Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Shorting it are ya...
ouch... I keep seeing GREEN $$$$$
Better Coronavirus Vaccine Stock: BioNTech vs. Moderna
Which investment wins in a battle between the two leaders in messenger RNA vaccines?
Keith Speights
Keith Speights
(TMFFishBiz)
Jul 15, 2020 at 6:48AM
Author Bio
There are now 23 coronavirus vaccine candidates in clinical testing, according to the World Health Organization. Four of them use an approach that involves engineering messenger RNA (mRNA) sequences, which in turn direct ribosomes in human cells to produce a protein identical to one found on the surface of SARS-CoV-2 -- in other words, an antigen to the virus that causes COVID-19.
BioNTech (NASDAQ:BNTX) and Moderna (NASDAQ:MRNA) developed two of those four mRNA COVID-19 vaccine candidates. So far, Moderna's efforts have received a lot more attention than BioNTech's program has. But which of these coronavirus-focused stocks is the better pick for investors now?
Scientist holding syringe and vaccine bottle
IMAGE SOURCE: GETTY IMAGES.
The case for BioNTech
Probably the most important reason why investors might prefer BioNTech over Moderna is the difference between their respective valuations. Moderna's market cap is currently around 50% higher than BioNTech's. That should give BioNTech more room to run if its COVID-19 vaccine candidate is successful.
Another reason why BioNTech could deserve investors' attention is that its chances of success are arguably better than Moderna's. BioNTech actually has four experimental COVID-19 vaccine candidates in clinical testing versus one candidate for Moderna. Two of its candidates --
BNT162b1 and BNT162b2
-- recently won Fast Track designations from the Food and Drug Administration based on the strength of preliminary results from a phase 1/2 clinical trial, which showed high levels of neutralizing antibodies in patients who had received BNT162b1.
BioNTech also enjoys an advantage due to its partnership with Pfizer (NYSE:PFE), which the companies initiated in March. Pfizer brings financial resources and a global distribution chain to the table that should help BioNTech both during the development of its coronavirus vaccine candidates and (assuming they meet the mark in clinical testing) eventual commercialization.
But investors shouldn't overlook the rest of BioNTech's pipeline. Its lead candidate, BNT122, is currently in phase 2 testing in partnership with Roche as a first-line treatment for melanoma. BioNTech also has 10 other programs in early-stage trials.
The case for Moderna
Why buy Moderna instead of BioNTech? Some investors might like that it's further ahead in the vaccine testing process. The company expects to begin a phase 3 study of its COVID-19 vaccine candidate, mRNA-1273, later this month -- a few weeks later than it originally planned. BioNTech, meanwhile, hopes to start a phase 2b/3 study of BNT162 perhaps as soon as the end of July.
Some might also anticipate that the safety profile for Moderna's candidate could be better than those of BioNTech's candidates. There's no way yet to know how the two biotechs' COVID-19 vaccine candidates will stack up against each other. However, Moderna is moving forward into late-stage testing with a 100-microgram dose, while BioNTech's 100-microgram dose produced adverse effects -- usually injection site pain -- more often than lower doses in phase 1/2 test subjects.
There's also a flip side to BioNTech's partnership with Pfizer that could work to Moderna shareholders' advantage. The financial details of the collaboration between BioNTech and Pfizer haven't been made public. You can bet, though, that Moderna would pocket a much greater share of the profits from sales of its COVID-19 vaccine if approved than BioNTech would.
Finally, Moderna's pipeline is arguably stronger overall -- it has three programs in phase 2 testing (excluding mRNA-1273) compared to BioNTech, which has just one. Two of those programs were promising enough to attract interest from big drugmakers AstraZeneca and Merck.
In addition, Moderna has 11 mRNA programs in early-stage testing. That's one more than BioNTech has (not counting its COVID-19 vaccine candidates
Why Gilead Sciences Is the Front-Runner in the COVID-19 Treatment Race
Gilead Sciences' remdesivir has the potential to save many lives -- and enrich many investors of the company's stock in the process.
Zhiyuan Sun
Zhiyuan Sun
(TMFZhiyuanSun)
Jul 15, 2020 at 7:30AM
Between its inception in Wuhan, China, in December 2019 and July 11, the number of coronavirus cases in the world has skyrocketed to 12.8 million. Approximately 565,397 people worldwide have died from COVID-19, making this disease anywhere between 4 to 8 times as deadly as the H1N1 swine flu from 2009. In high-population countries such as the U.S. and Brazil, cases are increasing day by day.
Currently, there is no vaccine for COVID-19, and treatment options are limited for patients with severe or life-threatening symptoms. However, one treatment that is rapidly gaining traction is Gilead Sciences' (NASDAQ:GILD) remdesivir. This viral inhibitor has shown preliminary survival benefit when given to patients suffering from life-threatening symptoms of COVID-19. Today, let's take a look at why I think remdesivir is already a multibillion-dollar opportunity for Gilead.
Infected patient in quarantine lying in bed in hospital.
IMAGE SOURCE: GETTY IMAGES.
The best COVID-19 treatment so far
On July 10, Gilead announced comparative analysis results from its phase 3 clinical trial investigating remdesivir's efficacy in critically ill patients with COVID-19. In a real-world study of severely ill COVID-19 patients, 12.5% of patients who were hospitalized but did not receive remdesivir died within two weeks; that number was 7.6% for those who did receive it.
Additionally, patients who took remdesivir had faster recovery times than patients who didn't. Interestingly, hydroxychloroquine, a drug touted by the Trump administration as a miracle cure for COVID-19, actually lowered patients' recovery rates when given on top of remdesivir.
The results for remdesivir are nothing short of superb. Indeed, before the results were even published, the Trump administration purchased Gilead's entire stockpile of 500,000 vials of remdesivir. At $390 per vial, that meant $195 million in new revenue for Gilead in a little over a month. That's a lot for a company that has had declining revenue for some time; revenue reached $22.5 billion last year.
Why Gilead is a strong buy
Gilead plans to produce up to 2 million treatment courses (each containing six vials) by the end of the year, including the amount it already sold. At 12 million vials costing $390 each, that's $4.7 billion in potential revenue, compared with a research and manufacturing cost of about $1 billion to develop the drug! Furthermore, the company has ample production capacity to produce several million courses in 2021. The U.S., E.U., India, Australia, and Japan have all either authorized remdesivir for emergency use or approved it for the treatment of COVID-19. Gilead has licensed remdesivir generics to 127 countries, all of which are middle or low income.
With 14% of COVID-19 patients developing severe symptoms and 5% requiring intensive care, I expect Gilead and its stock to be amply rewarded for producing a lifesaving treatment. Due to recent mutations, the currently circulating strain of SARS-CoV-2 may be 2.6 to 9.3 times more infectious while being just as lethal. Hence I do not expect the COVID-19 pandemic to subside anytime in the near future. With an increasing demand for remdesivir, I highly recommend biotech investors add Gilead to their portfolios.
MRNA
1. -- Stock Futures Rise on Vaccine Progress
Stock futures rose Wednesday, getting a lift from news that a coronavirus vaccine candidate from Moderna (MRNA) - Get Report produced the desired immune response and a decisive trial will be launched later in July.
Contracts linked to the Dow Jones Industrial Average rose 453 points, futures for the S&P 500 gained 41 points and Nasdaq futures were up 82 points.
The vaccine, under development by Moderna and the U.S. National Institutes of Health, produced antibodies in all patients tested in an initial safety trial. The data was published Tuesday evening in the peer-reviewed New England Journal of Medicine.
Scientists will begin a 30,000-person study July 27 to determine the vaccine's effectiveness against the coronavirus, which has infected more than 13.3 million people across the globe and killed nearly 580,000.
“The cherry on top has to be the positive virus vaccine update as optimism on the vaccine is more than a show stopper. It's the ultimate recession stopper,” said Stephen Innes of AxiCorp.
