ZURICH: Swiss drugmaker Roche will buy US cancer drug specialist Ignyta Inc. for $1.7 billion in an agreed deal to broaden its oncology portfolio, the firms said on Friday.
Roche would pay $27 per share for Ignyta, representing a premium of about 74 percent to the stock’s closing price on Thursday, they said.
Reuters had reported on Thursday that Ignyta was in advanced talks to sell itself, just three years after going public with a focus on precision drugs and diagnostics.
Ignyta will continue its operations in San Diego and will be responsible for the ongoing pivotal study of entrectinib, its most advanced drug. The US company has a suite of drugs in early-stage development that use gene therapy to kill off the underlying diseases that drive cancer tumor growth.
“Cancer is a highly complex disease and many patients suffer from mutations which are difficult to detect and treat. The agreement with Ignyta builds on Roche’s strategy of fitting treatments to patients and will allow Roche to broaden and strengthen its oncology portfolio globally,” said the company’s pharmaceuticals head, Daniel O’Day.
The deal is expected to close in the first half of 2018, the companies said.
Zuercher Kantonalbank analyst Michael Nawrath said the deal reflected Roche’s strategy of making bolt-on acquisitions, adding it was not overpaying for the new assets.
“The data speak for themselves. We expect approval in the first half of 2019 and this could become a blockbuster given the wide field of use,” he wrote in a research note, keeping his “market weight” rating.
Bank Vontobel analysts said the deal was set to boost Roche’s efforts to address cancers with specific mutations by precision medicines that work hand in hand with diagnostics.
Citi advised Roche on the deal, while BofA Merrill Lynch and JP Morgan Securities advised Ignyta.
Sidley Austin and Latham & Watkins were legal counsel to Roche and Ignyta, respectively.
— REUTERS
Roche to buy US cancer drugmaker Ignyta for $1.7bn
Roche to buy US cancer drugmaker Ignyta for $1.7bn
Air transport industry improves baggage handling despite rising passenger numbers: SITA report
RIYADH: Baggage mishandling in the air transport industry has decreased to 6.9 bags per 1,000 passengers in 2023 from 7.6, despite increased passenger traffic, according to a new report.
According to the latest report from multinational information technology company SITA, this decrease marks a positive trend even as global passenger numbers exceeded pre-pandemic levels for the first time since 2019, reaching 5.2 billion.
This improvement underscores the industry’s strong adoption of technology, especially in automated baggage handling driven by artificial intelligence and computer vision technologies.
David Lavorel, CEO of SITA, noted that technology-driven solutions will play a pivotal role in managing the projected doubling of global passenger traffic by 2040.
He said: “Technologies like these are essential because they help us gather, integrate, and share data effectively. This means we can uncover important insights that make decision-making easier and more automated.”
Over the years, there has been a 63 percent decrease in mishandling rates from 2007 to 2023, despite a simultaneous 111 percent increase in passenger traffic. However, challenges remain, particularly in managing escalating baggage volumes, SITA said.
It highlighted that the industry’s focus on digitalization is crucial, with emphasis placed on enhancing data analysis capabilities and implementing automated systems for baggage handling.
SITA’s research highlighted growing passenger expectations for seamless travel experiences, including self-service options like unassisted bag drops and mobile-enabled journey tracking.
“Today, 32 percent of passengers rely on bag collection information sent straight to their mobile. Better communication and visibility for passengers will encourage more use of digital self-service and give passengers control over their journey,” SITA said.
Collaboration between airlines and airports is identified as key to further enhancing baggage handling efficiencies. While data sharing has improved, there is room for enhancement, especially in providing comprehensive, real-time baggage tracking throughout the journey.
Initiatives like the International Air Transport Association’s Resolution 753 and advocacy from Airports Council International underscore the industry’s commitment to achieving greater transparency and reducing passenger anxiety associated with baggage handling.
The report highlighted varying trends in baggage mishandling rates regionally, with North America and Europe showing notable declines over the years, attributable to increased investments in infrastructure and technology.
