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Wednesday, December 7, 2022

Avid financial highlights and guidance

 Financial Highlights and Guidance

  • The company is increasing full year revenue guidance for fiscal 2023 from $140 to $145 million to $145 and $150 million.

  • Revenues for the second quarter of fiscal 2023 were $34.8 million, representing a 33% increase compared to $26.1 million recorded in the prior year period. For the first six months of fiscal 2023, revenues were $71.4 million, a 26% increase compared to $56.9 million in the prior year period. For both the quarter and the year-to-date periods, the increase in revenues can primarily be attributed to increases in process development and manufacturing revenues as compared to the prior year periods.

  • As of October 31, 2022, revenue backlog was $147 million, representing a net increase of 23% compared to $120 million at the end of second quarter fiscal 2022. The company expects to recognize the majority of this backlog over the next twelve months.

  • Gross margin for the second quarter of fiscal 2023 was 12%, compared to a gross margin of 35% for the second quarter of fiscal 2022. Gross margin for first six months of fiscal 2023 was 19%, compared to a gross margin of 36% for the same period during fiscal 2022. During fiscal 2023, growth related costs including labor, overhead and depreciation, represented incremental decreases in margin of approximately 11% and 9%, for the second quarter and year-to-date, respectively, split approximately evenly between mammalian and cell and gene therapy operations. Additionally, prior year’s margins included benefits from unutilized capacity fees. Excluding all of these factors, our second quarter and year-to-date gross margins were approximately in-line with the prior year periods.

  • Selling, general and administrative (“SG&A”) expenses for the second quarter of fiscal 2023 were $6.8 million, an increase of 36% compared to $5.0 million recorded for the second quarter of fiscal 2022. SG&A expenses for the first six months of fiscal 2023 were $13.2 million, an increase of 39% as compared to $9.5 million recorded in the prior year period. The increases in SG&A for both the second quarter and the year-to-date periods were primarily due to increases in compensation and benefits, legal, accounting and other professional expenses.

  • For the second quarter of fiscal 2023, the company recorded a net loss of $1.2 million or $0.02 per basic and diluted share, as compared to net income of $3.5 million or $0.06 per basic and diluted share, for the second quarter of fiscal 2022. For the first six months of fiscal 2023, the company recorded net income of $0.4 million or $0.01 per basic and diluted share, as compared to net income of $9.8 million or $0.16 and $0.15 per basic and diluted share, respectively, during the same prior year period.

  • Avid reported $77.3 million in cash and cash equivalents as of October 31, 2022, compared to $126.2 million as of April 30, 2022.

American Girl angers parents with book teaching kids about gender expression

 Angry Angry parents have blasted a book from the American Girl doll brand that discusses body image and gender, claiming it’s pushing impressionable children to change their gender.

“A Smart Girl’s Guide: Body Image: How to love yourself, live life to the fullest, and celebrate all kinds of bodies,” sets out to teach girls to “live comfortably in their own skin,” according to American Girl — but some parents disagree.

“Incredibly disappointed in your book ‘Body Image’ Let these little girls be little girls. Stop the disgusting push to introduce topics too mature. It is NOT your place,” one mother wrote on Twitter.

The 96- page book explains to its targeted audience of girls ages 8 to 11 that, “The way you show your gender to the world through clothes and behaviors is your gender expression.”

“Your gender expression can be feminine, masculine, or somewhere in between — and it might change! Maybe you’ll experiment with bright dresses and long, feminine hairstyles. Or you might try baggy shorts, plaid shirts, and a buzzed haircut. Your gender expression should make you feel at home in your body,” the book states, according to the Daily Mail.

A picture from an American Girl doll book that discusses body image and gender.
Some parents are angry about a book from the American Girl doll brand that discusses body image and gender.
American Girl via Amazon

“Parts of your body may make you feel uncomfortable and you may want to change the way you look. … ‘That’s totally OK!”

The book later adds, “If you haven’t gone through puberty yet, the doctor might offer medicine to delay your body’s changes, giving you more time to think about your gender identity.”

“You can appreciate your body for everything it allows you to experience and still want to change certain things about it,” the book advises.

A picture from an American Girl doll book that discusses body image and gender.
Parents are concerned that the American Girl book is pushing impressionable children to change their gender.
A picture from an American Girl doll book that discusses body image and gender.
"The book has a month of movement challenge" for young girls.
A picture from an American Girl doll book that discusses body image and gender.
"A Smart Girl's Guide: Body Image: How to love yourself, live life to the fullest, and celebrate all kinds of bodies," sets out to teach girls to "live comfortably in their own skin," according to American Girl.

