Finance Archives - Page 16 of 17

6 November 2019 Leading employee benefits provider, Unum, hosted an event yesterday (5^th November) to highlight how important it is for employers to provide the right support for employees impacted by cancer throughout their journey from diagnosis through treatment to recovery and possible return to work.

Employers play a vital role in supporting employees with cancer, says Unum

Guest speakers included former BBC presenter, and current Classic FM host, Bill Turnbull. Bill talked openly about his ongoing battle with prostate cancer, after being diagnosed in 2017, and how it has affected him both personally and professionally.

It is an accepted fact that now one in two people in the UK will get cancer in their lifetime[1]. In the context of an ageing work force, 125,000 of working age adults are diagnosed with cancer annually[2], meaning that cancer is becoming an issue which will impact most businesses whatever the size.

In 2018 cancer was the top cause of long-term sickness absence claims paid by Unum.

Upon returning to work, Unum’s research found that 28% of workers with cancer, or who have had cancer, said they didn’t receive any support, or the support they did receive fell below their expectations when they were at work following their diagnosis.

84% agreed their loyalty towards employers could have been influenced by the amount of support they received, and 3 out of 4 workers worried about the cost of cancer and how their families would cope with loss of income if they had to give up work.

A panel of corporate wellbeing and cancer care specialists, moderated by Unum’s HR Director Liz Walker, discussed that the key issues affecting employees include dealing with the feeling of fear that comes after a cancer diagnosis; fear of losing their job and fear of not being able to support themselves. Employees can also struggle with the lasting physical effects of cancer treatment after returning to work, including fatigue, as well as lack of confidence from being out of the workplace for a period of time.

The panel also highlighted that what can affect employers and line managers the most is speaking about a cancer diagnosis with an employee. This can be a sensitive and challenging conversation and one which they have not always been trained for, which could mean they struggle to provide the support needed.

Employers can help by ensuring that the right support is put in place to help the employee throughout their treatment and possible return to work. The panel agreed that one effective way of doing this is to ensure all guidelines and advice relating to cancer are available in one place, easily accessible to both employees and employers.

Unum is enhancing the cancer support it offers through its Critical Illness cover, including the introduction of Unum’s ‘Cancer Pathway’, which provides consultation assistance to patients, helps with managing symptoms, a medical concierge, and psychological and post-treatment support.

Vocational Rehabilitation Consultants (VRCs) are also available to work closely with employers to put together a plan to help recovering employees return to work when they’re ready to do so.

Help@hand, Unum’s new app powered by Square Health, gives employees access to enhanced health support and is available with Unum’s Group Income Protection policies at no additional cost. Four key services are available to employees and their families through Help@hand: a remote GP service, a second opinion, mental health support and physiotherapy. The second opinion service can be particularly important after an initial cancer diagnosis to ensure an employee receives the most effective treatment, tailored to their unique needs. Help@hand provides access to specialist consultants who can offer either a face to face or video consultation.

After the panel discussion, speakers and attendees networked with the Unum team as well as Unum’s support service providers and partners including reframe (formerly HSC), a UK provider of specialist cancer support, and Maggie’s, a charity that offers free emotional and practical help for people with cancer and their families.

Bill Turnbull says: “It’s been two years since my diagnosis and my life has changed forever. While I’ve had my ups and downs, it’s been the support of those around me who have helped me, and this extends beyond my family and friends to include my employer and colleagues at work. I think being able to go back to work is a huge part of being able to feel normal again. It’s vital that employers understand how important the support they provide to their employees with cancer is in helping them cope and live with this disease”.

Peter O’Donnell, CEO of Unum says: “As we live and work longer, the reality is that more and more of us will face a cancer diagnosis at some point in our working lives. Employers play an important role in supporting employees as they face the financial, emotional and professional obstacles a cancer diagnosis can bring. Unum’s enhanced critical Illness product and the unique Cancer Pathway provides quick and easy access for employers and employees to cancer support upon diagnosis, through treatment and recovery – whenever it is needed.”

