Noninvasive Saliva Tests for COVID Effective as Nose, Throat Swabs

 You now have a more comfortable, easier-to-perform option for COVID-19 testing besides the “stick in the nose” and throat swab methods.

Saliva-based testing has shown accuracy in detecting positive coronavirus infection 83 percent of the time, while nose-throat swab tests have shown 85 percent accuracy, according to a review of dataTrusted Source from 16 studies including 5,900 participants published in JAMA Internal Medicine.

The study authors also report that saliva-based testing has shown 99 percent accuracy at identifying negative cases for COVID-19, with a far less invasive and discomforting process.

Furthermore, the researchers suggest that the ease of use and good diagnostic performance of the saliva-based test may make it an attractive alternative that could bolster test rates.

Dr. Seema Kumar, a medical director at Mytonomy, said at-home testing decreases the risk of COVID-19 exposure, increases access to testing, and reduces the burden on laboratories.

She said these are all critical benefits during the ongoing and ever-evolving pandemic.

“These tests are best used for those with mild symptoms or a known or suspected exposure to someone with a COVID-19 infection,” Kumar told Healthline.

“Saliva testing is very sensitive. It can detect the virus as well as one copy per microliter of saliva,” added Dr. Spencer Kroll, FNLA, an internal medicine specialist in New Jersey.

“It is reassuring that many saliva test kits show high concordance with nasal swab polymerase chain reaction (PCR) testing for SARS-CoV-2 detection,” he told Healthline.

However, Kroll said that the approximate mismatch of saliva testing versus nose-and-throat swab testing leaves room for missed cases that could have otherwise been detected with a nasal swab PCR test.

“Therefore, negative saliva results do not absolutely preclude SARS-CoV-2 infection and should not be used as the sole basis for patient management decisions,” he said.

“Negative results must be combined with clinical judgment, patient history, and epidemiological data,” Kroll said.

Kumar agrees.

“Test results are interpreted in context of symptoms, possible or known exposures, and prevalence of disease within the community,” she said.

Importantly, “sometimes a repeat test is needed,” Kumar said.

“The home testing offers convenience, but it is always best to review your results and questions with your healthcare provider,” Kumar said.

https://www.healthline.com/health-news/noninvasive-saliva-tests-for-covid-19-as-effective-as-nose-throat-swabs#What-experts-think

FEMA asks DoD for up to 10,000 troops to back US vax push

 The Federal Emergency Management Agency (FEMA) has asked the Pentagon to ready as many as 10,000 troops to support 100 COVID-19 vaccination sites nationwide, with the goal of administering 450,000 vaccinations a day. 

The federal government envisions 50 "mega" vaccination sites capable of administering 6,000 shots per day, in addition to 50 "large" vaccination sites providing 3,000 shots per day, according to defense officials. 

The first of the FEMA-powered vaccination sites are expected to be operating by mid-February, a senior White House official told CBS News, and will scale up as vaccine production intensifies in the coming months. 

FEMA's "Prepare to Deploy Order" to the Department of Defense (DOD) is expected to be approved, but has not yet been greenlighted. California, Virginia, Michigan, Delaware and New Mexico are among the states that have requested federally run vaccine centers. 

The FEMA-run sites will be entirely new in most cases, according to a senior White House official, but the federal agency will work with governors to provide personnel and support to existing state-run vaccination centers where they're needed. The agency will offer funding, logistics, staffing and mobile vaccination clinics, but governors are free turn down DOD deployments to their state. 

California Governor Gavin Newsom's office, which has been struggling with high infection rates for months, is relying on FEMA for help in establishing "high-volume vaccination sites" in several locations. The California National Guard announced it will be assisting at two facilities to start: Cal Expo-Sacramento and the Long Beach Convention Center. 

Michigan has requested up to 16 federally supported sites statewide, according to its Emergency Management and Homeland Security Division. "It is clear that additional vaccine will not be immediately available to support these sites, however planning will begin to ensure that sites are available when there is sufficient vaccine to support them," a spokesperson told CBS News.

Deputy Secretary of Defense David Norquist and the Pentagon's COVID coordinator, Max Rose, visited a FEMA site in Arizona Friday for a firsthand assessment of what military support is needed.

"This is not a militarization of the vaccination operation or federalization of vaccines," a senior White House official told CBS News. "This is the United States government providing whatever assistance is needed in parts of the community, in support of the governor."

