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Wednesday, May 6, 2020

BioCryst Pharma Q1 top-line down 19%; guidance affirmed

BioCryst Pharmaceuticals (BCRX) Q1 results:
Revenues: $4.8M (-18.6%); Product sales: $0.2M (-88.2%); Royalty revenue: $1.9M (-17.4%); Collaborative and other R&D: $2.7M (+42.1%).
Net loss: ($37.6M) (-20.9%); loss/share: ($0.24) (-14.3%).
Operating cash use: $23.1M.
2020 guidance: Net operating cash use: $125M – 150M (unch).
Key upcoming milestones: BioCryst expects three regulatory approvals for berotralstat in 2020 and early 2021. These timelines remain on track.
FDA is currently reviewing NDA for berotralstat; PDUFA date December 3.
Berotralstat approval in Japan expected in H2.
BCX9930 program: Data from treatment-naïve cohort 2 expected in Q3.
The company plans to begin enrolling PNH patients resistant to C5 inhibitors in Q3 and expects data by the end of 2020.
BioCryst remains on track to report data in H2 from its ongoing Phase 1 clinical trial of BCX9250.
https://seekingalpha.com/news/3570080-biocryst-pharma-q1-top-line-down-19-guidance-affirmed

Triple whammy for hospitals, opposite for insurers

U.S. hospitals are losing around $50B per month due to the large number of cancelled elective procedures, costs associated with treating COVID-19 and an increased number of uninsured patients.
“I think it’s fair to say that hospitals are facing perhaps the greatest challenge that they have ever faced in their history,” said CEO of the American Hospital Association, Rick Pollack, calling the situation a “triple whammy.”
However, the net impact on U.S. health insurers is quite the opposite and is “going to be positive for them,” said Jeff Jonas of Gabelli Funds. “The costs from COVID-19 are going to be actually very small and more than outweighed by the deferral of elective procedures.”
Related tickers: UNH, ANTM, CI, HUM, WCG, CNC, MOH, GTS, HQY, QHC, HCA, THC, UHS, LPNT, SGRY, SSY, QHC, CYH, SEM, IHF
https://seekingalpha.com/news/3569788-triple-whammy-for-hospitals-opposite-for-insurers

Private payrolls fall 20.2M in April

April ADP Jobs Report: -20.2M vs. -20M consensus, -149K prior (revised from -27K).
The report utilizes data only through April 12, says ADP, and does not reflect full impact of COVID-19 on the employment situation. Indeed. In the first two weeks after April 12, another 8.3M filed for first-time unemployment, with another 3M expected to be seen in this week’s report.
The ADP’s Ahu Yildirmaz: “Job losses of this scale are unprecedented,” with April’s decline alone more than double total numbers lost during the Great Recession.
The service sector was hit hardest with 16M job loss (leisure/hospitality -8.6M), while the manufacturing sector lost 4.3M.
Small businesses lost 6M jobs, including 3.36M for those with 1-19 employees, and 2.6M for those with 20-49 employees.
A couple of subsectors posted modest job gains in April – Education up 28K and Management of companies/enterprises up 6K.
The government’s nonfarm payroll data is due on Friday morning, with economists expecting a job loss of 21.5M and the unemployment rate seen rising to 16%.
https://seekingalpha.com/news/3570006-private-payrolls-fall-20_2m-in-april

