Covid-19 disrupts supply chains at many companies, ISM says

Almost 75% of companies report supply chain disruptions in some capacity due to coronavirus-related transportation restrictions, says the Institute for Supply Management in the first-round results of a survey focused on Covid-19 business and supply chain impacts.

More than 80% of companies surveyed expect to experience impact from virus-related disruptions.

One in six companies have adjusted revenue targets down an average of 5.6% due to the outbreak.

Manufacturers in China report operating at 50% capacity with 56% of normal staff.

The survey of 628 respondents was conducted between Feb. 22 and March 5. ISM will conduct another round of data collection to continue to assess the coronavirus’s evolving global and regional supply chain implications.

“The story the data tells is that companies are faced with a lengthy recovery to normal operations in the wake of the virus outbreak,” said ISM CEO Thomas W. Derry.

https://seekingalpha.com/news/3550659-covidminus-19-disrupts-supply-chains-many-companies-ism-says

Cruise line group pitches tight restrictions

The Cruise Lines International Association submitted a plan to Vice President Mike Pence that included denying boarding to anyone over 70 years unless they are able to present a doctor’s note verifying their fitness for travel on a cruise ship.

In addition, any person with a chronic medical condition who could be at an increased risk if they were to contract COVID-19 would also be denied boarding.

Pence says the administration will be reviewing the proposal.

Royal Caribbean (RCL -18%), Carnival (CCL -11.9%) and Norwegian Cruise Line Holdings (NCLH -20.1%) are all sitting pretty close to their multi-year lows.

https://seekingalpha.com/news/3550657-cruise-line-group-pitches-tight-restrictions

Industry proposes some people over 70 be barred from boarding cruises

A proposal submitted by a cruise industry body to the White House on Tuesday seeks to deny cruise boarding to people over 70, unless they present a fitness note from a doctor, USA Today reported on Wednesday.
Cruise operators are among the worst hit by the coronavirus epidemic, as travel restrictions due to fears of the virus spreading have led to cancellations of trips.
Vice President Michael Pence said at a briefing on Tuesday night that the proposal from the Trade organization Cruise Lines International Association (CLIA) would be reviewed in the next 24 hours, according to the report.

Last week, Pence had said elderly people should use “common sense and caution” when planning a trip on a cruise ship.
The proposal also suggests that Japan and Italy be added to the list of countries whereby passengers and crew will be denied boarding if they have traveled there within 14 days prior to embarkation, the report said.
CLIA did not immediately respond to a Reuters request for comment.
https://www.reuters.com/article/us-health-coronavirus-cruiseship/industry-proposes-some-people-over-70-be-barred-from-boarding-cruises-usa-today-idUSKBN20Y2ZR?il=0

India cancels most visas, closes Myanmar border, as Covid-19 cases rise

India said on Wednesday it will suspend the vast majority of visas to the country in a wide-reaching attempt to prevent the spread of coronavirus, as cases across the region continued to rise.

The virus has hit Europe and the United States far harder than China’s most immediate neighbors in South Asia, where no one has yet died. But as the number of cases in the region topped 80, experts fear that its overstretched medical systems may not be able to handle the type of intensive care required.
“All existing visas, except diplomatic, official, U.N./international organizations, employment, project visas, stand suspended till 15th April 2020,” India’s Health Ministry said in a statement.
Millions of foreign nationals of Indian origin, who are traditionally granted visa-free access, will now also need to apply, the order read.
The new measures will come into effect from 1200 GMT on March 13.
The advisory said anyone with a “compelling reason” to travel to the country could contact their nearest Indian mission. It also urged Indian nationals to avoid all non-essential travel abroad, in one of the most far-reaching advisories since the outbreak began in late December.
Spokespeople for India’s Health and Foreign Ministries did not respond to requests for comment.
On Tuesday India suspended issuing visas to citizens of France, Spain and Germany until further notice. Such restrictions were already in place for citizens of China, Italy, Iran, Japan and South Korea – the five countries worst hit by the outbreak of the virus.
National airline Air India said on Wednesday it was suspending flights to Italy and South Korea until March 28 and March 25 respectively.
India has also closed a border with neighboring Myanmar to counter the outbreak, as countries across South Asia reported a rise in cases. No cases have so far been confirmed in Myanmar.
“As a precautionary measure (to prevent) transmission of coronavirus/COVID-19, the international border with Myanmar has been closed … until further orders,” N. Biren Singh, chief minister of the northeastern state of Manipur, which shares a border with Myanmar, said in a tweet on Tuesday.
Total cases in the country rose to 68 on Wednesday, according to data from the federal heath ministry and the chief minister of Maharashtra state.
The country’s southern state of Kerala, which reported three new cases over the weekend, said on Tuesday it was shutting schools and movie theaters to avoid a further outbreak. Schools in at least two more states have also been closed.
In Afghanistan, the number of confirmed cases rose to seven from four, the health ministry said on Wednesday.

