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Wednesday, March 11, 2020

Novavax Soars on Strong Q4 Revenue Beat

Novavax (NASDAQ:NVAX) earnings for fiscal fourth quarter of 2019 have NVAX stock heading higher after-hours Wednesday. This is despite its diluted losses per share of -$1.13 missing Wall Street’s estimate of -$1.06. The vaccine company’s revenue of $8.82 million, on the other hand, easily beats out analysts’ estimates of $2.06 million.

  • Diluted per-share losses are 56.03% better than the -$2.57 from the fiscal fourth quarter of 2018.
  • Revenue for the quarter is 43.88% higher than the $6.13 million reported in the same period of the year prior.
  • Operating loss of -$28.71 million is a 38.27% improvement year-over-year from -$46.51 million.
  • The Novavax earnings report also includes a net loss of -$31.83 million, 35.48% better than the -$49.33 million reported during the same time last year.
Novavax Earnings: NVAX Stock Soars 8% on Strong Q4 Revenue Beat

Quorum crashes as KKR says talks now focused on reorganization

Shares of Quorum Health cratered Wednesday, losing more than half of their value, after investment firm Kohlberg Kravis Roberts said talks with the hospital operator have turned to exploring “a reorganization […] in which no assurances can be given that holders of […] common stock will receive any consideration.”
Fund managers under the KKR umbrella in December told the leaders of Brentwood-based Quorum they were willing to lead a recapitalization that would restructure the company’s big debt load and pay shareholders $1 per share. On Tuesday, KKR said such a buyout now looks to be off the table and that, if there is to be a deal, it will likely come with little or nothing for equity investors.
In a statement, Quorum executives said they continue to have “constructive discussions” with KKR and other debt and equity holders about restructuring the company’s finances, which have been weighed down by a $1.2 billion debt load for years.
“Our objective is to reach a consensual agreement that enables us to reduce debt and annual interest expense and enhance our ability to maximize value and invest in future growth,” the company said in an email statement. “We fully expect our hospitals and affiliates to continue normal operations throughout this process, and we remain focused on providing outstanding care and support to patients in the communities we serve.”
At about 1:30 p.m. Central, Quorum shares (Ticker: QHC) were trading at about 47 cents, down 57 percent from their Tuesday close. Volume was massive: More than 3 million shares had already traded versus a daily average of about 135,000.
KKR owns about 9 percent of the equity as well as about $280 million of the debt of Quorum, which was spun out of Community Health Systems with 38 hospitals in the spring of 2016. Another New York-based investor, York Capital Management, last September said it, too, wants big changes at the local company, which now owns 24 health centers.
https://www.nashvillepost.com/business/health-care/article/21121401/quorum-crashes-as-kkr-says-talks-now-focused-on-reorganization