President Biden announced Monday that the administration had its sights set on more ambitious vaccination targets, and hoped the U.S. could ramp up capacity to administer 1.5 million shots daily. The administration is increasing the weekly supply of COVID-19 vaccines to states and territories by 16% next week and the White House has boosted its vaccine forecast to give governors a three-week heads-up on forthcoming allocations of the shots, helping them better plan distribution of the vaccine. The Biden administration argues that the government faces distribution challenges that go beyond the availability of doses. 

"The issue is not just vaccine supply," White House Press Secretary Jen Psaki told reporters Thursday.  

"By the summer, we will have enough supply for the public. But that doesn't ensure that everybody will have had a vaccine," Psaki said. "We need to ensure we have the materials to distribute the vaccine, the vaccinators and qualified individuals to literally put the shots in the arms of Americans, and the places to do it."  

But states have expressed different concerns about the race to vaccinate their residents. CBS News reached out to all 50 states and Washington, D.C. to ask them about the biggest obstacle to distributing the vaccine in their state. Over half responded, and all of them, regardless of the state's political leaning, pointed to vaccine supply. 

"Our greatest concern is getting increased vaccine allotment to support it," a spokesperson from Delaware's Emergency Management Agency told CBS News.  

Officials from a handful of states – including Georgia, Idaho, Indiana, Montana, North Carolina, North Dakota, Oklahoma, Utah and Vermont – say they'll need more information about the rate of manufacturing and distribution of the vaccine before they'll know how much extra federal assistance they'll need.  

Oklahoma Deputy Health Commissioner Keith Reed said his state would be interested in FEMA-supported vaccination sites — if they offer additional shots. "We are certainly interested in this option if indeed it includes more vaccine allocation," Reed told CBS News. "If it is simply a redirection of our existing vaccine supply, we would have to carefully consider our ability to direct the activities to ensure it met with our citizen's needs." 

A spokesperson from North Carolina Governor Roy Cooper's office noted that, "while additional support is welcome, North Carolina has currently administered 95% of the first doses received by the state, and additional supply remains a critical need."

"Our largest concern is just having more doses. Our state partners are able to administer nearly all doses each week," Joe Dougherty, director of public affairs for Utah's department of public safety, wrote in an email to CBS News, adding, "We just want to have proper expectations about what is coming and when." 

"Indiana currently has 215 vaccination sites available and has built capacity for mass vaccination clinics," a spokesperson from Indiana's Department of Health said. "We simply need more vaccine." 

"We have more demand for vaccinations than we have vaccine," Mike Nowatzki, communications director for North Dakota Governor Doug Burgum, told CBS News. "We have the infrastructure and would like to administer more doses each week." 

"The main thing Idaho needs is more vaccine," said Zachary Clark, spokesperson for the Idaho Department of Health. "Currently demand for vaccine in Idaho far outpaces supply."

Governors on both sides of the aisle have pushed the federal government for more shots, casting doubts on plans to concentrate resources around opening up more vaccination sites. 

"You're saying you're going to put federal resources in this and create your own [vaccination] sites," Florida Governor DeSantis said in a Fox News appearance Thursday night. "It is really not necessary," the Republican governor added. "I think a lot of Democratic governors agree with me. Just get more supply of the vaccine because we were promised initially that we were going to get more up to this point. I can get it into seniors' arms if we just get more in the shipments." 

"The distribution points or healthcare workers right now are not our constraint," New Jersey Governor Phil Murphy – a Democrat – said on MSNBC Thursday. "The constraining factor right now is supply of doses."  

The doses are on the way, the White House COVID-19 Response Team promises.  

"We have an anticipated 600 million doses that we will have by over the summer, enough to vaccinate all people over age 16," Dr. Rochelle Walensky, Director of the Centers for Disease Control and Prevention, told "CBS This Morning" Friday. 

Governors already have federal personnel in place to help with the vaccination effort. The Defense Department says nearly 20,000 members of the National Guard have been called to assist at 260 vaccination sites in 26 states and territories across the country – and many of them were deployed while still under orders of the Trump administration. 

Pentagon press secretary John Kirby told reporters Thursday that FEMA's request for military assets would be "reviewed urgently but carefully." 

"We are obviously going to source this request," Kirby said.