After word of the progressive book spread, irate parents took to social media to question its appropriateness. Some even left negative reviews on American Girl’s website claiming they are so angered they will now boycott the brand entirely.

“How sad that a book tells a child there are medicines to take to stop puberty or if parents won’t listen seek organizations that will, this is all gender-related,” one displeased customer said. “How sad this world is becoming that American Doll takes on the role (sic) of thinking they should give gender assignment advice in a book. Shame on you.”

Conservative commentator and podcast host Allie Beth Stuckey commented on the book on Twitter, advising parents to “Return your AG Christmas gifts asap.”

A picture from an American Girl doll book that discusses body image and gender.
The book explains to young girls ages that, “The way you show your gender to the world through clothes and behaviors is your gender expression.”
American Girl via Amazon

“Gone are the days when American Girl taught girls about history and femininity. Now they’re encouraging our daughters to hate their bodies, halt their puberty, & cut off their breasts in the name of ‘self-love,” Stuckey said.

One reviewer snapped at the brand, which is owned by Mattel, to “stay in their lane.”

“I will no longer buy any of your dolls or accessories for my grandchildren! Shame on you for introducing a book to young girls to change their gender. No more stay in your lane,” the commentator wrote.

A picture from an American Girl doll book that discusses body image and gender.
“How sad this world is becoming that American Doll takes on the role (sic) of thinking they should give gender assignment advice in a book. Shame on you,” one parent said.
American Girl via Amazon

Some parents, however, applauded the company for its forward-thinking. 

In an Amazon review of the book, one parent noted that they wished they had something like this when they were “still young and impressionable.” 

“The information presented in this book is easy to read, easy to understand, and presented in a way that will hold interest. Even if certain topics won’t apply to your daughter, they might apply to someone she knows, and could help her build better empathy to what someone else might be going through, which is great.” 

Another parent deemed the title a “must-read” for young girls, writing, “This is more than just a ‘feel-good/love-your-body’ book.” 

“It discusses a good range of topics: Gender identity, getting your period, bullying, how body image is affected by social media, and more. It also gives girls positive ways to talk about their bodies – this is crucial for girls.”

The American Girl doll was created by Pleasant Rowland, a school teacher and news reporter who was inspired to fill a void in the doll industry after being unable to find gifts for her nieces.

The company was later bought by Mattel in 1998 and has since made modern dolls and books teaching young girls about their bodies, hygiene, and their feelings.

https://nypost.com/2022/12/07/american-girl-angers-parents-with-book-teaching-kids-about-gender-expression/

Congress needs to update FDA’s ability to regulate diagnostic tests, cosmetics

 Congress is considering two measures that modernize tools the Food and Drug Administration uses to oversee two areas of its vast portfolio: diagnostic tests and cosmetics. While the stakes are different for each of these industries, the basic premise driving these measures is the same.

The FDA is currently working from an outdated regulatory playbook that has left gaps in its oversight of safety and effectiveness and makes it more difficult to introduce new innovations. The new legislation would strengthen protections for consumers and patients for both diagnostic tests and cosmetics, and make it easier for manufacturers to introduce better products.

The provisions are being considered as policy riders to the spending bill that would fund the federal government for next year. It has taken almost two decades of debate and compromise to hammer out bipartisan proposals for these modernizations that have met the approval of most stakeholders. If these measures don’t pass now, it may take many years, along with many more setbacks and side effects, before there’s enough political momentum to get them this close to the finish line.

The legislation governing diagnostics, Verifying Accurate Leading-edge IVCT Development Act, or VALID Act (S. 2209 and H.R. 4128), modernizes the FDA’s program for overseeing diagnostic tests that are used to screen blood and tissue. Diagnostic technologies have undergone considerable advances in recent decades, owing to innovation in fields like genomics, proteomics, and data science. Sophisticated tests that screen for genes, proteins, and other markers are helping doctors make diagnoses that often went unrecognized just a short time ago, or would have required far costlier, riskier, and more invasive testing to ascertain. According to the Centers for Disease Control and Prevention, 70% of health care decisions are based on clinical lab tests. The potential for the future is even greater, with early detection and better treatment guidance, and opportunities for new targeted therapies that will be guided by diagnostic markers.

