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Friday, January 14, 2022

Jefferies Turns Bullish On Rehab Provider ATI On Improved Traffic Data

 Jefferies upgraded ATI Physical Therapy Inc 

 stock to Buy from Hold with a price target of $5, up from $3.50.

  • The increased price target represents about 65% upside to the January 13 closing price of $3.04, but still a roughly 30% discount to ATI's closest peer.
  • The analyst Stephanie Wissink is "leaning heavily" into the firm's proprietary set of alt data to validate recent checks that suggest improved traffic, visits, and volumes and the view that "the worst is past" for ATI. 
  • ATI is a rehabilitation provider. The company specializes in research-based physical therapy, workers' compensation rehab, employer worksite solutions, sports medicine, home health, and various specialty therapies.
  • With approximately 900 locations nationwide, the company has handled more than 2.5 million unique patient cases. 
  • The analyst's same-store foot traffic tracker suggests ongoing monthly recovery gains, who contends that a traffic recovery is a signal that unit volumes are returning to a pre-pandemic pattern. 

Center for COVID Control pauses national operations for one week

 The Center for COVID Control announced it’s pausing operations at hundreds of COVID-19 testing centers across the country. The company announced on its website its testing sites are closed effective Friday, January 14, and will reopen on Saturday, January 22.

On its website, Illinois-based Center for COVID Control says it will use the coming week to provide additional staff training and make sure regulatory guidelines are being complied with.

Center for COVID Control was ordered to stop unlicensed operations in Massachusetts on Thursday and it’s under investigation in Oregon for possible unlawful trade practices.

As we’ve reported, the City of Appleton and Better Business Bureau received complaints about the Center for COVID Control that opened in a storefront on Eisenhower Road in nearby Darboy. Customers reported waiting more than a day for results of rapid COVID-19 tests and their results having the wrong timestamp. The Better Business Bureau gave the business an “F” after it failed to respond to complaints. The company did not respond to requests for comment from Action 2 News.

When Action 2 News inquired, the Wisconsin Department of Health Services declined to say if the company was under investigation in our state. It operates 25 walk-in testing sites in Wisconsin, mostly in the Madison and Milwaukee areas.

The Center for COVID Control said over the past few weeks its business spiked from collecting 8,000 samples per day to more than 80,000 per day. The high demand is straining staff resources, affecting wait times, the delivery of test results, and consistent business hours. The company blames the surge on the prevalence of the highly contagious omicron variant.

The statement on the website reads in part, “This period of employee training and management enhancements are intended to refocus CCC staff on its corporate mission of being the leading national provider of accessible, convenient, affordable, accurate and trusted Covid testing.”

https://www.wbay.com/app/2022/01/14/center-covid-control-pauses-national-operations-one-week/

Debunking the idea viruses always evolve to become less virulent

 As evidence mounts that the omicron variant is less deadly than prior COVID-19 strains, one oft-cited explanation is that viruses always evolve to become less virulent over time.

The problem, experts say, is that this theory has been soundly debunked.

The idea that infections tend to become less lethal over time was first proposed by notable bacteriologist Dr. Theobald Smith in the late 1800s. His theory about pathogen evolution was later dubbed the "law of declining virulence."

Simple and elegant, Smith's theory was that to ensure their own survival, pathogens evolve to stop killing their human hosts. Instead, they create only a mild infection, allowing people to walk around, spreading the virus further afield. Good for the virus, and, arguably, good for us.

But over the past 100 years, virologists have learned that virus evolution is more chaotic. Virus evolution is a game of chance, and less about grand design.

In some cases, viruses evolve to become more virulent.

Continued virus survival, spread and virulence are all about the evolutionary pressures of multiple factors, including the number of people available to infect, how long humans live after infection, the immune system response and time between infection and symptom onset.

Unfortunately, that means it's nearly impossible to predict the future of the pandemic, because viruses don't always evolve in a predictable pattern.

There have been thousands of identified COVID variants, each with unique mutations. But most new variants emerge and then quickly die out, unable to compete with the reigning dominant variant.

Some variants, however, have clear "advantages to continued survival, such as those that evade the immune system and spread easily," said Dr. Abir Hussein, associate medical director for infection presentation and control at University of Washington Medical Center.

