Airbus (AIR.PA)
has closed its final assembly plant in Tianjin, China, as a result of
the coronavirus emergency, the planemaker said on Wednesday, adding it
was monitoring for any signs of impact on deliveries.
The plant assembles about 4 A320-family aircraft a month, about 7% of Airbus narrowbody production.
“The Tianjin Final Assembly Line facility is currently closed,” Airbus said in a statement.
“Airbus is constantly evaluating the situation and monitoring any
potential knock-on effects to production and deliveries and will try to
mitigate via alternative plans where necessary.”
The death toll from an outbreak of the coronavirus has risen to nearly 500.
https://www.reuters.com/article/us-china-health-airbus/airbus-halts-output-at-tianjin-assembly-plant-due-to-coronavirus-idUSKBN1ZZ1ER
Wednesday, February 5, 2020
Novo Nordisk Sales Beat on Diabetes Treatments — Earnings Review
Novo Nordisk A/S (NVO) reported results for the fourth quarter on Wednesday. Here’s what we watched:
SALES: Sales rose 9% to 32.42 billion Danish kroner ($4.79 billion) against analysts’ expectations of DKK31.95 billion. Sales in the quarter found support from Novo Nordisk’s diabetes treatments, as well as increased sales in obesity care and biopharm, offset by declining insulin sales.
NET PROFIT: Net profit for the three months ended Dec. 31 rose to DKK8.72 billion from DKK8.5 billion a year earlier, missing the DKK9.2 billion forecast by analysts in a FactSet poll.
WHAT WE WATCHED:
GLUCAGON-LIKE PEPTIDE-1: Sales of Novo Nordisk’s Ozempic glucagon-like peptide-1 products for type 2 diabetes–Victoza, Ozempic and Rybelsus–increased by 27% measured in Danish kroner and by 22% in local currencies to DKK33.2 billion in 2019. Sales growth was driven by both its North America and international operations, it said. Sales of Ozempic totaled DKK11.2 billion and Ozempic has now been launched in 26 countries. The GLP-1 segment’s value share of the total diabetes market has increased to 18.0% compared with 14.4% 12 months ago and Novo Nordisk said it has a 47.5% market share in the global GLP-1 segment.
MARGINS: The gross margin was 83.2% in the fourth quarter of 2019 compared with 84.4% in the same period last year. The decline of 1.2 percentage points of the gross margin reflects a negative impact from lower realised prices in the U.S. and a negative currency impact of 0.3 percentage point partly countered by a positive product mix. The EBIT margin rose slightly to 36.6% from 36.3%.
GUIDANCE: For 2020, sales growth is expected to be 3%-6% measured in local currencies, reflecting expectations for robust sales of the company’s diabetes-care products Ozempic, Victoza and Rybelsus, obesity-care product Saxenda, the portfolio of new-generation insulin and biopharm products Esperoct, Refixia and NovoEight. The guidance also reflects intensifying competition both within diabetes care and biopharm, as well as continued pricing pressure within diabetes care and affordability initiatives in the U.S., it said. Sales growth reported in Danish kroner is expected to be one percentage point higher than in local currencies. Operating-profit growth is expected to be 1% to 5% measured in local currencies. Reported in Danish kroner it is expected to be one percentage point higher than in local currencies. Capital expenditure is expected to be around DKK6.5 billion in 2020, primarily relating to investments in additional capacity for production within diabetes care.
https://www.marketscreener.com/NOVO-NORDISK-AS-1412980/news/Novo-Nordisk-Sales-Beat-on-Diabetes-Treatments-Earnings-Review-29943740/
SALES: Sales rose 9% to 32.42 billion Danish kroner ($4.79 billion) against analysts’ expectations of DKK31.95 billion. Sales in the quarter found support from Novo Nordisk’s diabetes treatments, as well as increased sales in obesity care and biopharm, offset by declining insulin sales.
NET PROFIT: Net profit for the three months ended Dec. 31 rose to DKK8.72 billion from DKK8.5 billion a year earlier, missing the DKK9.2 billion forecast by analysts in a FactSet poll.
WHAT WE WATCHED:
GLUCAGON-LIKE PEPTIDE-1: Sales of Novo Nordisk’s Ozempic glucagon-like peptide-1 products for type 2 diabetes–Victoza, Ozempic and Rybelsus–increased by 27% measured in Danish kroner and by 22% in local currencies to DKK33.2 billion in 2019. Sales growth was driven by both its North America and international operations, it said. Sales of Ozempic totaled DKK11.2 billion and Ozempic has now been launched in 26 countries. The GLP-1 segment’s value share of the total diabetes market has increased to 18.0% compared with 14.4% 12 months ago and Novo Nordisk said it has a 47.5% market share in the global GLP-1 segment.