In contrast, Asia Pacific maintained the lowest mishandling rates globally, reflecting successful digitization efforts despite ongoing recovery challenges.
In conclusion, SITA’s findings highlight the air transport industry’s resilience and adaptability amid growing passenger demands.
By continuing to innovate and collaborate, stakeholders can build on these achievements to ensure smoother, more reliable travel experiences for passengers worldwide.
Technology shapes future of hospitality with enhanced guest experiences
RIYADH: The global hospitality industry is increasingly investing in technology to improve the guest experience, with artificial intelligence playing a key role in automating tasks like booking, check-ins, and housekeeping management.
In a recent report, The Bench, a publication by the Future Hospitality Summit, noted that implementing advanced technologies also enables 24/7 traveler support through AI chatbots and virtual assistants.
“The hospitality industry has continually been reputed to adapt slowly to technological advancements. Hospitality asset owners and investors are keen on ramping up technology investment,” said the report.
Citing a 2023 PwC analysis, the report noted that over 70 percent of hotel executives are prioritizing investments in technologies that streamline operations and elevate customer experiences.
“This growing focus is evident in the adoption of Customer Relationship Management systems and data-driven marketing strategies aimed at customer retention,” added The Bench.
According to the report, CRM systems are becoming a cornerstone in hotel operations, helping hoteliers manage and analyze guest interactions and data throughout the customer lifecycle.
FHS added that leveraging CRM systems could also help hotels improve customer service relationships, assist in guest retention, and drive sales growth.
It cited a Salesforce study, noting that CRM technology could increase sales by up to 29 percent and improve forecast accuracy by 32 percent.
“Data-driven market strategies supported by robust CRM systems enable hotels to tailor their marketing efforts to individual guest preferences, thereby increasing the likelihood of repeat business,” said the report.
Property Management Systems
According to the analysis, Property Management Systems like innRoad, Oracle, and Hotelogix are essential for maximizing revenues, increasing efficiencies, and enhancing guest understanding.
“These systems serve as the backbone of hotel operations, offering comprehensive functionalities that streamline various processes. From managing reservations and check-ins to overseeing housekeeping and billing, PMS solutions integrate all these functions into a single cohesive platform, making operations smoother and more efficient,” the report added.
The FHS publication also noted that technologies like TakeUp.ai leverage AI to analyze past guest behavior and competitors’ pricing, thereby optimizing revenues without reliance on guesswork.
“This approach provides hoteliers with a strategic advantage in a competitive market. AI-driven revenue management systems can predict demand with higher accuracy, allowing hotels to adjust prices dynamically and maximize revenues,” said the report.
It added: “These systems also help in identifying and capitalizing on market trends, ensuring that hotels remain competitive.”
The release highlighted that the hospitality industry is witnessing a shift in guests’ behavior, as most travelers expect a seamless, modern experience blended with technology.
“Guests now expect digital control over room environments, such as lighting, shades, and temperature, even in mid-range hotels. Additional basic additions like bedside USB-C ports, mobile key entry, and digital check-in contribute to a seamless and modern guest experience,” added the analysis.
Moreover, mobile key entry will reduce the need for physical keys and front desk check-ins, thereby streamlining the arrival process.
Post-pandemic market dynamics
According to the report, rising wages and worker shortages have accelerated the move toward automation and technology utilization in the hospitality sector.
“Automated check-ins, robotic room service, and AI-powered concierge services are just a few examples of how technology can mitigate labor shortages. These innovations allow hotels to maintain high service levels, even with reduced staff, ensuring guest satisfaction,” said the FHS publication.
With travel restrictions easing post-pandemic, the report highlighted that hotels are prioritizing technology to enhance operational efficiency and attract guests.
“This focus is vital in a landscape marked by intense competition. Technologies that enhance cleanliness and safety, such as contactless check-in and check-out and mobile room keys, have become particularly important. Hotels are also investing in digital marketing strategies to reach potential guests who are eager to travel again but are cautious about safety,” said the analysis.
Moreover, the hospitality tech sector is experiencing a surge in acquisitions as companies aim to consolidate and offer more comprehensive solutions to meet the diverse needs of hotels.