Experts warn that it is important to assess the severity of omicron in the context of existing immunity through vaccines and prior infections.

"It is difficult to determine with new variants like delta and omicron if variants are evolving to be more or less virulent. This is because these variants emerged at a time when we had a good deal of immunity to SARS-CoV-2 in certain countries," said Andrew Pekosz, a professor of microbiology at Johns Hopkins University Bloomberg School of Public Health.

People who are vaccinated or recently infected will have milder symptoms if they experience a breakthrough infection or a reinfection, studies show.

"This is not because the variant is less virulent, but because your immune system was primed from prior vaccination and infection," said Pekosz.

Experts say omicron should not be taken lightly or thought of as a less lethal form of COVID. Even if less deadly, the omicron variant is also significantly more transmissible, leading to more deaths overall.

The U.S. Centers for Disease Control and Prevention predict that 22,000 more people could die of COVID-19 over the next two weeks.

People who are unvaccinated remain significantly more at-risk, with officials estimating they are 17 times more likely to be hospitalized and 20 times more likely to die of COVID-19 compared to people who are vaccinated.

"The available COVID vaccines provide immunity for a range of variants and continue to be the first line of defense," said Dr. John Brownstein, chief innovation officer at Boston Children's Hospital and an ABC News contributor.

As for the future of the pandemic, experts say new variants may emerge in the future, but they won't be easy to predict.

Jess Dawson, M.D., a masters of public health candidate at Johns Hopkins Bloomberg School of Public Health, is a contributor to the ABC News Medical Unit.

https://abcnews.go.com/Health/debunking-idea-viruses-evolve-virulent/story

Stryker Restructures Operations Into Two Business Segments

 Stryker Corp. said it will separate its operations into two reportable business units instead of three to help align the company under a new internal reporting structure.

The medical-technology company said its business will now operate under a MedSurg and neurotechnology segment and an orthopaedics and spine segment. The company previously had three reportable business units: one dedicated to orthopaedics, another to MedSurg and a third to neurotechnology and spine.

The company said the restructuring follows the transition of responsibilities of its president and chief operating officer, Timothy Scannell. Last year, Stryker said Mr. Scannell intended to retire at the end of March 2023. The company said he would move to an advisory role, effective Oct. 1, 2021, and his duties would be divided between group Presidents J. Andrew Pierce and Spencer Stiles.

Mr. Pierce will help run the MedSurg and neurotechnology business and Mr. Stiles will help run the orthopaedics and spine segment, Stryker said in a securities filing.

In the third quarter, orthopaedic net sales netted $1.5 billion, a 16% increase from the previous year. MedSurg net sales were $1.8 billion, representing a 9.4% increase over last year. The neurotechnology and spine segment had net sales of around $900 million, up 7.3% year over year.

https://www.marketscreener.com/quote/stock/STRYKER-CORPORATION-14536/news/Stryker-Restructures-Operations-Into-Two-Business-Segments-37551581/

U.S. FAA requires precautions for some Boeing 787 landings after new 5G launches

 

The U.S. Federal Aviation Administration (FAA) said Friday it will require operators of Boeing 787s to take additional precautions when landing on wet or snowy runways at airports where new wireless services are deployed from next week.

The FAA said 5G interference could prevent engine and braking systems from transitioning to landing mode, which could prevent an aircraft from stopping on the runway.

The directive requires crews "to be aware of this risk and to adopt specific safety procedures when landing on these runways." It affects 137 U.S. aircraft and 1,010 planes worldwide.

AT&T and Verizon, which won nearly all of the C-Band spectrum in an $80 billion auction last year, on Jan. 3 agreed to buffer zones around 50 airports to reduce interference risks. They also agreed to delay deployment for two weeks.

The FAA directive prohibits operators from dispatching or releasing 787s "to affected airports when certain braking and anti-skid functions on the airplane are inoperable."

Boeing did not immediately comment.

The FAA is also expected to detail "alternative" compliance for some specific airplane types and some airports before Wednesday.

The FAA on Thursday issued nearly 1,500 notices detailing the extent of potential impact of 5G services.

The notices show where "aircraft with untested altimeters or that need retrofitting or replacement will be unable to perform low-visibility landings where 5G is deployed."