MARGINS: The gross margin was 83.2% in the fourth quarter of 2019 compared with 84.4% in the same period last year. The decline of 1.2 percentage points of the gross margin reflects a negative impact from lower realised prices in the U.S. and a negative currency impact of 0.3 percentage point partly countered by a positive product mix. The EBIT margin rose slightly to 36.6% from 36.3%.
GUIDANCE: For 2020, sales growth is expected to be 3%-6% measured in local currencies, reflecting expectations for robust sales of the company’s diabetes-care products Ozempic, Victoza and Rybelsus, obesity-care product Saxenda, the portfolio of new-generation insulin and biopharm products Esperoct, Refixia and NovoEight. The guidance also reflects intensifying competition both within diabetes care and biopharm, as well as continued pricing pressure within diabetes care and affordability initiatives in the U.S., it said. Sales growth reported in Danish kroner is expected to be one percentage point higher than in local currencies. Operating-profit growth is expected to be 1% to 5% measured in local currencies. Reported in Danish kroner it is expected to be one percentage point higher than in local currencies. Capital expenditure is expected to be around DKK6.5 billion in 2020, primarily relating to investments in additional capacity for production within diabetes care.
https://www.marketscreener.com/NOVO-NORDISK-AS-1412980/news/Novo-Nordisk-Sales-Beat-on-Diabetes-Treatments-Earnings-Review-29943740/
Philippines keeps ports open to all ships despite virus fears
The Philippines said on Wednesday its ports remain open to all ships, even those from China, in order not to disrupt the cargo supply chain, but the crew of vessels arriving from the coronavirus-hit nation will be barred from disembarking.
All foreigners traveling from China and its two special
administrative regions – Hong Kong and Macau – are currently barred from
entering the Philippines amid a fast-spreading coronavirus outbreak
that has killed nearly 500 people in China.
A Chinese man who arrived from China’s Wuhan city, where the virus emerged last year, has also died in the Philippines.
Concerns about possible delays in shipments of Philippine nickel ore to China as a result of the port restrictions added to the upward pressure on nickel prices.
“As far as the ships are concerned, as far as the cargoes are concerned, we are business as usual,” said Jay Daniel Santiago, general manager at Philippine Ports Authority, allaying worries about delays in port operations.
He said ports particularly in the Philippine capital Manila are “fully mechanized” to facilitate cargo loading and unloading with minimal human intervention.
Nickel ore miners in the Philippines, a major source of the raw material for stainless steel production in China, usually resume shipments to their Chinese customers beginning March or April, after a seasonal stoppage starting the last quarter of the previous year.
“We have not yet started shipping out nickel ore, but we anticipate this virus outbreak in China would have no impact on the demand side,” Dante Bravo, president of Global Ferronickel Holdings Inc, the Philippines’ second-largest nickel ore producer and exporter, told Reuters.
“We believe this issue will be resolved soon given all the contingency measures put in place by all the parties concerned,” he said.
A Chinese man who arrived from China’s Wuhan city, where the virus emerged last year, has also died in the Philippines.
Concerns about possible delays in shipments of Philippine nickel ore to China as a result of the port restrictions added to the upward pressure on nickel prices.
“As far as the ships are concerned, as far as the cargoes are concerned, we are business as usual,” said Jay Daniel Santiago, general manager at Philippine Ports Authority, allaying worries about delays in port operations.
He said ports particularly in the Philippine capital Manila are “fully mechanized” to facilitate cargo loading and unloading with minimal human intervention.
Nickel ore miners in the Philippines, a major source of the raw material for stainless steel production in China, usually resume shipments to their Chinese customers beginning March or April, after a seasonal stoppage starting the last quarter of the previous year.
“We have not yet started shipping out nickel ore, but we anticipate this virus outbreak in China would have no impact on the demand side,” Dante Bravo, president of Global Ferronickel Holdings Inc, the Philippines’ second-largest nickel ore producer and exporter, told Reuters.
“We believe this issue will be resolved soon given all the contingency measures put in place by all the parties concerned,” he said.
https://www.marketscreener.com/news/Philippines-keeps-ports-open-to-all-ships-despite-virus-fears–29943776/
Virus outbreak delays India’s cotton exports to China
Shipments of around 250,000 bales of Indian cotton to China have been delayed by nearly two weeks as a virus outbreak and factory closures dampens demand from the world’s biggest consumer of the fibre, industry officials told Reuters.
The delay in shipments could pressure local prices and force the
state-run Cotton Corporation of India (CCI) to increase purchases from
farmers to ensure domestic prices stay above government mandated levels.
“As the holiday is extended in China, shipments are getting delayed,” said Chirag Patel, chief executive at Jaydeep Cotton Fibers Pvt Ltd, an exporter.
Most Chinese firms scale back operations or close for long periods around the Lunar New Year holidays, which began on Jan. 24 this year.