By Wednesday, FEMA had obligated more than $1.2 billion to states, territories and tribes to cover COVID-19 vaccination expenses at 100% federal cost share and more than $57.5 billion to fund the pandemic response, according to a spokesperson.  

The agency has already deployed 200 of its own personnel to help out at state vaccination centers in nine states: Illinois, Kentucky, Maryland, Nevada, New Jersey, Pennsylvania, Texas, Virginia, West Virginia and the U.S. Virgin Islands. The U.S. Coast Guard has deployed 18 reservists and is identifying 1,000 more for future missions, according to FEMA.

https://www.cbsnews.com/news/fema-pentagon-ready-10000-troops-covid-vaccination-sites/

Biotech Investors: Mark Your Calendar For February PDUFA Dates

 Coming off a stellar year, when a record 53 new molecular entities were approved, 2021 has a lot to live up to. NMEs are a measure of innovation among biopharma companies, as they refer to drugs containing an active ingredient that has never been approved previously.

Although the calendar for drug approval decisions, known as PDUFA dates, for January was fairly light, most verdicts issued in the month were positive. Among the drugs approved in the month were Merck & Co., Inc.'s MRK 1.1% heart failure drug, an expanded indication for Pfizer Inc.'s PFE 0.13% lymphoma drug and Aurinia Pharmaceuticals Inc's AUPH 2.17% kidney inflammation drug.

Here are the key FDA decisions due for February:

Adamas Seeks Label Expansion For Its Parkinson's Drug

Company: Adamas Pharmaceuticals Inc ADMS 10.06%
Type of Application: sNDA
Candidate: Gocovri
Indication: "Off episodes" in Parkinson's disease patients receiving levodopa-based therapy
Date: Feb. 1 (estimated date provided by the company)

The FDA accepted the application for label expansion on June 4.

Gocovri, extended-release capsules, has already been approved for dyskinesia in Parkinson's disease patients treated with levodopa-based therapy, with or without other dopaminergic medications.

In 2020, Gocovri sales came in at $71.2 million, up 30% year-over-year.

Clinical evidence supporting Gocovri's effect on off episodes was demonstrated in two large pivotal Phase 3 trials and is currently included in the GOCOVRI prescribing information.

Mallinckrodt Awaits Nod For Skin Tissue Therapy To Treat Burns

Company: Mallinckrodt PLC MNKKQ 2.07%
Type of Application: BLA
Candidate: StrataGraft
Indication: deep partial-thickness thermal burns
Date: Feb. 2

StrataGraft, an investigational regenerative skin tissue therapy, is in development for the treatment of adult patients with deep partial-thickness thermal burns.

On Aug. 10, the FDA accepted the application for priority review, assigning a PDUFA goal date of Feb. 2.

Each year, approximately 40,000 patients in the U.S. require hospitalization for the treatment of severe burns, according to Mallinckrodt. Autograft, the current standard of care, involves surgical harvesting of healthy skin from an uninjured site on the patient and transplanting the skin graft to the injury, leaving the patient with more wounded areas requiring care.

StrataGraft skin tissue is engineered to mimic natural human skin with both inner dermis-like and outer epidermis-like layers.

‘Go Or No-Go' For Regeneron's Adjuvant Therapy To Treat Inherited High Cholesterol Condition?

Company: Regeneron Pharmaceuticals Inc REGN 0.48%
Type of Application: BLA
Candidate: evinacumab
Indication: homozygous familial hypercholesterolemia, or HoFH
Date: Feb. 11

HoFH is an ultra-rare, inherited form of high cholesterol, affecting approximately 1,300 patients in the U.S. With the vast majority of these patients unable to reach target LDL-C levels with currently available therapies, the need for an effective therapy has become acute.

Evinacumab is an investigational fully-human monoclonal antibody that binds to and blocks the function of ANGPTL3.

Can TG Therapeutics Lymphoma Drug Cross The FDA Hurdle?

Company: TG Therapeutics Inc common stock TGTX 0.46%
Type of Application: NDA
Candidate: umbralisib
Indication: marginal zone lymphoma
Date: Feb. 15

Umbralisib, TG Therapeutics' investigational once-daily, oral, dual inhibitor of PI3K-delta and CK1-epsilon, is being evaluated as a treatment for patients with previously treated marginal zone lymphoma, who have received at least one prior anti-CD20 based regimen. It also is being evaluated for use in patients with follicular lymphoma who have received at least two prior systemic therapies.

