Russia Produces First Batch of COVID-19 Vaccine for Animals

 Russia has produced the world's first batch - 17,000 doses - of COVID-19 vaccines for animals, its agricultural regulator said on Friday.

Russia registered Carnivac-Cov in March after tests showed it generated antibodies against COVID-19 in dogs, cats, foxes and mink.

The first batch will be supplied to several regions of Russia, the regulator Rosselkhoznadzor said in a statement.

It said companies from Germany, Greece, Poland, Austria, Kazakhstan, Tajikistan, Malaysia, Thailand, South Korea, Lebanon, Iran and Argentina had expressed interest in purchasing the vaccine.

The World Health Organization has voiced concern over the risk of transmission of the virus between humans and animals. The Russian regulator has said the vaccine would be able to protect vulnerable species and thwart viral mutations.

"About 20 organisations are ready to negotiate registration and supply of the vaccine to their countries. The file for registration abroad, in particular in the European Union, is under preparation and will be promptly used for the registration process," the Russian watchdog said.

https://www.medscape.com/viewarticle/950278

Blue Health Insurers Drop Revenue Rule That Limited Competition

 The Blue Cross Blue Shield Association said it dropped a rule that limited competition among its member insurers, moving to implement a key aspect of an antitrust settlement the companies reached last year with customers.

The settlement hasn't won final approval from the federal judge presiding over the litigation, so it isn't being fully implemented. But last Tuesday the group of insurers formally lifted a cap on the share of the members' revenue that could come from business not under a Blue Cross Blue Shield brand, one of the moves it had promised under the settlement.

Previously, the rule was that two-thirds of a Blue licensee's national net revenue from health plans and related services must stem from Blue-branded business.

The Blue Cross Blue Shield Association includes 35 insurers, each of which typically hold exclusive rights to the Blue Cross and Blue Shield brands within a certain territory, a setup that would remain intact under the antitrust settlement.

However, lifting the revenue cap could allow the Blue insurers to compete more against one another by expanding their non-Blue businesses, experts said. Dropping the limit "certainly should increase competition, " said Tim Greaney, a professor at the University of California Hastings College of the Law, though he said it isn't clear how quickly it would have an effect.

In a statement, the Blue Cross Blue Shield Association said its move was consistent with the settlement. "Blue Cross and Blue Shield companies will remain focused on the goal we have had for over 90 years -- improving access to quality healthcare for all Americans -- as the settlement continues through the Court approval process and is implemented according to terms of the Agreement," the group said.

Anthem Inc. and Health Care Service Corp. are among the largest Blue insurers. Together, all of the Blue companies cover more than 100 million Americans.

David Boies, a lead attorney for the Blue customer antitrust plaintiffs, said elimination of the restriction "will substantially increase competition in health insurance markets."

The antitrust claims were first brought in 2012 as a proposed class action on behalf of employers and individual policyholders with Blue coverage. The suit alleged that the insurers illegally conspired to divvy up markets and avoid competing against one another, driving up customers' prices.

The settlement has won preliminary approval from U.S. District Judge R. David Proctor, in Birmingham, Ala., who wrote that the deal's "structural relief is historic and substantial." The settlement requires the insurers to pay about $2.7 billion, largely to customers, and take steps that include dropping the national revenue cap.

The revenue cap was one impediment to Anthem's $48 billion deal to buy Cigna Corp., which ended up foundering largely over its own antitrust issues. That deal could have added substantially to Anthem's non-Blue revenue.

Still, the settlement wouldn't unwind the licensing structure that allows the Blue insurers to hold exclusive rights to their brands in certain geographies.

The Blue insurers are still facing a parallel antitrust suit filed on behalf of healthcare providers, which alleges that the insurers illegally pushed down the payments providers receive for medical services. Both suits, consolidated in the Alabama federal court, targeted the association and all the insurers to which it licenses Blue brands.

One reason for the insurers to take action on the revenue rule might be to improve their position in the healthcare providers' ongoing suit, by removing one practice that could be viewed as anticompetitive, Mr. Greaney said.

In response to a question about why the Blue association moved now to get rid of the revenue rule, a spokeswoman said its board made the decision "based on the terms of the settlement. It's one step in a series that we will take to fulfill our commitments under the settlement agreement."

https://www.marketscreener.com/quote/stock/ANTHEM-INC-18740543/news/Blue-Health-Insurers-Drop-Revenue-Rule-That-Limited-Competition-33144379/

QIAGEN NV: 1st-quarter profit tops expectations on growth in non-COVID-19 products

 U.S.-German genetic testing company Qiagen NV reported slightly better-than-expected quarterly earnings on Monday as sales growth in its non-coronavirus products added to high demand for COVID-19 tests.