[1] Cancer Research UK, 1 in 2 people in the UK will get cancer. 2015

[2] Macmillan Cancer Research, Macmillan: Work and Cancer, 2017

Media Enquiries: [email protected] 020 7360 7878

About Unum

Unum is a leading employee benefits provider offering financial protection through the workplace including: Income Protection, Life insurance, Critical Illness, and Dental cover.

Our Income Protection customers have access to medical and vocational rehabilitation expertise designed to help people stay in work and return to work following illness and injury. Unum LifeWorks, our Employee Assistance Programme, provides help and advice on a range of work/life issues.

Our Critical Illness customers can access our Cancer Support Service, providing personalised support for employees with a cancer diagnosis.

We are committed to workplace wellbeing for both employees and employers. We have a wide range of tools designed to help businesses create or enhance their employee wellbeing strategy, including our Mental Health Pathway and Wellbeing Calendar.

At the end of 2018, Unum protected 1.4 million people in the UK and paid claims of £314 million – representing in excess of £6 million a week in benefits to our customers – providing security and peace of mind to individuals and their families.

Our parent company, Unum Group, is a provider of employee benefits products and services in the United States, including group and individual disability insurance. Premium income for Unum Group and its subsidiaries totalled $9.0bn in the year ended 31 December 2018, with reported revenues for the group totalling $11.6bn and total assets of $61.9bn.

A.M Best has given all rated Unum Group companies an Excellent rating for Financial Strength, with a stable outlook.

For more information please visit www.unum.co.uk.

Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Unum Dental is a trading name of Unum Limited. Registered in England 983768.

Unum is a leading employee benefits provider offering financial protection through the workplace including: Income Protection, Life insurance, Critical Illness, and Dental cover.

Our Critical Illness customers can access our Cancer Support Service, providing personalised support for employees with a cancer diagnosis.

A.M Best has given all rated Unum Group companies an Excellent rating for Financial Strength, with a stable outlook.

For more information please visit www.unum.co.uk.

Finance

Buy-Now-Pay-Later Schemes Encourage Half of Workers to Spend Money They Don’t Have

ByCFI.co Blogger

The schemes have risen in popularity over recent years with those earning over £100k worse affected, new research finds

London, 6th November 2019 – Buy now pay later schemes are luring people into living beyond their means according to a recent survey by Hastee. Half of respondents said buy now pay later options encourage them to spend money they don’t have and this rises to 59% for millennial respondents (those aged 18-35).

Buy now pay later schemes have become a popular interest bearing option where retailers allow consumers to delay payments on their purchases for a specified period. More than a quarter of respondents (27%) said they have experienced difficulties after using buy now pay later schemes. The same percentage of respondents said they have experienced problems after using payday loans which have come under increased scrutiny in recent years, resulting in the Financial Conduct Authority (FCA) stepping in to apply limits on daily borrowing.

Millennials are the worst-hit age group when it comes to experiencing difficulties after using buy now pay later schemes – over a third (36%) said this has been the case. Financial stress has impacted their social lives (50%), relationships (40%), health (39%) and work (38%).

The survey revealed that workers across all salary bands agree that the schemes encourage them to spend money they don’t have. The figure tends to rise in the higher salary bands, highlighting that this issue is not exclusive to lower paid workers:

Up to £20k salary: 45%
£20-30k salary: 49%
£30-40k salary: 52%
£40-50k salary: 43%
£50-27k salary: 50%
£75-100k salary: 59%
Over £100k salary: 77%

“Buy now pay later schemes might seem an attractive option for consumers but they’re proving to be as problematic as more traditional forms of credit,” says Hastee

CEO James Herbert. “While they seem like a good short term solution, they can cause consumers issues in the longer term. Missed payments can impact credit scores, cause longer term debt problems and could create an unhealthy reliance on credit cards and overdrafts as users struggle with repayments.

Our advice for anyone tempted by one of these schemes is to make sure you’ve weighed up the affordability of the purchase and explored all options before making any commitments. If you can’t afford the repayments, consider whether you really need the item or work out another way of paying for it that won’t cause you long term financial difficulty. There are plenty of digital money management tools that work together to help people live comfortably and within their means, such as challenger banks, earnings on demand solutions and budgeting apps.”