Bangladesh’s High Court has directed the government to take measures to curb the soaring prices of masks and sanitizers, after it reported its first three cases of the virus on Sunday.
Two of those cases have since tested negative.
https://www.reuters.com/article/us-health-coronavirus-southasia/india-cancels-almost-all-visas-closes-myanmar-border-as-regional-coronavirus-cases-rise-idUSKBN20Y16B?il=0

FDA approves Bristol Myers’ liver cancer therapy

Bristol Myers Squibb’s combination of its immunotherapies, Opdivo and Yervoy, to treat a type of liver cancer received U.S. regulatory approval, the drugmaker said on Wednesday.
The therapy received the Food and Drug Administration’s accelerated approval to treat patients with hepatocellular carcinoma, who have previously been administered sorafenib, the current standard of care. (reut.rs/2xoHuvv)
The accelerated approval program allows a speedier market entry to medicines that fill an unmet medical need for a serious condition, and further clinical trials may be required for final approval of the therapy.
The FDA approval is based on an early stage trial in which 33% of patients responded to the therapy.

“The incidence of liver cancer is rising in the United States…and today’s approval provides a new option for patients with HCC (hepatocellular carcinoma),” said Andrea Wilson, president Blue Faery: The Adrienne Wilson Liver Cancer Association.
HCC is the most common type of primary liver cancer and is more common in people who drink large amounts of alcohol and who have an accumulation of fat in the liver.
https://www.reuters.com/article/us-bristol-myers-fda/fda-approves-bristol-myers-liver-cancer-therapy-idUSKBN20Y1JT

U.S. aims at high insulin prices with plan for $35 copay in Medicare

The Trump administration on Wednesday turned back to its pledge to fight high U.S. drug prices with a plan to limit the out-of-pocket cost for insulin, a life-saving medicine, to $35 per month for many people with diabetes who are enrolled in Medicare.
The Center for Medicare and Medicaid Services, part of the U.S. Department of Health and Human Services, is lining up drug makers and the private insurers who manage Medicare drug benefits to volunteer to test out the new pricing in 2021. Medicare drug plans cover about 46 million people aged 65 and older and with disabilities.
The program would create a flat monthly copayment rate of $35 for most types of insulin. Currently, beneficiaries typically shoulder all or a percentage of the cost of their medicines until they pass a maximum spending amount and become fully covered.
President Donald Trump promised early in his presidency to cut prices of drugs but has been unable to implement his proposals, such as lowering U.S. drug prices to the levels foreign countries pay.
Members of Congress who had been working on bipartisan drug pricing legislation last fall ahead of presidential impeachment hearings have also taken up the issue again and on Tuesday, Trump sent members a list of drug pricing requests.
CMS Administrator Seema Verma said in an interview that the Trump administration hopes to expand the initiative to other drugs if it is successful for insulin. It started with insulin because of price increases and complaints from beneficiaries about the cost, she said.
About 1.2 million Medicare beneficiaries could benefit if they enroll in plans offering these copays, she said.
On average, people enrolled in the federal healthcare program pay about $675 per year for insulin, while this program could lower that to $229 per year, CMS said. The model would apply to a portion of Medicare plans that fall into the category of “enhanced” plans, which represents the majority of plans.
Insulin is made largely by three companies: Eli Lilly and Co, Novo Nordisk A/S and Sanofi SA. Both they and health insurers have begun offering discounted insulin.

The administration said it would provide a list of which insulin makers are participating within 10 days to the private insurers who decide to participate.
The government program would increase the amount of money that the drug industry puts into the Medicare program during a coverage gap period, often called the “doughnut hole.” As beneficiaries spend less money out-of-pocket, it will delay them reaching the catastrophic coverage point when the government picks up all drug costs, CMS said.
CMS said that could save the federal government $250 million over 5 years as drug companies pay more. Premiums for the Medicare Advantage and Medicare Part D prescription plans that offer the set price for insulin could rise about $1 per month, Verma said.
https://www.reuters.com/article/us-usa-healthcare-insulin/u-s-government-aims-at-high-insulin-prices-with-plan-for-35-copay-in-medicare-idUSKBN20Y1WG

Lilly to participate in new Medicare model to cut out-of-pocket insulin costs

Eli Lilly (LLY -1.3%) announces that it will participate in a new Part D Senior Savings Model from the U.S. Centers for Medicare & Medicaid Services (CMS) designed to lower beneficiaries’ out-of-pocket costs for insulin.

The model, slated to go into effect January 1, 2021, will reduce the current $100 per prescription patient cost to no more than $35 per 30-day supply during their deductible phase, initial coverage and while they are in the coverage gap (doughnut hole). Seniors who need insulin who enroll in a plan participating in the model should save an average of $446 in annual out-of-pocket costs.

Current law prohibits insulin makers from providing co-pay assistance to Part D participants.

https://seekingalpha.com/news/3550626-lilly-to-participate-in-new-medicare-model-lowering-out-of-pocket-insulin-costs