Global Market Turmoil: Copper Prices Rise Amid BHP's Mine Closure, Pharmaceutical Firms Face Setbacks
Major disruptions in the global market are unfolding as BHP Billiton's massive copper mine in Chile is shut down due to a strike, leading to a 0.5% hike in copper prices. The mine's closure has also affected the stocks of its majority owners, BHP and Rio Tinto. Meanwhile, in the pharmaceutical sector, Bristol-Myers Squibb and Sanofi-Aventis are fighting against a Canadian generic drug maker, Apotex, which is seeking to release a generic version of the blockbuster drug Plavix. Additionally, Eli Lilly's new drug, Arxxant, faces delays in approval from the FDA.
Key Takeaways:
- The closure of BHP Billiton's massive copper mine in Chile has pushed copper prices up by 0.5%, affecting the stocks of its majority owners, BHP and Rio Tinto.
- The Escondida mine, majority-owned by BHP and Rio Tinto, produces 8% of the world's copper, making it a significant contributor to global copper production.
- Bristol-Myers Squibb and Sanofi-Aventis are seeking an injunction to stop generic sales by Canadian drug maker Apotex, claiming that a generic version of Plavix will cause "irreparable injury."
- Plavix, a blood thinner, is the second best-selling drug globally, with annual sales of about $5.9 billion and accounting for an estimated 30% of Bristol-Myers' profits on sales of $3.8 billion in the U.S.
- Eli Lilly's new drug, Arxxant, faces delays in approval from the FDA, which may cause a two-year delay in its launch, estimated to garner sales of $500 million annually.
Statistics:
- Copper prices have risen by 0.5% due to the closure of BHP's copper mine in Chile.
- The Escondida mine produces 8% of the world's copper.
- Plavix has annual sales of about $5.9 billion globally.
- The drug accounts for an estimated 30% of Bristol-Myers' profits on sales of $3.8 billion in the U.S.
- Arxxant, Eli Lilly's new drug, is expected to garner sales of $500 million annually.
Sources:
- Bloomberg
- Reuters
- SeekingAlpha
- Financial Times