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Monday, April 6, 2020

FDA authorizes the first Covid-19 antibody test

Cellex wins the race to get the FDA’s buy-in for a blood test to pinpoint immunity.
The FDA has granted emergency use authorisation to a steady stream of diagnostics for active Covid-19. On Thursday it also granted an EUA for a serological or antibody test, capable of identifying people who have had a previous coronavirus infection, and who are therefore likely to be immune to the disease.
Developed by Cellex, this immunoassay and others like it will be crucial in helping the US recover from the pandemic, since it will allow those with a positive result to go back to work. However, scale-up will be a major challenge for the small private company. More importantly it should be remembered that an emergency authorisation does not amount to a determination by the FDA that a test has been proven accurate.
Cellex’s submission for an EUA is intriguing since in March the FDA said antibody tests did not require this authorisation, and indeed at least one other is already in use in the US. The agency said serological assays may be used without its oversight, provided they are clinically validated and not used as the sole method to diagnose an infection. Cellex clearly thought it was worth getting authorisation anyway – perhaps for marketing purposes.
Cellex’s assay can detect IgM and IgG antibodies against the coronavirus in serum, plasma or whole blood – the latter will most often be used, in the form of a fingerstick. IgM antibodies to the coronavirus are generally detectable in the blood several days after initial infection, the FDA said, while IgG antibodies become detectable later, after the infection has cleared.
The company’s R&D labs are based in North Carolina, where it also has a manufacturing facility – but Cellex also has an FDA-compliant manufacturing site in Suzhou, China. The tests will actually be performed at the point of care.
Becton Dickinson is also selling a fingerstick antibody test in the US, though without an emergency authorisation. This test, which was developed by BD’s partner BioMedomics, will be available this month. BioMedomics claims sensitivity of 88.7% and specificity of 90.6% for the test. On April 2 BD received an EUA for a different test – one that picks up viral RNA in a sample taken from a patient’s nose or throat.
Capacity
One important question is whether these tests are reaching enough patients in the US. According to Leerink analysts, more than 1.7 million molecular diagnostics for the coronavirus have been performed in the country so far, with the number growing by around 100,000-120,000 per day. Consequently the number of confirmed cases has continued to rise: in New York, the positive rate is now 40%.
But the rate of expansion of viral RNA testing is slowing as Clia labs reach capacity. With the outbreak of Covid-19 in the US still far from levelling off, this will be a problem – and granting authorisation to more tests will not alleviate it. The availability of a new molecular test is unlikely to come alongside the opening of a new Clia facility.
Still, the availability of the serological tests is a positive, since they will take up little or no Clia lab space. Moreover, along with being able to return to work, people with proven immunity will be able to donate plasma to be processed into an emergency therapy for active Covid-19 patients.
But accuracy is the critical point. This has derailed efforts to launch antibody tests in the UK: the country’s health secretary Matt Hancock, admitted last week that several tests under investigation had failed to produce accurate results.
Leerink analysts write that tests with sensitivity and specificity of more than 95% would have “significant potential”. It is salutary that the BD test, one of the very few immunoassays for which accuracy figures have been revealed, does not meet this standard.
https://www.evaluate.com/vantage/articles/news/policy-and-regulation/fda-authorises-first-covid-19-antibody-test

Teva Shares Pricing In Too Much Risk – UBS

Teva Pharmaceutical Industries Ltd TEVA 5.95%, which is beset by fundamental and legal woes, is entering a recovery phase, according to UBS Securities.

The Teva Analyst

Analyst Kevin Caliendo upgraded Teva from Neutral to Buy and lowered the price target from $14 to $12.