“The positive coverage on a potential Covid-19 vaccine represents a rotating carousel of positive news that is overwhelming rising virus cases in the U.S.,” he added.
Dow Jones Futures Rise On Moderna Coronavirus Vaccine News After Stock Market Rally; Three Key Earnings On Tap
FacebookTwitterLinkedIn
ED CARSON 08:04 PM ET 07/14/2020
Dow Jones futures rose late Tuesday, along with S&P 500 futures and Nasdaq futures, after Moderna (MRNA) reported a "robust" response to its coronavirus vaccine candidate. In Tuesday's session, the coronavirus stock market rally showed resilience yet again with the Dow Jones, S&P 500 and Nasdaq reclaiming or holding key technical levels.
00:00
06:39
Moderna said late Tuesday that all 45 patients in a phase one trial showed a "robust" response following two doses of its experimental coronavirus vaccine. That sent Moderna stock soaring to a buy point.
Apple (AAPL) has held up well, with tight closes over the last several sessions. Tesla (TSLA) nudged higher Tuesday amid mixed headlines, but then rallied overnight on Cybertruck plant tax breaks. Neither Apple stock nor Tesla stock is anywhere close to a potential buy point.
Meanwhile, Dow Jones giants UnitedHealth (UNH) and Goldman Sachs (GS) report earnings early Tuesday. Both UNH stock and GS stock are near buy points and were strong performers Tuesday. Chip-equipment maker ASML (ASML) reports overnight as well. ASML stock is a top semiconductor play.
Apple stock and Tesla stock are on IBD Leaderboard. UnitedHealth stock is on IBD Long-Term Leaders list.
Dow Jones Futures Today
Dow Jones futures rose 0.8% vs. fair value, rallying on the Moderna coronavirus vaccine news. S&P 500 futures popped 0.55%. Nasdaq 100 futures gained 0.3%. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
President Donald Trump late Tuesday signed legislation imposing some sanctions vs. China over Hong Kong. He also signed an executive order ending Hong Kong's preferential treatment, citing the enclave's loss of autonomy. That move had been expected following U.S. officials statements in the wake of China's new national security law on Hong Kong.
My opinion it’s on shear speculation on phase 3
Hence the reason the DOW closed 26,777 today
Hope they are close to the vaccine!!!!
Here's Gilead Sciences' Great COVID-19 Opportunity That You'll Really Want to Watch
A new formulation of remdesivir could open up a multibillion-dollar market.
Keith Speights
Keith Speights
(TMFFishBiz)
Jul 14, 2020 at 6:51AM
Author Bio
Plenty of drugmakers are developing potential treatments for COVID-19. But -- so far, at least -- only Gilead Sciences (NASDAQ:GILD) can claim a COVID-19 therapy that has sailed through late-stage testing. Gilead's remdesivir won FDA Emergency Use Authorization (EUA) and received conditional approval in Europe as a treatment for the novel coronavirus disease.
Remdesivir appears to be effective in treating hospitalized patients with COVID-19. But there's another big COVID-19 opportunity for Gilead that you'll really want to watch.
Gold coronavirus
IMAGE SOURCE: GETTY IMAGES.
Breathe in
Thus far, Gilead's primary focus has been on an intravenous form of remdesivir. However, the company announced on July 8 that it had initiated a phase 1a clinical study evaluating an inhaled solution of remdesivir. This study will enroll around 60 healthy participants between the ages of 18 and 45.
Does the big biotech think that the drug could prevent COVID-19 since its latest study involved healthy individuals? No. Instead, Gilead plans to use healthy participants to assess the safety, tolerability, and pharmacokinetics (movement of drugs in the body) of the inhaled version of remdesivir. If all goes well, Gilead plans to conduct additional clinical studies of the inhaled version of remdesivir in treating patients with COVID-19 who haven't been hospitalized.
The upper respiratory tract ranks as the main infection hot spot for patients with early stages of COVID-19. Gilead suspects that using a nebulizer to deliver an inhaled solution of remdesivir could be effective in helping these patients recover more quickly. Gilead chief medical officer Merdad Parsey stated that the promising clinical data for intravenous remdesivir in treating hospitalized patients made it "clear that efforts were needed to investigate the drug's potential in the outpatient setting."
A lucrative potential opportunity
SVB Leerink analyst Geoffrey Porges estimated that Gilead could make between $6 billion and $7 billion annually from remdesivir in the hospital setting. His projection, though, was based on the company pricing the drug at $5,000 per course in the U.S.
Gilead later announced a price tag of $2,340 per patient for a five-day treatment course of intravenous remdesivir. This pricing implies that the biotech could generate sales for the drug in the ballpark of $3 billion annually if Porges' calculations are on track.
But the outpatient market for an inhaled version of remdesivir would undoubtedly be much larger. In the U.S., a little over 52,500 individuals have been hospitalized for COVID-19 so far compared to around 3.3 million positive cases of COVID-19.
Quick calculations might lead you to believe that Gilead's opportunity in the outpatient setting could be more than 60 times greater than its hospital setting opportunity. Could an inhaled formulation of remdesivir open up a $180 billion or more market for the biotech? That's almost certainly way too optimistic. Many patients with positive COVID-19 tests have no symptoms and require no treatment.
Still, it doesn't seem unrealistic that an inhaled version of remdesivir could generate sales that rival or surpass Gilead's blockbuster HIV drugs that are already on the market. The company's best-selling drug, Biktarvy, should generate in the ballpark of $7 billion in sales this year.
Shares of the vaccine maker Moderna (MRNA) are up by double digits in after-hours session Tuesday, thanks to a positive clinical update for its experimental coronavirus vaccine mRNA-1273.
"Phase 1 data demonstrate that vaccination with mRNA-1273 elicits a robust immune response across all dose levels and clearly support the choice of 100 µg in a prime and boost regimen as the optimal dose for the Phase 3 study,” said Tal Zaks, Chief Medical Officer of Moderna.
Following Moderna’s massive gains so far this year, 333% to be exact, is now the right time to recommend investors snap up shares? Jefferies analyst Michael Yee has an almost Schwarzenegger-ish answer to such a question: “We take a stand: If it works, stock will be going up.”
SCROLL TO CONTINUE WITH CONTENTAd
Millionaire MENSA Trader's Top Weekly Picks
RagingBull
Millionaire MENSA Trader's Top Weekly Picks
Jeff Bishop Went From Rags To Riches And Made Millions Trading Stocks And Options From Home. He's Now Helping Others By Sharing His Top Picks.
LEARN MORE
To this end, Yee initiated coverage on MRNA with a Buy rating. However, his $90 price target implies a modest 5% upside from current levels. (To watch Yee’s track record, click here)
Unsurprisingly, the bulk of Yee’s bullish assessment is reserved for the company's COVID-19 vaccine candidate.
Expanding on this blunt assessment, Yee said, “We believe the Street will be surprised to the upside if the COVID-19 vaccine works, gets approved by early 2021, and there are multi-billion dollars of purchase orders from USA and around the world. The Street is divided as to what will happen or if the vaccine will even work and is hugely divided on valuation. We believe the vaccine will get approved and could do $5B+ in orders over the next few years and the stock will head higher.”
Yee’s confidence is partly based on talks with KOLs (key opinion leaders) who have prompted a belief there is “a good probability the vaccine will work,” and should at minimum be granted Emergency approval by early next year.
Moderna has emerged as one of the frontrunners in the race to bring a viable vaccine to market, but there’s a while to go yet before breaking out the champagne. mRNA-1273 is currently in a phase 2 trial, with data expected in the fall, while a phase 3 study is expected to launch this month. It goes without saying, positive results from the trials could act as additional catalysts for further share appreciation.
The Jefferies analyst is not alone in his positive assessment. Based on 14 Buy ratings and 2 Holds, Moderna has a Strong Buy consensus rating. With an average price target of $86.46, the analysts expect a 15% premium to be added to the share price over the next 12 months. (See Moderna stock analysis on TipRanks)
$$$$$$$$$$$$
All I have to say!!!!!