“This consolidation trend is driven by the need to provide integrated solutions that address multiple aspects of hotel operations. By acquiring or merging with other tech companies, firms can offer a broad range of services, from property management and guest services to marketing and revenue management,” added the report.
Discussing the challenges faced by the sector in implementing technology, the study highlighted that several hotels face the problem of outdated and siloed systems that hinder their efficient operations.
“The solution lies in adopting open API-based (Application Programming Interface) systems that facilitate the integration of various functionalities, thereby overcoming the limitations of legacy systems,” said the analysis.
The report also highlighted that using open API-based systems will enable seamless communication between different software applications, allowing hotels to integrate new technologies without overhauling their entire IT infrastructure.
Areas of untapped potential
The analysis highlighted that some untapped areas in the hospitality industry can be strengthened further using technology.
It added that many processes in the sector are still handled manually and should be automated using advanced technologies.
“For example, night audits, which involve substantial administrative work, can be automated to improve efficiency and reduce labor costs,” added the document.
Moreover, integrating a proper payment technology setup can enable hotels to offer more personalized and flexible experiences without relying on manual administrative tasks.
Saudi Arabia leads Middle Eastern banking growth amid favorable conditions: Fitch
RIYADH: High oil prices and interest rates are creating favorable operating conditions for banks across the Middle East, despite regional tensions, according to Fitch Ratings.
During a recent webinar on the region’s banking sector, Fitch Ratings highlighted that in Saudi Arabia, lending growth is expected to be around double the regional average of 5-6 percent for the fiscal year 2024, driven by significant non-oil gross domestic product growth.
This expansion presents new business opportunities for the Kingdom’s financial institutions and heightens competition for liquidity.
The agency noted the Gulf Cooperation Council as a standout in the global banking landscape, adding that the region is benefiting from robust oil prices, elevated interest rates, substantial government expenditure, strong non-oil sector growth, and high investor and consumer confidence.
These factors contribute to solid business conditions and healthy financial metrics for banks in most markets.
Fitch Ratings highlighted that GCC financial institutions experienced record US dollar issuance in the first quarter of 2024, fueled by favorable pricing conditions, lending increases, refinancing needs, and strong investor demand.
However, the credit rating agency noted that regional banks are currently at the peak of their cycle. Lower hydrocarbon prices pose a risk to financial operating environments across the Middle East, and each country faces unique challenges.
In contrast to Saudi Arabia, the UAE has enjoyed stronger liquidity conditions, enhancing banks’ profitability metrics in 2023 and the first quarter of 2024, with the sector’s average net interest margin improving by 100 basis points over 2022–2023.
Qatar’s banking sector notably relies on non-domestic funding, which constituted 42 percent of total holdings at the end of the first quarter of 2024. This dependence makes Qatari banks vulnerable to external political and economic shocks, as well as shifts in investor sentiment.
In October last year, Fitch Ratings affirmed that banks in the GCC are thriving due to high oil prices, contained inflation, and rising interest rates.
It also highlighted that financial institutions in the UAE are improving, and banks in Saudi Arabia, Qatar, and the UAE are well-positioned to benefit from rising interest rates due to quick loan book repricing and substantial low-cost funding.
Saudi Arabia’s inflation holds steady at 1.6% in May: GASTAT
RIYADH: Saudi Arabia’s annual inflation rate held steady at 1.6 percent for the third consecutive month in May, driven by rising housing rents, according to official data.
The General Authority for Statistics report stated that the Consumer Price Index increased due to a 10.5 percent rise in actual housing rents, which included a 14.3 percent surge in apartment rents.
“This increase had a significant impact on maintaining the annual inflation rate for May 2024, due to the substantial weight of this category at 21 percent,” said the authority in the report.
Similarly, costs of food and beverages increased by 1.4 percent, driven by a 6.9 percent rise in vegetable prices.
On the other hand, prices of furnishing and home equipment decreased by 3.8 percent.