The Teva Thesis

Teva shares have underperformed the broader market, which is overly discounting earnings, business disruption and credit risks, Caliendo said in a Monday upgrade note. (See his track record here.)
The analyst said he sees minimal near-term credit risk for Teva, even in the most stressed environment. The company closed refinancing for near-term expiries in the fourth quarter of 2019 at investment-grade terms, he said.
While noting that the company has access to over $3 billion in liquidity if needed, Caliendo said he believes its free cash flow will cover outstanding balances.
“Also, our research suggests TEVA’s supply chain exposure is manageable, with the biggest risk being if production of key pharmaceutical ingredients in China is halted for closer to ~1+ years vs the ~2 months experienced,” the analyst said.
UBS checks suggest production is back online in China and is ramping back toward normal utilization already, he said.
Taking a conservative stance, UBS lowered its peak estimate for migraine drug Ajovy by about 35%, citing disruption in marketing. The firm also sees risk to the current strong growth in the movement disorder drug Austedo.
UBS made a few estimate changes that left near-term EBITDA unchanged but lowered outyear estimates due to potentially longer growth path for new launches.
“We believe the market is currently pricing in significantly more risk than our estimates would suggest, creating a 3-1 risk-reward skew in the stock here,” Caliendo said.
https://www.benzinga.com/analyst-ratings/analyst-color/20/04/15748067/teva-analyst-says-shares-are-pricing-in-too-much-risk

EU privacy watchdog calls for pan-European mobile app for virus tracking

The European Data Protection Supervisor (EDPS) called on Monday for a pan-European mobile app to track the spread of the coronavirus instead of the current hodge-podge of apps used in various EU countries which could breach people’s privacy rights.
Faced with thousands of coronavirus-related deaths, governments across Europe have rolled out or plan to launch phone-tracking apps to trace people who came into contact with those infected and to monitor people under quarantine.
The measures have triggered criticism from data privacy activists, worried they may become permanent once the virus crisis is over.
EDPS said the use of temporary broadcast identifiers and bluetooth technology for contact tracing protected both privacy and personal data, but voiced concerns about the variety of apps sprouting up, noting that a pan-European approach would yield better results.
“Given these divergences, the European Data Protection Supervisor calls for a pan-European model COVID-19 mobile application, coordinated at EU level,” Wojciech Wiewiorowski, the head of the EU privacy watchdog, said in a statement.
“Ideally, coordination with the World Health Organization should also take place, to ensure data protection by design globally from the start,” he said.

Mobile apps currently being used include Poland’s Home Quarantine, targeting citizens returning from abroad, and Ireland’s voluntary phone-tracking app.
Telecoms providers including Vodafone, Deutsche Telekom and Orange have also agreed to share mobile phone location data with the European Commission to track the virus.
https://www.reuters.com/article/us-health-coronavirus-tech-privacy/eu-privacy-watchdog-calls-for-pan-european-mobile-app-for-virus-tracking-idUSKBN21O1KJ

CVS ramps up drive-through coronavirus testing sites with faster kits

CVS Health Corp (CVS.N), called on by the Trump administration last month to help test Americans for infections from the new coronavirus, said it was launching two offsite testing locations with Abbott Laboratories’ (ABT.N) faster diagnostic kit and would be able to handle 1,000 tests per day.
Testing for COVID-19, the serious respiratory illness cased by the new coronavirus, has been held back by a lack of test kits and other equipment. While more than 300,000 people in America have tested positive for the new coronavirus, officials believe a shortage of kits has undercounted cases.
Testing, including at drive-through sites like these, is also seen as a key component for U.S. workers and restarting the economy as most states have ordered many non-essential businesses to close.
Executives from Walmart Inc(WMT.N), Walgreens Boots Alliance Inc WBA.N and Target Corp (TGT.N) also said in March as part of the government announcement that they would start this testing.
In recent weeks, CVS and Walgreens had said that they each had a pilot site running.
CVS’ two new drive-through COVID-19 testing sites in Georgia and Rhode Island will use the new Abbott tests, which can work in 15 minutes, and that up to four more locations to follow.
“We want to get some experience under our belt with these sites and understand exactly sort of what the volume looks like,” CVS Chief Medical Officer Troy Brennan said in an interview.
Brennan said the company expects to announce a third testing site in a different state on Tuesday and could launch up to three more sites afterward.
Brennan said it was changing the pilot model it had tested – a single-lane drive-through in the parking lot of one of its stores. The new testing sites will be located at Georgia Tech university and the other will be in the parking lot of a casino in Rhode Island.
CVS will supply personnel from its MinuteClinic unit to oversee the testing. The states will provide security and protective equipment.