G1's Trilaciclib Awaits Regulatory Clearance For Treating Chemotherapy-Induced Toxicities

Company: G1 Therapeutics Inc GTHX 6.96%
Type of Application: NDA
Candidate: trilaciclib
Indication: small cell lung cancer
Date: Feb. 15

Trilaciclib is an investigational therapy designed to improve outcomes for people with cancer treated with chemotherapy. G1 submitted the regulatory application in June based on myelopreservation data from three randomized, double-blind, placebo-controlled clinical trials in which trilaciclib was administered prior to chemotherapy in patients with small cell lung cancer.

The application was accepted by the FDA for priority review In August, with a PDUFA goal date of Feb. 15.

In clinical trials, trilaciclib significantly reduced chemotherapy-induced myelosuppression — damage to bone marrow stem cells. Myelosuppression often leads to anemia, neutropenia or thrombocytopenia.

Sarepta Seeks Nod For Third Exon-Skipping DMD Drug

Company: Sarepta Therapeutics Inc SRPT 0.81%
Type of Application: NDA
Candidate: casimersen
Indication: Duchenne muscular dystrophy
Date: Feb. 25

Casimersen, a phosphorodiamidate morpholino oligomer, is engineered to treat patients with Duchenne muscular dystrophy who have genetic mutations that are amenable to skipping exon 45 of the dystrophin gene.

The company submitted the NDA in June 2020, with the FDA accepting the application in late August, granting priority review.

If approved, casimersen would be the third exon-skipping medicine in its PMO RNA-based platform, offering treatment to the 8% of Duchenne patients who are amenable to exon-45 skipping.

The company has received conditional approval of Amondys 45 as the brand name for casimersen.

Second Approval For Regeneron's Checkpoint Inhibitor Libtayo In The Offing?

Company: Sanofi SA SNY 0.76% and Regeneron 
Type of Application: sBLA
Candidate: Libtayo
Indication: lung cancer
Date: Feb. 28

Libtayo, jointly-developed by Sanofi and Regeneron, is a fully-human monoclonal antibody targeting the immune checkpoint receptor PD-1 on T-cells. It has already been approved for treating cutaneous squamous cell carcinoma, a type of skin cancer, that has spread or cannot be cured by surgery or radiation.

The companies are now seeking approval for the drug as a treatment option for first-line locally advanced or metastatic non-small cell lung cancer with 50% or more PD-L1 expression.

CoreMedix Seeks Approval For Catheter-Related Blood Stream Infection Treatment

Company: CorMedix Inc. CRMD 1.03%
Type of Application: NDA
Candidate: defencath
Indication: catheter-related blood stream infections
Date: Feb. 28

Defencath is to be used as a catheter lock solution in hemodialysis patients for the prevention of catheter-related blood stream infections. The company said if approved, defencath will potentially be the first antibacterial and antifungal catheter lock solution in the U.S. to prevent catheter-related infections in hemodialysis patients.

Following FDA acceptance of the regulatory application for priority review, the PDUFA goal date was fixed at Feb. 28.

Can Athenex' Oral Chemotherapy Medication Pass FDA Muster?

Company: Athenex Inc ATNX 0.93%
Type of Application: NDA
Candidate: Oral Paclitaxel
Indication: breast cancer
Date: Feb. 28

The regulatory application for Oral Paclitaxel, comprising oral paclitaxel and encequidar, was accepted by the FDA for priority review in early September, as a treatment option for metastatic breast cancer.

Currently intravenous Paclitaxel is considered foundational chemotherapy in multiple tumor types.

https://www.benzinga.com/general/biotech/21/01/19387602/attention-biotech-investors-mark-your-calendar-for-february-pdufa-dates

Tough Pain Relief Choices in the COVID-19 Pandemic

 More people with fever and body aches are turning to nonsteroidal anti-inflammatory drugs (NSAIDs) to ease symptoms, but the drugs have come under new scrutiny as investigators work to determine whether they are a safe way to relieve the pain of COVID-19 vaccination or symptoms of the disease.

Early on in the pandemic, French health officials warned that NSAIDs, such as ibuprofen, could worsen coronavirus disease, and they recommended switching to acetaminophen instead.

