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Loxo Loses Out Despite Signing Big Cancer Deal

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Loxo Oncology Inc. (NASDAQ: LOXO) saw its shares dip on Tuesday after the company announced that it will be partnering with Bayer to develop and commercialize larotrectinib and LOXO-195. Even though this deal looks good on the surface, investors seem to believe that Loxo would have been better on its own. At least that’s how they’re voting with their shares.

Loxo shares have beat the broad markets this year so far, with the stock more than doubling in this time. While Loxo can afford to give a little back, it makes sense that some shareholders might think that the ride is over and are happy to take profits now.

Under the terms of the agreement, Loxo Oncology will receive a $400 million upfront payment and be eligible for $450 million in milestone payments upon regulatory approvals for larotrectinib and first commercial sale events in certain major markets. There would also be additional $200 million in milestone payments upon LOXO-195 regulatory approvals and first commercial sale events in certain major markets.

This deal could be worth well over $1 billion, and keep in mind that Loxo only has a market cap of roughly $2.2 billion.

Jacob Van Naarden, chief business officer of Loxo, commented:

This is a transformational collaboration for the company as we prepare for commercialization. Bayer has a history of successful co-promotion efforts with emerging biopharmaceutical companies and we are confident that their oncology team has the global reach and expertise, including an existing field force dedicated to cancer, to complement our existing commercial plans. We look forward to working with Bayer and believe that together we can bring our TRK inhibitors to more patients more quickly.

Tradebuddy.onlines of Loxo were last seen down about 6% at $77.71, with a consensus analyst price target of $103.45 and a 52-week range of $25.25 to $95.92.

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24/7wallstreet

Best and Worst Economies in the World

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United States gross domestic product topped $18.5 trillion in 2016, about $7.4 trillion more than that of China, the world’s second largest economy. GDP does not provide a complete picture of a country’s economy, however, and while the U.S. may have the biggest economy, it does not have the most competitive one.

A country’s economic competitiveness is affected by a combination of factors that range from its regulatory environment to the health of its population. Competitive economies require reliable infrastructure, quality education systems, strong institutions that are free of corruption, stable banks, and the ability to adapt to changing market forces by adopting new technologies and fostering innovation.

Weighing over 100 such measures, the World Economic Forum ranked 137 countries in the 2017-2018 edition of its Global Competitiveness Report. 24/7 Wall St. reviewed the most and least competitive economies in the world according to the WEF.

This year, the United States passed Singapore to rank as the world’s second most competitive economy due in large part to its capacity for innovation and business sophistication. Meanwhile, China’s economy, the second largest in the world, ranks 27th — dragged down by a climbing deficit and declining infrastructure quality, while ranking favorably in technological readiness and attracting foreign direct investment.

Click here to see the best economies in the world.
Click here to see the worst economies in the world.
Click here to see our detailed findings and methodology.

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24/7wallstreet

States Where Poverty is Worse Than You Think

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Most agree the poor deserve public help. But where should the line dividing poor from non-poor be set? The U.S. government answered this question in 1963 by by setting official poverty thresholds according to an estimate of basic need. This figure is updated every year for price changes. Today, the annual poverty level income is $12,060 for an individual, and $24,600 for a family of four.

Poverty thresholds are the same nationwide, with no separate guidance for different states or cities and the varied conditions within those areas. Poverty thresholds do not account for differences in cost of living, taxes, and government assistance programs — all of which can be different not only by state but sometimes even by city.

To help address the limitations of the official poverty threshold and to help gauge the effectiveness of anti-poverty programs, Census researchers developed the supplemental poverty measure. The SPM extends the official measure by taking assistance programs and additional cost factors into account. The SPM revealed that Social Security and refundable tax credits helped raise 26.1 million and 8.2 million people, respectively, out of poverty last year. When these factors are added to the calculation there is a reduction in poverty overall of 8.2% and 2.5%. The alternative measure also shows greater variation in poverty between states. In some states, poverty is much worse than the official measure suggests, while in others it is better.

24/7 Wall St. reviewed states where the difference between the supplemental poverty rate and the official poverty rate was the largest. We also reviewed states where the SPM was lower than the official rate. While the supplemental poverty rate is far lower than the official rate in some states like Louisiana or Mississippi, both remain among the poorest in the nation by either measure. Others, like West Virginia or Missouri have supplemental poverty rates below the nationwide rate. Using the alternative measure, high-income states like New York and California have among the highest poverty rates in the country.

Click here to see the states where poverty is worse than you think.
Click here to see the states where poverty is not as bad as you think.
Click here to see our detailed findings and methodology.

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