The R&D Index for the holiday-shortened (Good Friday) week ending April 18, 2019 closed at 4,756.97 for the 25 companies in the R&D Index. The Index was up 1.11% (or 52.00 basis points) from the week ending April 12, 2019. The stock of 14 R&D Index members gained value from 0.04% (Oracle) to 40.28% (Qualcomm). The stock of 11 R&D Index members lost value from -0.11% (Bristol-Myers Squibb) to -7.86% (Merck & Co.).
R&D Index members Apple Computer and Qualcomm ended their more than two-year long litigation last week concerning product licensing just as the trial between the two companies started. Apple had stopped royalty payments pending the trial and was working with R&D Index member Intel to develop 5G modem chips for future cell phones. Qualcomm had actually delivered its 5G modem chips to several customers, including Samsung, earlier this year. Intel was struggling to develop working 5G modem chips and was at least a year behind Qualcomm in their development efforts. Just hours after the Apple/Qualcomm agreement was announced last Tuesday, Intel announced that it was suspending its 5G modem chip development. Intel, Apple and Qualcomm all registered stock gains for the week, with Qualcomm closing up more than 40% for the week.
R&D Index member Amazon announced last week that it was exiting the Chinese e-commerce market beginning July 18, following its inability to break into the booming market. While entering the China’s e-commerce market in 2004, it only was able to command a 6% market share in the fiercely competitive market. Amazon is supposedly still in merger talks with the number two Chinese e-commerce market leader (and Nasdaq-listed), NetEase Kaola—there was no announcement mentioning the status of those talks. Amazon is the global e-commerce leader with more than 50% global market share.
Amazon also announced last week that it was building a new headquarters and R&D facility for its Blue Origin development efforts in Kent, Washington. The 250,000 sq. ft. facility will focus on the creation of new human spaceflight capabilities. Blue Origin also announced an agreement with NASA last week that it would test Alabama-made rocket engines at NASA’s Saturn V testing facility at Marshall Space Flight Center in Huntsville, Alabama.
|R&D Index Week Ending April 18, 2019|
|Ticker||Exchange||2018 R&D millions U.S. $||04/12/19||04/18/19||4/18/19 to 4/12/19||4/18/19 to 12/31/18|
|7||Johnson & Johnson||JNJ||NYSE||11,493||135.98||137.52||1.13%||6.56%|
|8||Merck & Co.||MRK||NYSE||11,323||79.43||73.19||-7.86%||-4.21%|
|18||Eli Lilly Co||LLY||NYSE||6,769||123.06||115.20||-6.39%||-0.45%|
|23||Astra Zeneca PLC||AZN||NYSE||5,483||39.52||38.80||-1.82%||2.16%|
About the R&D Index
R&D Magazine’s R&D Index is a weekly stock market summary of the top international companies involved in research and development. The top 25 industrial spenders of R&D in 2017 were selected based on the latest listings from Schonfeld & Associates’ June 2018 R&D Ratios & Budgets. These 25 companies include pharmaceutical (11 companies), automotive (5), ICT (8) and conglomerate (1) organizations who invested a cumulative total of more than $209 billion in R&D in 2017, or approximately 10% of all the R&D spent in the world by government, industries and academia combined, according to R&D Magazine’s 2019 Global R&D Funding Forecast. The stock prices used in the R&D Index are tabulated from NASDAQ, NYSE, XETRA and OTC common stock prices (in U.S. dollars) for the companies selected at the close of stock trading business on the Friday preceding the publication of the R&D Index in R&D Magazine’s R&D Daily eNewsletter.