Similarly, expenses for clothing and footwear decreased by 4 percent year-on-year in May, while transport costs also decreased by 2.4 percent during the same period.
Monthly inflation
Meanwhile, the monthly inflation rate rose marginally by 0.2 percent in May compared to the previous month, driven by changes in housing prices.
The expenses for housing, water, electricity, gas, and other fuels increased by 0.4 percent month-on-month in May.
The monthly inflation index was also impacted by expenses for food and beverages, which went up by 0.7 percent in May compared to April.
Additionally, expenses for restaurants and hotels edged up by 0.2 percent, while costs for personal goods and services increased by 0.1 percent month-on-month in May.
On the other hand, prices for clothing and footwear dipped by 0.6 percent in May compared to the previous month, while costs for transportation edged down by 0.4 percent.
The report further pointed out that prices of education, furnishing and home equipment, and tobacco products did not show any significant change in May compared to April.
In May, a report released by Riyad Capital revealed that Saudi Arabia’s inflation rate is expected to average around 2 percent in 2024, with a moderate acceleration to 2.4 percent in 2025.
The Riyad Capital analysis also added that the Kingdom’s non-oil sector is projected to grow at a rate of 4.8 percent in 2024, driven by growth-oriented fiscal policy.
The report further noted that non-oil activities in Saudi Arabia will accelerate further in 2025, with a projected expansion rate of 5.2 percent.
Last year, the International Monetary Fund noted that the likelihood of a rise in headline and core inflation in oil-exporting countries like Saudi Arabia is low.
“Headline and core inflation in many oil-exporting countries like Bahrain, Iraq, Kuwait, Oman, Qatar, and Saudi Arabia remain relatively lower than elsewhere,” said the IMF.
Wholesale price index increases
In another report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index increased by 3.2 percent in May compared to the same month of the previous year.
This increase is mainly driven by a 14.5 percent rise in prices of basic chemicals and a 12 percent increase in the costs of refined petroleum products, the authority added.
Similarly, prices of food products, beverages, tobacco, and textiles rose by 1.8 percent year-on-year in May, due to a 7.4 percent increase in the prices of leather, leather products, and footwear.
On the other hand, the costs of ores and minerals decreased by 2.8 percent, mainly due to a 2.8 percent decrease in stone and sand prices.
Additionally, agricultural and fishery product expenses experienced a 1.3 percent year-on-year decrease in May, driven by a 2.8 percent decrease in fish and other fishing product prices and a 2.7 percent decline in live animals and animal product prices.
Furthermore, the prices of metal products, machinery, and equipment decreased by 0.4 percent in May compared to the same month of the previous year, attributed to a 6.6 percent decline in the prices of radio, television, and communication equipment and apparatus.
Compared to April, the Kingdom’s WPI decreased by 0.1 percent in May, driven by a 0.3 percent drop in the prices of food products, beverages, tobacco, and textiles.
This decline resulted from a 1.7 percent decrease in the prices of meat, fish, fruit, vegetables, oils, and fats, and a 0.4 percent decline in the prices of leather, leather products, and footwear.
Similarly, the costs of agriculture and fishery products also decreased by 0.2 percent month-on-month, driven by a 1.6 percent fall in the prices of live animals and animal products.
Compared to April, the prices of other transportable goods declined by 0.1 percent in May, driven by a 0.7 percent decrease in the costs of basic chemicals.
In contrast, the costs of metal products, machinery, and equipment rose by 0.1 percent, as a result of a 1.1 percent increase in the prices of electrical machinery and apparatus.
Average prices rising
Meanwhile, in another report, GASTAT revealed that the prices of Abu Sorra Egyptian oranges increased by 22.70 percent in May compared to the previous month.
Similarly, the prices of local tomatoes and Turkish plums rose by 12.80 percent and 10.33 percent, respectively, in May from April.
Additionally, Indian pomegranates and Pakistani mandarins also experienced notable increases, rising by 10.15 percent and 9.71 percent, respectively.
On the other hand, hotel accommodation prices in Saudi Arabia witnessed a 13.94 percent month-on-month decline.