The National Health Service in the United Kingdom followed with a similar recommendation for acetaminophen.

But the European Medicines Agency took a different approach, reporting "no scientific evidence" that NSAIDs could worsen COVID-19. The US Food and Drug Administration also opted not to take a stance.

The debate prompted discussion on social media, with various reactions from around the world. It also inspired Craig Wilen, MD, PhD, from Yale University School of Medicine in New Haven, Connecticut, and his team to examine the effect of NSAIDs on COVID-19 infection and immune response. Their findings were published online January 20 in the Journal of Virology.

"It really bothered me that nonevidence-based decisions were driving the conversation," Wilen said. "Millions of people are taking NSAIDs every day and clinical decisions about their care shouldn't be made on a hypothesis."

One theory is that NSAIDs alter susceptibility to infection by modifying angiotensin-converting enzyme 2 (ACE2). The drugs might also change the cell entry receptor for SARS-CoV-2, alter virus replication, or even modify the immune response.

British researchers, also questioning the safety of NSAIDs in patients with COVID-19, delved into National Health Service records to study two large groups of patients, some of whom were taking the pain relievers.

"We were watching the controversy and the lack of evidence and wanted to contribute," lead investigator Angel Wong, PhD, from the London School of Hygiene and Tropical Medicine, told Medscape Medical News.

And with nearly 11 million NSAID prescriptions dispensed in primary care in England alone in the past 12 months, the inconsistency was concerning.

The team compared COVID-19-related deaths in two groups: one group of more than 700,000 people taking NSAIDs, including patients with rheumatoid arthritis and osteoarthritis; and another of almost 3.5 million people not on the medication.

NSAIDs work by inhibiting cyclooxygenase (COX)-1 and COX-2 enzymes in the body, which are crucial for the generation of prostaglandins. These lipid molecules play a role in inflammation and are blocked by NSAIDs.

The investigators found no evidence of a harmful effect of NSAIDs on COVID-19-related deaths; their results were published online January 21 in the Annals of the Rheumatic Diseases.

The results, they point out, are in line with a Danish study that also showed no evidence of a higher risk for severe COVID-19 outcomes with NSAID use.

"It's reassuring," Wong said, "that patients can safely continue treatment."

More New Evidence

Wilen's team found that SARS-CoV-2 infection stimulated COX-2 expression in human and mice cells. However, suppression of COX-2 by two commonly used NSAIDs, ibuprofen and meloxicam, had no effect on ACE2 expression, viral entry, or viral replication.

In their mouse model of SARS-CoV-2 infection, the investigators saw that NSAIDs impaired the production of proinflammatory cytokines and neutralizing antibodies. The findings suggest that NSAIDs influence COVID-19 outcomes by dampening the inflammatory response and production of protective antibodies, rather than modifying susceptibility to infection or viral replication.

Understanding the effect of NSAIDs on cytokine production is critical, Wilen pointed out, because they might be protective early in COVID-19 but pathologic at later stages.

Timing is crucial in the case of other immunomodulatory drugs. For example, dexamethasone lowers mortality in COVID-19 patients on respiratory support but is potentially harmful for those with milder disease.

There is a lot to learn, still, Wilen acknowledged. "We may be seeing something similar going on with NSAIDs, where the timing of treatment is important."

https://www.medscape.com/viewarticle/944956

Employers' Post-Pandemic Playbook

 As the vaccination rate steadily builds toward "herd immunity" to COVID-19, employers will be faced with a "new normal" in terms of workplace safety and employee heath. Will they try to wash their hands of the whole COVID-19 mess or, hopefully, will they realize that improving employee health should be a business priority? Judging from their efforts in 2020, I am betting that some of the largest U.S. employers will opt for the latter. Here are two examples.

Walmart: Like many other large companies, Walmart responded quickly to the pandemic by updating and implementing health safety policies (e.g., daily temperature checks and health screenings), providing personal protective equipment (PPE) for its employees at more than 5,000 locations, assuring paid leave for employees (e.g., quarantine pay, pay while dealing with confirmed case of COVID-19), and offering cash bonuses to help all employees.