However, the existing laws governing FDA’s regulation of lab tests to make sure they produce accurate results and can be used reliably as a part of medical practice have not kept pace with these advances. The outdated framework has forced the agency to regulate a test based on where it is made — by a medical device manufacturer, for example, or in an academic or clinical laboratory — rather than its distinctive complexity or potential risks. The result is an obsolete and bifurcated approach that leaves patients and providers often overestimating the amount of oversight that’s been applied to tests that matter for increasingly important clinical decisions, and that leaves test developers facing both uncertainty and inefficient regulatory burdens.

The FDA currently uses its old authority over medical devices to regulate tests made by commercial manufacturers and packaged as kits or dispensed outside the labs that created them. For tests that are manufactured by the lab that administers them, however, the agency has exercised “enforcement discretion,” owing to a prior dispute about whether these tests were a medical device subject to FDA’s oversight, or a service being delivered as a part of the practice of laboratory medicine. While it has generally been agreed for years that lab-developed tests are devices and therefore also subject to FDA’s regulation, the agency’s posture of enforcement discretion has left it without an efficient approach — and a clear mandate — to oversee most of these products.

As a result of this bifurcated regulatory scheme, the level of regulatory assurance of a test’s quality and reliability turns on where it was developed — a reality that many consumers don’t realize. When tests are faulty and unreliable, their results have led to misdiagnoses or bad treatment decisions.

The VALID Act would create a consistent standard for all tests, regardless of the kind of facility they were developed in or made in, as well as a modern regulatory framework that’s uniquely designed for the recent and emerging technologies being used to develop tests. It allows FDA to provide a consistent and efficient level of oversight that’s based on risk and complexity, and how a test is being used, rather than where it was manufactured.

The act’s novel regulatory approach largely takes the tests out of FDA’s existing structure for overseeing medical devices, and instead creates a new framework uniquely tailored to diagnostics.

Recognizing that test makers often market multiple tests that have much in common, and sometimes make frequent modifications to existing tests, the FDA would oversee the methods used to develop the set of tests and certify the rigor of that process, rather than regulate each test as a standalone product. Under this “firm-based” approach, test developers that have a thorough process for ensuring the reliability of their tests would, in many cases, be able to market new tests and update their existing tests without undergoing the same pre-market review in every case. This approach, which applies to moderate-risk tests, would make introduction of new innovations far more efficient.

The modernizations offered in the VALID Act would also enable more oversight to move to the post-market setting when appropriate. Right now, all new tests are automatically deemed as Class III — posing a high potential risk if inaccurate — and are subject to FDA’s most stringent requirements for a Premarket Approval application unless they’re reclassified, which can be an arduous process for a new test to navigate. Under the proposed act, the FDA would have more flexibility to adjust its approach to regulation based on risk, and down-regulate lower risk tests to moderate- or low-risk categories.

Existing lab-developed tests, including those assembled and used by academic medical centers, would be exempted so they wouldn’t face new regulatory authorities. New lab developed tests would be given a five-year phase-in period to come under FDA’s oversight. The new framework would also allow labs to continue to offer tests for rare diseases without unnecessary new burdens. Labs could modify a test or develop a new one for unique or unusual circumstances, or for use in low volumes, without seeking clearance by FDA. There’s also an “accredited persons program,” in which state regulatory programs can become third-party reviewers that stand in for the FDA.

Some academic medical centers have raised concerns that VALID could interfere with how they deliver care, because they often tailor tests to meet the needs of their affiliated providers. We believe that VALID’s risk-based framework has taken these concerns to heart and has balanced the need to foster innovation and give providers discretion with the goal of protecting patients. The VALID framework has many exemptions to ensure academic medical centers can continue to meet patient needs.

If VALID doesn’t pass now, the FDA has signaled it would start actively regulating all lab-developed tests by issuing a regulation that would declare them subject to the provisions of its existing medical device review process. This ill-fitted process would be far less efficient than what VALID prescribes, and the uncertainty about how it would be applied would thwart investment and innovation.

The FDA’s approach to cosmetics is also plagued by some of the same challenges. It was created by a framework tailored to an older generation of products that encompassed less innovation, but also fewer risks. Today’s cosmetics are more diverse in how and where they’re made, and how they act on the body. Many cosmetics contain advanced ingredients that offer consumers a broader set of opportunities, but that can also contain unwanted and sometimes dangerous contaminants.