Continuing a stellar rise that has placed it atop the list of coronavirus stocks, Moderna (NASDAQ:MRNA) will soon become a component of a top equities index. Nasdaq (NASDAQ:NDAQ) announced Monday that the popular biotech company will be part of its Nasdaq 100 Large-Cap Index effective prior to market open next Monday, July 20.
Moderna will also be on the associated Nasdaq-100 Equal Weighted Index and the Nasdaq-100 Ex-Tech Sector Index. The core Nasdaq 100 is, like the wider exchange itself, occupied largely by tech companies.
The move will see Moderna displace real estate company CoStar Group (NASDAQ:CSGP).
A Moderna building facade.
IMAGE SOURCE: MODERNA.
Moderna has attracted intense investor attention lately, due to what many consider its front-runner status in developing a vaccine for the coronavirus. The company's mRNA-1273 vaccine candidate is deep in phase 2 clinical testing, and was to start a phase 3 trial this month (although this has apparently been delayed).
Moderna is far from the only biotech company developing a vaccine candidate to treat the disease, which is still spreading rapidly. But the relatively quick pace with which it's brought along mRNA-1273 has vaulted it into a leading position.
This helped convince the government to put it on the list of companies included in the federal Operation Warp Speed coronavirus vaccine and treatment program; Moderna is also receiving government funds to aid in the development process.
A great many Moderna bulls are prowling the market, and on Monday they bid the company's share price up by nearly 15%. That trounced the relatively modest gains of the top equity indexes on the day.
#5 on ihub this morning $$$$$$$$
Tha D word is an UGLY word to say.....
GLTA today $$$$$$
Except shorty!!!!
Ain’t happening. Buy at the bell and watch it run. GAXY is primed and ready for a HUGE run $$$$$$
Do u ever sleep bro!!!!!!! All this DD here and on Twitter..... Mike needs coffee because he’s been putting DD out everywhere $$$$$$$
Plenty of drugmakers are developing potential treatments for COVID-19. But -- so far, at least -- only Gilead Sciences (NASDAQ:GILD) can claim a COVID-19 therapy that has sailed through late-stage testing. Gilead's remdesivir won FDA Emergency Use Authorization (EUA) and received conditional approval in Europe as a treatment for the novel coronavirus disease.
Remdesivir appears to be effective in treating hospitalized patients with COVID-19. But there's another big COVID-19 opportunity for Gilead that you'll really want to watch.
Gold coronavirus
IMAGE SOURCE: GETTY IMAGES.
Breathe in
Thus far, Gilead's primary focus has been on an intravenous form of remdesivir. However, the company announced on July 8 that it had initiated a phase 1a clinical study evaluating an inhaled solution of remdesivir. This study will enroll around 60 healthy participants between the ages of 18 and 45.
Does the big biotech think that the drug could prevent COVID-19 since its latest study involved healthy individuals? No. Instead, Gilead plans to use healthy participants to assess the safety, tolerability, and pharmacokinetics (movement of drugs in the body) of the inhaled version of remdesivir. If all goes well, Gilead plans to conduct additional clinical studies of the inhaled version of remdesivir in treating patients with COVID-19 who haven't been hospitalized.
The upper respiratory tract ranks as the main infection hot spot for patients with early stages of COVID-19. Gilead suspects that using a nebulizer to deliver an inhaled solution of remdesivir could be effective in helping these patients recover more quickly. Gilead chief medical officer Merdad Parsey stated that the promising clinical data for intravenous remdesivir in treating hospitalized patients made it "clear that efforts were needed to investigate the drug's potential in the outpatient setting."
A lucrative potential opportunity
SVB Leerink analyst Geoffrey Porges estimated that Gilead could make between $6 billion and $7 billion annually from remdesivir in the hospital setting. His projection, though, was based on the company pricing the drug at $5,000 per course in the U.S.
Gilead later announced a price tag of $2,340 per patient for a five-day treatment course of intravenous remdesivir. This pricing implies that the biotech could generate sales for the drug in the ballpark of $3 billion annually if Porges' calculations are on track.
But the outpatient market for an inhaled version of remdesivir would undoubtedly be much larger. In the U.S., a little over 52,500 individuals have been hospitalized for COVID-19 so far compared to around 3.3 million positive cases of COVID-19.
Quick calculations might lead you to believe that Gilead's opportunity in the outpatient setting could be more than 60 times greater than its hospital setting opportunity. Could an inhaled formulation of remdesivir open up a $180 billion or more market for the biotech? That's almost certainly way too optimistic. Many patients with positive COVID-19 tests have no symptoms and require no treatment.
Still, it doesn't seem unrealistic that an inhaled version of remdesivir could generate sales that rival or surpass Gilead's blockbuster HIV drugs that are already on the market. The company's best-selling drug, Biktarvy, should generate in the ballpark of $7 billion in sales this year.
Don't count the money yet
You shouldn't start counting Gilead's money for inhaled remdesivir just yet. The odds of any infectious-disease drug in a phase 1 study going on to win FDA approval are less 20%, according to historical data compiled by biopharmaceutical industry organization BIO.
For that matter, you probably shouldn't count on the IV version of remdesivir becoming a long-term commercial success for Gilead. It's possible that the emergence of vaccines and herd immunity could one day greatly reduce the need for COVID-19 treatments.
The good news for investors is that the biotech stock has other potential catalysts, notably including the anticipated U.S. and European approvals for filgotinib in treating rheumatoid arthritis. But you'll definitely want to monitor Gilead's progress with its early stage clinical study. The opportunity for an inhaled version of remdesivir is nothing to sniff at.
Yes sir $$$$$$$
Your definitely going to see it RUN NORTH tomorrow.... mark me,,,, you have no clue who’s watching this stock... Remember this post!
Stocks quotes in this article: GILD
Gilead Sciences (GILD) could be ready for an upside breakout on the charts. Let's take a close look at the stock of the company behind the potential Covid-19 treatment remdesivir.
In this daily bar chart of GILD, below, we can see that the shares have been "chopping" sideways for about eight weeks but now prices are up at the upper end of this sideways pattern. GILD is above the 50-day and the 200-day moving averages.
The daily On-Balance-Volume (OBV) line has been showing strength all year even though prices show a very erratic up and down pattern most of the time. The Moving Average Convergence Divergence (MACD) oscillator is ready to cross above the zero line for an outright buy signal.
In this daily Point and Figure chart of GILD, below, we can see that a trade at $79.05 will be a breakout and an $86 price target is projected.
Bottom-line strategy: it looks like GILD is ready to make an upside breakout. Go long at $79.05 or higher. Risk a close below $74. The $86-$90 area is the target.
Moderna Inc (NASDAQ: MRNA) shares are surging above the $70 level for the first time since late May following sell-side commentary on its coronavirus vaccine program.
The Moderna Analyst: Jefferies analyst Michael Yee initiated coverage of Moderna with a Buy rating and $90 price target.
SCROLL TO CONTINUE WITH CONTENTAD
The Moderna Thesis: There is good probability the vaccine will work and get at least emergency approval by early 2021, Yee said in a note, citing his discussions with key opinion leaders and disclosures made by the company thus far.
Given the likelihood of demand to remain elevated in the first two years, the analyst estimates billions in sales. This is despite the sell-side remaining divided over whether Moderna will be successful in its pursuit for a coronavirus vaccine, he added.
Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.
Key catalysts for the stock are the Phase 2 readout due in fall and potential interim Phase 3 readout by the end of the year, Yee said.
Jefferies' $90 per share price target gives Moderna a valuation of $35 billion. This is based $15 billion valuation for the stock, based on three-to-four times sales, and $15 billion to $20 billion platform value, which is supported by a pipeline consisting of 15 other candidates in the clinic, including 5-10 vaccines and 5-19 other therapeutic programs.
"$35B on MRNA if it does have a novel mRNA platform that generated a COVID vaccine in less than a year would be worthy of praise, in our view," Yee wrote in the note.
