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Friday, February 7, 2020

Benitec Biopharma up 87% on potential U.S. domicile

Ultra-thinly traded nano cap Benitec Biopharma Ltd. (BNTC +87%) rockets up on a healthy 40x surge in volume, albeit on turnover of only 884K shares, in apparent reaction to its disclosure that it may re-domicile from Australia to the U.S.
The Supreme Court of Queensland has ordered the company to convene a meeting of shareholders on Thursday, March 26, to approve an arrangement whereby a newly formed U.S. corporation will become the parent company of the Benitec group. If implemented, Benitec shareholders will receive 1 common share of the U.S. parent company for every 300 Bentic shares owned.
https://seekingalpha.com/news/3539741-benitec-biopharma-up-87-on-potential-u-s-domicile

Meridian Bioscience EPS beats by $0.04, misses on revenue

Meridian Bioscience (NASDAQ:VIVO): Q1 Non-GAAP EPS of $0.10 beats by $0.04; GAAP EPS of $0.07 beats by $0.01.
Revenue of $47.42M (-7.9% Y/Y) misses by $1.29M.
https://seekingalpha.com/news/3539650-meridian-bioscience-eps-beats-0_04-misses-on-revenue

Myriad Genetics slips after weak FQ2 and guidance cut

Myriad Genetics (MYGN) fiscal Q2 results:
Revenues: $195.1M (-10.0%); Molecular diagnostic testing: $181.1M (-10.8%); Pharmaceutical and clinical services: $14M (+1.4%).
Revenue in Q2 fell short of expectations largely due to the prenatal business.
Net loss: ($8.3M); loss/share: ($0.11); non-GAAP Net Income: $17.6M (-39.7%); non-GAAP EPS: $0.23 (-39.5%).
CF Ops: $13.9M (-69.5%).
Fiscal Q3 guidance: Revenue: $172M vs. $201.44 mln S&P Capital IQ Consensus; EPS: ($0.30); non-GAAP EPS: $0.02 vs. $0.29 S&P Capital IQ Consensus.
Fiscal 2020 guidance: Revenue: $735M from $800M – 810M, ($807.66M S&P Capital IQ Consensus); EPS: ($0.80) from ($0.25 – 0.15); non-GAAP EPS: $0.45 from $1.00 – 1.10, ( $1.02 S&P Capital IQ Consensus).
Shares are down 27% premarket.
https://seekingalpha.com/news/3539659-myriad-genetics-slips-27-premarket-after-weak-fq2-and-guidance-cut

Ocular Therapeutix up on encouraging OTX-TIC data

Ocular Therapeutix (NASDAQ:OCUL) announces positive results from a Phase 1 clinical trial evaluating a single insertion of OTX-TIC in patients with primary open-angle glaucoma or ocular hypertension. The data are being presented at the Glaucoma 360 conference in San Francisco.
Results from the first two fully enrolled cohorts (n=5 and n=4, respectively) showed decreased average intraocular pressure (IOP) values that were sustained through the study period and beyond (18 months in one participant).
No serious adverse events were reported.
OTX-TIC is a bioresorbable implant containing micronized travoprost that is injected into the anterior chamber of the eye, releasing the drug over a four-to-six-month timeframe.
https://seekingalpha.com/news/3539669-ocular-therapeutix-up-11-premarket-on-encouraging-otx-tic-data

iPhone Maker Foxconn Makes Masks For Chinese Employees

Electronics manufacturer Hon Hai Precision Co. Ltd. HNHPF, better known as Foxconn, is making its own line of surgical masks as it seeks to restart production in China.