The new cosmetics legislation allows the FDA to recall products that are found to contain ingredients likely to cause serious harm when companies don’t do so voluntarily. It would also require manufacturers to disclose the ingredients they use, and to follow good manufacturing practices.

When cosmetics firms are made aware of serious adverse health events, they would have to report them to FDA. As with diagnostic tests, consumers probably believe their cosmetics already meet these basic requirements and overestimate the scope of FDA’s existing protections.

These two proposals are close to passing, but the opportunity could still be lost. If that window closes, it may take many more reports of bad outcomes, and more proof of lost innovation from outdated regulation, to reach a point where these needed reforms will be this close to passage.

Scott Gottlieb is a physician, a senior fellow at the American Enterprise Institute, and was commissioner of the Food and Drug Administration from 2017 to 2019. Mark B. McClellan is a physician, director of the Duke-Margolis Center for Health Policy at Duke University, and was FDA commissioner from 2002 to 2004. Gottlieb serves on the boards of Illumina, Pfizer, and Tempus Labs; McClellan serves on the boards of Alignment Health Care, Cigna, and Johnson & Johnson.

https://www.statnews.com/2022/12/05/congress-update-fda-regulations-diagnostic-tests-cosmetics/

Limits of ‘Fauci effect’: infectious disease applicants plummet, and hospitals are scrambling

 Tulane University touted “the chance to train in a unique & wonderful city.” The University of Colorado offered a GIF of clouds moving across the state’s stunning mountains. And Boston Medical Center said in its plea, “Come hang with us! We’re pretty cool.”

The tweets last week came from infectious diseases fellowship programs, all scrambling for doctors after a number of their positions went unclaimed during the annual “match” process. The match is when residents pursuing specialized fellowships find out where they’re headed for their next round of training, similar to how medical students match into residences.

The lack of doctors entering ID fellowships — and the ensuing shortage of these specialists — has been a concern for years, with experts pointing to the comparatively low earnings these physicians make as a major disincentive for doctors considering which field to enter. But this year’s numbers marked a backslide. Fully a quarter of available positions went unfilled. Among the fellowship programs, 44% didn’t fill their slots, according to data from the National Resident Matching Program.

“You can’t sugarcoat it, can you?” said Lisa Chirch, the ID fellowship director at UConn Health.

It’s not just smaller or more rural programs that are now racing to recruit. Hospitals in biomedical hubs from Seattle to Boston are in the same place. The University of California, San Diego, has an unfilled spot for the first time since David Smith, now the ID division chief, joined the institution — in 1996.

The results have left the specialty weighing the Covid question: After watching ID physicians endure years of grueling work — work that often went uncompensated and that’s been met with resistance or outright hostility — did more residents just say, “No, thanks”?

“Maybe people are sick and tired of thinking about infectious diseases,” said Paul Pottinger, the director of the ID training program at the University of Washington. He said he wondered whether “the denigration of people who speak the truth” deterred people from wanting to go into infectious diseases, citing the death threats that Anthony Fauci has received.

At UW, two of the eight fellowship spots went unfilled. Pottinger said he could only think of two other years over two decades when the hospital had a gap.

The decline in applicants for ID fellowships this year is particularly notable because in the first two pandemic-era rounds, the field saw a spike in interest — a trend experienced in other public-health-related fields that was dubbed the “Fauci effect.” The critical nature of public health careers was never clearer than during the pandemic, and educators said they saw a wave of people drawing inspiration from that.

Just looking at the percentages of ID programs and positions that are unfilled doesn’t tell the full story of the specialty’s status. In recent years, institutions have expanded fellowships, going from 394 positions at 151 programs in the 2018 cycle to 441 slots at 175 programs in this most recent 2023 match. It’s led to some debate about whether programs have grown too quickly, but regardless, without a commensurate rise in applicants, a greater percentage of positions are going unfilled.

But even with raw numbers, there was a noticeable drop in interest this go-round.

Roughly 350 residents applied to ID fellowships each cycle from 2018 to 2020 (residents apply to fellowships the prior year before starting in the summer). Then, for the 2021 round, the number shot up to 404, dipping slightly to 387 for the 2022 match. For the 2023 match, only 330 doctors applied.

In a letter to ID specialists last week, Carlos del Rio, the president of the Infectious Diseases Society of America, called the results “honestly disappointing.”

