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Eli Lilly Puts Its Cash Stockpile to Work; American Airlines Taps Starlink for Speedy Internet
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By Walden Siew | WSJ Leadership Institute
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Good morning, CFOs. Lilly puts its cash pile to work, agreeing to acquire Curevo, LimmaTech Biologics and Vaccine Company; BP removes its chairman; plus, American Airlines to tap Starlink to provide speedy internet service.
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Lilly is flush with cash from its GLP-1 drugs. ANGELA WEISS/AFP/GETTY IMAGES
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Eli Lilly, flush with cash from its successful GLP1-drugs, agreed to acquire three vaccine developers in deals valued at up to nearly $4 billion combined, the company said Tuesday.
The deals mark a new push by the weight-loss drug market leader into infectious-disease prevention, my colleague Peter Loftus reports.
Here are the key details:
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Indianapolis-based Lilly has agreed to acquire Curevo, LimmaTech Biologics and Vaccine Company.
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Curevo is developing a shingles vaccine that Lilly believes could be as effective as the current standard but with reduced side effects, said Daniel Skovronsky, Lilly’s chief scientific and product officer.
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Lilly could pay up to $1.5 billion in cash for Curevo, including an undisclosed upfront payment and a potential subsequent payment if a certain milestone is met.
Why is this happening now? Lilly is approaching dealmaking from a position of strength, Loftus reports, as the company has a cash stockpile from its successful GLP-1 drugs, including Zepbound for weight loss and Mounjaro for diabetes. It recently agreed to several acquisitions of companies developing drugs for cancer, sleep disorders and autoimmune diseases, each valued at less than $10 billion.
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Content from our sponsor: Deloitte
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Motorola Solutions’ CFO: Business Depth Matters in Finance
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Jason Winkler, Executive Vice President & CFO of Motorola Solutions, shares lessons on finance leadership, acquisitions, tech investment, and communicating with clarity at the board level. Read More
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📆 Earnings
Agilent Technologies, Abercrombie & Fitch, Bank of Montreal, Bank of Nova Scotia, Dick’s Sporting Goods, HP Inc., Marvell Technology, Salesforce, Snowflake, Synopsys and U-Haul Holding
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What Else Matters to CFOs
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Albert Manifold’s departure comes as BP seeks to reinvigorate its fossil-fuel business. Niall Carson/ZUMA Press
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BP has removed its chairman, Albert Manifold, after the oil major’s board was told that he was verbally abusive and bullying toward employees, and had mishandled company information, according to people familiar with the matter.
The London-based company said Tuesday that its board had unanimously decided that Manifold should no longer serve as chair, and that he would depart immediately.
Key quote: “The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action,” said Amanda Blanc, the company’s senior independent director.
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📰 Other headlines
📈 Earnings wrapup
For more earnings news, click here.
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“If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.”
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—British Foreign Secretary Yvette Cooper said, referring to the U.K. sanctions on Justin Sun’s crypto exchange HTX over its Russia business.
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The WSJ CFO Council convenes the world’s top financial leaders so they can gain perspective on navigating market uncertainty, aligning priorities and making decisions that deliver measurable results. Join this trusted community where CFOs exchange approaches, access strategic insights and continuously sharpen their influence across the enterprise.
Request Information.
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Peloton Interactive has hired Siddharth Thacker as the fitness company's new CFO, effective June 22. Thacker joins the New York company from Rent the Runway, where he has been finance chief since May 2023. Rent the Runway last week said Thacker would be leaving in early June. Thacker will receive an annual base salary of $635,000 and an annual cash bonus equal to 60% of his base pay, Peloton said. Saqib Baig, who stepped in as interim CFO in March after Liz Coddington left the company, will remain chief accounting officer.
—Colin Kellaher contributed to today’s Ledger.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy. Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew. You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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