In terms of post-pandemic employee and consumer health improvement planning, Walmart is ahead of the game -- and making a profit in the process. As COVID-19 made its presence known in the U.S. last January, the company had just expanded its employee benefits through telehealth; the $4 charge for Doctor-on-Demand visits was waived for employees during the pandemic. Over the course of 2020, the company began to pilot a freestanding clinic model aimed at lowering the cost of health services by as much as 40% (e.g., $30 medical checkups, $25 teeth cleanings, $1 per minute mental health counseling) while reducing administrative red tape. A partnership with Quest Diagnostics is helping to expand COVID testing by opening testing locations at about 500 Walmart pharmacies.

Amazon: In addition to a reported $2.5 billion in pandemic related employee bonuses and incentives, Amazon invested approximately $10 billion in COVID-related initiatives in 2020 -- from enhanced cleaning, disinfectant spraying and social distancing measures to distributing PPE and checking employee temperatures across worldwide operations. Employee benefits were adjusted to provide up to 2 weeks of paid time off in addition to other options for those diagnosed with COVID-19.

It is already clear that healthcare will remain an important focus for the company post-pandemic. For instance, the company has forged partnerships with CVS and Thermo Fisher Scientific to promote employer-based COVID-19 testing; Carrier Global Corp. to boost temperature controlled delivery of medicines and vaccines; and Crossover Health (a primary care clinic chain) to provide virtual or in-person visits and develop employee health centers in five cities.

For all employers, COVID-19 and its growing cadre of variants will continue to put the health of all employees at risk in the foreseeable future. In addition to determining that the virus meets the "direct threat" standard under the Americans with Disabilities Act (a move that has enabled employers to ask employees health-related questions and keep those with symptoms from entering the workplace), the Equal Employment Opportunity Commission has made it clear that employers may opt to make vaccination mandatory. As a result, many employers are discussing plans to mandate vaccinations before permitting their employees return to the office.

I suggest that all employers give serious consideration to a mandatory vaccine policy for their workforces, keeping in mind some practical issues such as:

• Does the company need a mandatory vaccine policy? Do employees work remotely, making it feasible for them to make their own decisions? Is close contact required among employees or with the public, making vaccination a "must"?
• If a policy is implemented, how will requests for exemptions be handled -- and what happens to those who refuse?

In a big shift from the previous administration's position (i.e., leaving coronavirus precautions to the discretion of employers), President Biden has tasked the Occupational Safety and Health Administration (OSHA) with ensuring that workers are protected from catching or spreading COVID-19. National standards for employers will be established and OSHA will have the power to enforce them. Because workers are guaranteed the right to refuse employment that will jeopardize their health, workers will be allowed to receive unemployment benefits if they quit jobs that do not follow pandemic protocols.

For employers, it all boils down to this: you can run, but you cannot hide! Like mandatory drug testing for certain jobs and mandatory meningitis vaccinations on college campuses, requiring a COVID-19 vaccination for certain employee populations is totally appropriate. Think of it as a "passport" to work.

I recognize that not every firm has the resources of a Walmart or an Amazon but, in the final analysis, your own employees don't care about that. As your employees, they look to you.

David Nash, MD, MBA, is founding dean emeritus and the Dr. Raymond C. and Doris N. Grandon Professor of Health Policy at the Jefferson College of Population Health. He serves as special assistant to Bruce Meyer, MD, MBA, president of Jefferson Health. He is also editor-in-chief of the American Journal of Medical Quality and of Population Health Management.

https://www.medpagetoday.com/columns/focusonpolicy/90961

Goldman: Hedge fund exposures 'close to records, ongoing sell-off risk'

 

U.S. hedge funds last week bought and sold the most stock in more than 10 years amid wild swings in GameStop Corp shares that many had bet against, but their market exposure to stocks is still near record levels, according to an analysis by Goldman Sachs Inc.

"According to Goldman Sachs Prime Services, this week represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts in every sector," the investment bank wrote in a note late Friday.

"Despite this active deleveraging, hedge fund net and gross exposures on a mark-to-market basis both remain close to the highest levels on record, indicating ongoing risk of positioning-driven sell-offs."

https://www.marketscreener.com/news/latest/Goldman-sees-hedge-fund-exposures-close-to-records-ongoing-sell-off-risk-after-GameStop-swings--32321177/

Don't Bank on Covid-19 Killing off Cash Just Yet

 Peter Coffey, an advertising copywriter, has used cash just once since the Covid-19 pandemic started -- to buy a used car.