In an interview with STAT, del Rio, an ID specialist at Emory University, noted that the number of positions filled through the match this year — no matter the number of positions offered or number of applicants — was 328, on par with the most recent, pre-pandemic years.

Still, del Rio said, “obviously we’re not attracting the number we need.”

Infectious diseases physicians are hugely passionate about the work they do, touting both the intellectual challenges they encounter and the importance of their work to the public’s health. They’re involved in ensuring that doctors responsibly use antibiotics, in preventing infections and stopping outbreaks, and in working to tame the impact of diseases like HIV or mpox. They encounter a wide variety of cases that aren’t restricted to one organ. More than one program director said in recent days they’ve never seen a bored ID doctor, yet several also pointed to the recent study that found that as of 2017, 80% of counties didn’t have an ID physician.

ID physicians earn a lot less than specialists like cardiologists who spend their days performing highly lucrative procedures. Other comparatively low-paying fields like geriatrics also struggle to fill their fellowship positions, versus specialties like oncology or gastroenterology. For students carrying massive amounts of debt from college and medical school, salaries can steer their career paths.

UCSD’s Smith noted that hospitals and governments talked throughout the pandemic about how much they value ID specialists. But one way of showing what you value, Smith said, is by putting money toward that.

“It’s just disheartening,” Smith said.

Program directors said there needed to be more review to figure out how Covid may have factored into people’s decisions. Perhaps the pandemic left only those who truly love the field interested, while turning off those who may have pursued ID more halfheartedly. Perhaps residents got burned out on the field after years of treating Covid patients (though another field deeply involved with Covid care — pulmonary/critical care — continued to see nearly all of its positions filled).

“Being at the forefront of the pandemic, and being underappreciated, might be the killer combination,” said Joseph Sassine, the associate program director of the University of Oklahoma’s fellowship.

Saman Nematollahi, the associate program director of the University of Arizona’s fellowship, pointed out that throughout the pandemic, ID specialists were not just treating patients. They were drafted into setting up infection policies at their hospitals and serving as advisers to state and local governments, school districts, and beyond.

“We do it because we know how important it is to public health,” said Nematollahi, who’s involved with a group called the ID Fellows Network that promotes training and education. “But it’s extra work that’s not compensated.”

The open positions won’t necessarily stay unfilled. Programs are now trying to recruit residents who applied to other fellowships but didn’t match, residents who did not enter the match initially but who may be open to an ID fellowship, and doctors who’ve finished their residencies but may only now decide to specialize. Some program directors said they’ve already received interest for their remaining slots.

To get more people applying to ID programs broadly, leaders said the field needs to step up its recruitment of residents, but also start earlier with medical students. They’re also advocating to get paid more; last week, in an effort to increase reimbursement rates, IDSA met with a key Medicare board, del Rio said. He also said policies such as loan repayment programs could ease the debt burden residents carry.

“It’s not just one fix,” del Rio said.

https://www.statnews.com/2022/12/07/infectious-disease-fellowship-drop-in-applicants/

Biden admin drags its feet on TikTok security deal as Republicans sound alarms

 President Biden's administration appears to be stalling negotiations of a data security deal with TikTok amid widespread outcry from Republicans saying the Chinese app is a national security threat.

The Biden administration's review of TikTok, a hugely popular video-sharing app, has run into a series of roadblocks and is unlikely to meet its expected end date at the end of the year. Reviewers are concerned about TikTok's transparency regarding how its algorithm selects videos for users' feeds, among other things, The Wall Street Journal reported Wednesday.

TikTok had reportedly met an initial series of requests from the Biden administration, but the U.S. officials are holding off on sending another batch.

A TikTok representative told WSJ the company is confident they will reach a "timely conclusion to our agreement with the U.S. government, much of which we have already started implementing in earnest, so that we can put these concerns to rest."

In the meantime, TikTok's window for approval may be closing, as Republicans on Capitol Hill and even some within Biden's administration have sounded the alarm. Many Republicans, who will take control of the House of Representatives in January, arguing the app should be banned outright.

FBI Director Christopher Wray testified to Congress last month that TikTok is a major reason why China has stolen more U.S. data than all other countries combined.

"[Dangers] include the possibility that the Chinese government could use it to control data collection on millions of users or control the recommendation algorithm, which could be used for influence operations if they so chose or to control software on millions of devices, which gives the opportunity to potentially tactically compromised personal devices," Wray said.