About Hastee

Hastee is an award-winning employee benefit which empowers employees to receive their earned pay immediately via our mobile app, increasing their choice and financial wellbeing. Workers can choose to receive up to 50% of their gross pay for the work they have completed; it is income smoothing of their earned pay, not a loan. Companies may choose to restrict the availability for their staff to below 50% should they wish/need. We do not charge interest, just a low and simple fee (subscription and on-demand options).

Companies profit from the improved recruitment, retention, engagement and productivity of their workforce. This is at no cost to the employer (unless they wish to contribute as a paid benefit) and has no impact to company cash flow (we fund the advances, with the company reimbursing us when they pay their staff as normal). Giving access to earned pay only, Hastee is a meaningful benefit that can be made available to all staff, including salaried, temporary, variable and gig workers.

Additionally, we have now launched an employee financial education programme in the form of a series of emails over a period of 7 weeks. Companies can choose to include as many of their staff as they wish in this programme at no cost, or leave to only those who register with our app. Related to this, we have content available on the Financial Education Hub on our website and, obviously, within the app.

Conferences

Bilateral ties to play key role in meeting India’s $5t economy target: Al Saleh at UAE-India Economic Forum 2019

ByCFI.co Blogger

UAE-India Economic Forum 2019 wraps up the 5^th edition gracefully.

Dubai, 5^th November, 2019: The 5^th Edition of UAE India Economic Forum observed a grand opening at Waldorf Astoria, Dubai International Financial Centre on Monday, 4^th November with the participation of High Dignitaries and Officials, leading experts and leaders from the two nations.

India’s partnership with the UAE is set to play a key role in its march towards the ambitious goal of becoming a $5-trillion economy by 2022, Abdullah Ahmed Al Saleh, Undersecretary for Foreign Trade and Industry, Ministry of Economy, said on Monday.

Addressing the opening session of the UAE-India Economic Forum organized by BusinessLive Middle East, Al Saleh said the strong bilateral ties are the result of :the political will articulated by both governments,” and their sustained efforts to work together for the mutual benefit.

Al Saleh said the recent meeting of the UAE-India High Level Joint Task Force on Investments, which is a platform to communicate mutual requirements and vision for the future, has played a key role in boosting bilateral investments and cooperation.

“With Expo 2020 around the corner, we will witness India’s commitment with one of the largest pavilions, which is a testament to the value the country puts to promoting bilateral economic relations,” he said.

Al Saleh said the UAE is the largest Arab investor country in India, accounting for 81.2 per cent of total Arab investments. The UAE investments into India’s $2.8 trillion economy are estimated to be around $10 billion including foreign direct investment of almost $5 billion.

“The UAE hosts the largest Indian community overseas and their annual remittances are estimated to be more than $17 billion, which is 38 per cent of the total outflow,” he said.

“As both countries remain keen as ever to strengthen the trade dialogue, recently, an ambitious project – the India -UAE food corridor – was launched with the plan to benefit two million farmers and create an additional 200,000 jobs across India, due to cumulative investments of more than $7 billion by the UAE in the next three years,” said Al Saleh.

Among the dignitaries present at the day-longs sessions were Vipul, Consul General of India in Dubai; Fahad Al Gergawi; Chief Executive Officer; Dubai FDI; and Jamal Al Jarwan; Secretary-General; UAE International Investors Council; and Ali Ibrahim; Deputy Director-General; Dubai Economic Development, according to Poonam Chawla, Associate Publisher, BusinessLive Middle East.

Poonam Chawla said the UAE-India Economic Forum 2019 was a great success as it highlighted the areas of cooperation between the UAE and India. “It helped to throw light on how this historic bilateral relationship has been elevated to a strategic partnership while creating new opportunities in various fields like IT, trade, food, smart cities, banking and fin-techs, renewable energy and startups,” Poonam said.

According to the UN Conference on Trade and Development, the FDI to the UAE rose by eight per cent to $10.4 billion in part due to rising cross-border mergers and acquisitions sales, making the country the largest source of FDI in 2017 for the Arab region (at 36 per cent of total FDI inflow). India is UAE’s second-largest trade partner today and the UAE has become India’s third-largest trading partner, with the total non-oil trade between the two countries recorded at $35.9 billion in 2018.

