mobileeye, Fair for Trade, Services, China National Convention Center, China News Service, Getty Locations: China, Beijing

☆ Making money as a startup is hard, so these New Jersey companies are selling their financial losses in exchange for millions in cash
▼ + stars: | 2023-06-01 | by ( Darius Rafieyan | ) www.businessinsider.com time to read: +4 min

The state of New Jersey offers a unique program that allows startups in the state to sell those losses for cash. To date, TrueFort has pulled in $20 million through a New Jersey program for startups. Those companies can then deduct those losses from their taxable income, cutting the amount of money they pay in taxes. The NOL program is especially popular among biotech businesses like Lisata, which are characterized by large R&D expenses and unpredictable paths to profitability. The NOL program is part of a suite of programs designed to support New Jersey startups.

Persons: Sameer Mahorta, TrueFort, Malhorta, David Mazzo, Mazzo, Lisata, Mahorta Organizations: Partners, Shasta Ventures, New, New Jersey Economic Development Authority, state's Technology, Bank of America, NOL, Garden State Locations: New Jersey, Weehawken, Silicon, Garden

☆ Buybacks are a great tool to reward shareholders — but the timing has to be right
▼ + stars: | 2023-05-21 | by ( Zev Fima | ) www.cnbc.com time to read: +10 min

Now, as all good businesses do, it comes time for XYZ to start returning cash to its shareholders. Of course, for a buyback to make financial sense for a company, shares need to be purchased at an appropriate price. Assume that XYZ Corp. generated $10 billion in sales with a 10% net profit margin and has 1 billion shares outstanding, resulting in EPS of $1. The structure aligns management with shareholders, as their compensation is tied to the success of the company and, therefore, the stock. While that's a net positive for shareholders, it's not the same as, say, Apple' s (AAPL) approach to buybacks.

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