But China’s government has extended the holidays, announced widespread transport restrictions and told many businesses to stay closed longer to limit the spread of the virus. It is not clear when millions of migrant workers will be able to return to factories or when ports will resume normal operations.
The epidemic has killed nearly 500 people in China and infected more than 24,000 so far.
Indian sellers had contracted around 650,000 bales to China for prompt shipment.
Around 400,000 bales have already been shipped, but the remaining 250,000 bales have been delayed, three exporters and two dealers with global trading houses told Reuters.
“Exporters are a bit worried. So far buyers haven’t cancelled contracts, but some might be if this virus outbreak remains there for few more weeks,” said Vinay Kotak, a director at Kotak Commodities, a Mumbai-based brokerage.
China, Bangladesh, Vietnam and Indonesia are among key buyers of India cotton.
Exporters have an option of diverting cotton meant for China to other destinations such as Bangladesh and Vietnam if shipments are delayed further, Kotak said.
India has shipped 2 million cotton bales since the 2019/20 marketing year started on Oct. 1 and another 1 million bales have been contracted for shipment in February and March, said Atul Ganatra, president of the Cotton Association of India.
“We are hopeful that very soon Chinese buying will return to normal,” said Ganatra.
Local cotton prices are already under pressure due to surplus production, said a Mumbai-based dealer with a global trading firm.
“Chinese buying was supporting local prices. In the absence of China, Cotton Corporation of India will have to raise purchases,” the dealer said.
“As the holiday is extended in China, shipments are getting delayed,” said Chirag Patel, chief executive at Jaydeep Cotton Fibers Pvt Ltd, an exporter.
Most Chinese firms scale back operations or close for long periods around the Lunar New Year holidays, which began on Jan. 24 this year.
But China’s government has extended the holidays, announced widespread transport restrictions and told many businesses to stay closed longer to limit the spread of the virus. It is not clear when millions of migrant workers will be able to return to factories or when ports will resume normal operations.
The epidemic has killed nearly 500 people in China and infected more than 24,000 so far.
Indian sellers had contracted around 650,000 bales to China for prompt shipment.
Around 400,000 bales have already been shipped, but the remaining 250,000 bales have been delayed, three exporters and two dealers with global trading houses told Reuters.
“Exporters are a bit worried. So far buyers haven’t cancelled contracts, but some might be if this virus outbreak remains there for few more weeks,” said Vinay Kotak, a director at Kotak Commodities, a Mumbai-based brokerage.
China, Bangladesh, Vietnam and Indonesia are among key buyers of India cotton.
Exporters have an option of diverting cotton meant for China to other destinations such as Bangladesh and Vietnam if shipments are delayed further, Kotak said.
India has shipped 2 million cotton bales since the 2019/20 marketing year started on Oct. 1 and another 1 million bales have been contracted for shipment in February and March, said Atul Ganatra, president of the Cotton Association of India.
“We are hopeful that very soon Chinese buying will return to normal,” said Ganatra.
Local cotton prices are already under pressure due to surplus production, said a Mumbai-based dealer with a global trading firm.
“Chinese buying was supporting local prices. In the absence of China, Cotton Corporation of India will have to raise purchases,” the dealer said.
https://www.marketscreener.com/COTTON-16215/news/Virus-outbreak-delays-India-s-cotton-exports-to-China-trade-29943809/
China lab seeks patent on use of Gilead’s coronavirus treatment
A state-run Chinese research institute has applied for a patent on the use of Gilead Sciences’ experimental U.S. antiviral drug, which scientists think could provide treatment for the coronavirus that has killed hundreds and infected thousands.
The Wuhan Institute of Virology of the China Academy of Sciences,
based in the city where the outbreak is believed to have originated,
said in a statement on Tuesday it applied to patent the use of
Remdesivir, an antiviral drug developed by Gilead, to treat the virus.
A study published in the New England Journal of Medicine last week reported a coronavirus patient in the United States was found to show an improvement after taking Remdesivir, which is also used to treat infectious diseases such as Ebola.
The Wuhan Institute of Virology did not respond to Reuters’ request for comment.
“Even if the Wuhan Institute’s application gets authorised, the role is very limited because Gilead still owns the fundamental patent of the drug,” said Zhao Youbin, a Shanghai-based intellectual property counsel at Purplevine IP Service Co.
“Any exploitation of the patent must seek approval from Gilead.”
Gilead did not immediately respond to request for comment but last week said it was working with China to test Remdesivir for use in a small number of patients with the coronavirus.
The application was submitted jointly with the Military Medicine Institute of the People’s Liberation Army Academy of Military Science, according to the Wuhan Institute of Virology.
Scientists from both institutes said in a paper published in Nature’s Cell Research on Tuesday that they found both Remdesivir and Chloroquine, which is used to treat malaria, to be an effective way to inhibit the coronavirus.