What Happened

Foxconn has been running test production of the masks at its Lunghua manufacturing centre since February 5, it said in a WeChat post Thursday, according to the Nikkei Asian Review.
The manufacturing giant now awaits quality approval as it plans to produce up to 2 million units per day by the end of this month, the Nikkei noted.
The masks would initially be made available for Foxconn employees, but it didn’t rule out exporting them at a later stage.
Chinese authorities are requiring businesses to guarantee that they have enough protective gear for workers before they can restart production as the novel coronavirus continues to spread, a person familiar with the matter told the Nikkei.
Foxconn is taking “many proactive measures,” including making the masks, to make a convincing case, the source said.
The company is also asking hundreds of its Taiwanese employees to return to work in China before February 10, who left for the Lunar New Year holiday, but stayed longer due to the outbreak, the Nikkei reported.
Taiwan has banned all travel from mainland China and advised its citizens not to travel to China.
Foxconn is asking employees to sign “self-declaration forms” before their travel, that asks them to tick boxes saying they have completed a prevention training session and that their family agrees with them taking the trip, internal documents by the Nikkei showed.

Why It Matters

Foxconn is best known for manufacturing Apple Inc. AAPL products including the iPhone and the iPad, but also makes products for other tech companies worldwide.
Some of the other products manufactured by Foxconn including Amazon.com Inc.’s AMZN Kindle, Nintendo Co., Ltd.’s NTDOY 3DS model, and Microsoft Corporation’s MSFT PlayStation devices.
Foxconn halting production means not just loss of business for the company, but impacts all its partners.
At the same time, the coronavirus continues to spread with 31, 161 confirmed cases and at least 636 deaths reported.
The restarting of production puts employees at the risk of getting infected, while they’re saying that they don’t have a choice when it comes to getting back at work.
“Who dares not to sign this form? I feel like I am being forced to return to an epidemic area and risk my own health,” a Foxconn employee told the Nikkei.
Apple and Foxconn were previously found to be in violation of the Chinese labor laws at the latter’s Zhengzhou factory August last year, the Business Insider reported.
https://www.benzinga.com/news/20/02/15276500/iphone-maker-foxconn-makes-masks-for-chinese-employees-forces-them-to-return-to-work

Chinese President Xi Jinping Calls Trump As Coronavirus Worries Escalate

The President of China Xi Jinping assured President Trump in a phone call that China has been doing all it could to contain the coronavirus epidemic that has killed nearly 640 people.

What Happened

Xi called Trump on Friday and claimed that China was “fully confident and capable” of defeating the coronavirus epidemic. According to Reuters, the Chinese president has declared a ‘people’s war’ on the epidemic and said that China would respond with all its strength and the most thorough and strict prevent and control measures.
The statement comes after Li Wenliang, an ophthalmologist who broke the news of coronavirus on social media, passed away. Li, 34, received a rebuke and admonishment from Wuhan’s police, who labeled him as a rumormonger. The death of the whistleblower doctor has fuelled public anger about how China responded to the disease in its initial phase.

Why It Matters

China has been grappling with the spread of the coronavirus epidemic as Beijing begins to resemble a ghost town. Twenty four provinces, municipalities, and regions in China have instructed businesses not to resume work before Feb. 10. Meanwhile, Hubei, the province at the epicenter of the disease, will remain closed down till Feb.14.
Barron’s reports that Hubei is an important hub for the automobile industry, there are over 70 supplier plants in the province. Automakers that would be affected, among others, include Honda Motor Co Ltd HNDAF and General Motors Company GM.
The impact on automotive supply chains is already making an international impact with Hyundai Motor Co HYMTF shutting down its factories in South Korea temporarily, while US and EU carmakers are only weeks away from parts shortages.
https://www.benzinga.com/government/20/02/15276860/chinese-president-xi-jinping-calls-trump-as-coronavirus-worries-escalate

AbbVie EPS beats by $0.02, beats on revenue

AbbVie (NYSE:ABBV): Q4 Non-GAAP EPS of $2.21 beats by $0.02; GAAP EPS of $1.88 beats by $0.05.
Revenue of $8.7B (+4.7% Y/Y) beats by $20M.
Shares +1.54% PM.
https://seekingalpha.com/news/3539653-abbvie-eps-beats-0_02-beats-on-revenue