Rush to test Covid-19 vaccine in people without knowing how it works in animals

As they race to test an experimental coronavirus vaccine, researchers aren’t waiting to see how well it prevents infection in animals before trying it in people, breaking from the usual protocol.
“I don’t think proving this in an animal model is on the critical path to getting this to a clinical trial,” said Tal Zaks, chief medical officer at Moderna, a Cambridge, Mass.-based biotech that has produced a Covid-19 vaccine candidate at record speed. He told STAT that scientists at the National Institutes of Health are “working on non-clinical research in parallel.” Meanwhile, the clinical trial started recruiting healthy participants in the first week of March.
That isn’t how vaccine testing normally happens. Regulators require that a manufacturer show a product is safe before it goes into people, and while it isn’t enshrined in law, researchers almost always check that a new concoction is effective in lab animals before putting human volunteers at potential risk.
“This is very unusual,” explained Akiko Iwasaki, a Yale University microbiologist who studies the immune response to viruses. “It reflects the urgency to develop vaccines to counter the Covid-19 pandemic.”
To some, the sweep of outbreak is emergency enough to justify simultaneously working on steps that would normally be done sequentially. To others, jumbling the order of the recipe seems morally questionable, because there could potentially be unknown hazards and it’s unclear how effective this particular formulation is.
“The traditional vaccine timeline is 15 to 20 years. That would not be acceptable here,” said Mark Feinberg, president and CEO of the International AIDS Vaccine Initiative, whose work as chief public health and science officer at Merck Vaccines was instrumental in the development of the immunization against Ebola. “When you hear predictions about it taking at best a year or a year and a half to have a vaccine available … there’s no way to come close to those timelines unless we take new approaches.”
He knows that it’s important to see how well a new vaccine can stop infection in animals, but to him, given the current emergency, it makes sense to start human safety testing before those studies are finished. “I personally think that’s not only appropriate; I think that’s the only option we have,” Feinberg went on.
Yet ethicists aren’t so sure that the eventual benefits of rushing this unproven vaccine into clinical trials will outweigh the risks. “Outbreaks and national emergencies often create pressure to suspend rights, standards and/or normal rules of ethical conduct. Often our decision to do so seems unwise in retrospect,” wrote Jonathan Kimmelman, director of McGill University’s biomedical ethics unit, in an email to STAT.
The question is complicated by the newness of the science at play. The technology that has allowed Moderna to craft an experimental vaccine so fast has not yielded a single immunization that’s made it to market so far. It’s a trendy idea: Instead of injecting people with a weakened pathogen or proteins from the surface of a pathogen, so that our bodies will learn to fight off such infections in the future, scientists are betting on a kind of genetic hack, a lab-made concoction that gets the body to produce its own virus-like bits which it will then train itself to combat.
At the center of it all is a molecule called messenger RNA, or mRNA. Inside of us, its normal function is to transmit the instructions contained within our DNA to the cellular protein-making factories that carry them out. In Moderna’s recipe, the mRNA is synthetic, programmed with the goal of getting our inner machinery to produce certain coronavirus-like proteins — the very proteins that the pathogen uses to gain entry into our cells. Once those homemade dummy virus particles are there, the thinking goes, our bodies will learn to recognize and clobber the real thing.
The method’s greatest advantage is its speed. The virus behind the outbreak that began in Wuhan, China, was identified on January 7. Less than a week later — on January 13 — researchers at Moderna and NIH had a proposed sequence for an mRNA vaccine against it, and, as the company wrote in government documents, “we mobilized toward clinical manufacture.” By February 24, the team was shipping vials from a plant in Norwood, Mass., to the National Institute of Allergy and Infectious Diseases, in Bethesda, Md., for a planned clinical trial to test its safety.
Though sponsored by the NIAID, the first-in-human experiment is taking place in Seattle, at the Kaiser Permanente Washington Health Research Institute. Researchers began recruiting healthy volunteers in early March. Their plan is to enroll 45 people between 18 and 55, who will get two shots of Moderna’s investigational vaccine, about a month apart. For their trouble, participants will get $100 for each in-person study visit, for a total of $1,100.
That doesn’t mean the scientists have sped past animal testing entirely. Virologists at NIAID tried the new vaccine on run-of-the-mill lab mice, the institute told STAT by email, on the same day that the trial began enrolling participants. Barney Graham, director of NIAID’s vaccine research center, later added that those mice showed the same sort of immune response generated by a similar mRNA vaccine against MERS, another coronavirus. “That level of immune response was sufficient to protect mice from MERS CoV infection,” Graham wrote.
The trouble is, your average lab mouse doesn’t seem susceptible to the new virus. While the bug behind Covid-19 has no trouble co-opting molecules on human cells to get inside and start multiplying, it isn’t so good at latching onto the mouse equivalent. Although Graham can say the response produced in everyday mice looks similar to one that helped mice combat the virus in their bodies when infected with MERS, he can’t yet say the same thing for the new coronavirus, because the mice susceptible to this pathogen aren’t ready yet.
These pathogen-susceptible rodents were specially engineered in the wake of another coronavirus outbreak: SARS, in the early 2000s. To make them easier to infect, scientists adorned their cells with the human molecule that allows certain coronaviruses to slip inside. But when coronavirus research slowed between outbreaks, scientists couldn’t justify the expense of keeping many of them; so while these mice seem to be susceptible to the new virus, too, there aren’t currently enough for experiments to start.
“Those mice in the U.S. are being bred so that the colony can be enlarged,” explained Graham, adding, that they “will be available for experiments within the next few weeks.”
The researchers have not said outright that they’ll start dosing humans before they have results showing how well the vaccine works in virus-susceptible animals, but when asked whether they would, Graham replied, “Safety and product integrity are the primary criteria for starting a Phase 1 trial and mRNA has now been used in several clinical trials and shown to be safe and well tolerated.”
Kaiser Permanente did not reply to STAT’s request for the informed consent form that trial participants are signing, which is supposed to describe the risks they will face, and like Moderna, referred all questions about preclinical testing for this vaccine to NIAID.
To Holly Fernandez Lynch, assistant professor of medical ethics at the University of Pennsylvania, starting human experiments before finishing all of the usual animal testing first raises a serious question. “We may not be able to minimize the risks as much as we would hope to, because we have the time pressure of the outbreak,” she said. “Are the remaining risks acceptable in relation to the benefits of the research?”
The potential benefits are to have a vaccine against Covid-19 ready for general use as soon as possible. That won’t happen for a year at least. That timeline, Lynch went on, is “insanely fast,” but it probably won’t be fast enough to help slow the current outbreak.
If this research meant a vaccine might be ready by this June, she said, people would probably be all for it in spite of the cut corners. “If we’re talking about us getting a vaccine in June of 2021 rather than March of 2021, that’s a much more uncertain scenario,” she said. “We shouldn’t delude ourselves into thinking that skipping over steps is going to get a vaccine into our hands by next week or next month.”
Even if researchers decide it’s worth forging ahead and testing a new vaccine’s safety in people while still figuring out whether it works to prevent infections in susceptible animals, they need to be ready to stop the human trial if the results don’t look good in mice, said Karen Maschke, a scholar at the Hastings Center, a non-partisan think tank in Garrison, N.Y., and the editor of the journal Ethics & Human Research — whether that’s because there are bad side effects or simply because the immunization doesn’t work.
“There’s no reason to put people at risk in a study if there’s no efficacy,” she said, “even if it’s just the burden of being in a study. You don’t burden people to be in a study if the intervention is not going to help.”
Then again, she pointed out, animal studies are often lousy predictors of what will be effective in people.
Moderna itself acknowledges that the task is daunting, and this effort might not succeed. “We have not previously tested our rapid response capability and may be unable to produce a vaccine that successfully treats the virus in a timely manner, if at all,” the company wrote in a document filed with the Securities and Exchange Commission.
What the company doesn’t say is that it has not yet brought a single product to market, even in non-emergency times. The majority of candidate vaccines fail. If against all odds, this rushed project does work out, then the company needs to be extra careful about monitoring what happens to those people who get it, said Arthur Caplan, head of medical ethics at New York University’s Grossman School of Medicine. “The more you speed it up … the greater the obligation you have to track what’s going on when you get it out into the real world.”
He doesn’t see it as inherently unethical for animal efficacy studies and human safety studies to happen at the same time, though he said vaccine skeptics might use this as fodder.
To vaccine-makers, though, Covid-19 may well simply be a test case for other outbreaks to come. As Feinberg, of the International AIDS Vaccine Initiative put it, “This is a world where we’re going to see infectious diseases we’ve never seen before, and we need to get really good at developing vaccines against them quickly.”
Researchers rush to test coronavirus vaccine in people without knowing how well it works in animals

