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Tuesday, April 14, 2020

TransMedics sees 59% jump in Q1 top line, withdraws guidance due to COVID-19

TransMedics (NASDAQ:TMDX) expects Q1 revenues of $7.4M – 7.5M, up ~59% (midpoint) from a year ago and above consensus of $6.9M.
Management is withdrawing 2020 guidance due to COVID-19 disruptions.
https://seekingalpha.com/news/3560308-transmedics-sees-59-jump-in-q1-top-line-withdraws-guidance-due-to-covidminus-19

China tightens Russia border checks, approves coronavirus vaccine trials

China has approved early-stage human tests of two experimental vaccines to combat the new coronavirus as the country where the virus was first detected battles to contain imported cases, especially from Russia.
Russia has become China’s largest source of imported cases, with a total of 409 infections originating in the northern neighbour. Chinese people there should stay put and not return home, the state-owned Global Times said in an editorial Tuesday.
“Chinese people have watched Russia become a severely affected country … This should sound the alarm: China must strictly prevent the inflow of cases and avoid a second outbreak,” said the paper, which is run by the Communist Party’s People’s Daily.
China’s northeastern border province of Heilongjiang saw 79 new cases of imported coronavirus cases on Monday, all Chinese citizens travelling home from Russia, state media said. Mainland China reported 89 new cases.
Heilongjiang’s provincial authority said on Tuesday that it had established a hotline to reward citizens as much as 5,000 yuan ($710) for handing over or reporting illegal immigrants.
China has reported 82,249 coronavirus cases and 3,341 deaths. It reported no new deaths on Tuesday.
Mongolia’s health ministry also confirmed 13 new cases, all imported from Russia.

VACCINE TRIALS

As China fights to prevent a second wave of coronavirus infections, two experimental vaccines will be tested on humans, the Xinhua state news agency reported.
They are being developed by a Beijing-based unit of Nasdaq-listed Sinovac Biotech (SVA.O) and by the Wuhan Institute of Biological Products, an affiliate of state-owned China National Pharmaceutical Group.
In March, China gave the green light for another clinical trial for a vaccine candidate developed by China’s military-backed Academy of Military Medical Sciences and Hong Kong-listed biotech firm CanSino Bio (6185.HK).
U.S. drug developer Moderna (MRNA.O) said earlier it had begun human tests of its possible vaccine with the U.S. National Institutes of Health.
But even as hopes for a vaccine are raised, the epidemic could stretch on for up to two years, and precautions such as masks and preventing big gatherings may need to continue, Zhang Boli, an academic at the Chinese Academy of Engineering and president of the Tianjin University of Traditional Chinese Medicine told reporters.

“We have to make preparations for the long term,” he said.
At a meeting chaired by Premier Li Keqiang on Monday, China’s coronavirus task force decided to deploy more health resources on borders.
It said it would build hospitals and establish isolation points near borders and also strengthen cooperation with neighbours.
However, officials acknowledged that China’s extensive border with numerous country roads, paths, ferry crossings and mountain passes made it difficult to control.
To ensure no infected people slip in from Russia, China has put in stringent measures in Suifenhe, a small city in Heilongjiang with a checkpoint into Russia. Train services from it have been reduced and cars need a special pass to leave.
Piao Minghua, deputy head of customs in the area, told Reuters that everyone entering Suifenhe had to be tested for the coronavirus, give details of contacts and undergo quarantine.
City residents are only allowed to leave their homes once every three days, many shops are closed and markets largely deserted.
Though the northeast border remains China’s priority, state media also reported late on Monday that more than 100 people had been arrested in March for illegally entering China through its southwestern border in Yunnan province.
Thousands of people, mostly Chinese workers and traders, were flooding back into Yunnan from Laos and Myanmar this month, putting huge pressures on border regions like Xishuangbanna.
https://www.reuters.com/article/us-health-coronavirus-china/china-tightens-russia-border-checks-approves-coronavirus-vaccine-trials-idUSKCN21W08N

U.S. equities futures climb as virus may be slowing

U.S. stock futures rise, following gains in most equities markets around the world, amid optimism that the coronavirus curve is flattening.
Dow futures rise 1.3%, S&P +1.1%, and Nasdaq +1.4%.
10-year Treasury yield slips 1 basis point to 0.76%.
In overseas markets, the Stoxx Europe 600 rises 0.9% and the DAX advances 1.1%, U.K.’s FTSE 350 Index climbs 3.0%, and France’s CAC 40 rises 0.3%.
The Hang Seng Index closed up 0.6%, China’s CSI 300 Index increased 1.9%, and the Nikkei 225 rose 3.1%.
Q1 earnings season kicks off today, starting with JPMorgan Chase, Wells Fargo, and Johnson & Johnson. With most of the coronavirus-induced restrictions not taking effect until mid-March, investors will be focusing on guidance, if any, and forward-looking commentary.
https://seekingalpha.com/news/3560362-u-s-equities-futures-climb-virus-may-be-slowing

