Puerto Rico eyes becoming manufacturing center for US products

The Financial Oversight and Management Board for Puerto Rico (Oversight Board) sent a letter to President Trump asking for Puerto Rico to play “a leading role” in the increased manufacture of American pharmaceuticals. The Oversight Board’s message was prompted by public dialogue about potential policy changes that would redirect the manufacturing of pharmaceutical and medical products to the United States.

According to the Oversight Board, Puerto Rico is a major center for pharmaceutical and medical device manufacturing, as “8% of pharmaceutical expenditures by Americans are for products manufactured in Puerto Rico.” The Oversight Board said the Puerto Rico pharmaceutical manufacturing sector has highly skilled employees, as well as the benefits of Puerto Rico being fully within the customs territory of the United States and having its manufacturing subject to FDA and other federal agency oversight.

The Oversight Board’s missive comes as the effects of COVID-19 are being felt around the world and various media outlets have been reporting on the notion that Puerto Rico could be a destination for the relocation of manufacturing activity to the United States. The letter calls for proactive dialogue between the government of Puerto Rico and federal policy makers to find mutually acceptable solutions. At this stage, it is too early to tell what effect, if any, the Oversight Board’s position will have on policy changes that may come about in this space. In any event, policy discussions around this area need to be closely monitored by all stakeholders.

https://taxnews.ey.com/news/2020-0715-puerto-rico-oversight-board-wants-the-commonwealth-to-become-manufacturing-center-of-us-products

KY puts ankle monitors on coronavirus patients who ignore self-isolation order

Kentucky courts have ordered several coronavirus patients to wear GPS ankle monitors after they refused to stay at home.
Judges have ordered people who have tested positive or are suspected of having the virus to self-isolate, and those who ignore the mandate may be placed on house arrest, according to the Louisville Courier-Journal.
As of Thursday evening, the fourth and most recent person ordered to wear a GPS monitor is a man who hadn’t tested positive for coronavirus, but lives with a confirmed case and refused to sign a quarantine order, according to the Courier-Journal. The man’s sister allegedly told health officials he “leaves the home often.”
Another patient in Jefferson County who tested positive for coronavirus was placed on house arrest after going shopping March 21, court documents revealed.
Under state law, officials with Louisville’s public health department have the power to issue an “order of isolation,” which is then presented to a judge for approval.
WCNC reported that corrections officers have been asked to distribute the GPS monitoring equipment to those who do not follow the order.

Kentucky is putting ankle monitors on coronavirus patients who ignore self-isolation order

Sangamo closes gene therapy deal with Biogen; shares up

Sangamo Therapeutics (NASDAQ:SGMO) has closed its sale of stock to Biogen (NASDAQ:BIIB). The company’s global licensing collaboration with Biogen for gene regulation therapies in neurology is also now effective.

Under the terms of agreement, Sangamo has received $225M in stock proceeds and will receive an upfront license fee of $125M no later than May 8.

Additionally, SGMO is eligible to earn up to $2.37B in milestone payments and tiered royalties in high-single digits to sub-teen double digits.

https://seekingalpha.com/news/3559633-sangamo-closes-gene-therapy-deal-biogen-shares-up-5-premarket

CNS Pharma up on development of COVID-19 candidates

Thinly traded nano cap CNS Pharmaceuticals (NASDAQ:CNSP) jumps 19% premarket on light volume on the heels of its announced collaboration with WPD Pharmaceuticals to develop several preclinical COVID-19 candidates, including WP112, that WPD in-licensed from Moleculin Biotech (NASDAQ:MBRX) (+5% premarket).

MBRX rocketed 126% yesterday after announcing encouraging results on WP112 in cell culture.

WP112 is a prodrug of 2-DG (a prodrug is an inactive compound that is metabolized in the body to produce the active drug) that Moleculin says may have therapeutic potential in COVID-19 since 2-DG inhibits glycolysis which prevents the coronavirus from replicating. In its normal state, though, it is metabolized too quickly to be effective. WP112 is only metabolized once it is inside the cell, enabling much higher tissue and organ concentrations of 2-DG.

https://seekingalpha.com/news/3559666-cns-pharma-up-19-premarket-on-development-of-covidminus-19-candidates

JPMorgan halts non-government guaranteed small business loans

via the Financial Times

A JPMorgan (NYSE:JPM) spokesperson spins it as the bank devoting all resources to processing loan requests under the government’s hastily put-together Paycheck Protection Program.

A cynic might note that the PPP scheme is turning into a nice profit center for the banks, and that the loans are fully guaranteed by the government. Why bother underwriting anything else – particularly if you expect declining asset values and a wave of bankruptcies soon to flood the U.S. court system.

https://seekingalpha.com/news/3559653-jpmorgan-halts-non-government-guaranteed-small-business-loans

Fed fires up another $2.3T of loans to keep credit flowing

The Fed adds new programs to assist households and employers and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

Actions include:

Bolstering the effectiveness of the Small Business Administration’s Paycheck Protection Program (PPP) by supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses;

Ensure credit flows to small and mid-sized businesses with the purchase of up to $600B in loans through the Main Street Lending Program. The Department of the Treasury, using funding from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will provide $75B in equity to the facility;

Expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) as well as the Term Asset-Backed Securities Loan Facility (TALF). These three programs will now support up to $850B in credit backed by $85B in credit protection provided by the Treasury; and

Establishing a Municipal Liquidity Facility that will offer up to $500B in lending to states and municipalities. The Treasury will provide $35B of credit protection to the Federal Reserve for the Municipal Liquidity Facility using funds appropriated by the CARES Act.

Update at 8:42 AM: The Main Street facility will offer four-year loans to companies employing up to 10K workers or with revenue of less than $2.5B. Principal and interest payments will be deferred for one year.

Eligible banks may originate new Main Street loans or use Main Street loans to boost the size of existing loans to businesses. Banks will retain a 5%, selling the remaining 95% to the Main Street facility, which will buy up to $600B of loans.

https://seekingalpha.com/news/3559646-fed-fires-up-another-2_3t-of-loans-to-keep-credit-flowing

More Covid-19 related activity

LabCorp (NYSE:LH) is partnering with Ciox Health on a U.S.-based COVID-19 patient data registry aimed at expediting diagnoses and treatments.

Arcturus Therapeutics (NASDAQ:ARCT) will initiate a study this summer for its COVID-19 vaccine candidate LUNAR-COV19.

CareDx (NASDAQ:CDNA) has mobilized 10K phlebotomists for home blood draws for routine transplant tests in response to the pandemic.

Theravance Biopharma (NASDAQ:TBPH) is advancing TD-093, a lung-selective nebulized Janus kinase inhibitor, for preventing cytokine storm associated with acute lung injury in COVID-19 patients.

Neptune Wellness Solutions (NASDAQ:NEPT) has filed an application with the FDA to register its Conover, NC facility to prepare alcohol-based hand sanitizers. Shares up 9% premarket.

https://seekingalpha.com/news/3559624-biohaven-on-go-study-of-vazegepant-in-covidminus-19-others-take-action-amid-pandemic