A special mention to the UAE-India Economic Forum 2019 sponsors “Ajman Free Zone” and “Galadari Advocates and Legal Consultants”. In the 5th Edition of the UIEF delegates brainstormed on new opportunities for partnerships with sessions on infrastructure, banking and finance, fin-tech, healthcare, food corridors, smart cities and start-ups. The UAE-India Economic Forum also felicitated government and industry leaders, who have worked towards nurturing ties between the two nations, with the Qadat Al Tagheer Awards.

Business

Volvo receives Europe’s largest order for electric buses

ByCFI.co Blogger

Volvo Buses has received the largest single order for electric buses in Europe. Volvo Buses will deliver 157 electric articulated buses to Transdev starting in 2020. The buses will operate on a number of routes in Gothenburg. With their introduction, emissions and noise will be significantly reduced, and the electric buses will be able to operate in sensitive areas or zones with special restrictions.

“It is immensely gratifying that we have secured Europe’s largest ever single order for electric buses – no less than 157 buses. Volvo is a pioneer in electromobility and sustainable public transport. We have a holistic system perspective for cities that encompasses vehicles, services and charging infrastructure. We focus on solutions that offer high reliability and high service levels for route operators and passengers. This large order confirms that electric buses are already recognised as a sustainable and financially viable solution for demanding high-capacity public transport needs,” says Håkan Agnevall, President of Volvo Buses.

“Transdev is today Europe’s leading operator of electric buses and we know what challenges there are with the transition to electric propulsion. We’ve therefore been extremely thorough in choosing a partner with a holistic approach, a partner that will be able to deliver both buses and charging infrastructure on time and with excellent uptime. Being able to announce that we have chosen Volvo as our partner for city bus operations in Volvo’s home city of Gothenburg is of course particularly satisfying,” says Gunnar Schön, CEO of Transdev Sweden.

All of the buses will be of the recently launched 7900 Volvo Electric Articulated model. The Volvo Electric Articulated can carry 150 passengers with an energy consumption that is 80 per cent lower than that of a corresponding diesel bus. The Volvo Electric Articulated combines high passenger capacity with low operating costs. The buses will be charged at quick-charge stations along the route, using the industry common charging interface OppChargeTM, in order to ensure the most efficient operation possible. In addition to the electric buses, the order includes 27 Euro VI buses for regional operations, running on biodiesel.

“For us as a mobility supplier, it is vital to always be able to offer passengers good service and functional vehicles, but it is also important that our drivers have a good working climate. New buses, in particular quiet electric buses, not only result in cleaner cities – they also improve the everyday working environment,” explains Gunnar Schön.

“Electromobility creates new exiting opportunities for urban planning since we now get emission-free and quiet public transport that can operate closer to the city’s residents. Volvo aims to be a leader in increased electrification and to be a partner for cities that wish to implement long-term sustainable public transport solutions for their inhabitants,” concludes Håkan Agnevall.

Gothenburg, November 5, 2019
For further information, please contact:
Joakim Kenndal, Manager Media Relations, Volvo Bus Corporation,
Phone +46 739-02 51 50 or e-mail [email protected]

Corporate Finance

Flarin Holdings completes first round of fundraising for revolutionary drug

ByCFI.co Blogger

Investment from IW Capital to drive rapid commercialisation of world’s first lipid formulated ibuprofen

Flarin Holdings Limited today announces the completion of its first round of fund-raising by IW Capital. Flarin Holdings was recently demerged from Infirst Healthcare Limited in order to provide greater focus on the rapid commercialisation of Flarin.

Flarin is a unique and patent protected lipid formulated ibuprofen which at a dose of 1200 mg/day has shown to be as effective as 2400mg/day of standard liquid ibuprofen capsules in patients with acute joint pain ¹. Flarin’s unique lipid formulation also helps to shield the stomach from damage ².