Tuesday, May 5, 2020

Sanofi to enroll thousands for its coronavirus vaccine trials

French drugmaker Sanofi said it plans to enroll thousands of subjects globally for trials of an experimental vaccine for the coronavirus it is developing with GlaxoSmithKline Plc, and that it has started to discuss advanced purchases with several countries.
Sanofi is working on two vaccine projects to prevent COVID-19 – the illness caused by the new coronavirus – and said it is exploring several manufacturing options, including fresh collaborations to ensure it can meet demand, if either program is successful.
Drugmakers are rushing to develop treatments and vaccines for the highly contagious coronavirus that has killed over 255,000 people worldwide, infected more than 3.6 million and ravaged economies globally.
Of more than 100 vaccine candidates in development, 10 have reached the clinical testing stage so far, according to California-based think tank Milken Institute.
Sanofi, whose Pasteur division has an established track record in influenza vaccines, teamed with British rival GSK last month to come up with a candidate it hopes will be ready next year.
Sanofi will bring in a protein antigen – a molecule designed to trigger an immune response in the body – based on a platform it uses for its influenza vaccine Flublok.
GSK will contribute one of its approved adjuvants, which work by boosting the immune response to produce more antibodies and longer-lasting immunity.
Sanofi Pasteur executives told Reuters the company hopes to start early-stage trials in September, with hundreds of subjects enrolled.
While Phase I vaccine trials typically involves a small number of healthy volunteers to test for safety, Sanofi said it had opted for higher numbers to secure stronger data sooner.
“We envisioned Phase I to actually have several hundreds of subjects, so it is really a phase I/II trial,” said John Shiver, head of Sanofi vaccine research.
Beyond finding the right vaccine, a key challenge lies in manufacturing on an enormous scale and distributing the product globally.
“We will be comparing different doses of the vaccine and that is very critical. It will tell us about the factory capacity and what we need to do to produce the number of doses that we projected,” Shiver said.
Sanofi previously said it will be able to produce over a billion doses. Its project with GSK has received financial support from the Biomedical Advanced Research and Development Authority (BARDA) of the U.S. Health Department.
Late-stage trials with thousands of subjects comparing the vaccine to placebo are expected to take place by year-end or early 2021, Shiver said, adding that some previous Sanofi influenza trials had enrolled up to 30,000 participants.
A BIT ‘TRICKY’
David Loew, executive vice president for vaccines, said Sanofi has begun preliminary discussions with countries over mechanisms for pre-ordering the vaccine, if it works, although legal details must still be worked out with GSK.
“It is a bit of a tricky thing when you partner with another company,” he said, adding that talks were taking place with U.S. officials as well as with some European countries.
Given the support from BARDA, doses produced at its U.S. manufacturing facility are expected to go to U.S. patients first, a prospect that has raised concern in Europe.
Asked if Sanofi would consider new collaborations to ensure it can deliver on its manufacturing pledges, Loew said, “yes, if we come to the conclusion that we do not have enough capacity.”
Sanofi Chief Executive Paul Hudson on April 24 urged stronger European coordination in the hunt for a vaccine against the new coronavirus, criticising Europe for being too slow. [L5N2CC67J]
Sanofi is also working with U.S.-based Translate Bio Inc on another vaccine candidate based on messenger RNA technology (mRNA), similar to experimental vaccines being developed by Pfizer Inc in partnership with BioNTech SE and another Moderna Inc is developing in partnership with the U.S. government.
The mRNA technology instructs cells in the body to make specific coronavirus proteins that then produce an immune response. Trials of that vaccine are expected to start in the fourth quarter.

https://www.marketscreener.com/GLAXOSMITHKLINE-9590199/news/Exclusive-Sanofi-to-enroll-thousands-for-its-coronavirus-vaccine-trials-30545089/

EssilorLuxottica Warns of Coronavirus Hit in 2Q After Tough 1Q

EssilorLuxottica SA said Tuesday that first-quarter revenue fell 10% due to the coronavirus pandemic and that the impact of the crisis will likely be stronger in the second quarter.
Revenue for the quarter was 3.78 billion euros ($4.13 billion), the Franco-Italian optical giant said. At constant currencies, revenue shrank 11%.
The company–which was created in October 2018 from the combination of optical-lens manufacturer Essilor and luxury-eyewear maker Luxottica–reported lower revenue across its business divisions, with its lenses and optical instruments category posting a 5.1% decline, while the sunglasses and readers business saw revenue decline 19%.
The company said it can’t assess the full impact of the pandemic at the moment. However, the health crisis is likely to hit revenue and profitability even harder in the current quarter.
In March, the company scrapped its guidance for the year due to the impact of the coronavirus.
EssilorLuxottica won’t propose a dividend at the June 25 shareholders’ meeting. However, it may propose a special dividend before the end of the year “if the recovery is solid enough,” it said.

https://www.marketscreener.com/ESSILORLUXOTTICA-4641/news/EssilorLuxottica-Warns-of-Coronavirus-Hit-in-2Q-After-Tough-1Q-30538453/

Pfizer Coronavirus Vaccine Enters Human Testing in U.S.