On Jan. 7, the FAA disclosed the 50 U.S. airports that will have 5G buffer zones, including in New York City, Los Angeles, Chicago, Las Vegas, Minneapolis, Detroit, Dallas, Philadelphia, Seattle and Miami.

On Thursday, Airports Council International - North America urged a delay 5G implementation to avoid widespread disruption across the U.S air transportation system.

"More than 100 airports and heliports within 46 of the largest metropolitan areas of the country will have their low visibility approach procedures closed due to potential radio frequency," the airport trade group said.

https://www.marketscreener.com/quote/stock/THE-BOEING-COMPANY-4816/news/U-S-FAA-requires-precautions-for-some-Boeing-787-landings-after-new-5G-launches-37551845/

Treasury threatens to claw back COVID-19 funds because of Arizona school anti-mask rules

 The Biden administration is threatening to claw back federal COVID-19 relief funding from Arizona unless the state stops directing the money to schools without mask mandates.

In a letter sent Friday, the Treasury Department said Arizona's $163 million Education Plus-Up Grant Program and its COVID-19 Educational Recovery Benefit Program undermine efforts to stop the coronavirus. 

The programs, funded with payments from the Coronavirus State and Local Fiscal Recovery Funds, impose conditions that discourage compliance with wearing masks in schools, contradicting guidance from the Centers for Disease Control and Prevention on how to reduce COVID-19 transmission, the letter said.

The $350 billion state and local funding program was enacted as part of the American Rescue Plan. 

The funds are intended “to mitigate the fiscal effects stemming from the COVID-19 public health emergency, including by supporting efforts to stop the spread of the virus,” Treasury noted in the letter.

According to the administration, a recipient may not use the federal money for any program or service that includes a term or condition that undermines efforts to stop the spread of COVID-19. 

The state's Plus-Up Grant Program only directs funding to schools that don't have mask requirements, and the $10 million Educational Recovery Benefit Program provides up to $7,000 per student to parents facing financial and educational barriers due to having children in schools that are deemed to be imposing “unnecessary closures and school mandates.”

That program “is available only to families if the student’s current or prior school requires the use of face coverings” during the school day, according to the Treasury letter.

According to the letter, Gov. Doug Ducey's (R) office has 60 days to redirect federal funds to eligible users or change the two programs so they are in compliance.

If not, the federal government said it will move to recover the relief money. The Treasury Department threatened to withhold the next tranche of aid as well.

In a statement posted on Twitter, Ducey blasted President Biden for being "out of touch the American people."

"When it comes to education, President Biden wants to continue focusing on masks. In Arizona, we’re going to focus on math and getting kids caught up after a year of learning loss," he wrote. "We will respond to this letter, and we will continue to focus on things that matter to Arizonans."  

White House announces website to order free COVID-19 tests starting Jan. 19

 Americans will be able to order free at-home rapid COVID-19 tests online starting Jan. 19, the White House said Friday.

The move makes available the 500 million rapid tests President Biden said his administration purchased last month. 

There are some important limitations, though. Each residential address will be limited to four tests. The tests are also expected to take 7-12 days to ship once they are ordered, the White House said.

People will be able to order the tests on a new website, COVIDTests.gov, which will go live on Jan. 19. The White House is partnering with the U.S. Postal Service to ship the tests to people's homes.

The move comes as the White House has been under pressure from lawmakers and from health experts to take stronger action to address shortages of tests across the country.

Many health experts say the administration should have made testing moves like this months ago, before the omicron wave hit.

The limitation of four tests per address will mean this channel alone will be far from enough to allow for the kind of frequent testing that many experts have called for.

Asked about the limitation, a senior administration official said the initiative is "one of many programs we are executing" on testing. Other avenues include allowing people to get reimbursed by private health insurers for tests they buy at a retailer.

An official said 420 million tests are under contract already, with 80 million remaining to be contracted.

Biden also announced Thursday an additional 500 million tests to become available some time in the future.

Amid a possible surge in interest in the website, a senior administration official said the White House is ready for its launch, but noted there is always some risk in the launch of a website.

https://thehill.com/policy/healthcare/589790-white-house-announces-website-to-order-free-covid-19-tests