The testing is currently available at no cost to patients and is being paid for by the federal government, CVS said.
Walgreens said last week on a conference call with analysts that it had a pilot running in Chicago that was doing about 150 tests a day under the direction of the government. Target said in March that because CVS handled the pharmacy operations in its stores, it would partner with them to bring any sites online.
https://www.reuters.com/article/us-health-coronavirus-usa-tests/cvs-ramps-up-drive-through-coronavirus-testing-sites-with-faster-kits-idUSKBN21O1A4

Healthcare firms pile on initiatives as COVID-19 pandemic advances

Pfizer (PFE +1.9%) and The Pfizer Foundation commit to donate $40M in medical and charitable grants to help fight the pandemic in the U.S. and around the world.
CVS Health (CVS +1.7%) has opened drive-through testing sites in Georgia and Rhode Island.
OPKO Health (OPK +5.2%) unit BioReference Labs will continue to prioritize COVID-19 testing for hospitalized and critically-ill patients.
SmileDirectClub (SDC +3.5%) is opening its teledentistry platform to any dentist or orthodontist in the U.S. (includes a telehealth app with video and live chat).
Centene (CNC +4.8%) has established a Medical Reserve Leave policy to support clinical staff who what to join a medical reserve force to serve their communities during the pandemic.
Quotient Limited (QTNT +23.9%) has completed the development phase of a microarray-based SARS-CoV-2 antibody test for the automated MosaiQ system that can process up to 3,000 tests per day.
OncoSec Medical (ONCS -17.3%) announces that Providence Cancer Institute plans to launch a Phase 1 study of a COVID-19 vaccine called CORVax12 that consists of TAVO (interleukin-12 plasmid) and an immunogenic component of SARS-CoV-2 that the company in-licensed from NIH’s NIAID.
Mateon Therapeutics (OTCQB:MATN +21.4%) has delivered testing results to Golden Mountain Partners confirming the use of OT-101 to potentially treat COVID-19.
https://seekingalpha.com/news/3558642-healthcare-firms-pile-on-initiatives-covidminus-19-pandemic-advances

Inovio to start dosing patients in trial of DNA COVID-19 vaccine candidate

Inovio Pharmaceuticals Inc. INO, 4.636% is planning the first dosing of patients in a Phase 1 trial of its DNA vaccine candidate to treat COVID-19 on Monday, the company said in a statement. The vaccine, named INO-4800, has shown promising response in preclinical animal studies, the company said. The trial will involve up to 40 healthy volunteers at two trial locations in Phladelphia and Kansas City. Each participant will receive two doses four weeks apart, with data expected by late summer. The trial is being funded by the Coalition for Epidemic Preparedness Innovations (CEPI), an Oslo-based international organization. Inovio shares rose 7% premarket and have gained 135% in the year to date, while the S&P 500 SPX, 4.652% has fallen 23%.
https://www.marketwatch.com/story/inovio-pharmaceuticals-plans-first-dosing-of-patients-in-trial-of-dna-covid-19-vaccine-candiate-on-monday-2020-04-06

Cowen survey: Stores to reopen in June, Ulta, Planet Fitness to recover quickly

Three-quarters of investors who responded to a Cowen survey said they think stores will reopen in June. Once stores are back in operation, analysts forecast Ulta Beauty Inc. ulta and Planet Fitness Inc. plnt will recover quickly. “Ulta’s loyal customer base, 90% off-mall presence, and virtual try-on capabilities through augmented reality could collectively drive continued market share gains as consumers reorient shopping patterns through a socially distant lens,” analysts wrote. Cowen touts Planet Fitness’ “lean” business model and says the company will realize revenue when gyms reopen. Moreover, it will gain market share from financially struggling fitness chains that are at risk. Cowen analysts are cautious about the department store sector, including Macy’s Inc. m and and Kohl’s Corp. kss. Consumer Discretionary Select SPDR ETF xly has tumbled 17.4% over the last year while the S&P 500 index spx has fallen 10% for the period. Read: Macy’s, Kohl’s have about 5 months of cash available putting them at risk of extended closures, analysts say
https://www.marketwatch.com/story/cowen-survey-forecasts-stores-to-reopen-in-june-ulta-and-planet-fitness-will-recover-quickly-2020-04-06