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[Stablecoins](https://snacks.robinhood.com/newsletters/1alSYApz9fMDqEf8i3IPRi/articles/1vwhQv8VIIqij4eXh9Wsvw/) are a type of cryptocurrency whose value is pegged to another asset. For example, __[Tether’s USDT](https://robinhood.com/crypto/USDT/)__ (the biggest stablecoin) is pegged 1-to-1 to the US dollar. But stablecoins have "depegged" in the past, losing that 1-to-1 value. __Binance’s__ CEO reportedly accused __FTX__ founder Sam Bankman-Fried of trying to [depeg](https://www.wsj.com/articles/rivals-worried-sam-bankman-fried-tried-to-destabilize-crypto-on-eve-of-ftx-collapse-11670597311) USDT (which could’ve been a crypto disaster) as his exchange collapsed.

DEFI(NE)

Heard on the Block: "depeg"

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__Double dose of profits…__ Healthcare giants are shelling out big bucks to bolster their drug portfolios. Yesterday, biotech behemoth __[Amgen](https://robinhood.com/stocks/AMGN/)__ signed a deal to buy __[Horizon Therapeutics](https://robinhood.com/stocks/HZNP/)__ for $27.8B — in this year’s biggest healthcare merger. Horizon specializes in rare-disease treatments, and its new thyroid eye disease drug, Tepezza, helped double revenue last year. Over the past month, Tepezza’s success had fueled takeover bids from pharma titans like __[Sanofi](https://robinhood.com/stocks/SNY/)__ and __[Johnson & Johnson](https://robinhood.com/stocks/JNJ/)__. 

- __High risk:__ Amgen plans to pay $116.50/share as part of the deal — a nearly 20% premium from the stock’s pre-merger-announcement price. 
- __High reward:__ Horizon thinks Tepezza could haul in $4B+ in sales if it’s approved outside the US. It could also help Amgen offset lost revenue from its biggest drugs, whose patents are about to expire.

__Billion-dollar buying spree…__ Pharma companies frequently look for new sources of revenue to make up for lost patent protection on blockbuster drugs (patents typically last 20 years). While deal making has slowed this year, some healthcare heavyweights have used the broader sell-off to snatch up smaller drugmakers at a “discount.” Just this year: J&J struck a $16.6B deal to buy heart-device maker __[Abiomed](https://robinhood.com/stocks/ABMD/)__; __[Pfizer](https://robinhood.com/stocks/PFE/)__ agreed to buy __[Global Blood Therapeutics](https://robinhood.com/stocks/GBT/)__ for $5.4B; and __[Merck](https://robinhood.com/stocks/MRK/)__ acquired blood-cancer biotech __[Imago BioSciences](https://robinhood.com/stocks/IMGO/)__ for over $1.3B.

The year’s biggest healthcare deal (Al Seib/Getty Images)

Treat

__Rare treatments command high prices…__ Of the 7K known rare diseases, 95% have no approved treatment. Rare treatments may have a smaller addressable market, but they can lead to a treatment monopoly that can lure higher payouts from insurance companies — and patients.

Amgen strikes the year’s biggest healthcare deal as drugmakers splurge on rare treatments to boost sales

__“I could have my Gucci on”…__ That Meghan Trainor song you keep hearing in *every single* __TikTok__ video is the current soundtrack for Americans in Europe. They’re [flocking](https://www.wsj.com/articles/americans-flock-to-europe-for-holiday-shopping-binge-11670797821) to designer stores across the old continent to take advantage of holiday deals, courtesy of the strong dollar. Since the Fed began hiking rates, the USD has strengthened against other currencies. 

- __Europe’s on sale__ for Americans. Last year, a buck would get you 0.82 euro. Today, you can exchange $1 for about €0.95. (Read: one dollar buys more euros.) 
- __American tourists in Europe__ spent, on average, 1.2K euros per transaction during the week of Black Friday, up from 500 euros three years ago. 

__“I could wear my Louis Vuitton”...__ in Paris with John. Luxe retailers like __[Kering](https://robinhood.com/stocks/PPRUY/)__-owned Gucci and __[LVMH](https://robinhood.com/stocks/LVMUY/)__-owned Louis Vuitton are raking it in thanks to American splurging. That’s helping them make up for the lack of high-rolling Chinese tourists (see: China’s Covid restrictions). For Americans, it’s a triple savings whammy: 

- __Strong Washington:__ The dollar is hovering at its strongest exchange rate in two decades compared to the euro. 
- __Home advantage:__ Since many luxury goods are made in Europe, they tend to be cheaper there (no US import costs). American shoppers are paying an average of 38% *more* for the same designer clothes bought in the US (vs. 20% historically). 
- __Tax bonus:__ Tourists who spend a certain amount at an EU store can often claim a refund on the sales tax (think: saving hundreds in tax on a designer bag).

Look

__Strength is a two-sided coin…__ The strong dollar is helping inflation-battered European retailers, who are dealing with low consumer confidence at home. On the flip side, it discourages tourism (and spending) in the US. That could make an economic downturn worse.

Americans ball out in Europe as the strong US dollar puts foreign luxuries on sale

Amgen strikes the year’s biggest healthcare deal as drugmakers splurge on rare treatments

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Wendy's prices jumped a reported 35% this year — more than any other major fast-food chain

💊 Amgen’s $28B pharma bet

Heard on the Block: "depeg"

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