As such, the firm believes the vaccine will get approved and could do over $5 billion in orders over the next few years and the stock will head higher.
MRNA Price Action: Moderna shares were soaring 16.8% to $73.14 at the time of publication.
Shares of Moderna are up 239% so far this year, and the biotech company, which has no approved drugs, has a market capitalization of more than $24 billion.
But in a note out Monday morning, Jefferies analyst Michael Yee writes that the stock can still climb higher.
The biggest story for Moderna (ticker: MRNA) is the company’s Covid-19 vaccine, which turned what was once a controversial if promising biotech into a household name. The company is on the brink of beginning Phase 3 trials of the vaccine. Yee thinks that it could soon be a blockbuster for the company.
“We believe the company’s Covid-19 vaccine mRNA-1273 will work and big orders will come in,” he wrote.
Yee believes that the Food and Drug Administration could issue the vaccine an emergency use authorization by early next year.
The analyst initiated coverage of Moderna shares with a Buy rating and set a price target of $90. The stock was trading at $66.37 on Monday morning, up 6%.
Of the 14 analysts tracked by FactSet with ratings on Moderna, 13 rate it a Buy while one rates it a Hold.
“We think billions in sales would be reasonable and there would be high demand over the first one to two years,” Ye wrote. He estimates $2 billion in sales of the vaccine in the first year it is on the market, but said that the number could notionally be far higher.
Yee wrote that if Moderna’s Covid-19 vaccine succeeds, it would validate the company’s large pipeline of messenger RNA-based drugs, which rely on the same relatively unproven technology as the Covid-19 vaccine.
“This is the key: If it works, it’s not just huge dollars coming in, but platform validation with lots of pipeline behind it,” Yee wrote. “This is analogous to any biotech that proves a platform works and can be applied across the board.”
Last week, shares of Moderna fell on reports that disagreements with government scientists were delaying the start of the Phase 3 trial of its Covid-19 vaccine. At the time, Barron’s noted that the reported disagreements highlighted a potential risk for biotech companies with no marketed products in the late stages of the vaccine race: They may prove out of their depth in the scramble for regulatory approval. Moderna said at the time that many of its employees had decades of experience in the industry and had run Phase 3 programs at “top five vaccine companies.”
Yee acknowledged that if the vaccine doesn’t work, the stock could get “hit hard.” But he wrote that he “believes the stock could appreciate 25% to 50% over the next six to 12 months.”
Gilead Sciences (NASDAQ:GILD) has maintained a spot in the forefront of the COVID-19 pandemic. The biotech company first sparked the market's interest when it brought its investigational COVID-19 treatment, remdesivir, rapidly into clinical trials. It solidified its position after the U.S. Food and Drug Administration granted remdesivir emergency use authorization based on encouraging trial data. This authorization isn't the same as approval and can be revoked at any time. That means remdesivir still is involved in clinical testing.
At the same time, the coronavirus vaccine race has heated up, with the U.S. government offering billions of dollars to companies with promising candidates.
A researcher holds a vial of COVID-19 vaccine and a vial of remdesivir in gloved hands.
IMAGE SOURCE: GETTY IMAGES.
Investors might ask: With attention on vaccine makers and its drug still investigational, is Gilead a good coronavirus investment? Let's take a closer look.
Stocking up on remdesivir
The government has launched Operation Warp Speed, an effort to help bring a vaccine to market by January 2021. But that doesn't mean treatments are no longer of interest. In fact, the U.S. bought up Gilead's entire July stock of remdesivir as well as 90% of August and September production. The European Commission earlier this month granted the drug conditional marketing authorization, and Japan in May offered remdesivir regulatory approval. So, it's clear countries are interested in stocking up on the drug.
And even if a vaccine makes it to market in the near future, treatments remain necessary. A vaccine may not be 100% efficacious, and some people might decide against vaccination. Though companies in the vaccine race are leading stock market gains at the moment, there still is plenty of room for treatment makers.
As for remdesivir's efficacy, trial data is encouraging, but the drug still must prove itself. So far, it has demonstrated the ability to help patients recover more quickly. In the latest phase 3 data, hospitalized patients with moderate COVID-19 who received remdesivir for five days were 65% more likely to see improvement on day 11 compared with those given the standard care. Trial data has suggested positive impact on survival, but so far numbers haven't been statistically significant.
Gilead continues to study remdesivir treatment earlier in the illness, in outpatient settings, in an inhaled formulation (versus the current intravenous method), and in combination with other medicines. There are about 20 active or enrolling clinical trials worldwide studying remdesivir, according to ClinicalTrials.gov.
More than 1,000 trials
From results so far, it seems clear remdesivir is helping some COVID-19 patients. Still, risks remain. Remdesivir must finish clinical studies and earn regulatory approval. There is also the risk another drugmaker will develop a more efficacious treatment. More than 1,000 active or enrolling trials globally involve various possible therapies such as hydroxychloroquine, corticosteroids, and even traditional Chinese medicine.
Gilead recently removed a third uncertainty: pricing. The company set a price of $390 per vial, meaning a standard six-vial treatment course translates into a $2,340 price tag per patient. Production costs per day of treatment total $0.93, according to estimates in a Journal of Virus Eradication report. Of course, a drug's value also includes the years of development and related expenses, but even considering these factors, it is likely Gilead will generate a profit from remdesivir sales. And that's good news for investors, especially considering the company will have spent about $1 billion on development and manufacturing by year end.
But the reason I like Gilead as a coronavirus stock is because this biotech company also has other revenue-generating drugs, such as HIV blockbuster Biktarvy. In the first quarter, sales of the treatment more than doubled to nearly $1.7 billion. The FDA is now reviewing Gilead's filgotinib, a rheumatoid arthritis drug that the company says has the potential for five indication launches within the coming four years. So no matter what the fate of remdesivir may be, Gilead has a few motors for growth in the years to come. And that's why this is a solid coronavirus stock to buy today.
Aurora Cannabis (ACB – Research Report) continues to confirm a strong transformation to a cannabis company focused on profitable growth while Canopy Growth (CGC – Research Report) is still chasing large market opportunities with wild spending. The company is now on track to spend about 25% of the SG&A as the largest Canadian cannabis stock while approaching the same revenue levels.
The Edmonton-based company is a far better value on weakness despite having no major investor and struggling over the last year with a weak balance sheet. The company still has work to get done to reach EBITDA profits, but Aurora Cannabis is the far better stock with the transformation on track.
Operational Excellence
The best part of the story is that Aurora Cannabis set a transformational target in February and the company is already hitting this goal. With the targets in sight on transforming SG&A costs, the company is now moving forward with consolidating production facilities to the low-cost areas with considerable capacity and eliminating the high-cost facilities no longer needed for the global opportunity that never materialized.
Aurora Cannabis forecasts reaching an SG&A target of C$42 million in FQ1, thereby cutting operational expenses by an astonishing 50% in just a few months. Staff levels were cut by 25% to achieve these goals with some apparent high cost consultants let go as well.
The company can now achieve EBITDA profits on substantially lower revenues. The good news is that consolidating production facilities will help improve gross margins with Pablo Zuanic of Cantor Fitzgerald forecasting an 8-point boost to gross margins.
In prior quarters, Aurora Cannabis was stuck on mid-40s gross margins while clearly over producing inventory similar to the rest of the Canadian cannabis industry. The consolidation of five small facilities will help reduce costs that were averaging C$1.15 per gram while other industry players were down below C$1.00.
Once the cannabis company reaches C$100 million in quarterly revenues, the new 50% gross margins will generate up to C$8 million in operating income. This metric assumes a stable C$42 million SG&A quarterly run rate as revenues rise.
Focused Opportunity
Canopy Growth highlighted how the once promising global opportunity is limited to the U.S., Canada and Germany. These three countries are set to account of C$63 billion or up to 90% of the global total addressable market by 2023.
