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Tuesday, November 17, 2020

J&J expects data for U.S. authorization of COVID-19 vaccine by Feb.: head scientist

Johnson & Johnson's chief scientist said the drugmaker is recruiting over 1,000 people per day for the late-stage trial of its experimental COVID-19 vaccine and expects to have all the data needed to seek U.S. authorization by February or earlier.

"By the end of the year or around the end of the year, we should have 60,000 people in the study," Dr. Paul Stoffels, J&J's chief scientific officer, said in an interview ahead of this week's Reuters Total Health conference.

"And efficacy endpoint should be there in the first few weeks or months, January or February, of the new year," he added.

The Phase III trial of the single-dose vaccine started in late September. The company paused the trial in October because of a serious medical event in one participant and resumed after getting the green light from an independent safety panel.

J&J must provide safety data to the U.S. Food and Drug Administration for at least one-half of trial participants for a duration of two months after they receive the vaccine. "So that will bring us around the year end or early next year for having all the data," he added.

J&J lags some of its rivals in the global race to develop a safe and effective vaccine against the virus that has killed over 1.3 million people worldwide and roiled the global economy.

Rival Moderna on Monday said its experimental vaccine was 94.5% effective in preventing COVID-19 based on interim data from a late-stage clinical trial, following similar results from Pfizer last week.

Both Pfizer's and Moderna's vaccines use a new technology known as messenger RNA, or mRNA. By contrast, J&J's vaccine uses a common cold virus known as adenovirus type 26 to introduce coronavirus proteins into cells in the body and trigger the body's immune system.

J&J's candidate is a single-dose vaccine, whereas the vaccines from Moderna and Pfizer and another under development by AstraZeneca all require two shots separated by several weeks.

"In a pandemic a single shot is definitely important globally," Stoffels said. "(A two-shot vaccine) is a very significant operational challenge. More so in healthcare systems which are less well organized."

Single-shot vaccines will likely benefit in particular remote areas, Stoffels said.

https://www.marketscreener.com/quote/stock/MODERNA-INC-47437573/news/J-J-expects-data-for-U-S-authorization-of-COVID-19-vaccine-by-Feb-says-head-scientist-31805520/

Boston Scientific Drops After Recall of Aortic Valve System

Boston Scientific Corp. shares fell 8% to $34.96 after the company said it has begun a global recall of all unused inventory of its LOTUS Edge Aortic Valve System following issues with the product delivery system.

The medical technology company said the voluntary recall is related solely to the delivery system, and there is no safety issue for patients who currently have an implanted LOTUS Edge valve.

Boston Scientific said given the additional time and investment required to develop and reintroduce an enhanced delivery system, it would instead retire the entire LOTUS product platform immediately. All related commercial, clinical, research and development, and manufacturing activities will also cease.

The company said it would focus resources and efforts on its ACURATE neo2 Aortic Valve System, Sentinel Cerebral Embolic Protection System and other growth areas.

The move is decision is expected to result in pre-tax charges of $225 million to $300 million due to inventory, fixed asset, intangible asset and certain other exit charges. About $100 million to $150 million of the charges will impact the company's adjusted results, it said.

Most of the charges will be recorded during the fourth quarter of 2020. The decision is expected to be accretive to earnings and adjusted profit in 2021 by one to two cents and neutral thereafter. 

https://www.marketscreener.com/quote/stock/BOSTON-SCIENTIFIC-CORPORA-11935/news/Boston-Scientific-Shares-Drop-8-After-Recall-of-Aortic-Valve-System-31803787/

Brazil about to receive first doses of China's Sinovac COVID-19 vaccine

Brazil's Butantan Institute biomedical center will receive this week the first doses of China's Sinovac vaccine against COVID-19, its director, Dimas Covas, said on Tuesday, speaking remotely in a congressional hearing.

Covas said the preliminary results of the trials Butantan is conducting in Brazil indicate the vaccine, called CoronaVac, has an excellent safety profile. He said Butantan expects to have 46 million doses ready for use in January. 

https://www.marketscreener.com/quote/stock/SINOVAC-BIOTECH-LTD-5714593/news/Sinovac-Biotech-Brazil-to-receive-first-doses-of-China-s-Sinovac-COVID-19-vaccine-says-Butantan-I-31805271/

Regeneron: Roche successfully tested manufacture of COVID-19 drug Trump used

Roche Holding AG has completed early tests of its ability to produce large quantities of Regeneron Pharmaceuticals Inc's COVID-19 antibody treatment, putting it on track to begin manufacturing the drug once it is authorized by regulators, Regeneron's president said on Tuesday.