“The very positive response we have had from presenting Flarin to new investors has given us great confidence in taking Flarin to the next stage of its commercial development,” says Andrew Macmillen, Managing Director. “These new funds give Flarin greater ability to increase investment in marketing in the UK as well as building a network of distributors and licensing partners in other countries.”

Luke Davis, IW Capital chief executive, said:

“We are hugely excited to be involved with this innovative pharmaceutical product at an early stage in its commercial development. It is also key to be able to work with such an experienced management team in the pharmaceutical and healthcare arena.

“Our research shows that around 20% of private investors are looking to invest within Pharma and Biotech while half of this group is put off by Big Pharma. With this in mind we were not surprised that the initial investment target for Flarin was over-subscribed by IW capital’s network of net-worth individuals and independent financial advisors.

There is a fantastic exit opportunity here with the product already fully developed and on sale in UK pharmacies, meaning there is already an established sales infrastructure in place.”

If you have any questions about the release or would like to speak to Luke please don’t hesitate to get in touch.

About Flarin Holdings
Flarin Holdings is a new company demerged from Infirst Healthcare Limited in order to focus on commercialising Flarin’s unique lipid formulation of ibuprofen.

About Flarin Lipid Formulation Technology
Flarin is a unique and patent protected lipid formulated ibuprofen which at a dose of 1200 mg/day has shown to be as effective as 2400mg/day of standard liquid ibuprofen capsules in patients with acute joint pain¹. Flarin’s unique lipid formulation also helps to shield the stomach from damage².

About IW Capital
IW Capital is a leading SME investment provider specialising in private equity and debt financing, having facilitated well over c.£100m in development capital investment in UK companies.

¹Bierma- Zeinstra SMA, Conaghan PG, Brew J et al. Osteoarthr Cartil: 2017 25; 12: 1942-1951 Open Access: http://dx.doi.org/10.1016/j.joca.2017.09.002 Accessed at: http://www.oarsijournal.com/article/S1063-4584(17)31197-4/fulltext
² Data on file, Infirst Healthcare Limited.

www.flarin.co.uk
https://www.linkedin.com/company/flarin/

Finance

The Financial World Will Be Completely Reliant on Big Data Within Five Years

ByCFI.co Blogger

Over a third of CFOs see big data as a threat to employment

London, 05 November 2019 – Almost two-thirds (64%) of CFOs expect that within the next five years the financial world will no longer be able to operate without big data, however, 13% of CFOs think this is already the case. Currently, financial directors are mainly using big data to make well-informed decisions (54%), to make predictive analyses (41%) and to analyse large, unstructured databases (29%). Almost one-fifth of CFOs (18%) do not use big data at all, according to the results of the 2019 FinTech Barometer, an annual survey conducted by order-to-cash specialist Onguard.

Impact on employment

More than a third of CFOs (38%) expect big data to have a significant impact within the financial sector, particularly on aspects such as job opportunities, with 36% of CFOs seeing big data as a threat to employment. Trends such as robotisation and Artificial Intelligence (AI) are also on the radar of financial directors, with 42% of CFOs expecting AI to have a major impact on employment opportunities and 30% of CFOs seeing robotisation as the biggest threat to jobs.

Marieke Saeij, CEO, Onguard: “I’m not surprised that CFOs expect to be completely dependent on big data within such a short timeframe. Big data can help them, as well as finance professionals within their organisations, with the execution of their work. Finance professionals have a great deal of information from both internal and external sources that is of added value for both the performance of the organisation and customer service. The more information that is available about the market and customers, the better finance professionals can advise customers. Thanks to big data, risks can be assessed more accurately and it is also possible to predict in real-time whether and when customers will start paying so as an organisation, you can properly anticipate this. This development will require finance professionals to develop new skills, such as greater analytical capacity, as a necessity.”