CME Group will close trading floor until further notice amid coronavirus

Chicago-based exchange CME Group Inc., CME, -5.95% said on Wednesday that it will close its trading floor at the end of the week, as fear of the spread of COVID-19 grips financial markets. The trading floor will be closed as of March 13 until further notice, according to a spokeswoman, who said that the exchange platform was taking extra precautions with its staff as the infectious disease that was first identified in Wuhan, China has spread to more than 100 countries in the past three months and infected more than 124,000 people, according to data compiled by Johns Hopkins University. Trading on the world’s largest exchange operator by market capitalization, which handles trading in futures contracts like gold GCJ20, -0.39% and other commodities will be handled electronic via a system know as Globex. It was not clear if that would then result in no settlements for derivatives and futures like gold, which use human traders to “settle” at the end of each session. The CME Group said that no coronavirus cases had been reported on its trading floor or in the Chicago Board of Trade building. “The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available,” said in a statement. CME Group’s market capitalization was $69.7 billion as of the close of trading Wednesday. Shares of the exchange operator ended the session down nearly 6%. By comparison, the Dow Jones Industrial Average DJIA, -5.85% finished Wednesday trade off 5.9% and fell into a bear market, widely defined as a fall from a recent peak of at least 20%. The S&P 500 index SPX, -4.88% also closed off sharply, down 4.9%, in a broad market selloff partially prompted by intensifying concerns about the viral outbreak that was declared a pandemic earlier Wednesday by the World Health Organization.
https://www.marketwatch.com/story/cme-group-will-close-trading-floor-until-further-notice-amid-coronavirus-outbreak-2020-03-11