When the health crisis began, he set up his smartphone's tap-to-pay function with a credit card. "Some places weren't accepting cash. I just got into the habit of never even thinking about cash," he said.

Mr. Coffey, 28 years old, who is working remotely from Tucson, Ariz., said he expects to continue using touchless payment technologies after the pandemic. "It's great, the amount of times I've gone to the store and realized I don't have my credit card. It's fine -- I just tap with my phone."

He and many other U.S. consumers are shunning cash for a number of reasons, including convenience and a desire to avoid bills and coins as potential sources of coronavirus transmission. In the same way the Covid-19 pandemic has changed the ways we work, shop and socialize, it has also shifted the way many people pay for things.

Digital retail sales were up 37% in the third quarter, seasonally adjusted, from the same period a year earlier, according to the Commerce Department. Cash wasn't an option for those payments: Spending online or using an app like Uber Eats requires an electronic method such as a debit card or PayPal account.

"A central theme of Covid-19 is things that would have taken five years are taking five months, and it's a reinforcing of existing trends. It's the same with cash," said Kenneth Rogoff, a Harvard University economist.

Around the world, fears of infection have driven an increase in contactless payments -- electronic payments like Apple Pay and tap-to-pay offerings that avoid even swiping or inserting cards -- according to credit-card companies. Contactless as a share of in-person transactions grew at least 10% in more than 80 markets for Mastercard Inc. in 2020, driven by demand for increased speed and safety, Chief Executive Michael Miebach said on an earnings call Thursday.

The shift to more electronic payments could spur consumer spending, giving economic growth a boost, once widespread Covid-19 vaccinations enable a fuller economic recovery, analysts say. When shoppers pay with plastic, they tend to spend more.

A Deutsche Bank survey in January 2020 found that 43% of Americans tend to think less about the amount they spend when using a card, and 36% think less about the amount when using a digital wallet.

The pandemic has accelerated the decline in cash payments and the move toward e-commerce by about four or five years, said Marion Laboure, a Deutsche Bank economist.

Americans' use of cash was gradually declining for years before the pandemic as they embraced credit and debit cards, mobile wallets, online transfers and apps. They used cash in 26% of all payments in 2019, down from 40% in 2012, according to the Federal Reserve's annual look at payment habits.

A Fed survey, conducted in May, found that 28% of respondents said they were avoiding using cash, while 70% said they weren't.

"Consumer payments is a habit, like the way you like to drink your coffee in the morning," said Claire Greene, an expert on payments at the Federal Reserve Bank of Atlanta. Adopting new payment habits -- like contactless payments -- due to the pandemic requires effort and learning by both consumers and retailers, she said.

Still, while shoppers' embrace of digital commerce looks likely to last, economists say it is too soon to know if U.S. consumers' shift to cashless payments will as well, for several reasons.

To start, U.S. household spending overall remains below its pre-pandemic level. As spending rebounds, so might cash payments.

Also, much of the shift was forced. Business closures and other restrictions pushed much shopping online. It is unclear whether people will readily reach for bills and coins again once more widespread vaccinations enable them to return to stores.

Some consumers' privacy concerns make them hesitant to have their every swipe or click tracked.

A recent study by Visa Inc. found that 24% of U.S. consumers said they would resume their old payment methods after a vaccine is widely available.

The U.S. is unlikely to allow most businesses to abandon cash payments because of concerns about consumers lacking access to or familiarity with digital payment methods. These include senior citizens, undocumented immigrants, people who can't qualify for credit cards or afford smartphones, and the millions of households that lack bank accounts. New York City, Philadelphia, New Jersey and San Francisco have passed legislation requiring most stores and restaurants to accept cash.

Meanwhile, people still like to have physical dollars and cents. Although people in the U.S. were using cash less in transactions, they were holding more of it as a store of value, the May Fed survey found.

The demand for U.S. currency has boomed globally since the pandemic began. U.S. currency in circulation -- paper bills and coins in the hands of the public -- had jumped to $2.07 trillion in December from $1.80 trillion in January 2020. In the same period of 2019, the amount of cash in circulation rose far less, to $1.79 trillion from $1.71 trillion.

https://www.marketscreener.com/news/latest/Don-t-Bank-on-Covid-19-Killing-off-Cash-Just-Yet--32316066/