About Onguard
Over the past 25 years, Onguard has grown from a specialist in credit management software to a market leader in innovative solutions in the field of order to cash. The integrated platform ensures that all processes in the order-to-cash chain are optimally linked and that critical data can be shared. Intelligent tools which interface seamlessly combine to provide an overview and control of the payment process and help build lasting customer relationships. Users in over 50 countries worldwide work with the Onguard platform on a daily basis to achieve successful management and tangible results in Order to Cash and Credit Management. Read more at http://onguard.com/

Finance

Vatican Facing Bankruptcy Due to Decreased Donations

ByCFI.co Blogger

Recent leaks claiming that the Vatican would be facing bankruptcy added to the statements made by the investigative author Gianluigi Nuzzi in his just-published book “Giudizio Universale”, have caused a stir in Rome despite the denials of two leading bishops.

Vatican Facing Bankruptcy Due to Decreased Donations

In the book “Giudizio Universale” (Universal Judgement), Italian journalist Gianluigi Nuzzi exposed unpublished documents about the deteriorated Vatican’s financial situation. The author ensures that financial and real estate assets mismanagement, along with a notorious decrease in donations, are the main reason why the Vatican is facing bankruptcy.

Dramatic loss

According to the book published last October 21, last year, the Holy See lost 44 million euros. Nuzzi claims that at the edge of bankruptcy, the measures the Pope has been taking are not enough. The situation is so severe that last year, the Church decided to sell families’ jewellery such as the property “Santa María de Galería,” 424 hectares on the outskirts of Rome.

Decline of donations

The data presented in the book shows that the contributions to the Church, known as “Obolo de San Pedro,” have been reduced by half in a decade (from 101 million in 2006 to 51 in 2008). Because of the crisis, 58% of the received amount serves to clean up accounts, and only 20% remain as a deposit. As Nuzzi explained, the result is that of each ten euros, only two end up serving the purpose of helping those in need.

A surprising fact the journalist and author describes is the origin of the donations: dioceses are the first source, foundations come in second place, and private donors come just in third place. Italy and Germany are the most prominent supporters with more than 1.5 million euros each; their support decreased by more than 20%.

The official response

The head of the Administration of the Patrimony of the Apostolic See (APSA), Bishop Nunzio Galantino, promptly denied that the finances of the Holy See were about to go bankrupt. “There’s no bankruptcy or default here. There’s only a need for a spending review,” Galantino insisted. “The ordinary management of the APSA in 2018 closed with a profit of over 22 million,” he expressed to the “Vatican News.”

Regarding the properties managed by the APSA and the accusations of mismanagement, Galantino explained that they include 2,400 apartments located mostly in Rome and Castel Gandolfo plus another 600 shops and offices.

In response to Nuzzi’s statement that 40% of the patrimony doesn’t grant income, Galantino explained that those not generating revenue are service apartments or offices of the Curia. He also told that about 60% of the apartments are rented for reduced rent, to employees in need.

He considered this a kind of social housing, something that, when done by private companies, is praised, but when it’s the Vatican doing it, it is considered incompetent.

“There is no threat of collapse or default here. There is only the need for a spending review. And that is what we’re doing. I can prove it to you with numbers,” Galantino said on October 22.

Is the Vatican facing bankruptcy or not?

This is something that only time will reveal. So far, the bells of broke seem to be tolling despite the official statements.

See also about Business Risks.

Business

The growing movement of people fuels demand for international tax advice

ByCFI.co Blogger

4 November 2019

The increasing global movement of people and businesses is driving the significant growing demand for international tax advice.

The observations come from deVere Tax Consultancy, part of deVere Group, one of the world’s largest independent financial advisory organisations, which operates in more than 100 countries.

The world is currently experiencing the highest levels of movement on record.

According to the International Organization of Migration, the leading inter-governmental agency in the field, approximately 258 million people – or one in every 30 – were living outside their country of origin in 2017.

That is both a record high – and a number that has beaten all expectations. Indeed, a 2003 projection anticipated that by 2050, there would be around 230 million based outside their birth nation. But the latest projection has been dramatically revised upwards – there will be more than 405 million living away from their country of birth by 2050.

James Green, divisional manager at deVere Group, observes: “We’ve noted a year-on-year increase in international tax advice enquiries of more than a third.

“This can be attributed, we believe, to three key factors.

“First, is the increasing movement of people. Whether driven by geopolitical, work or lifestyle reasons, more and more individuals are on the move around the world.