Aurora Cannabis is a strong player in both the Canadian cannabis market and Germany medical that make up the majority of the revenue TAM outside of U.S. Similar to Canopy Growth, both companies have recently entered the U.S. CBD market while being currently blocked from the massive C$42 billion TAM in the U.S. recreational and medical cannabis markets.
The key here is that both companies have the same market opportunities and areas of focus, but one still plans to spend wildly on SG&A due to a C$2.0 billion cash balance while the other has become a strong operator due to the requirement to focus. Aurora Cannabis is on the path to positive EBITDA while Canopy Growth has no apparent EBITDA profit goals.
Takeaway
The key investor takeaway is that the valuation equation for Aurora Cannabis remains far more compelling here as the market has pushed the stock back down to a market valuation of $1.4 billion. Canopy Growth is far too expensive at $5.7 billion with no meaningful improvement in financials while Aurora Cannabis is on schedule for solid EBITDA profits in FY21 starting in July
See plus 4s next week?????
Stocks staged a broad rally Friday, with the Nasdaq Composite setting yet another record high, after Gilead Sciences announced that its remdesivir treatment reduced the risk of death for Covid-19 patients, based on new data from the company.
The more upbeat news on the virus treatment front led “recovery” stocks higher, with financials and energy sectors that had lagged over the past few weeks leading the S&P 500’s more than 1% advance. The S&P 500 financials sector (XLF) rose by the most in five weeks, and cruise line and airline stocks also advanced strongly.
Still, virus fears lingered, as the global economy struggles to contain surging coronavirus cases — which have set single-day records in the United States, led by spikes in the Sun Belt region. Abroad, Hong Kong said it was set to close schools again starting on Monday, following a new batch of infections in the region. And Mexico saw a record number of new cases to overtake Spain – once a global epicenter of the virus – in the number of overall cases. Major equity indices in Asia closed out Friday’s session lower.
Signs that the outbreak was worsening stoked a further risk-off mood in markets. California, Florida and Texas each posted record one-day coronavirus deaths as of Thursday. Crude oil prices (CL=F) steadied on Friday after posting their biggest drop in two weeks amid fears about falling demand. Investors piled into the relative safety of the bond market, and the benchmark 10-year yield fell to the lowest level since mid-April Friday morning.
However, technology has become a new safe haven, with Apple, Amazon, Netflix, Tesla and Microsoft all soaring to fresh records this week. Investors have plowed cash into names viewed as most likely to recover strongly in the wake of the pandemic.
The recent surge in tech shares widened the yawning gap in performance between sectors weighed heavily in tech stocks, and those without. The S&P 500’s information technology and consumer discretionary sectors – the latter of which includes Amazon – have each rallied well over 10% since June 1, versus a roughly 3% gain in the broader market. The energy sector has fallen 11.7% since June 1, and the utilities and financials sectors have dropped 5.6% and 3.9%, respectively.
experimental coronavirus treatment, remdesivir, for use in inhaled formulation outside of hospitals
The drug is currently administered to hospitalized patients intravenously.
A phase I study has been initiated to evaluate the safety, tolerability and pharmacokinetics of an investigational, inhaled solution of remdesivir in healthy volunteers. This randomized, placebo-controlled study will enroll approximately 60 healthy individuals aged 18-45 years in the United States to form the basis for further clinical study of the inhaled drug, particularly in patients whose disease has not progressed to require hospitalization.
SCROLL TO CONTINUE WITH CONTENTAd
IRS Deadline is 7/15. File Today!
TurboTax
IRS Deadline is 7/15. File Today!
Grab your favorite device and file your simple Federal and State taxes for FREE with the TurboTax app.
GET APP
Gilead believes that delivering remdesivir directly to the primary site of infection with a nebulized, inhaled solution may enable more targeted and accessible administration in non-hospitalized patients, as the upper respiratory tract is the most prevalent site of SARS-CoV-2 infection early in the disease.
Moreover, additional clinical studies evaluating remdesivir in combination with anti-inflammatory medicines in vulnerable patient populations and outpatient settings are ongoing or planned to be initiated shortly.
Gilead’s shares have rallied 18.6% in the year so far compared with the industry’s growth of 12.9%. In fact, remdesivir is pioneering the race for a possible treatment of this deadly virus.
The FDA also granted remdesivir an Emergency Use Authorization for the treatment of hospitalized patients with severe COVID-19, given the severity of the pandemic. It was granted regulatory approval in Japan under an exceptional approval pathway. The European Commission has granted conditional marketing authorization to remdesivir as a treatment for SARS-CoV-2 infection, under the brand name Veklury.
Currently, there are no FDA-approved treatments for the severe illness caused by SARS-CoV-2. The pharma/biotech sector is running a race against time to come up with treatments and vaccines to cure the contagion.
Roche RHHBY initiated a late-stage study on its arthritis drug, Actemra/RoActemra, in combination with remdesivir in hospitalized patients with severe COVID-19 pneumonia. Alexion ALXN is also evaluating its rare disease drug, Ultomiris (ravulizumab-cwvz), for the COVID-19 infection.
Regeneron REGN has also initiated late-stage studies on its investigational double-antibody cocktail, REGN-COV2, for the treatment of COVID-19. The candidate is being evaluated both for the treatment and prevention of the disease.
We’re getting closer to another run here$$$$$$
Ain’t happening $$$$$$$$
Read it ,,,,,,, ALL shorts going to get caught very soon!!!!!
Carnival Corp's AIDA Cruises said on Thursday it would resume sailing operations in August, months after cruise operators were forced to pause voyages due to the COVID-19 pandemic.
The Germany-based cruise line said it has introduced a variety of coronavirus preventive measures to complement existing health and hygiene standards, as it restarts operations.
Cruise operators have suspended most of their operations since March as the rapid spread of the coronavirus outbreak has forced several countries to mandate lockdowns and travel restrictions.
Earlier this week, rivals Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd had announced a joint task force to help develop safety standards for restarting their businesses during the pandemic.
(Reporting by Nivedita Balu in Bengaluru; Editing by Amy Caren Daniel)
Shares of Moderna Inc. MRNA, +0.80% gained 0.5% in premarket trading on Thursday after the drugmaker announced another manufacturing deal for its still investigational COVID-19 vaccine. As part of the deal, Laboratorios Farmacéuticos Rovi ROVI, +4.68%, based in Madrid, will handle commercial fill-finish manufacturing of the vaccine candidate for use outside of the U.S. The company's vaccine candidate has not yet proven that it can protect against the coronavirus; however, drugmakers in the U.S. are moving forward with manufacturing plans often with the financial support of the U.S. government to speed up the vaccine development process. Moderna has announced several manufacturing deals for its experimental COVID-19 vaccine, including with Catalent Inc. CTLT, +3.37% and CordenPharma. Moderna's stock has gained 214.8% since the start of the year, while the S&P 500 SPX, +0.78% is down 1.8%
YAWN,,,,, u send me CRAP here and then I do TRUE DD...... absolutely terrible
c. (OTC: CGLD) announced today that the number of Authorized Shares for the company will be reduced by 50 percent to 250M shares.
Buscar Company President Thomas W. Heathman stated, "As we build out our infrastructure, we do so with an eye on the long term strategy of the company. As we look out for the foreseeable future, we see no advantage to keeping the authorized share count so high. We are close to determining the number of shares to be issued to all new officers and directors and a 250 million authorized share count will be more than enough to cover the shares being issued. Today we filed with the Nevada Secretary of State to make this change."
Buscar Company recently announced the acquisition of Eon Discovery, a mining operation that holds the rights to the Treasure Canyon Mining claims located in Plumas County, California. More information on the 200 acre property, maps, drawings, assays and an appraisal of the mineral reserves can all be found at the company website, https://BuscarCompany.com.