Researchers have begun giving healthy volunteers in the U.S. an experimental coronavirus vaccine developed by Pfizer Inc. and partner BioNTech SE, the latest study exploring a potential defense against the respiratory disease.
Researchers at the New York University Grossman School of Medicine in Manhattan and the University of Maryland School of Medicine in Baltimore said Tuesday they began injecting people with the first of four vaccine candidates from Pfizer and Germany’s BioNTech.
The clinical trial will help the researchers evaluate whether the candidates are safe, which produces the strongest immune response that could fend off the coronavirus and what the dose should be. Pfizer plans to advance the candidate that proves most promising. Testing of the vaccine candidates in Germany began last month.
Results from the 360-person study in the U.S. could come as early as next month, but the vaccine will still need to undergo additional testing in more patients, said Kathrin Jansen, Pfizer’s head of vaccine research and development.
Pfizer will track the progress of the study to pick the most promising vaccine candidate, Dr. Jansen said.
The plan is to “weed out, weed out, weed out, focus on what’s good and move on,” Dr. Jansen said. “It’s a quick elimination.”
A vaccine could be ready for emergency use as early as the fall if testing indicates it works safely, Pfizer Chief Executive Albert Bourla told The Wall Street Journal last week, though the company would keep studying it in clinical trials.
The U.S. government has the authority to grant limited use of a vaccine or drug during a health emergency, before testing is complete.
Several potential coronavirus vaccines have entered human testing, including candidates from Moderna Inc. and Oxford University.
The vaccine efforts have advanced quickly compared with typical vaccine R&D timelines, though some experts have expressed concern over whether testing will be rigorous enough to adequately assess if the shots can safely protect people from contracting the coronavirus.
“The question is, what steps are you skipping?” said Paul Offit, director of the Vaccine Education Center at Children’s Hospital of Philadelphia, who developed a vaccine for a common disease in young children called rotavirus that causes diarrhea and vomiting.
Adding to the challenges of deciphering whether a coronavirus vaccine works, researchers say, is uncertainty about how immunity develops against the virus.
Without that knowledge, researchers are relying on their understanding of previous coronaviruses and antibodies that neutralize viruses, said Kirsten Lyke, a professor of medicine at the University of Maryland School of Medicine, who is helping lead the Pfizer trial.
The Pfizer and BioNTech vaccine will initially be studied in adults 18 to 55 years old, and eventually will enroll older volunteers, Pfizer said.
After receiving the first dose, patients will receive a second dose three weeks later. Pfizer will test other doses later on, including a single shot, Dr. Jansen said.
Four out of every five study subjects will get the vaccine, while the remaining subjects will take a placebo.
The vaccine uses a gene-based technology known as messenger RNA. Messenger RNA, or mRNA, carries instructions from DNA to the body’s cells to make certain proteins. An mRNA vaccine has never been approved to prevent any infectious disease.
Mark Mulligan, director of the Vaccine Center at NYU Langone Health, said he doesn’t expect challenges enrolling patients.
“People, frankly, are sick of this virus and they want to do whatever they can to fight back,” he said. “The public recognizes that in order to start returning to normalcy, we’ve got to get people protected, and vaccines hold the greatest hope for that.”
Melissa Honkanen, 42 years old, of New York City, enrolled in the study after hearing about it from her husband, a pediatrician at NYU Langone, because she wanted to be helpful.
“It’s really hard to see all of this happening,” said Ms. Honkanen, a yoga instructor. “We’re in a world where we can’t hug each other or be social and active.”
Aside from working on a vaccine, Pfizer is also trying to develop an antiviral treatment that could begin testing this summer, and it is testing whether rheumatoid-arthritis drug Xeljanz helps fight Covid-19, the disease caused by the coronavirus.
Pfizer plans to soon manufacture the vaccines at its facilities in Massachusetts, Michigan and Missouri, as well as Puurs, Belgium, with additional locations to come.

https://www.marketscreener.com/PFIZER-INC-23365019/news/Pfizer-Coronavirus-Vaccine-Enters-Human-Testing-in-U-S-30540276/

Supernus Pharmaceuticals EPS beats by $0.13, beats on revenue

Supernus Pharmaceuticals (NASDAQ:SUPN): Q1 GAAP EPS of $0.40 beats by $0.13.
Revenue of $94.97M (+11.1% Y/Y) beats by $10.96M.
Shares +22.7% AH.
https://seekingalpha.com/news/3569738-supernus-pharmaceuticals-eps-beats-0_13-beats-on-revenue