“In addition – and despite the rhetoric of some populist politicians – globalisation in the world of trade and commerce is here to stay and is, if anything, gaining momentum as it encourages economic growth, creates jobs, makes firms more competitive, and lowers prices for consumers.

“Second, since the global financial crisis both individuals and companies have become more financially literate and aware of the importance of specialist financial advice, especially when it comes to cross-border affairs.

“And third, the reporting and tax filing requirements are increasing in most jurisdictions. For instance – and this is just one example – in the U.S. where the Foreign Account Tax Compliance Act, or FATCA, is almost universally recognised as being burdensome, onerous and complex.”

Director of deVere Tax Consultancy, Mitch Young, notes: “The enquiries are coming from both internationally-mobile individuals and firms who are seeking advice on compliant and up-to-date tax filing, residency issues, inheritance tax, self-assessment, property tax structuring and disclosures, national insurance contributions, trusts and wills.

“Due to this considerable surge in demand for our services we have recruited more senior tax consultants, account managers and in-house barrister intermediaries.

“We have also launched our first tax apprenticeship scheme to find and train the top tax talent of the future. In addition, we’re in the process of building an international tax network to meet the needs and expectations of our clients.”

James Green concludes: “The demand for international tax advice is set to grow further still as the world becomes increasingly globalised and as the cross-border regulatory landscapes continue to evolve – and at a faster pace.”

Corporate Finance

Desentum will run a clinical trial on its allergy vaccine this winter supported by 4 M€ of new investments

ByCFI.co Blogger

Finnish biopharmaceutical company Desentum is about to initiate a first-in-human clinical trial with its birch pollen hypoallergen designed to improve immunotherapeutic treatment of birch pollen allergy. In a funding round arranged by Springvest Oy, the company raised 4 million euros that it intends to use for funding clinical trials, developing new hypoallergens and advancing business goals.

Desentum develops novel type of immunotherapeutic hypoallergens, so called allergy vaccines. The hypoallergens are biotechnologically produced, modified allergen proteins aimed for improving the efficiency of allergen immunotherapy while also reducing the time required for treatment. The lead product candidate, birch pollen hypoallergen DM-101 (Bet v 1 dm), has produced good results in preclinical tests assessing allergenicity and immunogenicity, and is now advancing to clinical phase.

In clinical trials, the safety and efficacy of a new medicinal product is demonstrated in volunteer study subjects. The primary objective of Desentum’s first clinical trial is to confirm the safety of DM-101, but information about the immunological response generated by the hypoallergen is also collected.

“For the past couple of years, we have worked together with international allergen immunotherapy experts to prepare for the clinical studies. The first study plan was submitted for regulatory and ethics evaluation in the summer of 2019. The study will be performed in Finland and the dosing is scheduled to be completed before 2020 birch pollen season”, explains Pekka Mattila, CEO of Desentum.

To strengthen the company’s financial position, Desentum initiated a funding round in September. It was carried out by a Finnish investment service company Springvest Oy. The public offering was fully subscribed, which translates to approximately 4 million euros of collected capital. Desentum plans on using the majority of the proceeds for funding early-stage clinical trials. The remaining funds will be used for the research and development of new hypoallergens as well as for partnering activities to support late-stage clinical trials and market access.

“We are very happy with the results of the public offering. The collected capital enables us to focus on our primary goal, which is testing the novel immunotherapeutic allergy treatment and bringing it to the market. Today, allergy affects a huge number of people, and I believe that in addition to the expectation of financial return, many investors also hope that our technology could solve a health problem that impacts the life of their family or friends”, says Mattila and continues: “This is our target as well. We have started by looking at birch pollen allergy, but our platform can be used for producing hypoallergens from other allergens, too. We are already developing similar products to address peanut, grass pollen, dog and horse allergies.”

Immunotherapy in allergy treatment

Allergy is one of the most common chronic conditions in Europe. Today, more than 150 million Europeans suffer from allergic diseases. For one in five patients the condition is severe enough to create a constant threat of a severe allergic reaction or an asthma attack. European Academy of Allergy and Clinical immunology (EAACI) predicts that by 2025 allergy will affect half the population in Europe. Allergies cause social and economic burden such as health care costs, missed school and work days and impact on the daily lives of the patients.