Similarly, the costs of local melons, Lebanese peaches, and imported onions dipped by 13.30 percent, 11.37 percent, and 9.34 percent, respectively.
Saudi firms enhance CSR initiatives to boost community well-being
- Concept of giving back to the host community rapidly gaining traction in the business sector
RIYADH: Gone are the days when the corporate world was solely associated with making money. The concept of giving back to the host community, known as corporate social responsibility, is rapidly gaining traction in the business sector.
Today, companies strive to balance profitability with societal impact. CSR has become a fundamental principle for businesses of all sizes globally, and Saudi Arabia is no exception.
Prominent examples like the Saudi Basic Industries Corp. and ROSHN, a leading real estate developer backed by the Public Investment Fund, epitomize this ethos, guiding the way with their pioneering CSR endeavors.
Speaking to Arab News about its CSR initiatives, SABIC affirmed its long-established reputation for doing what is good for its business, its people, and various stakeholders, while also investing in the communities where it operates, creating social, environmental, and economic value.
“Wherever we operate, we look to develop mutually beneficial partnerships with all of our stakeholders, with a sustainable approach that delivers lasting value, and innovative programs to meet community needs,” the company said.
Global commitment
SABIC added that this culture inspires its investments in CSR programs that create lasting, positive impacts throughout its global communities.
“In 2015, we began our global CSR strategic tool, RAISE, to guide our approach to charitable donations, sponsorships, partnerships, and employee-volunteer programs. We use RAISE — Reputation, Audience, Innovation, Strategy, and Endurance — to select programs that elevate SABIC’s brand, address community needs, and promote our values,” it said.
RAISE prioritizes four strategic focus areas: science and technology education, environmental protection, health and wellness, and water and sustainable agriculture, supporting SABIC’s 2025 strategy and Saudi Arabia’s Vision 2030.
“The focus areas also promote nine of the UN’s SDGs, which are designed to address society’s most pressing needs by 2030,” the company clarified.
The RAISE strategy is designed to maximize SABIC’s impact by developing and implementing innovative CSR initiatives and encouraging employee participation and volunteerism.
In 2023, the company continued its global Back-to-School Initiative, reaching students across 10 countries and offering various programs to help students succeed in their daily schoolwork and achieve their ambitions.
Education sector
In 2019, SABIC launched its Global Initiative for Education and Innovation in partnership with Junior Achievement and INJAZ Saudi Arabia. Since then, the initiative has reached over 128,000 students globally.
SABIC noted that its social initiatives aim to improve the quality of life in its communities, especially for the most disadvantaged members of society.
HIGHLIGHT
Providing examples of how SABIC’s CSR initiatives have positively impacted the communities surrounding its facilities, the company reported that in 2023, it invested in 121 global CSR programs, reaching over 338,000 people in 27 countries with the help of over 3,600 SABIC volunteers worldwide.
Providing examples of how SABIC’s CSR initiatives have positively impacted the communities surrounding its facilities, the company reported that in 2023, it invested in 121 global CSR programs, reaching over 338,000 people in 27 countries with the help of over 3,600 SABIC volunteers worldwide.
The company’s Global Environmental Protection Initiative continued this year across 10 countries with various programs aimed at sustaining Saudi marine life and addressing climate change and its global impact.
“Managing water sources and sanitation goes hand in hand with ensuring better food and energy production. SABIC is working to end hunger, achieve food security, and improve nutrition by promoting sustainable agriculture,” the company said.
Quality of life
Responding to Arab News’ queries, Mohammed Ashour, ROSHN’s associate director of corporate social responsibility, said that the company is dedicated to enhancing the quality of life in the Kingdom through its endeavors.
He said this commitment reflects the giant property developer’s core values of responsibility, empowerment, and sustainability, guiding its actions to positively impact society and uphold environmental stewardship.
“These values are comprehensively reflected in our development projects from inception to construction and handover. Our destinations feature a holistic array of essential facilities, including education, healthcare, lifestyle amenities, and attractive green spaces that invite residents and visitors alike to engage with their communities and live healthy, fulfilling lifestyles,” he said.