The experimental therapy was used to treat U.S. President Donald Trump in October. The companies aim to be able to make 2 million doses of the antibody cocktail next year, but are awaiting clearance from regulators.

Roche "has already started engineering runs at scale and (has) been successful," Regeneron President and Chief Scientific Officer George Yancopoulos said in an interview ahead of this week's Reuters Total Health conference.

A Roche spokesman said the Swiss drugmaker would be ready to begin producing the treatment in the first quarter of 2021.

Regeneron has had discussions with the U.S. Food and Drug Administration almost every day since it submitted its application for emergency use of the COVID-19 drug in October, and expects a final decision in the "very near future," Yancopoulos, a co-founder of the U.S. biotech company said.

Regeneron hopes to apply for full approval of the drug shortly afterwards, he said, echoing his comment during Regeneron's investor call earlier this month.

The company has a contract to provide 300,000 doses of the antibody therapy, called REGN-COV2, to the U.S. government and expects to be able to meet that commitment by as early as January. It has more than 50,000 doses currently stockpiled.

The 2 million doses Regeneron expects to be able to produce in partnership with Roche next year may not be enough to treat all the patients worldwide who could benefit from it, Yancopoulos said, based on the rate at which the virus is again spreading and sickening people globally.

He added that Regeneron is in talks with U.S. officials about providing more doses than it has already agreed to, but has not reached any conclusive agreement. Regeneron's current contract with the U.S. government priced 300,000 doses at $450 million.

Regeneron has been speaking regularly with U.S. President-elect Joe Biden's COVID-19 task force and has shown them a presentation on the antibody treatment, Yancopoulos said.

After Trump received the Regeneron treatment along with several other medicines during his bout with COVID-19, he touted it as a virtual "cure" for the illness, promising to make it free for Americans.

https://www.marketscreener.com/quote/stock/REGENERON-PHARMACEUTICALS-10649/news/Regeneron-Pharmaceuticals-says-Roche-successfully-tested-manufacture-of-COVID-19-drug-used-on-Trum-31805590/

Buffett's Berkshire bets on Big Pharma

Warren Buffett's Berkshire Hathaway Inc said on Monday it has begun investing in the stocks of four large drugmakers, betting on an industry that could benefit when the world begins emerging from the coronavirus pandemic.

In a regulatory filing detailing its U.S.-listed stock holdings as of Sept. 30, Berkshire disclosed $5.7 billion (£4.3 billion) of new healthcare stakes, including more than $1.8 billion each in Abbvie Inc, Bristol-Myers Squibb Co, Merck & Co and $136 million in Pfizer Inc.

Shares of the drugmakers rose in after-hours trading.

The filing signals where Buffett and his portfolio managers Todd Combs and Ted Weschler see value. Buffett normally handles large investments for Berkshire's $245.3 billion stock portfolio himself.

"COVID-19 has made us think differently about healthcare," said James Armstrong, president of Henry H. Armstrong & Associates in Pittsburgh, which owns Berkshire stock.

"The sector has become more efficient as big drug companies partner with smaller, inventive rivals," Armstrong added. "But you will always need companies with scale for manufacturing and distribution, including vaccines with global application."

Berkshire did not immediately respond to a request for comment.

During the third quarter, Berkshire also took a $276 million stake in wireless phone company T-Mobile US Inc.

It sold a $1.3 billion stake in Costco Wholesale Corp, which benefited as people stocked up on groceries and home supplies during the pandemic, and pared holdings in four banks: JPMorgan Chase, Wells Fargo, PNC and M&T.

The stake in JPMorgan, where Combs is a director, fell by 96%.

Berkshire also bought more stock in the grocer Kroger, sold some stock in mining company Barrick Gold, and confirmed it bought more Bank of America stock while trimming its Apple stake.

The healthcare bet is structured similarly to the more than $6 billion wager that Buffett made on the four largest U.S. airlines.

Buffett sold Berkshire's airline holdings in April, saying the pandemic had changed the industry and made its outlook uncertain.

Other new investments in the quarter included a $6 billion stake in five Japanese trading houses and a $1.5 billion wager on newly public data storage company Snowflake Inc.