Allergies are generally managed by medication that alleviates the symptoms. The most common medications are antihistamines and corticosteroids. Immunotherapy is the only treatment currently known that affects the mechanism of allergy. It re-educates the immune system to tolerate the allergen, decreasing the need for medication. Immunotherapy can be administered as injections or sublingual tablets or drops, and the treatment usually takes a few years. The novel immunotherapeutic products that are under development aim for speeding up the treatment as well as improving the safety, efficacy and convenience.

About Desentum Oy: Desentum is a biopharmaceutical company based in Espoo, Finland. It is specialized in developing a novel type of allergen immunotherapy based on switching the immune system’s response to allergens from hypersensitivity to tolerance by utilizing modified hypoallergens. Desentum, founded in 2011, is a spin-off company from VTT Technical Research Centre of Finland Ltd. In 2013 VTT received an EARTO (European Association of Research and Technology Organisations) Innovation Prize for the work behind the immunotherapeutic products. In 2018, Desentum was awarded a 1,9 M€ grant from the highly competitive Horizon 2020 SME instrument for the first-in-human clinical trial and business development.

Contact:

Pekka Mattila, CEO
Desentum Oy
Tel. +358-500-512934
[email protected]
www.desentum.com

Banking

Overview of the Controversial Modern Monetary Theory

ByCFI.co Blogger

Few theories have caused so many discussions as the Modern monetary theory (or MMT), which has been popularized by the leftmost sector of the Democratic Party, US, when it recurred to it to defend the huge expenses of the federal government on an attempt to detoxify the country from the fossil fuels and to finance a Medicare coverage for all.

The re-birth of the Modern Monetary Theory

MMT was created in the 1970s by the American economist Warren Mosler and shows similarities with older schools like Chartalism and Functional Finance. It was congresswoman and activist Alexandria Ocasio-Cortez who brought the debate to the table. In January 2019, she claimed that the government should implement Modern Monetary Theory to finance the Green New-Deal, applying political measures similar to those of the 1930s to augment the expenses but for ecologic reasons. In a public interview, she expressed that MMT should “be a larger part of the conversation.”

The approach

Despite the complexity and debate around MMT, there are some basic concepts shared by most of its adepts. The fundamental idea is that since the abandonment of the gold standard, a sovereign estate can print as much money as needed to finance public expenses and inject money into the economy, which they later withdraw in taxes. They sustain that governments cannot go broke, as they can always create more money to pay off debts.

According to MMT theorists, we have been misled to think that substantial government debt is followed by financial collapse. Moreover, they state that if the spending creates deficit, it isn’t a real problem, as the national deficit is, in fact, the private sector’s surplus.

Modern Monetary Theory and inflation

Mainstream economists argue that it is ridiculous to think that central banks can finance massive spending without causing high inflation or even hyperinflation. Modern Monetary Theory, on the other side, reckons that there is a direct relationship between the circulation quantity of money and the level of prices. Yet, although they recognize the risk of inflation, they see it as a constraint that will keep decision-makers honest. Inflation is perceived as a result of real resource limits, and the Congress should set the spending, tax, and industry policies to keep inflation under control.

Restrictions on Modern monetary theory

Modern Monetary Theory advocates state that governments don´t have a budget constraint, and the only limit they have is the availability of real resources, like supplies and workers. If government spending is excessive in relation to the available resources, inflation could occur; therefore, the importance of proper policies.

It´s undeniable that Modern Monetary Theory keeps gaining attention and adepts, especially in the progressive political sectors. However, they haven´t provided a convincing response to the inherent problem of inflation yet.

Few theories have caused so many discussions as the Modern monetary theory (or MMT), which has been popularized by the leftmost sector of the Democratic Party

Is Modern Monetary Theory the panacea that will solve the world´s woes? Or is MMT just a new buzzword that keeps rising popularity? Implementing it would be a bold, risky experiment with no point of return or the miracle-solution we all crave for?

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