5 Things to Know Before Markets Open

UBS completes its takeover of Credit Suisse and Biogen wins key FDA support for its Alzheimer's disease treatment. Here’s what investors need to know today.

1. UBS Completes Takeover as Credit Suisse Heads for Delisting

Swiss bank UBS (UBS) said that the acquisition of its rival Credit Suisse has been completed. The USB group will operate UBS and Credit Suisse as separate entities, with a total balance sheet of $1.6 trillion and a workforce of 120,000. Credit Suisse will be delisted from the SIX Swiss Exchange and New York Stock Exchange, with shareholders receiving one UBS share for every 22.48 Credit Suisse shares held.

2. Eisai, Biogen Wins Key FDA Support for Alzheimer’s Drug

Paving the way for a broader Food and Drug Administration approval, an Alzheimer’s disease treatment developed by Japanese pharmaceutical company Eisai Co. and Biogen won support from a key regulatory advisory board. The FDA board approval follows a positive staff report last week on the drug Leqembi, which has shown to slow the progression of Alzheimer’s disease. Biogen (BIIB) shares were up more than 4% in pre-market trading.

3. White House to Extend Samsung, TSMC Exemptions From Chip Restrictions

The U.S. issued an exemption to Samsung and TSMC (TSM) on its chip restrictions that were set to expire in October, but an official told an industry conference that the restrictions would be renewed “for the foreseeable future.” Shares of TSMC traded almost 2% higher in pre-market trading.

4. Nio Price Cut Suggests Growing ‘Price War’ with Tesla in Chinese EV Market

Suggesting an intensifying “price war” in the Chinese electric vehicle market, car maker Nio announced a $4,200 price cut, along with delays in capital and research projects. The move follows a similar price cut by Tesla (TSLA) and other Chinese EV makers earlier this year, and comes as Nio’s May deliveries were 6,155, down from the first-quarter monthly average of 10,000.

5. Novartis to Buy Seattle Biotech Firm Chinook

Swiss drugmaker Novartis (NOVN) will buy Seattle-based biotech firm Chinook Therapeutics (KDNY) for up to $3.5 billion. The acquisition is a boost to the pharmaceutical manufacturer’s late-stage drug development lineup, with a new treatment for a rare severe kidney disease. The transaction is expected to close in the second half of 2023. Chinook Therapeutics shares were up 66% in pre-market trading, while Novartis was up more than 1%.