SCROLL TO CONTINUE WITH CONTENTAd
How He Made $2.8M Trading Stocks Part-Time At Home
RagingBull
How He Made $2.8M Trading Stocks Part-Time At Home
Kyle Dennis took a leap of faith and decided to invest his savings of $15K in the stock market — $2.8M later, he owes his success to these strategies
LEARN MORE
Mr. Heathman finished up with, "All new shares should be issued to officers and directors by the end of this month and will be updated accordingly at OTCMarkets.com. As previously stated, all new shares will have a two year hold and in response to a recent question asked by one of our shareholders, there are no shares available to be sold into the market by the company even if we wanted to. On the day of issuance, the total number of shares available to the public will be the same as today; 3,254,916 free trading shares. We have much more to share with you in the coming weeks and I look forward to speaking with you again soon."
Notice Regarding Forward-Looking Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate.
Gilead Sciences (GILD) said Wednesday it's testing an inhaled version of remdesivir in a bid to expand the coronavirus treatment to patients with less severe Covid-19.
00:00
08:33
The Phase 1 study will examine inhaled remdesivir in 60 healthy adults ages 18-45 in the U.S., Chief Medical Officer Merdad Parsey said in a written statement. Ultimately, the biotech hopes to deliver the inhaled coronavirus treatment to non-hospitalized patients.
Currently, remdesivir has emergency use authorization in the U.S. to treat patients with severe and moderate Covid-19 in hospital settings. It's given as a five- or 10-day infusion. But Parsey notes the virus known as SARS-CoV-2 starts in the upper respiratory tract.
"Delivering remdesivir to the primary site of infection with a nebulizer, inhaled solution may enable more targeted and accessible administration in non-hospitalized patients and potentially lower systemic exposure to the drug," Parsey said.
Take the market with you
With our top-rated app >
Download Now
Expanding Coronavirus Treatment
On the stock market today, Gilead stock dipped 1.1% to 75.61.
From the beginning, it's been clear that Gilead would have to develop a coronavirus treatment solution for outpatient uses, Parsey said. "Significant research efforts" led to an inhaled version of remdesivir, delivered in a fine spray, he said.
Additionally, Gilead says studies will test combinations using the coronavirus treatment with anti-inflammatory drugs, in vulnerable patient populations and in outpatient settings.
The need for effective coronavirus treatments has grown alongside the Covid-19 case count. As of Wednesday, there were more than 12 million cases worldwide, according to Worldometer. The U.S. accounts for more than a quarter of that.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. We are almost done with the second quarter. Investors decided to bet on the economic recovery and a stock market rebound. S&P 500 Index returned almost 20% this quarter. In this article we look at how hedge funds traded The Chefs Warehouse, Inc (NASDAQ:CHEF) and determine whether the smart money was really smart about this stock.
Is The Chefs Warehouse, Inc (NASDAQ:CHEF) a buy right now? Hedge funds were taking an optimistic view. The number of bullish hedge fund bets moved up by 4 lately. Our calculations also showed that CHEF isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks). CHEF was in 11 hedge funds' portfolios at the end of the first quarter of 2020. There were 7 hedge funds in our database with CHEF positions at the end of the previous quarter. Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 101% since March 2017 and outperformed the S&P 500 ETFs by more than 58 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_673876" align="aligncenter" width="400"] John Overdeck of Two Sigma Advisors[/caption]
John Overdeck of Two Sigma
John Overdeck of Two Sigma
At Insider Monkey we scour multiple sources to uncover the next great investment idea. There is a lot of volatility in the markets and this presents amazing investment opportunities from time to time. For example, this trader claims to deliver juiced up returns with one trade a week, so we are checking out his highest conviction idea. A second trader claims to score lucrative profits by utilizing a "weekend trading strategy", so we look into his strategy's picks. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recently recommended several stocks partly inspired by legendary Bill Miller's investor letter. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we're going to check out the new hedge fund action surrounding The Chefs Warehouse, Inc (NASDAQ:CHEF).
How are hedge funds trading The Chefs Warehouse, Inc (NASDAQ:CHEF)?
Heading into the second quarter of 2020, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 57% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CHEF over the last 18 quarters. With hedgies' capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
Is CHEF A Good Stock To Buy?
Is CHEF A Good Stock To Buy?
The largest stake in The Chefs Warehouse, Inc (NASDAQ:CHEF) was held by Legion Partners Asset Management, which reported holding $16.8 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $11.5 million position. Other investors bullish on the company included D E Shaw, Millennium Management, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position Legion Partners Asset Management allocated the biggest weight to The Chefs Warehouse, Inc (NASDAQ:CHEF), around 7.08% of its 13F portfolio. PDT Partners is also relatively very bullish on the stock, setting aside 0.04 percent of its 13F equity portfolio to CHEF.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls' herd. Legion Partners Asset Management, managed by Ted White and Christopher Kiper, created the largest position in The Chefs Warehouse, Inc (NASDAQ:CHEF). Legion Partners Asset Management had $16.8 million invested in the company at the end of the quarter. D. E. Shaw's D E Shaw also initiated a $2.9 million position during the quarter. The other funds with brand new CHEF positions are John Overdeck and David Siegel's Two Sigma Advisors, Ryan Tolkin (CIO)'s Schonfeld Strategic Advisors, and Paul Tudor Jones's Tudor Investment Corp.
Let's also examine hedge fund activity in other stocks similar to The Chefs Warehouse, Inc (NASDAQ:CHEF). We will take a look at Purple Innovation, Inc. (NASDAQ:PRPL), Tivity Health, Inc. (NASDAQ:TVTY), Intelligent Systems Corporation (NYSE:INS), and Flexion Therapeutics Inc (NASDAQ:FLXN). This group of stocks' market values are similar to CHEF's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PRPL,14,71224,1 TVTY,13,134787,-5 INS,9,62514,0 FLXN,14,55390,-1 Average,12.5,80979,-1.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $81 million. That figure was $35 million in CHEF's case. Purple Innovation, Inc. (NASDAQ:PRPL) is the most popular stock in this table. On the other hand Intelligent Systems Corporation (NYSE:INS) is the least popular one with only 9 bullish hedge fund positions. The Chefs Warehouse, Inc (NASDAQ:CHEF) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 12.3% in 2020 through June 30th and still beat the market by 15.5 percentage points. A small number of hedge funds were also right about betting on CHEF as the stock returned 34.9% during the second quarter and outperformed the market by an even larger margin.
Gilead Sciences is on track to make a profit on its Covid-19 therapeutic remdesivir this year, according to a note out just before the long weekend from analyst Robyn Karnauskas at SunTrust Robinson Humphrey.
Karnauskas, who rates Gilead stock (ticker: GILD) at Hold, maintained her price target of $73. Shares are up 1.2% to $77.26 in Monday morning trading, and have surged 17.5% so far this year, topping the 2% slide in the S&P 500 Index, a broad measure of the market.
The note came after the U.S. Department of Health and Human Services announced early last week that it had arranged for American hospitals to be able to purchase 500,000 treatment courses of remdeivir through the end of September, constituting most of the global supply. Karnauskas wrote that those purchases would mean $1.2 billion in remdesivir sales in the third quarter, and that sales of the drug in the fourth quarter could reach $1.8 billion, for total remdesivir sales of $2.9 billion in 2020.
EDITOR'S CHOICE
Covid Changed the Definition of Corporate Leadership. Meet Barron’s New Top CEOs.
The 100 Most Sustainable Companies, Reranked by Social Factors
How Dell Stock Can Take Off. A VMware Spinoff Is Just Part of the Answer.
As for how much the company is spending on remdesivir in the second half of the year, Karnauskas wrote that thinks the company will spend $100 million on ongoing remdesivir studies. She wrote that the cost to manufacture the drugs will be around $376 million, and calculates earnings before interest and taxes on remdesivir of $698 million in the third quarter, and $1.1 billion in the fourth quarter.
The stock trades at 11.6 times expected earnings over the next 12 months, according to FactSet, above its five-year average of 7.3 times earnings. Of the 30 analysts who follow the company tracked by FactSet, 16 rate it a Hold, while 11 rate it Overweight or Buy.
