AwesomeCapital

Monday, May 4, 2020

Tenet stock rises after detailing coronavirus impact on hospitals

Tenet Healthcare Corp. THC, +2.68% shares rose more than 2% in the extended session Monday after the hospital and ambulance operator reported its first quarter of earnings during the coronavirus pandemic. The company reported first quarter net income from continuing operations of $93 million, or 88 cents a share, versus a loss of $12 million, which amounts to 11 cents a share, a year ago. Adjusted for impairment and restructuring charges, among other things, earnings were $1.28 a share. Revenue fell to $4.52 billion from $4.55 billion in the year-ago period. The company said that as a result of government orders to limit non-essential activities, patient volumes for emergency room visits, admission and other elective procedures declined significantly beginning in mid-March. Tenet said that while it took steps to acquire personal protective equipment and other supplies it encountered significantly higher prices. The company said it currently believes it has enough supplies. Tenet said that it has reduced planned capital expenditures by $300 million, reducing discretionary spending and furloughing employees due to the lower patient volumes. Tenet said it had $2.2 billion in cash as of May 1 and has received $1.5 billion in advanced Medicare payments, which will have to be repaid within the next year, and a $345 million grant from the Coronavirus Aid, Relief and Economic Security Act. Tenet stock has fallen 16% in the past year, as the S&P 500 index SPX, +0.42% declined 3.9%.
https://www.marketwatch.com/story/tenet-stock-rises-after-detailing-coronavirus-impact-on-hospitals-2020-05-04

Detection of SARS-CoV-2 specific immunity in Covid-19 convalescents

Ling Ni, Fang Ye, Meng-Li Cheng, Yu Feng, Yong-Qiang Deng, Hui Zhao, PengWei, Jiwan Ge, Mengting Gou, Xiaoli Li, Lin Sun, Tianshu Cao, Pengzhi Wang, ChaoZhou, Rongrong Zhang, Peng Liang, Han Guo, Xinquan Wang, Cheng-Feng Qin,Fang Chen, Chen Dong
PII:S1074-7613(20)30181-3
DOI:https://doi.org/10.1016/j.immuni.2020.04.023
Reference:IMMUNI 4369
To appear in:Immunity
Received Date:27 March 2020
Revised Date:22 April 2020
Accepted Date:28 April 2020
SUMMARY
The World Health Organization has declared SARS-CoV-2 virus outbreak a world-wide pandemic. However, there is very limited understanding on the immune responses, especially adaptive immune responses to SARS-CoV-2 infection. Here, we collected blood from COVID-19 patients who have recently become virus-free and therefore were discharged, and detected SARS-CoV-2-specific humoral and cellular immunity in 8 newly discharged patients. Follow-up analysis on another cohort of 6 patients 2 weeks post discharge also revealed high titers of IgG antibodies. In all 14 patients tested, 13 displayed serum neutralizing activities in a pseudotype entry assay. Notably, there was a strong correlation between neutralization antibody titers and the numbers of virus-specific T cells. Our work provides a basis for further analysis of protective immunity to SARS-CoV-2, and understanding the pathogenesis of COVID-19, especially in the severe cases. It has also implications in developing an effective vaccine to SARS-CoV-2 infection.
https://www.cell.com/action/showPdf?pii=S1074-7613%2820%2930181-3

AmerisourceBergen eyes Walgreens’ drug distribution operation

According to Reuters, AmerisourceBergen (NYSE:ABC) has approached Walgreens Boots Alliance (NASDAQ:WBA) about a purchase of its pharmaceutical wholesaling division (known as Alliance Healthcare).

ABC is willing to pay about $6B for the unit.

WBA +1.9% after hours.

https://seekingalpha.com/news/3568785-amerisourcebergen-eyes-walgreens-drug-distribution-operation

Omega Healthcare withdraws guidance as COVID-19 affects operators

Not surprisingly, Omega Healthcare Investors (NYSE:OHI) withdraws its 2020 guidance issued in February as it didn’t contemplate adverse effects from the COVID-19 pandemic.

OHI’s operators are facing a “challenging period on all fronts… they have seen declining occupancy and significantly elevated costs combine to materially impact their financial performance,” said Omega CEO Taylor Pickett.

He adds that federal and state agencies overseeing skilled nursing have “acted quickly and effectively to provide financial support to the industry.”

Q1 adjusted FFO per share of 79 cents beats the consensus estimate of 78 cents.

Q1 revenue $253.0M exceeds the $218.0M consensus estimate and increased from $223.7M a year ago.

Q1 total operating expenses of $107.1M compares with $101.5M a year ago.

Conference call on May 5 at 10:00 AM ET.

Previously: Omega Healthcare Investors FFO beats by $0.01, beats on revenue (May 4)

https://seekingalpha.com/news/3568731-omega-healthcare-withdraws-guidance-covidminus-19-affects-operators