Monday, April 13, 2020

COVID-19 tests performed, state by state

In the U.S., 2.83 million tests have performed for the novel coronavirus, according to data from the COVID Tracking Project.
The COVID Tracking Project collects novel coronavirus testing data from the 50 U.S. states and the District of Columbia.
Here are the 50 states and D.C. ranked by number the tests performed per the latest data available April 13:
1. New York: 461,601
2. California: 203,528
3. Florida: 186,193
4. New Jersey: 126,735
5. Pennsylvania: 124,890
6. Texas: 124,533
7. Massachusetts: 116,730
8. Louisiana: 104,045
9. Illinois: 100,735
10. Washington: 93,802
11. Michigan: 79,437
12. Tennessee: 70,677
13. Ohio: 63,243
14. North Carolina: 62,139
15. Georgia: 54,551
16. Maryland: 51,751
17. Missouri: 45,200
18. Utah: 44,234
19. Indiana: 42,489
20. Arizona: 42,109
21. Virginia: 41,874
22. Connecticut: 41,220
23. Wisconsin: 39,257
24. Minnesota: 37,421
25. Colorado: 37,153
26. South Carolina: 31,425
27. New Mexico: 30,515
28. Oregon: 29,758
29. Kentucky: 25,866
30. Nevada: 24,611
31. Oklahoma: 22,760
32. Alabama: 21,669
33. Mississippi: 21,413
34. Rhode Island: 20,350
35. Arkansas: 19,722
36. Hawaii: 18,844
37. Iowa: 17,592
38. West Virginia: 16,257
39. Idaho: 14,881
40. Kansas: 13,253
41. Delaware: 11,820
42. New Hampshire: 11,332
43. Nebraska: 10,972
44. District of Columbia: 10,934
45. Vermont: 10,365
46. North Dakota: 10,350
47. Montana: 8,913
48. South Dakota: 8,553
49. Alaska: 8,038
50. Maine: 6,721
51. Wyoming: 5,571
https://www.beckershospitalreview.com/rankings-and-ratings/covid-19-tests-performed-state-by-state.html

Trump agreed to mitigation efforts at first recommendation: Covid-19 briefing

Dr. Anthony Fauci said that the first time he and Dr. Deborah Birx recommended strong mitigation efforts to combat the coronavirus, President Trump agreed to them, Fauci said at the White House coronavirus task force briefing.
He also added that when he recommended that the guidelines to slow the spread should be extended by a month, Trump also agreed.
Fauci is director of the National Institute of Allergy and Infectious Diseases.
Birx is the White House coronavirus task force response coordinator.
The U.S. has 572,587 confirmed COVID-19 cases and 23,078 deaths, according to the Johns Hopkins University Coronavirus Resource Center.
Update at 6:30 PM: The Department of Health and Human Services announces five new contracts to procure new ventilators, Trump said during the briefing.
More than 6K ventilators will be added to the national stockpile by May 8. He expects to have 120K total ventilators by the end of the year.
6:32 PM: Orders 60 more decontamination systems from Batelle to sterilize N95 masks.
6:34 PM: More than 3M COVID-19 tests have been conducted in the U.S., with testing currently running at about 150K per day.
6:36 PM: The Census Bureau is asking for a 120-day delay to complete the 2020 census; the bureau has temporarily suspended field activities to slow the spread of the virus.
6:39 PM: Trump said the government is close to completing guidelines to re-open the country “hopefully even ahead of schedule.”
The White House will issue guidelines to governors to help them re-open their states safely.
“We want to return to normal life,” Trump said.
6:43 PM: More than 80M people will get their economic impact payments directly to their bank accounts by Wednesday, Treasury Secretary Steven Mnuchin said.
6:44 PM: The SBA’s Paycheck Protection Program has distributed $230B through 4,600 lenders participating in the program, Mnuchin said.
The Treasury has requested $250B more funds for the small business loan program, he said.
6:50 PM: Mnuchin said Trump is considering a May 1 re-opening of the economy. Trump said he’s setting up a number of committees to address the issue, but “everything has to be safe.”
6:55 PM: Mnuchin says he’s “very pleased” with discussions the government has had with the airline industry.
He also said he and White House economic adviser Larry Kudlow are developing plans for almost every single industry impacted by the coronavirus pandemic.
6:57 PM: Trump said, “The authority of the president of the United States is total and the governors know that.”
6:58 PM: He said he’ll lift the travel restrictions regarding Europe when the time is right.
7:03 PM: Speaking about pressure on mortgage servicers, Mnuchin said, “We’re very aware of the issue. We’re going to make sure that the market function properly,” Mnuchin said.
7:05 PM: The Treasury has had conversations with the Federal Housing Finance Agency about whether Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) need to take any actions regarding mortgage liquidity and the Treasury will give the FHFA whatever permissions it needs.
7:18 PM: The White House will be putting out guidelines and recommendations for re-opening states very soon, within a few days, Trump said.
The U.S. “has more of a constitutional problem than a mechanical problem” on the contact-tracing technology that Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) are working on, Trump said.
7:31 PM: The White House is forming a number of committees to advise on re-opening the economy, including for transportation, manufacturing, and religious leaders.
7:35 PM: Abbot Laboratories (NYSE:ABT) is producing about 50K cartridges a day for the new 15-minute COVID-19 test, Vice President Mike Pence said.