NBA suspends season after Utah Jazz player tests positive for coronavirus

The National Basketball Association has suspended its season following a Utah Jazz player testing positive for COVID-19 coronavirus, the league announced Wednesday night.
Here’s the full statement from the NBA:
“The NBA announced that a player on the Utah Jazz has preliminarily tested positive for COVID-19. The test result was reported shortly prior to the tip-off of tonight’s game between the Jazz and Oklahoma City Thunder at Chesapeake Energy Arena. At that time, tonight’s game was canceled. The affected player was not in the arena. The NBA is suspending game play following the conclusion of tonight’s schedule of games until further notice. The NBA will use this hiatus to determine next steps for moving forward in regard to the coronavirus pandemic.”
The league made the decision after delaying an in-session event between the Oklahoma City Thunder and Jazz. The game was eventually canceled after officials became aware of the positive test.
According to the official NBA injury report, Jazz players Rudy Gobert and Emmanuel Mudiay are both listed out for the game due to “illness.” The NBA’s statement did not confirm whether or not Gobert or Mudiay tested positive for COVID-19.
An official got on the PA system, telling spectators to leave “due to unforeseen circumstances” before commenting, “you are all safe,” and asking those in attendance to exit Chesapeake Energy Arena “in a orderly fashion.”
The NBA’s announcement Wednesday night was just the latest in a string of recent coronavirus-related shocks to the sports world.
Earlier on Wednesday, the Golden State Warriors announced fans would not be allowed to attend its next home game after San Francisco Mayor London Breed banned all events with more than 1,000 people in the city.
The NCAA also announced on Wednesday that the men’s and women’s college basketball tournaments would play in empty stadiums. Only team staff and family would be allowed to attend games.
https://www.cnbc.com/2020/03/12/coronavirus-nba-suspends-season-after-player-tests-positive.html

Trump suspends travel from Europe, to defer some tax payments

In an address to the nation from the Oval Office, President Trump said he’s suspending all travel from Europe for the next 30 days in an effort to slow the spread of the coronavirus.
S&P 500 futures fall 2.1%, Dow futures fall 2.3%, Nadaq future slip 2.0%.
The travel restrictions won’t apply to the U.K.
He’s also taking emergency action to provide relief, which will be targeted for workers who are ill or taking care of someone who’s ill.
Instructs Small Business Administration to provide capital liquidity, low-interest loans to businesses affected;will ask Congress to increase funding to the SBA by $50B.
instructs Treasury to defer tax payments for some individuals and business, providing $200B in additional liquidity.
Calls on Congress for immediate payroll tax relief.
“No nation is more prepared or more resilient than the United States,” he said.
https://seekingalpha.com/news/3550824-trump-suspends-travel-from-europe-to-defer-tax-payments

Conferences go online

The Conference on Retroviruses and Opportunistic Infections, or CROI, is being moved online, in place of its original venue in Boston. It will be happening March 8-11.
The investment bank Barclays is moving its conference for health care investors online. The event had originally been scheduled for March 10-12 in Miami.
The Cognitive Neuroscience Society, or CNS, is moving its annual meeting online. The gathering was supposed to have happened in Boston in March 14-17.
Bio-Europe Spring, which had been planned to be held in Paris, is being moved online. It is set to happen March 23-27.
The startup accelerator Y Combinator’s biannual Demo Day, scheduled for March 23, is being moved online. The event is typically held in person in San Francisco. It’s a chance for Y Combinator’s latest batch of 250 startups — an increasing number of which are working in biology — to make their pitch to investors.
STAT’s guide to health care conferences disrupted by the coronavirus crisis