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The R&D Index for the week ending April 13, 2018 closed at 4,025.70 for the 25 companies in the R&D Index. The Index was up 2.31% (or 90.82 basis points) from the week ending April 6, 2018. Twenty-four R&D Index companies gained value last week from 0.53% (Roche Pharm) to 7.14% (Merck & Co.). One R&D Index company lost value last week: -3.66% (Bristol-Myers Squibb).

R&D Index member Volkswagen had a boardroom coup last week with CEO Matthias Muller being replaced by Herbert Diess. A reorganization of the company’s operating divisions was also authorized by the Board creating a passenger car group (Seat, Skoda and VW), a Sports Car Group (Porsche, Lamborghini, Bugatti and Bentley) and a Premium Car Group (Audi). Its MAN and Scania trucks would be converted into a joint stock corporation. VW, with its large China production unit, is expected to become the largest (by volume) auto manufacturer in the world in 2018, surpassing current # 2 GM and # 1 Toyota. VW already is the largest automotive R&D investor with $10.9 billion expected to be spent in 2018.

A relaxation in the China-U.S. trade war rhetoric last week by Chinese President Xi Jinping was credited with improving the stock market for the week. At the annual Boao Economic Forum Xi pledged an increased commitment to economic liberalization, greater intellectual property (IP) protection and increased access to China’s financial and manufacturing sectors for foreign companies.

The U.S. Dept. of Justice last week approved R&D Index member Bayer AG’s $60 billion acquisition of Monsanto. The approval was based on assurances that the two companies would sell additional assets to satisfy anti-trust issues which had been a recent sticking point. Bayer and Monsanto executives had recently met with Justice Dept. officials to secure the approval.

The U.S. Dept. of Defense is expected to announce next week a list of requirements for moving the Department’s data to a cloud computer environment. The Department has reiterated that it is not against awarding the proposed contract to just one company, implying that cloud-market leader and R&D Index member Amazon could be the winner of the competition by sheer size and the fact that it has won several other government cloud contracts over the past few years. Other government agencies, such as the CIA and the Smithsonian, are also looking to move their data to the cloud rather than operate their own data centers.

R&D Index Week Ending April 13, 2018

  Ticker Exchange 2017 R&D billions$ 04/06/18 04/13/18   4/13/18 to 4/6/18 4/13/18 to 12/29/17
Amazon AMZN NASDAQ 17,774 1,405.23 1,430.79 1.82% 22.35%
Alphabet/Google GOOGL NASDAQ 15,845 1,009.95 1,029.27 1.91% -2.29%
Microsoft MSFT NASDAQ 13,987 90.23 93.08 3.16% 8.81%
Intel INTC NASDAQ 13,499 48.79 51.86 6.29% 12.35%
Apple AAPL NASDAQ 11,506 168.38 174.73 4.59% 3.25%
Volkswagen AG VLKAY OTC 11,260 40.21 42.85 6.57% 5.96%
Roche Pharm RHHBY OTC 10,174 28.05 28.20 0.53% -10.70%
Toyota TM NYSE 9,170 125.37 128.53 2.52% 1.07%
Johnson & Johnson JNJ NYSE 9,060 128.10 130.62 1.97% -6.51%
Novartis NVS NYSE 7,870 80.20 81.04 1.05% -3.48%
General Motors GM NYSE 7,468 37.68 38.73 2.79% -5.51%
Pfizer PFE NYSE 7,288 35.17 36.32 3.27% 0.28%
Bristol-Myers Squibb BMY NYSE 6,942 60.88 58.65 -3.66% -4.29%
Cisco CSCO NASDAQ 6,827 40.73 43.00 5.57% 12.27%
Qualcomm QCOM NASDAQ 6,723 53.12 55.73 4.91% -12.95%
Oracle ORCL NYSE 6,702 44.83 46.08 2.79% -2.54%
Honda HMC NYSE 6,519 34.23 34.98 2.19% 2.64%
Astra Zeneca PLC AZN NYSE 6,363 35.42 36.32 2.54% 4.67%
Merck & Co. MRK NYSE 5,759 53.36 57.17 7.14% 1.60%
Daimler DDAIY OTC 5,084 79.80 81.09 1.62% -4.10%
Bayer AG BAYN OTC 4,880 28.65 30.09 5.03% -3.22%
Sanofi SA SNY NYSE 4,755 40.15 40.56 1.02% -5.67%
IBM IBM NYSE 4,628 150.57 156.71 4.08% 2.14%
GlaxoSmithKline GSK NYSE 4,508 39.93 40.58 1.63% 14.41%
Eli Lilly Co LLY NYSE 4,489 76.85 79.72 3.73% -5.61%
Total     209,080 3,935.88 4,026.70 2.31% 6.19%
               
    Biopharmaceutical 606.76 619.27 2.05% -2.90%
    Automotive 314.78 326.18 3.62% -0.32%
    ICT   1,606.60 1,650.46 2.73% -0.42%
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