Johnson & Johnson Q1 2020 Earnings Preview

Johnson & Johnson (NYSE:JNJ) is scheduled to announce Q1 earnings results on Tuesday, April 14th, before market open.
The consensus EPS Estimate is $1.98 (-5.7% Y/Y) and the consensus Revenue Estimate is $19.44B (-2.9% Y/Y).
Over the last 2 years, JNJ has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time.
Over the last 3 months, EPS estimates have seen 0 upward revisions and 4 downward. Revenue estimates have seen 0 upward revisions and 4 downward.

Drug first meant for Ebola is effective against key enzyme of coronavirus

Scientists at the University of Alberta have shown that the drug remdesivir is highly effective in stopping the replication mechanism of the coronavirus that causes COVID-19, according to new research published today in the Journal of Biological Chemistry.
The paper follows closely on research published by the same lab in late February that demonstrated how the drug worked against the Middle East Respiratory Syndrome (MERS) virus, a related coronavirus.
“We were optimistic that we would see the same results against the SARS-CoV-2 virus,” said Matthias Götte, chair of medical microbiology and immunology at U of A.
“We obtained almost identical results as we reported previously with MERS, so we see that remdesivir is a very for coronavirus polymerases.”
Götte’s new paper demonstrates how remdesivir, developed in 2014 to fight the Ebola epidemic, works in detail. He likens the polymerase to the engine of the virus, responsible for synthesizing the virus’ genome.
“If you target the polymerase, the virus cannot spread, so it’s a very logical target for treatment,” Götte said.
The lab’s work shows how remdesivir tricks the virus by mimicking its building blocks.
“These coronavirus polymerases are sloppy and they get fooled, so the inhibitor gets incorporated many times and the virus can no longer replicate,” Götte explained.
He said the evidence from his group, along with previously published studies in animal and cell culture models, means that remdesivir can be classified as a “direct-acting antiviral” against SARS-CoV-2, a term first used to describe newer classes of antivirals that interfere with specific steps of the hepatitis C virus (HCV) life cycle.
He said the discovery of that direct action reinforces the promise of clinical trials for remdesivir in COVID-19 patients, which are already underway around the world.
While Götte said the evidence justifies clinical trials, he cautioned that the results obtained in the lab cannot be used to predict how the drug will work with people.
“We’ve got to be patient and wait for the results of the randomized clinical trials,” said Götte, whose research was funded by the Canadian Institutes of Health Research, Alberta’s Major Innovation Fund and Gilead Sciences, which manufactures remdesivir.
The Götte lab previously worked on human immunodeficiency (HIV) and HCV, but a couple of years ago switched to focus on viruses with the highest epidemic potential. The World Health Organization (WHO) issued its list of the top pathogens likely to cause severe outbreaks, including Ebola, Lassa and coronaviruses, in 2015.
“In that sense we were prepared because my lab specializes in viral polymerases,” said Götte, adding that his next step will be to use his lab’s tools to evaluate other promising antivirals.
He is optimistic that the unprecedented amount of research going on worldwide and the high level of co-operation between researchers will lead to the discovery of one or more effective treatments for COVID-19.
“We are desperate, but we still have to keep the bar high for anything that we put into clinical trials,” he said.
Remdesivir is one of several drugs being fast-tracked into trials by the World Health Organization, comparing potential treatments in hospitalized COVID-19 patients in a dozen countries, including Canada. Götte said we can expect results from important as early as April or May.
Götte said it is disappointing that antivirals discovered at the time of the severe acute respiratory syndrome (SARS) outbreak of 2003—which might have been effective against COVID-19 too—were never translated into widely available treatments, largely because of the huge cost involved in developing new drugs.
“This time around it’s obvious that we have to cross the finish line,” he said.
“Ten billion dollars, it seems a lot, a huge amount,” Götte said. “But in the context of this pandemic and the costs associated with this pandemic, it’s nothing.”

Explore further
Study reveals how drug meant for Ebola may also work against coronaviruses

More information: Journal of Biological Chemistry (2020). DOI: 10.1074/jbc.RA120.013679 , https://www.jbc.org/content/early/2020/04/13/jbc.RA120.013679.abstract