The Wuhan-based laboratory said in its statement that the patent application was filed on Jan. 21 and aimed at protecting China’s national interests. However, it said it would temporarily drop its patent claims if the opportunity arose to collaborate with foreign pharmaceutical firms to fight the epidemic.
A study published in the New England Journal of Medicine last week reported a coronavirus patient in the United States was found to show an improvement after taking Remdesivir, which is also used to treat infectious diseases such as Ebola.
The Wuhan Institute of Virology did not respond to Reuters’ request for comment.
“Even if the Wuhan Institute’s application gets authorised, the role is very limited because Gilead still owns the fundamental patent of the drug,” said Zhao Youbin, a Shanghai-based intellectual property counsel at Purplevine IP Service Co.
“Any exploitation of the patent must seek approval from Gilead.”
Gilead did not immediately respond to request for comment but last week said it was working with China to test Remdesivir for use in a small number of patients with the coronavirus.
The application was submitted jointly with the Military Medicine Institute of the People’s Liberation Army Academy of Military Science, according to the Wuhan Institute of Virology.
Scientists from both institutes said in a paper published in Nature’s Cell Research on Tuesday that they found both Remdesivir and Chloroquine, which is used to treat malaria, to be an effective way to inhibit the coronavirus.
The Wuhan-based laboratory said in its statement that the patent application was filed on Jan. 21 and aimed at protecting China’s national interests. However, it said it would temporarily drop its patent claims if the opportunity arose to collaborate with foreign pharmaceutical firms to fight the epidemic.
https://www.marketscreener.com/GILEAD-SCIENCES-4876/news/Gilead-Sciences-China-lab-seeks-patent-on-use-of-Gilead-s-coronavirus-treatment-29942995/
Stocks jump on media reports of drug breakthroughs for coronavirus – traders
European stocks jumped sharply on reports that a Chinese university found a drug to treat people with the new coronavirus and researchers in the UK saying they made a “significant breakthrough” in finding a vaccine, several London-based traders said.
A scientist leading UK’s research into a coronavirus vaccine told Sky https://bit.ly/3baZDMQ
news that his team have made a “significant breakthrough” by reducing a
part of the normal development time from two to three years to just 14
days.
Meanwhile, traders also cited a Chinese TV report that a research team at Zhejiang University has found an effective drug to treat people with the new coronavirus sharp for a rise in stocks.
Reuters has not verified those media reports, but several traders have attributed the sharp move in markets to the reports.
The benchmark pan-European STOXX 600 index, which started the day on the backfoot, reversed early losses and rose as much as 0.8% on day.
U.S. stock futures also turned positive, rising 0.5%.
“Equity markets in Europe have had a sharp turnaround on the back of unconfirmed reports,” said David Madden, market analyst at CMC Markets UK.
“Traders have taken the view that the situation is now more likely to be under control and hopefully the spread of the health crisis will be stemmed and it hopefully leads to a return to normality in China and around the world.”
In the forex market, riskier currencies including the Australian dollar <AUD=D3> climbed 0.3% at $0.6758. The Swedish crown <SEK=D3> hit a near two-week high at 9.56 crowns per dollar while the euro/Swiss franc <EURCHF=EBS> exchange rate, a barometer of risk sentiment, strengthened.
Meanwhile, traders also cited a Chinese TV report that a research team at Zhejiang University has found an effective drug to treat people with the new coronavirus sharp for a rise in stocks.
Reuters has not verified those media reports, but several traders have attributed the sharp move in markets to the reports.
The benchmark pan-European STOXX 600 index, which started the day on the backfoot, reversed early losses and rose as much as 0.8% on day.
U.S. stock futures also turned positive, rising 0.5%.
“Equity markets in Europe have had a sharp turnaround on the back of unconfirmed reports,” said David Madden, market analyst at CMC Markets UK.
“Traders have taken the view that the situation is now more likely to be under control and hopefully the spread of the health crisis will be stemmed and it hopefully leads to a return to normality in China and around the world.”
In the forex market, riskier currencies including the Australian dollar <AUD=D3> climbed 0.3% at $0.6758. The Swedish crown <SEK=D3> hit a near two-week high at 9.56 crowns per dollar while the euro/Swiss franc <EURCHF=EBS> exchange rate, a barometer of risk sentiment, strengthened.
https://www.marketscreener.com/STOXX-600-7477/news/Stocks-jump-on-media-reports-of-drug-breakthroughs-for-coronavirus-traders-29943570/?countview=0
Novo Nordisk reports Q4 results
Novo Nordisk (NYSE:NVO): Q4 GAAP EPS of DKK3.70.
Revenue of DKK32.42B (+9.0% Y/Y)
https://seekingalpha.com/news/3538380-novo-nordisk-reports-q4-results
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