Despite AbbVie’s 8.36% gain, the R&D World Index fell 2.70% in late October 2024 due to mixed tech and pharma performance.
The R&D World Index (RDWI) for the week ending November 1, 2024, closed at 3,855.65 for the 25 companies in the RDWI. The Index was down -2.70% (or -107.16 basis points). Eight RDWI members gained value last week from 0.16% (Alibaba) to 8.36% (AbbVie). Seventeen RDWI members lost value the previous from -0.43% (Cisco) to -8.27% (Eli Lilly & Co.).
Significant developments this week include AbbVie’s $1.4 billion acquisition of Aliada Therapeutics, Volvo and Daimler Truck‘s collaboration on digital truck platforms, and the CHIPS Act, which the GOP may attempt to repeal. In addition, the tech sector saw continued AI news from OpenAI and Microsoft, while Volkswagen disclosed a large-scale restructuring plan. The initiative includes shuttering at least three plants in Germany and implementing a 10% wage cut along with a freeze on wage increases for the next two years.
AI R&D
OpenAI launches ChatGPT search feature
OpenAI challenges Google with ChatGPT’s new real-time search capabilities.
OpenAI, San Francisco, announced last week that it had embedded a search engine in its popular ChatGPT chatbot. This creates a competitor to Google’s search technology tools, which now use AI to improve search results. “ChatGPT search will allow users to search for up-to-date information from the internet, including sports scores, stock prices, and weather. Real-time third-party search providers and content partners will power its tool to summarize website information, and website information lets users ask follow-up questions.
Automotive R&D
Volvo and Daimler truck form digital platform partnership
Volvo Group and Daimler Truck leaders seal the deal: Karin Rådström, CEO of Daimler Truck (left), and Martin Lundstedt, President and CEO of Volvo Group (right), celebrate the signing of a joint venture to pioneer a software-defined vehicle platform for commercial trucks.
Volvo, Gothenburg, Sweden, and Daimler Truck, Stuttgart, Germany, confirmed last week that they are collaborating in a joint venture to develop a software-based platform to build digitized heavy-duty trucks. The jointly owned company created will be headquartered in Gothenburg. Both companies will use the platform to produce their software-led trucks and buses while offering the service to other truck manufacturers. The new company will also develop an operating system and tools that vehicle manufacturers can use to build their digital features. The two companies will remain competitors in all other business areas. The joint venture is expected to be completed by mid-2025.
Toyota and NTT partner on AI-driven automotive software
RDW Index member Toyota, Toyota City, Japan, and the Nippon Telegraph and Telephone Company (NTT), Tokyo, announced last week that they would jointly invest $3.26 billion in R&D to create artificial intelligence (AI) software to improve self-driving capabilities. The companies plan to develop automotive software that will use AI to anticipate accidents and take control of a vehicle. The companies expect to have a working system ready by 2028 and will provide it to other automakers. Toyota’s Mirai fuel cell vehicle has been equipped with hands-free driving functions since 2021.
Overview of the NTT-Toyota joint mobility AI platform
Volkswagen announces major restructuring
RDW Index member Volkswagen, Wolfsburg, Germany, announced last week that it will shut at least three factories in Germany, downsize its remaining plants, and lay off several tens of thousands of workers as part of a severe cost-cutting drive. The notice came following months of negotiations between the company and labor representatives who hold seats on the automaker’s supervisory board. The company also wants to cut autoworkers’ pay by 10% and freeze pay increases for the next two years.
Technology R&D
CHIPS Act implementation updates
Last week, the U.S. Department of Commerce announced two components of the CHIPS Act of 2022. The Albany, New York, NanoTech Complex was announced as the site for America’s Extreme Ultraviolet (EUV) Accelerator, which will be supported by a federal investment of $825 million. In the second announcement, Sunnyvale, California, was designated as the new CHIPS for America Design and Collaboration Facility site. This R&D center will incorporate the National Semiconductor Technology Center’s (NSTC) consortium resources.
Microsoft expands Dublin R&D operations
RDW Index member Microsoft, Redmond, Washington, announced last week that it was creating 550 new engineering and R&D jobs in its Dublin, Ireland, office. The latest positions will be focused on developing AI and cybersecurity products and services and will be added over the next three to four years. The creation of these new positions enables the company to strengthen its presence in Ireland and take AI and cybersecurity to the next level, said the company. The new positions will be across various multidisciplinary teams, including Azure networking and infrastructure, business, and industry. Microsoft has several offices in Dublin.
Corporate News
An image from Aliada’s website highlighting its Modular Delivery (MODEL) platform.
AbbVie acquires Aliada Therapeutics
RDW Index member AbbVie, Deerfield, Illinois, announced last week that it will acquire Aliada Therapeutics, Boston, for $1.4 billion. Aliada is backed by Johnson & Johnson, New Brunswick, New Jersey, and adds a potential therapy for Alzheimer’s disease to AbbVie’s neuroscience pipeline. Aliada’s technology uses a proprietary platform that J&J developed and licensed to Aliada at its inception. J&J and RA Capital Management, Boston, co-founded Aliada and co-led the series seed financing in 2021 to advance its development platform. Healthcare investment firms OrbiMed and Sanofi also invested in Aliada. The company’s technology strengthens its capabilities to accelerate the development of next-generation therapies for neurological disorders and other diseases.