Berkshire also has more than 90 operating units including Geico car insurance, BNSF railroad and Dairy Queen ice cream.

https://www.marketscreener.com/business-leaders/Warren-Buffett-6/news/Buffett-s-Berkshire-bets-on-Big-Pharma-invests-in-four-drugmakers--31796167/

How two companies sprinted ahead in race for COVID vaccine

Just as the novel coronavirus was gaining a foothold in the United States in mid-March, Pfizer Inc Chief Executive Albert Bourla called on his top vaccine scientists and laid out a clear mission:

"He basically said, 'Your mandate is to get this vaccine made. And if you need resources, you come and you ask for them, and you're going to get them',"chief viral vaccine scientist Philip Dormitzer told Reuters.

The assignment was both inspiring and daunting. It provided researchers with the backing to tackle something that had never been done before: design a vaccine to stop a pandemic in its tracks in less than a year.

"He did not want us to focus on the potential barriers we might face, but instead said that it is much better to try to do something that seemed impossible, and even if you don't succeed, you still (will) have done something great, " said Dormitzer, noting that new vaccine development can cost on the order of $1 billion.

What followed was a full-bore effort carried out under strict coronavirus lockdown conditions, borrowing elements from ongoing flu and cancer research, according to Reuters interviews with half a dozen scientists critical to the vaccine program run by Pfizer and its German partner BioNTech SE. On Nov. 9, the companies reported the first promising results from large-scale, scientifically rigorous clinical trials around the world - although potential roadblocks remain and widespread distribution is not expected until at least April.

On Monday, Moderna Inc, a scrappy biotech with nearly $1 billion in research and development backing from the U.S. government, announced what appeared to be its own successful vaccine, using the same new technology that brought Pfizer such rapid results.

Both companies have reported preliminary findings of more than 90% effectiveness - an unexpectedly high rate - raising hope for an end to the pandemic that has killed more than 1.3 million people globally, upended economies and disrupted daily life for billions of people.

Their work validates that of several tiny biotechnology firms, which for years have been laboring to prove a once-unorthodox idea: The human body can act as its own vaccine factory. Both the Pfizer and Moderna inoculations work by injecting people with customized genetic code that instructs human cells to make key virus proteins to induce an immune response.

In Pfizer's and BioNTech's case, decision-making that normally would take months was reduced to days, including the crucial call on which vaccine version to use in a human clinical trial that has enrolled about 44,000 people worldwide so far.

In many ways, however, the work has just begun. Pfizer-BioNTech and Moderna still must finalize their data on efficacy and safety, and share that information with the scientific community and regulators - including the U.S. Food and Drug Administration, which will make the call on whether to authorize the vaccines for emergency use. The companies will have to increase production to as much as 2 billion doses or more by the end of 2021 - and face a massive task in distributing them.

BORROWING FROM FLU AND CANCER RESEARCH

Pfizer's Dormitzer is more prepared than many to meet the challenges, having led research efforts at Novartis AG in the 2009 H1N1 swine flu pandemic. That project produced three licensed vaccines in the most rapid pandemic vaccine response until now.

At Novartis AG, Dormitzer began testing novel ways to make vaccines using messenger ribonucleic acid, or mRNA, which contains instructions for human cells. In this case, scientists introduce mRNA instructions for cells to make a portion of a virus, which the immune system recognizes as a threat and counters with a protective response. No actual virus is involved in the process.

By contrast, to create a typical vaccine, scientists use bits of dead or weakened virus, which are then injected to produce the immune response.

The appeal of mRNA vaccines - and a key secret to their speed - is they are plug-and-play: The mRNA vehicle does not need to change, only the specific genetic instructions it carries. If the virus changes or mutates, the details of the instructions can be altered accordingly.

At Pfizer, one of Dormitzer's colleagues, Julia Li, had been scouting for potential partners with mRNA technology for a few years. Li settled on a little-known German biotech firm called BioNTech that was using mRNA technology to make cancer treatments. The company was co-founded by Chief Executive Ugur Sahin and his wife, Chief Medical Officer Oezlem Tuereci.

"I originally wasn't that interested," Dormitzer said. "Why would I look at an oncology company?" he recalled. "We're doing viral infectious diseases."

Li saw something more. BioNTech had mRNA production capacity, a solid team of scientists and a desire to start working on infectious diseases. "We ended up going into Germany and meeting the folks at BioNTech," said Dormitzer.In August 2018, the two companies began work on an mRNA-based flu vaccine.