Last week, Gilead set a price of $2,340 for a course of remdesivir, or $3,120 for U.S. insurers. Analysts have disagreed about the impact of that pricing. Some critics have called the price point too high, noting that federal government grants supported the drug’s development. But the company has said that the price is lower than the amount the drug will save in hospitalization costs, and that the pricing will give patients access to the drug.
July 6 (Reuters) - Cruise industry rivals are teaming up in an effort to sail again.
On Monday, Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd announced a joint task force to help develop safety standards for restarting their businesses during the coronavirus pandemic.
The “Healthy Sail Panel,” co-chaired by former Utah Governor Mike Leavitt and former U.S. Food and Drug Administration Commissioner Scott Gottlieb, is advising the companies on restart plans they will submit to the U.S. Centers for Disease Control and Prevention (CDC) and other regulators at the end of August. The panel plans to share its findings with the entire cruise industry and regulators.
The cruise industry has taken a major hit from the pandemic, with some of the earliest large clusters of COVID-19 occurring aboard cruise ships in which thousands of passengers and crew were packed in close quarters.
On March 14, the CDC issued a no-sail order for all cruise ships, which it subsequently extended to July 24.
Operators including Royal Caribbean, Norwegian Cruise Line and Carnival Corp have voluntarily extended their pause in operations from U.S. ports until September.
During a group interview Monday, Leavitt, Royal Caribbean Chief Executive Officer Richard Thain and Norwegian Cruise Line CEO Frank Del Rio did not offer details on what protocols might be included in an industry restart, or whether recent spikes in U.S. coronavirus cases may further extend the pause in operations.
“We are all just feeling our way here, and it's become clear to me that there is a shift happening sociologically in the context of masks,” said Leavitt. “I think it'll be very interesting to see what other businesses do. And not just the cruise lines, but others. We're all just working our way through this.” (Reporting by Helen Coster; editing by Jonathan Oatis)
Still early on my friend, only time will tell but I believe we’ll know something sooner than later!!!
Waitr Holdings Inc. (Nasdaq: WTRH) ("Waitr" or the "Company"), a leader in on-demand food ordering and delivery, today announced its preliminary unaudited financial results for the second quarter ended June 30, 2020.
Preliminary Unaudited Second Quarter 2020 Results
On a preliminary, estimated basis:
Revenue for the second quarter of 2020 was approximately $60 million, compared to $51.3 million in the second quarter of 2019.
Net Income for the second quarter of 2020 was at least $8 million, compared to a net loss of $24.9 million in the second quarter of 2019.
Adjusted EBITDA1 for the second quarter of 2020 was at least $15 million, compared to negative EBITDA of $14.9 million in the second quarter of 2019, an increase of almost $30 million.
As of June 30, 2020, cash on hand was approximately $66 million.
During the second quarter of 2020, the Company converted approximately $12.5 million of its convertible notes into common stock. On July 2, 2020 the Company paid down $12.5 million of its senior secured term loan.
Business Update
"We are pleased to present a preliminary look at our second quarter results and we are excited to deliver strong revenue growth and profitability, driven, in part, by an uptick in new diners and orders. While the events of the last several months have accelerated the adoption of our platform by consumers, we believe the important steps we adopted early this year, pre-pandemic, to super-charge our business are starting to be recognized in our financial results," said Carl Grimstad, Chairman and CEO of Waitr.
"Continued strong results reflect the hard work of our team members, our restaurant partners and our drivers, as well as the trust that we have earned from consumers who have relied on us to deliver high-quality food throughout the pandemic," added Mr. Grimstad. "Over the course of the last six months, we have reinforced our presence in our most important markets by increasing delivery areas, adding grocery and alcohol delivery services, and expanding our customer service and dispatch teams. All these growth initiatives are being supported by a leaner cost structure and with an eye on efficiencies and appropriate returns on deployed capital."
Since the onset of the pandemic, Waitr has been nimble in adapting its business. Waitr continues to actively work with our local communities, diners, restaurant partners, drivers and employees in joint efforts to mitigate risks and hardships arising from the ongoing pandemic. The Company has been working with new and existing restaurant partners to boost their delivery potential and sustain their businesses in the current environment, and has provided restaurants with free marketing and promotions, discounted delivery fees and other support. Waitr also recently added a donation feature to its app, the proceeds from which will go to Feeding America and other similar charities to help feed those in need.
"The increased demand for our services enables us to provide our communities with employment opportunities for drivers," said Mr. Grimstad. "The increase in the number of drivers, in turn, ensures expanded capacity and improved service for our restaurant partners and diners."
The Company expects to release its second quarter 2020 results in early August. The date on which the Company expects to issue such release will be announced in the near future.
Preliminary Results
The financial results presented in this press release are preliminary, estimated and unaudited. They are subject to the completion and finalization of Waitr’s financial and accounting closing procedures and reflect management’s estimates based solely upon information available to management as of the date of this press release. Further information learned during that completion and finalization may alter the final results. In addition, the preliminary estimates should not be viewed as a substitute for full quarter financial statements prepared in accordance with generally accepted accounting principles in the United States of America. There is a possibility that Waitr’s second quarter financial results could vary materially from these preliminary estimates. In addition to the completion of the financial closing procedures of Waitr, factors that could cause actual results to differ from those described above are set forth below under "Cautionary Note Concerning Forward-Looking Statements." Accordingly, you should not place undue reliance upon this preliminary information.
Nothing Wrong with taking profits.... Best of trades
3 dollar plus next week? Possibly!!!!
At the end of April, shares of Gilead Sciences (NASDAQ:GILD) were hovering near their 52-week highs of $85.97. The stock has been falling since then, and it's now trading at just about $76. Year to date, the stock is still up 17%, and well above the 4% decline the S&P 500 has seen during the same period.
A big reason for Gilead's recent decline is the waning hype surrounding the company's potential COVID-19 treatment, remdesivir. Let's take a closer look at why the excitement surrounding the drug has faded and whether you should consider buying shares of Gilead anyway.
Recent remdesivir studies were underwhelming
Studies of remdesivir and its effectiveness in treating COVID-19 haven't been all that encouraging thus far. On April 29, the National Institute of Allergy and Infectious Diseases released results from a remdesivir study involving 1,063 patients. The good news was that the drug was showing signs of effectiveness in fighting COVID-19, but it wasn't the slam dunk everyone was hoping for.
Prescription medication.
IMAGE SOURCE: GETTY IMAGES.
The results showed a 31% faster recovery time for patients who took remdesivir compared with those who took the placebo. The mortality rate for patients who took the drug was 8% compared with 11.6% for those who didn't.
On June 1, Gilead released Phase 3 trials of the drug that looked at five- and 10-day treatments. The results weren't enough to get investors excited, as only the 5-day treatment course showed an improvement that was statistically significant. Patients on the shorter treatment option were 65% more likely to see a clinical improvement by the 11th day compared with those patients who didn't take remdesivir.
The hope, however, was that as more people used remdesivir, more progress would be reported.
Is this a case of no news = bad news?
What's perhaps most concerning is that there hasn't been significant progress noted since remdesivir has been shipped out to hospitals across the country. On May 1, the Food and Drug Administration (FDA) gave Gilead emergency use authorization for remdesivir to treat patients with severe cases of COVID-19, including when oxygen levels are low and a ventilator is needed.
Gilead has donated approximately 607,000 doses of remdesivir to health officials in the U.S., which the Department of Health and Human Services then distributed to states across the country. But despite all those treatments now in circulation, there hasn't been any significant news to suggest that the drug is making significant progress or performing any better than the recent, disappointing studies indicated it would.
The one caveat in all of this is that COVID-19 has been proving to be a complicated disease, affecting people in different ways. It's possible that remdesivir could be effective under the right circumstances, which just may not be clear yet.
Does this mean investors should ditch the stock?
