☕️ Trial Heartbreak

Good morning.

CSL’s chief executive Paul McKenzie will deliver the group’s December half results today, after a miserable Monday saw around $8 billion wiped of the biotech firm’s market cap. The 5.5% fall came as the company’s highly-anticipated CSL112 drug trial was deemed a failure.

CSL said the phase-three trial of CSL112, on which it spent almost $1 billion, failed to show it could reduce the risk of major cardiovascular events at 90 days after a heart attack. As a result, the company has abandoned plans to seek regulatory approval.

Head of CSL’s R&D, Bill Mezzanotte, will give an update on the CSL112 trial during today’s earnings call.

🏆 LOI Subscriber #TBD

Market movers

Shares in casino operator SkyCity fell 2.8% during trading on Monday to close at $1.92, on news that the entertainment group has been hit with another civil penalty proceeding. NZ’s Department of Internal Affairs slapped SKC with the action, for non-compliance with anti-money laundering and terror financing laws. Earlier this month, SkyCity revised up its provision for a civil penalty from Austrac from $45 million to $73 million, after the watchdog also found "systemic failures” in SKC’s AML and CTF compliance efforts.  

The quick sync

• Australia’s carbon trading market is shifting from a voluntary to a compliance-based system, but will this resolve its integrity issues? (Capital Brief)

• OneVentures hits a milestone moment with the closure of its first fund, securing a payday for its backers. (AFR)

• Calix claims it has perfected its ‘green iron’ recipe, and claims it only comes at a slight premium to traditional fossil fuel peers. (Capital Brief)

• UBS bankers have reportedly been leading talks with PE funds for the potential buyout of languishing APM Human Services International. (AFR)

• Administrators reveal how much Australian FTX creditors are set to scrape back after the major crypto collapse. (The Australian)

• Cost blowout from WA’s GST deal could reach $50b in the next decade. (AFR)

• Shares in the luxury footwear maker, Tod’s, soared 18% during trading on Monday on news that it would team up with the LVMH-backed L Catterton on a take-private bid. (Bloomberg)

• Bosses and top execs at large US PE groups have seen the value of their shares rise by over US$40 billion since the beginning of 2023. (Financial Times)

Trading floor

M&A

• Beach Energy CEO delays asset acquisition plans. (The Australian)

• Diamondback Energy and Endeavor Energy are in talks for a US$50b+ ($76.7b) merger. (Capital Brief)

• Fifth anniversary of private equity ownership prompts exit strategy discussions, citing Trade Me example. (AFR)

• Ecofibre sells food unit to Elixinol for up to $3m. (BNA)

• Firms eye Panoramic Resources' Savannah project once nickel prices recover. (The Australian)

• Dispute with former owners complicates Rich Lister's Pact takeover. (AFR)

• UK High Court approves Link Group’s fund repayment plan for Woodford creditors. (Capital Brief)

• Starbucks Australia's CEO is optimistic about the coffee chain's future, anticipating renewed focus and investment from its owner, billionaire Russell Withers. (SMH)

• Prime Financial Group has expanded its portfolio with the acquisition of Brisbane-based alternative asset manager Altor Capital. (BNA)

Capital Markets

• Audinate market cap rises $266m on record sales, powered by Dante tech. (BNA)

• Synlait eyes discounted equity raise after projected loss. (The Australian)

• Private equity eyes ASX division carve-outs post-ski season, according to legal experts at Allens. (AFR)

• Australian shareholders of Fletcher Building are seeking explanations for the company's trading halt on the NZX before a suspension on the local market. (The Australian)

VC

• Health insurer Bupa has initiated a $20m VC fund named Bupa Ventures, aimed at supporting Australian healthcare startups. (Startup Daily)

People moves

• General Atlantic boosts Australian presence with KKR hire. (AFR)

• Grok Ventures names former MaqBank exec Tan Kueh as CEO in a climate-focused strategy shift. (Startup Daily)

• Bugcrowd secures $102m for global expansion in cybersecurity. (Smart Company)

• TPG's Joel Thickins relocates to Sydney, maintains Melbourne ties. (AFR)

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