Qiagen's products include several types of COVID-19 tests that helped it to boost sales over the past year and recover from a difficult 2019 that included profit warnings, a slump in China business and a CEO departure.

The company said it plans to keep growing sales even after the pandemic by broadening its portfolio and making sure each coronavirus-related test has other applications as well.

"We have made multiple product expansions to our non-COVID related portfolio, including the launch of a Lyme disease test," Qiagen's Chief Executive Thierry Bernard said in a statement.

The company said first-quarter adjusted earnings rose to 65 cents per share on a currency-adjusted basis, beating the 63 cents on average forecast by analysts in a Vara Research poll, as research laboratories around the world have returned to work and clinical labs moved beyond COVID-19 testing.

"This performance was particularly driven by 16% constant currency growth in sales of non-COVID product groups that represented 64% of our sales," Bernard said.

Qiagen also confirmed its 2021 forecast for adjusted earnings of $2.42 to $2.46 per share and net sales growth of 18% to 20% at constant exchange rates.

https://www.marketscreener.com/quote/stock/QIAGEN-N-V-40135659/news/QIAGEN-N-nbsp-1st-quarter-profit-tops-expectations-on-growth-in-non-COVID-19-products-33145571/

FDA set to authorize Pfizer-BioNTech COVID-19 vaccine for adolescents early next week

 The U.S. Food and Drug Administration is preparing to authorize Pfizer Inc and BioNTech SE's COVID-19 vaccine for adolescents aged between 12 and 15 years by early next week, the New York Times reported on Monday, citing federal officials familiar with the agency's plans. 

https://www.marketscreener.com/news/latest/FDA-set-to-authorize-Pfizer-BioNTech-COVID-19-vaccine-for-adolescents-early-next-week-NYT--33145669/

U.S. Physical Therapy upped to Buy from Hold by Jefferies

 Target to $135 from $130

https://finviz.com/quote.ashx?t=USPH&ty=c&ta=1&p=d

Ligand Reports First Quarter 2021 Financial Results

 Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today reported financial results for the three months ended March 31, 2021 and provided an operating forecast and program updates. Ligand management will host a conference call today beginning at 4:30 p.m. Eastern time to discuss this announcement and answer questions.

"This year has opened strong for Ligand with solid financial performance and great results from all of our core technology platforms," said John Higgins, Chief Executive Officer. "We are very pleased to report a smooth and efficient integration of the four acquisitions we closed last year. Our R&D team has expanded considerably and we are reaping the benefits of these transactions with more licensing deals and contract revenue. Working within a highly dynamic and unpredictable COVID-19 landscape, we continue to play a key role supporting the manufacture of remdesivir through the supply of Captisol® to numerous partners around the globe. We anticipate 2021 will be the highest year of total revenues in Ligand’s history, and we look forward to multiple regulatory approvals later this year of drugs based on our technologies."

Ligand today affirms its guidance for 2021 total revenues to be approximately $291 million and 2021 adjusted earnings per diluted share to be approximately $6.15. Ligand’s revenue guidance is subject to unexpected changes in demand for Captisol related to remdesivir and the timing and amount of contract payments from milestone events. Ligand may update total revenue guidance at any time during the year, in particular as the COVID-19 pandemic and demand for Captisol related to remdesivir continue to evolve.

Ligand management will host a conference call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this announcement and answer questions. To participate via telephone, please dial (833) 540-1167 from the U.S. or (929) 517-0358 from outside the U.S., using the conference ID 7398698. To participate via live or replay webcast, a link is available at www.ligand.com.

https://finance.yahoo.com/news/ligand-reports-first-quarter-2021-200100542.html

Cooling views on Teladoc

 Teladoc Health (NYSE:TDOC) is a virtual healthcare company that offers a variety of care services, including primary care, mental health, chronic conditions, acute care and more.

The company has caught the eye of many contrarian investors after the recent stock price crash, which was driven largely by the expectation of its pandemic-linked tailwinds disappearing.