Already concerned about a possible coronavirus pandemic, Sahin decided in January that BioNTech should begin developing a vaccine, said Katalin Karikó, the company's senior vice president and one of the pioneers behind the mRNA technology. The CEO designed several of the vaccine candidates himself, she said.

Again, the companies proved to have complementary skills. "BioNTech is a smaller company, more flexible," said Karikó. "A big pharma, like Pfizer, has the infrastructure, knows how to scale up, how to run things."

In early March, the pair decided to expand their partnership, embarking on a coronavirus vaccine deal worth up to $750 million.

Both companies recognized that mRNA vaccines work very differently in animals compared to humans. For that reason, after doing preliminary animal studies to ensure vaccine candidates were safe, they pared back additional animal studies, which are aimed at identifying the single best candidate, and moved into human trials with several prototype vaccines.

In the spring, the drugmakers' first human trials began, starting with the phase 1 safety trials in Germany in April, followed by those in the United States in May. They tested four versions in all. The aim was "to figure out in a quick, quick clip, what really was working best in people," Dormitzer said.

Pfizer and BioNTech disclosed preliminary Phase 1 data on 45 U.S. adult volunteers on July 1, showing one version of the vaccine - called B1 for short - appeared to be safe. Scientists noticed then that the vaccine appeared to induce antibody production exceeding that in people who recovered on their own from COVID-19.

On July 20, the companies' German trial indicated for the first time that the vaccine also induced production of T-cells that are thought to be important in activating an immune response against the coronavirus.

The two companies believed they were ready to test this candidate in a clinical trial that would ultimately enroll 44,000 people in the United States, Argentina, Brazil, Germany, South Africa and Turkey.

But on July 24, just days before they were scheduled to start the crucial trial, data on a different candidate called B2 became available. That version turned out to produce a similar immune response to B1, but had fewer side effects in older adults.

The researchers pivoted quickly to B2.

Work proceeded so fast that some researchers went weeks without seeing their families. Dormitzer hasn't seen his wife and kids since March, apart from Zoom calls.

"The urgency, the coordination, the intensity, I've never felt it more strongly ... there is no downtime," said Dr. Pei-Yong Shi of the University of Texas Medical Branch in Galveston, who developed a new method to test the strength of the antibodies generated by the vaccine.

At the same time, hundreds of workers at the Pfizer research center in Pearl River, New York, were held to rigorous coronavirus prevention protocols: They couldn't touch door handles so all doors were propped open. They had to list everyone they came into contact with every day so that if anyone got sick, they'd have a map of potential exposures.

As the late-stage trial quickly enrolled volunteers, Pfizer's Bourla announced that efficacy data could come as early as October. It took a little longer - but not by much.

On November 9, based on results from a total of 94 infections, Pfizer made its bombshell announcement. Dormitzer says he only learned the apparent efficacy of the vaccine hours before the public did.

"I don't think any of us expected to see greater than 90% efficacy," Dormitzer said, adding that the FDA had specified a goal of at least 50%.

Karikó said she never had any doubt the vaccine would work. "We could see the high level of cellular immune responses," she said. "I was not nervous. I was so confident."

https://www.marketscreener.com/quote/stock/MODERNA-INC-47437573/news/Moderna-How-two-companies-sprinted-ahead-in-extraordinary-race-for-a-COVID-vaccine-31803982/

Hundreds of PPP loan recipients have filed for bankruptcy

  • ~300 companies that received Paycheck Protection Program loans — amounting up to a half billion dollars — have filed for bankruptcy, the Wall Street Journal reports, citing its analysis of government data and court filings.
  • The true number is likely much higher. The analysis only included big borrowers under the program, which accounted for about half of the overall loans and only ~13.5% of total participants.
  • In addition, many small businesses choose to liquidate instead of file for bankruptcy when they run out of money.
  • Of the ~300 companies, many said the PPP funds weren't enough to sustain their businesses and the lack of additional stimulus further hampered their efforts to keep going.
  • The government provided a total $525B in PPP loans to 5.2M companies since April, according to the Small Business Administration. The agency only releases data on the largest borrowers.
  • https://seekingalpha.com/news/3637171-hundreds-of-ppp-loan-recipients-filed-for-bankruptcy-wsj