With Gilead's recent drop in price, the stock is now trading at a price-to-earnings multiple of about 19, which doesn't make it too bad of a value buy. And with the stock paying a quarterly dividend of $0.68, it's yielding a decent 3.5% per year -- well above the 2% investors can normally expect from an average stock on the S&P 500.
And there's hope beyond remdesivir, as Gilead also has filgotinib, which treats rheumatoid arthritis. The company submitted a new drug application to the FDA for filgotinib in December. If approved, it could inject Gilead's top line with some much-needed sales growth.
The company's top line was flat in 2019. However, in Gilead's first-quarter results of fiscal 2020, which it released on April 30, sales were up 5% from the prior-year period. The growth was primarily due to higher HIV product sales, which grew by 14%.
Overall, Gilead's a decent, low-risk buy that could take off if health officials can find a way to make remdesivir more effective in treating COVID-19, or if the FDA approves filgotinib. If nothing else, investors can secure a decent dividend and invest in a company that's been fairly stable, recording just one loss in its last nine quarters.
Moderna (NASDAQ:MRNA) is at a crucial moment right now -- for its COVID-19 vaccine candidate, its pipeline as a whole, and its investors. The company's investigational vaccine for COVID-19 is entering phase 3 clinical trials this month. This is the key stage that could make or break the company's hopes of bringing the product to market. And for investors, the results may mean an enormous gain -- or big losses.
Is the chance of success greater than the chance of failure? Let's take a look at what Moderna has reported so far, as well as possible risks ahead.
Vials labeled COVID-19 Vaccine are set on top of $100 bills.
IMAGE SOURCE: GETTY IMAGES.
Moderna is a clinical-stage company, meaning it doesn't yet have products on the market. The biotech company has about 20 candidates in the pipeline for indications including autoimmune disorders, cancer, and infectious diseases. A lot is riding on a possible COVID-19 vaccine approval because it would give Moderna a commercialized product.
And one more important point: Moderna's entire pipeline -- including this vaccine -- is based on the same technology, so positive data here may boost investor confidence in the rest of the company's work. Moderna uses messenger RNA (mRNA) to deliver instructions to the body's cells. These instructions tell the body to make certain proteins that can prevent or treat disease.
Encouraging interim data
So far, Moderna's news has been positive. The company reported encouraging interim data from phase 1, with trial participants showing levels of binding antibodies and neutralizing antibodies at the same levels as or above those of recovered COVID-19 patients. Binding antibodies are those that alert the body to the presence of a pathogen, but more importantly, neutralizing antibodies actually block infection.
Though Moderna is moving in the right direction, the vaccine must prove itself in a few areas. In the interim report, data on neutralizing antibodies was only available for eight trial participants. We must see this trend in many more before declaring victory.
Another missing piece has to do with the age of trial participants. The interim data concerned volunteers age 18 to 55. Moderna currently is treating older groups in phase 2. This age group is extremely important for any successful vaccine because elderly patients have been among the most vulnerable during the COVID-19 pandemic. It's essential that a vaccine works for them.
And finally, in phase 3, Moderna faces the challenge of showing efficacy in a study group of about 30,000 participants.
Operation Warp Speed
Moderna's vaccine success also depends on the U.S. government and other companies in this vaccine race. Through Operation Warp Speed, the U.S. government vowed to help bring a vaccine to the people by January. The Department of Health and Human Services has awarded as nearly $500 million to Moderna and $1.2 billion to AstraZeneca. The two companies are close leaders in the race, with AstraZeneca's vaccine candidate now in a phase 2/3 trial.
With the great global need for a vaccine, there is room for more than one company on the podium. But it's clear Moderna's best share performance will happen either if its vaccine reaches the finish line first or if its vaccine is better than that of rivals.
Moderna soared as much as 309% this year to its peak in May. The stock then pulled back when company executives sold shares after releasing trial data. But these sales were actually set up in advance -- prior to knowledge of what the trials might bring. Moderna shares are now up 215%. Wall Street predicts the stock could gain as much as 49% from here, according to the average estimate.
Could Moderna shares make you a millionaire?
In the near term, everything will depend on the results of the COVID-19 vaccine's clinical trials. As we've seen, the shares are sensitive to good and bad news on the subject.
So far, I'm encouraged by trial data. But considering the strong link between this development program and Moderna's share price, I'll wait to see more data on neutralizing antibodies and the vaccine's results in older trial participants -- and whether AstraZeneca takes a clear lead or falls behind -- before I'll call Moderna a millionaire-maker.
(Bloomberg) -- Luckin Coffee Inc.’s chairman, Charles Zhengyao Lu, was ousted by shareholders from the scandal-plagued Chinese company, just days after surviving an effort by some directors to strip him of control, Chinese web portal 163.com reported, citing unidentified sources.
Three other board directors including Sean Shao were also removed at an extraordinary shareholders meeting in Beijing on Sunday, according to the report, and Ying Zeng and Jie Yang will be added as independent board directors.
A company representative didn’t immediately respond to a request for comment.
SCROLL TO CONTINUE WITH CONTENTAd
Man Who Predicted Rise of AMZN Has New Prediction
Stansberry Research
Man Who Predicted Rise of AMZN Has New Prediction
He called bottom of stocks in '09, and recommended AMZN before it soared an extraordinary 1,800%. Now he has a surprising new prediction for 2020.
LEARN MORE
The removal of Lu is the culminating step in a major shakeup of top management since fabricated transactions dating back to April 2019 came to light earlier this year. The coffee chain already fired its chief executive and chief operating officers, among other employees, in May as it came under investigation by Chinese and U.S. regulators.
The voting result ended a temporary reprieve for Lu, who remained chairman after a proposal to remove him from the startup he founded wasn’t approved by the required two-thirds of directors at a special meeting Thursday. According to Luckin’s Articles of Association, a director can be removed by shareholders or other board directors.
Luckin’s executive shakeup is an unusual case in China, where it’s rare for a private startup to oust a founder and chairman, who is considered the soul of the firm. Lu and others were removed in a bid to distance the company from the financial scandal and allow it to continue operating more normally.
Lu’s dismissal comes after Luckin said it substantially completed an internal investigation into the financial irregularities. Once considered among China’s brightest growth stories, the chain has seen its stock become almost worthless, plunging 94% this year.
The company said last week its internal investigation concluded that net revenue last year was inflated by about 2.12 billion yuan ($300 million) while costs and expenses were boosted by 1.34 billion yuan. After the conclusion of the investigation, a majority of directors had requested Lu’s resignation.
Banks Face $300 Million Shortfall on Luckin Margin Loans
Luckin’s fall has ensnared banks including Credit Suisse Group AG and Morgan Stanley as they face a $300 million shortfall on margin loans made to Lu. The scandal is also a black eye for China Inc. as the U.S. Congress moves closer to passing legislation that could bar Chinese companies from trading on U.S. stock exchanges.
Luckin said it would fire a dozen workers and discipline 15 others following the internal investigation. It already dismissed CEO Jenny Zhiya Qian, COO Jian Liu and some employees who reported to them in May after uncovering the scheme that funneled funds to the company from several third parties with links to the participants. The board said it fired the executives based on evidence showing their participation in the false transactions.
Lu became a billionaire after his fast-growing Chinese chain went public in the U.S., but much of his wealth was wiped out by the plunge in Luckin’s stock. Lu last month resigned as chairman of Car Inc., China’s biggest rental-car fleet operator, as scrutiny increased over Luckin and the accounting scandal. A Beijing court has frozen Lu’s entire stake in Car Inc.’s parent, UCAR Inc., for judicial reasons.
He has drawn criticism for applying an aggressive cash-burning expansion strategy to all his startup projects, as the model helps quickly expand the businesses and gain market share at the expense of profitability.
Luckin, founded in 2017, raised $645 million in its U.S. IPO last year and counted BlackRock Inc. among its backers. It took direct aim at Starbucks Corp. in China, with a strategy to open more stores in two years than the Seattle-based heavyweight has in two decades.