With the Livongo (NASDAQ:LVGO) acquisition, the company is making significant investments to integrate and enhance its technology platform and is expected to capitalize on its robust data and behavioral science capabilities across the entire organization. Moreover, the whole-person care strategy of Teladoc that addresses the full spectrum of consumer health needs rather than just one particular disease is a major green flag.

The recent price crash was to be expected given that the pandemic attracted flocks of speculators who never planned to invest for the long-term. However, now that the price has fallen to a more reasonable level, could Teladoc offer returns to investors?

Recent financial performance

Teladoc has witnessed excellent top-line growth over the past year, driven by access fee revenues and visit fee revenues, but its losses have not gone down, which is also one of the reasons for the disappointment of shareholders.

The company reported revenue of $453.68 million for the first quarter of 2021, which was a staggering 150.93% improvement as compared to the $180.80 million reported in the corresponding quarter of the previous year. Apart from the Livongo acquisition, revenues were also driven by strong enrollments in chronic care programs. Teladoc managed to beat the analyst consensus estimate of $451.91 million.

The company's revenues translated into a gross margin of 67.83% and an operating margin of -17.27%, which was lower than that in the same quarter of 2020.

Teladoc reported a net loss of $199.65 million and an adjusted loss per share of $1.31, which was below the average Wall Street expectation of a loss per share of 54 cents. The company burned $18.03 million during the quarter in the form of operating cash losses, and this cash loss was again higher than that in the corresponding quarter of 2020.

Overall, the company has not been performing too well on the financial front and seems to be only increasing its losses as it grows.

The Livongo upside

In October 2020, Teladoc went ahead and acquired digital diabetes service provider Livongo for a consideration of $18.5 billion with a vision to create an all-inclusive virtual healthcare model. The acquisition allows for Teladoc's cross-selling opportunities given the lack of patient overlap with Livongo, thereby partially offsetting pressures from emerging competitors like Amazon Care (NASDAQ:AMZN) and Cigna's (NYSE:CI) acquisition of MDLive.

It is worth highlighting that the company's access fee revenue for the first quarter increased 183% year over year to $388 million and is primarily due to the acquisition of Livongo and InTouch Health, both generating the majority of their revenue from subscription access fees.

Moreover, the management stated that, of the 48 cents of sequential increase in PMPM (Per Member Per Month), roughly half was driven by the contribution of an extra month of Livongo revenue in the first quarter. Notably, membership in the Livongo chronic care suite of products grew 66% over the prior year with Teladoc adding 62,000 new chronic care members in the quarter. The company has partially integrated Livongo into the Teladoc app, enabling users to register for Livongo's care management programs for diabetes and hypertension within the same ecosystem.

To sum up, the whole chronic care management offerings from Livongo come as a valuable addition to Teladoc's portfolio after its success in mental health services through the BetterHelp acquisition.

Other key developments

The company has been expanding its offerings for existing clients, as well as adding new clients. Most recently, Teladoc signed an agreement to expand its relationship with a regional Blue Cross Blue Shield plan on the East Coast with a view to offering comprehensive whole-person virtual care solutions to its members.

The company also plans to provide access to its members to the extensive suite of products, including virtual care solutions and a full suite of digital chronic care solutions across diabetes, hypertension, diabetes prevention and mental health. In addition, Teladoc's Primary360 offering continues to gain significant traction from health plans, employers and also hospitals and health systems, thereby delivering encouraging results.

Internationally, the company partnered with Generali Hong Kong, a leading insurance carrier, to offer virtual care solutions to its members across Asia. In Australia, Teladoc announced its collaboration with MetLife (NYSE:MET) to offer access to a customized platform across its comprehensive virtual care service to MetLife's members in the region.

Overall, there appear to be a number of good opportunities that could drive revenue growth in the long term.

Valuation

The stock price of Teladoc took a massive beating from its February 2021 highs after yet another wider-than-expected loss and weak guidance for paid U.S. memberships. Investors are worried about the continued losses and the inability of the management to show any kind of positive bottom-line as of yet.

Despite the crash, the company is still trading at a very high enterprise-value-to-revenue multiple of close to 25, which is above the healthcare services industry average. Thus, I believe Teladoc is a risky investment at current levels given its losses.

On the other hand, the company has a huge growth opportunity in telehealth after the acquisitions of Livongo and InTouch Health. In my opinion, investors should keep the company on their watch list until we see some positive news or some kind of strength in its financial performance.

Disclosure: No positions.

https://finance.yahoo.com/news/teladoc-health-recent-crash-expected-165720337.html