Republican FCC Commissioner Brendan Carr called for the U.S. to outright ban TikTok in early November. He argued there is no reasonable way to split TikTok from its Chinese-based owner, ByteDance.

"I don’t believe there is a path forward for anything other than a ban," he told Axios at the time, adding that there isn't "a world in which you could come up with sufficient protection on the data that you could have sufficient confidence that it’s not finding its way back into the hands of the CCP."

TikTok and the U.S. had initially reached an agreement in the summer before other branches of the Biden administration called for more scrutiny of the deal, according to WSJ.

A central piece of the summer agreement was that TikTok would house its U.S. data on third-party servers operated by Oracle. Access to those servers would then be controlled and monitored by Oracle, a U.S.-based data management company.

While TikTok representatives have insisted that user data is safe, executives for the company have admitted under oath that the data is accessible from China

That access is used frequently as well, as was revealed in an extensive report from BuzzFeed earlier this year. The outlet obtained audio from more than 80 internal meetings at TikTok, showing that U.S. employees were not permitted to access user data and instead relied on Chinese employees to do so.

https://www.foxbusiness.com/politics/biden-admin-drags-feet-tiktok-security-deal-republicans-sound-alarms

Allscripts upped to Buy from Hold by Argus

 Target $26

https://finviz.com/quote.ashx?t=MDRX&p=d

China Faces 'Winter Wave' Of Deaths As Beijing Eases Zero-COVID Policies Despite Infection Surge

 China relaxed its zero Covid strategies to prevent further public unrest and boost waning economic growth. The new measures allowing for home quarantines and entry into public areas without testing were announced after a meeting of the Chinese Communist party's politburo. They outlined the importance of stabilizing the economy than combating Covid. 

"We will protect people's safety and health to the greatest [extent] and keep the impact on social and economic development to a minimum," the State Council Prevention and Control Mechanism said on Wednesday, which was quoted by South China Morning Post

The new measures from the communist government call for isolating asymptomatic or mild Covid cases at home rather than in quarantine camps or hospitals for seven days. Anyone in contact with the infected would have to quarantine at home for five days instead of eight days at a camp and then at home.

The State Council disbanded the rule for people to show negative Covid tests before entering public places. 

"People no longer need to show a negative PCR [polymerase chain reaction] result or a health code to enter public venues or to travel, except when entering hospitals, schools and homes for the elderly," SCMP wrote. 

SCMP added: "The new policy stressed that basic social and medical services need to be provided. People's movements, work and production should not be restricted in low-risk areas." 

Today's announcement is the most significant move to ease Covid policies since the Council announced a 20-point playbook for relaxing measures last month. 

Liang Wannian, an epidemiologist, now a health official who once led China's initial pandemic response, told Bloomberg that Beijing is more "proactive, rather than reactive" and would "ensure resources are utilized more efficiently and better coordinate outbreak control and economic development."

In Hong Kong, the benchmark Hang Seng initially surged on the news, then sold through most of the session, closing down 3%. There was also trade data for November that showed Chinese exports were hit by weak global demand and Covid disruptions at factories. 

"Although the measures announced today are positive steps towards reopening, it appears some of the reopening exuberance is fading. Disappointing trade data is also a reminder of the slowing external demand heading into next year," said Marvin Chen, an analyst at Bloomberg Intelligence.

"Though the market is still trading on the positive expectations we are not entirely out of the woods, as we still have to get past the panic that might come with the first wave of infections," Ma Xuzhen, fund manager at Longquan Investment Management, said. 

China's Covid outbreak is worsening as infections soar: 

One million Chinese people are at risk of dying from Covid-19 during the coming winter months if President Xi Jinping pursues his pivot to remove strict pandemic controls, new modeling shows. -- Financial Times 

"The current propaganda messaging is that a reopening will be costless," said Rodney Jones, principal at Wigram.

"The risk is that they are underestimating just how much work — and cost — the rest of the world has done and borne to get to the point of living with Covid.

"China has done nothing to prepare for this step, and Xi appears to be doing so on impulse as a reaction to the protests, rather than as part of a careful policy programme," Jones said.

Deteriorating global economic growth will worsen into early 2023. China's shift from zero Covid policies is a move to boost domestic demand over the medium term to stabilize its faltering economy. The next few months could be turbulent as the reopening process could be met with a wave of infections and deaths. 

https://www.zerohedge.com/markets/china-eases-zero-covid-policies-economy-stumbles-stocks-plunge-and-infections-soar