Walgreens to open 40 full-service Village Medical primary care clinics

 

• Walgreens' (WBA +3.5%) Boots Alliance and VillageMD plan to open the next 40 new Village Medical at Walgreens full-service primary care clinics by the end of summer 2021.
• Initial markets targeted for expansion are Houston, El Paso and Austin, Texas, Phoenix, Ariz., and Orlando, Fla.
• The first new locations outside of Houston will open in the Phoenix area commencing Dec. 14, 2020.
• Expansion is part of the large-scale rollout announced earlier this year to open 500 to 700 Village Medical at Walgreens clinics in more than 30 U.S. markets in the upcoming five years.
• With the combined expertise of both the physician and pharmacist, patients benefit from improved health outcomes and lowered cost of care.
• https://seekingalpha.com/news/3640877-walgreens-to-open-40-full-service-village-medical-primary-care-clinics

Merck unloaded stake in Moderna earlier this quarter

 

• "Merck (NYSE:MRK) achieved a substantial gain on its direct holding in Moderna (NASDAQ:MRNA) over the life of the investment, particularly in 2020 given the substantial appreciation in Moderna's stock price," says the company in a statement.
• Merck had invested a sizable amount in Moderna in 2018 via a preferred-equity stake.
• A $20 stock at the start of 2020, Moderna nearly touched $180 earlier this week after positive results from its Covid-19 vaccine candidate. Shares pulled back to $141 yesterday. If Merck sold in the first half of Q4, that would mean a price somewhere between roughly $70 and $100.
• https://seekingalpha.com/news/3640755-merck-unloaded-stake-in-moderna-earlier-this-quarter

NBA re-ups with Opko reference lab unit for COVID-19 testing

 

• According to an article from the Associated Press published yesterday (since removed), the National Basketball Association has agreed to a new contract for COVID-19 testing with Opko Health (OPK -0.9%) unit BioReference Laboratories (BRL) for the upcoming season.
• BRL provided the testing services (players, coaches, staff, referees) for the recently completed bubble in Florida at $140 per test.
• The new deal could include up to 2,500 tests per day at the same price. The company will likely have personnel traveling with teams to manage testing on the road.
• https://seekingalpha.com/news/3640864-nba-re-ups-opko-reference-lab-unit-for-covidminus-19-testing

FDA OKs Vanda Pharma's Hetlioz for rare developmental disorder

 

• The FDA has signed off Vanda Pharmaceuticals' (NASDAQ:VNDA) Hetlioz capsules and the liquid formulation of Hetlioz for the treatment of adults and children, respectively, with nighttime sleep disturbances associated with Smith-Magenis Syndrome (SMS), a rare inherited disorder characterized by mild-to-moderate intellectual disability, delayed speech and language skills.
• HETLIOZ is the first FDA-approved medication for patients with SMS.
• SMS is a developmental disorder that is caused by a small deletion of human chromosome 17p.
• The nod for HETLIOZ for the treatment of nighttime sleep disturbances in SMS is based on a single placebo-controlled efficacy study in this rare disorder, which studied both adults with SMS taking the HETLIOZ capsule and children with SMS taking the liquid formulation. The safety profile of HETLIOZ in this study was similar to those seen in HETLIOZ studies previously conducted for the treatment of Non-24-Hour Sleep-Wake Disorder, and was similar between adults and children with SMS.
• HETLIOZ capsules, for adults with SMS, will be immediately available and the HETLIOZ LQ liquid formulation, for children with SMS, is expected to be available in the first quarter of 2021.
• https://seekingalpha.com/news/3640715-fda-oks-vanda-pharmas-hetlioz-for-rare-developmental-disorder-shares-up-9

Bayer sets up cell and gene platform to foster purchased biotech firms

 Bayer said it was setting up an organisation within its healthcare division to speed up and support cell and gene therapy development, following recent takeovers.

The new platform will provide services such as research, manufacturing, clinical development and project management to support the new business.

Bayer acquired cell and gene therapy companies BlueRock Therapeutics and Asklepios Biopharmaceutical in 2019 and 2020, respectively.

https://www.reuters.com/article/us-bayer-celltherapy/bayer-sets-up-cell-and-gene-platform-to-foster-purchased-biotech-firms-idUSKBN28C0U1

JD Health IPO examines value of China’s big tech

 JD.com is offering a timely reminder of why big technology firms are valuable to Beijing. The e-commerce giant’s healthcare arm has priced shares in its initial public offering at a reasonable 13 times sales. The $3.5 billion deal is set to be the biggest IPO in Hong Kong this year after an abrupt regulatory halt to the debut of Ant, the Alibaba payments affiliate, in November. As Chinese officials also scrutinise competitive practices of internet platforms, the healthcare sector underscores a symbiotic relationship.

The pandemic has boosted demand for digital, contactless medical services. JD Health International was China’s largest online retail pharmacy by revenue in 2019, according to its prospectus, and was the first to offer online appointments for Covid-19 nucleic acid tests. Daily online consultations leapt to nearly 90,000 in the first half of 2020, almost six times more than the same period last year. The company’s topline grew 33% year-on-year in 2019 and accelerated to 76% in the six months of 2020, roughly the same pace of its closest rival, $39 billion Alibaba Health Information Technology, in its interim period. The bulk of JD Health’s business is in direct sales of medicines and other products. Other services include an over-9,000-merchant-strong online marketplace and digital marketing.

Assume JD Health’s enterprise value reaches $28 billion at the high-end of the range, after subtracting some $486 million in cash and cash equivalents as of June. Its roughly $2.2 billion in revenue for trailing twelve months implies a sales multiple of nearly 13 times, below Alibaba Health’s 18 times and in line with Ping An Healthcare and Technology, which runs the Good Doctor app, per Refinitiv data. Alibaba Health has more annual active users and turned a net profit in the six months ended September, while JD Health was loss-making in the first half of this year.

It’s a smart area for JD.com and its peers to tap into: China’s National Development and Reform Commission supports the buildout of internet healthcare in a country where overcrowded hospitals and long wait times are a problem. Given the sensitive nature of the sector, there will perhaps also be less regulatory surprises than there have been of late in e-commerce and payments. Big traditional companies in China have long served official goals, and it helps internet companies to play the part too.

https://www.reuters.com/article/us-jd-hlth-intl-ipo-breakingviews/breakingviews-healthcare-ipo-examines-value-of-chinas-big-tech-idUSKBN28C097

Interpol warns COVID-19 vaccines could be targeted by criminals

 The Interpol global police co-ordination agency warned on Wednesday that organised criminal networks could be targeting COVID-19 vaccines, and could look to sell fake shots.

Interpol, which is headquartered in France, said it had issued a global alert to law enforcement across its 194 member countries, warning them to prepare for organised crime networks targeting COVID-19 vaccines, both physically and online.

“As governments are preparing to roll out vaccines, criminal organisations are planning to infiltrate or disrupt supply chains. Criminal networks will also be targeting unsuspecting members of the public via fake websites and false cures, which could pose a significant risk to their health, even their lives,” said Interpol secretary general Juergen Stock.

https://www.reuters.com/article/us-health-coronavirus-interpol/interpol-warns-that-covid-19-vaccines-could-be-targeted-by-criminals-idUSKBN28C166