The US Services PMI rose to 54.5 in May as businesses placed orders in advance to cope with shortages and price increases.
- According to data released by the Institute for Supply Management (ISM) on Wednesday, the Non-Manufacturing Purchasing Managers’ Index in the US rose from 53.6 in April to 54.5 in May, exceeding market expectations of 53.8. The expansion of activity in the services sector has accelerated as businesses anticipate that war with Iran will lead to shortages and price increases, prompting them to place orders in advance and rebuild inventories.
- The New Orders Index for the services sector surged from 53.5 in April to 57.3, while the Inventories Index soared from 53.1 to 62.5. Business inventories have been depleted for four consecutive quarters, marking the longest period since the Great Depression. However, the pace of backlog orders increased more slowly, and exports also declined. The rise in the Services PMI echoes the earlier ISM report this week, which showed growth in manufacturing activity.
- The Input Prices Index for businesses increased from 70.7 to 71.3, indicating that oil price shocks will continue to spill over into the services sector. Last week, a government report showed that inflation in April rose at its fastest pace in three years. The Supplier Deliveries Index decreased from 56.8 to 55.2 but remains at a high level, as tight supply chains are lengthening delivery times.
- The Employment Index for the services sector edged down slightly from 48.0 to 47.9, remaining in contraction territory. ISM noted an increase in "natural attrition." Institutional surveys forecast a net increase of 85,000 non-farm payroll jobs in May, with the unemployment rate steady at 4.3%. Financial markets expect the Federal Reserve to keep its benchmark overnight interest rate in the 3.50%–3.75% range until next year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Updated: Viatris will acquire pain therapy manufacturer Pacira BioSciences for 1.65 billions dollars.
The second paragraph adds stock information, while the fifth, eighth, and ninth paragraphs provide additional details. Background information is supplemented in the sixth, seventh, tenth, and eleventh paragraphs. Reuters, October 8 – Pharmaceutical company Viatris (VTRS.O) will acquire Pacira BioSciences (PCRX.O) in an all-cash deal worth $1.65 billions, adding two non-opioid painkillers to its portfolio, the companies said on Thursday. Viatris will acquire Pacira at $36.50 per share, representing a 44.8% premium to the latest closing price. Pacira’s stock rose by 44% in premarket trading. Pacira’s non-opioid painkillers, Exparel and Zilretta, generated sales in 2025 of $575.1 millions and $116.6 millions respectively. Exparel is used to relieve acute pain after surgery, and Zilretta is used to treat pain associated with knee osteoarthritis. Viatris stated it expects to expand the reach of these products in selected target markets. Viatris CEO Scott Smith stated, “the addition of these medications creates a synergy with our rapid-acting meloxicam market opportunities, positioning us as a leader in non-opioid pain management.” The US Food and Drug Administration (FDA) is expected to make a decision by December 27 on the approval application for rapid-acting meloxicam for the treatment of moderate to severe acute pain. Viatris plans to finance the acquisition primarily with idle cash, and the remainder through short-term borrowing. The company noted the deal will have minimal impact on its total leverage ratio. In August, Viatris (link) raised its annual adjusted profit forecast, counting on strong brand drug sales and growth in the Chinese market. The pharmaceutical company had previously faced (link) production setbacks in its Indian operations, including a fire at its Nashik plant in western India and increased competition in the generic drug market, raising concerns about the resilience and growth of its core business. The company stated the transaction is expected to close by the end of 2026 and will immediately enhance Viatris’s financial guidance metrics. (For non-native English speakers, Reuters provides automated translations of its reports into several other languages. Since automated translations may contain errors or lack necessary context, Reuters does not guarantee their accuracy and provides them for convenience only. Reuters accepts no liability for any damage or loss caused by the use of automated translation.)
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BUZZ-Pacira BioSciences stock surges on Viatris' $1.65 billion acquisition deal
On October 8, Pacira BioSciences (PCRX.O) shares rose 44% in pre-market trading to $36.30 as Viatris (VTRS.O) announced it will acquire Pacira BioSciences for $1.65 billion in cash, at a price of $36.50 per share. This offer represents a premium of approximately 44.8% over Pacira's last closing price of $25.20. The transaction will add Pacira’s non-opioid pain medications Exparel and Zilretta to Viatris’ product portfolio. Both parties expect the deal to be completed by the end of 2026. As of the previous trading day’s close, PCRX was down 2.6% year-to-date.
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