Ashour noted that his company designed the YUHYEEK CSR program for maximum impact by leveraging its giga-project scale and resources to revitalize Saudi communities within their developments and beyond. The Arabic word “Yuhyeek” means “to rejuvenate” or “revive” in English.
ROSHN partners with transformative green initiatives, public health campaigns, and cultural programs that bring tangible change to local communities.
“An example of this is our partnership with Ehsan, the National Platform for Charitable Work, through which we have donated over SR55 million (over $14.6 million) during the past two years, benefiting more than 47,000 people throughout the Kingdom,” he said.
He added that YUHYEEK’s partnerships with Ehsan and Hayat Charitable Association have sponsored mobile health clinics and early detection schemes that are improving public health in the Kingdom’s Madinah region.
Philanthropic pursuits
Sharing insights into their philanthropic efforts and charitable activities, Ashour said that YUHYEEK’s efforts have five pillars: social development, environmental sustainability, education, public health, and arts and culture, achieved via strategic partnerships.
Ashour emphasized another aspect of their work: the renovation of homes. To date, ROSHN has refurbished over 100 homes across the country, directly benefiting more than 700 citizens and significantly enhancing their quality of life.
He added that their urban regeneration efforts include restoring and furnishing homes, raising the quality of life of hospitalized children and people with disabilities through visits and giveaways, and the provision of food baskets for those in need.
“We are also deeply committed to the Saudi Green Initiative, and in partnership with Morooj, YUHYEEK has planted more than 25,000 mangrove trees in national reserves, and dozens of schools,” he said.
Cultural impact
When it comes to culture, Ashour emphasized: “We firmly believe that this can have a major impact on the public’s quality of life.”
He added: “Our strategic partnership with the Ministry of Culture has led to ROSHN promoting and supporting flagship events such as the Diriyah Biennale Foundation, book fairs in Riyadh and Jeddah, Al-Bisht Al-Hasawi Festival, and the Kingdom’s first grand opera, Zarqa Al-Yamama.”
He pointed out that the multifaceted nature of YUHYEEK and the values embodied in their developments make surrounding communities more vibrant, greener, and healthier while bolstering local economies.
“For instance, our flagship SEDRA community and the ROSHN Front retail and lifestyle hub recently hosted the Tuwaiq Sculpture Symposium. Tuwaiq brings local and international artists to the Kingdom, reinforces Saudi heritage, and highlights Riyadh’s cultural scene,” he said.
Ashour further added that they have cemented their partnership with the Zahra Breast Cancer Association by hosting the Zahra Awareness Walk at ROSHN Front to encourage awareness of the early detection program, affirming that their destinations and events are open to all.
He noted that YUHYEEK educational partnerships provide scholarships, skills training, and special needs support services. On the public health front, they actively sponsor mobile health clinics and breast cancer awareness campaigns, and provide dialysis machines, with more than 11,000 beneficiaries to date.
The CSR associate director said that ROSHN now operates six community sites where comprehensive access services are available for people with disabilities.
“Across the Kingdom, more than 22,000 people have benefited from our sponsorship of mobile health clinics. YUHYEEK has also facilitated skills training for more than 300 students, equipping them for the labor market. In total, we estimate more than 341,000 people have accessed our health, education, social, and cultural services, and this number is expected to increase exponentially as ROSHN continues to diversify into building world-class public and private healthcare facilities locally and regionally,” he added.
Promoting sports
Ashour underscored his company’s sponsorship efforts in the Kingdom’s sports sector, citing examples such as backing the ROSHN Saudi League in football, supporting the Formula One Grand Prix, and collaborating with LIV Golf to draw elite golfers to the Kingdom.
Looking ahead, Ashour concluded that the company is expanding its CSR reach and will continue to bring world-class events and services to the Kingdom.
“Our inclusive CSR approach, embracing all aspects of well-being, ensures that everyone is lifted by our efforts to achieve the vibrant society envisaged by Saudi Vision 2030,” he said.