GSK revises vaccine sales outlook
GSK (formerly GlaxoSmithKline), London, announced last week that it would cut its full-year vaccine sales outlook following key shots for respiratory syncytial virus and shingles missed their sales expectations in the third quarter due to weak U.S. demand. This was caused by U.S. health authorities prioritizing COVID-19 jabs. GSK now expects vaccine sales to fall rather than increase as previously forecast.
Amazon reports strong Q3 performance
Amazon, Seattle, announced strong revenue and demand last week for the third quarter. Demand for AWS cloud computing services and e-commerce sales rose, and capital expenditures reached a record amid a major build-out of AI-based services. Amazon and other tech companies have all been ramping up their spending on real estate and data centers to meet the expected demand for computing power from AI.
The R&D World Index is a weekly stock market summary of the top international companies involved in R&D. The top 25 industrial R&D spenders in 2020 were selected based on the latest listings from Schonfeld & Associates’ June 2020 R&D Ratios & Budgets. These 25 companies include pharmaceutical (10 companies), automotive (6 companies), and ICT (9 companies), which invested a cumulative total of nearly 260 billion dollars in R&D in 2019, or approximately 10% of all the R&D spending in the world by government, industries, and academia combined, according to R&D World’s 2021 Global R&D Funding Forecast. The stock prices used in the R&D World Index are tabulated from NASDAQ, NYSE, and OTC common stock prices for the companies selected at the close of stock trading business on the Friday preceding the online publication of the R&D World Index.
| Ticker | Exchange | 2020 R&D Billions $ | 10/25/24 | 11/01/24 | 10/25/24 to 11/1/24 | 1/1/22 to 11/1/24 |
|---|---|---|---|---|---|---|
| GOOGL | NASDAQ | 27.30 | 166.99 | 172.65 | 3.39% | 19.19% |
| MSFT | NASDAQ | 17.20 | 428.15 | 410.37 | -4.15% | 22.02% |
| VWAGY | OTC | 17.26 | 10.42 | 9.81 | -5.85% | -66.40% |
| AAPL | NASDAQ | 18.67 | 231.41 | 222.91 | -3.67% | 25.54% |
| META | NASDAQ | 13.87 | 573.25 | 567.16 | -1.06% | 68.62% |
| INTC | NASDAQ | 14.50 | 22.68 | 23.20 | 2.29% | -54.95% |
| JNJ | NYSE | 13.75 | 160.88 | 160.13 | -0.47% | -6.40% |
| RHHBY | OTC | 14.14 | 40.57 | 39.26 | -3.23% | -24.05% |
| MRK | NYSE | 11.38 | 103.98 | 101.88 | -2.02% | 32.93% |
| NVS | NYSE | 9.39 | 113.79 | 109.35 | -3.90% | 25.01% |
| TM | NYSE | 10.72 | 172 | 172.83 | 0.48% | -6.73% |
| PFE | NYSE | 8.34 | 28.45 | 28.09 | -1.27% | -52.43% |
| BABA | NYSE | 6.01 | 97.42 | 97.58 | 0.16% | -17.86% |
| GM | NYSE | 6.73 | 52.07 | 50.96 | -2.13% | -13.08% |
| HMC | NYSE | 8.81 | 30.23 | 30.29 | 0.20% | 6.47% |
| F | NYSE | 9.34 | 11.07 | 10.22 | -7.68% | -50.79% |
| ABBV | NYSE | 13.95 | 187.85 | 203.55 | 8.36% | 50.33% |
| SNY | NYSE | 7.75 | 54.34 | 53.27 | -1.97% | 6.33% |
| CSCO | NASDAQ | 6.33 | 55.74 | 55.50 | -0.43% | -12.42% |
| BMY | NYSE | 7.13 | 51.92 | 54.32 | 4.62% | -12.88% |
| AZN | NYSE | 6.06 | 75.05 | 71.42 | -4.84% | 22.61% |
| IBM | NYSE | 5.37 | 214.67 | 208.25 | -2.99% | 55.81% |
| ORCL | NYSE | 6.93 | 173.52 | 170.02 | -2.02% | 94,95% |
| LLY | NYSE | 8.61 | 892.72 | 818.93 | -8.27% | 196.48% |
| STLA | NYSE | 5.31 | 13.64 | 13.70 | 0.44% | -29.89% |
Keep these reports coming! Excellent way for us to track both growth and sliding stocks.
just a great service to someone who has been a R&D reader for over 25 years
Thanks, Patrick!
Anything more you would like to be seeing? We’ll keep this coming as a weekly update. We could consider covering more on the stock side, for instance.