Singapore’s Sovereign Fund Invests $1 Billion in Grifols’s U.S. Unit

GIC will have a minority stake in Biomat USA, which has a network of 296 plasma collection centres in the United States through the acquisition of newly issued non-voting shares.

The company didn’t disclose the stake GIC will taking in Biomat.

Barcelona-based Grifols will use proceedings to reduce debt, which at the end of March stood at 6.2 billion euros ($7.38 billion).

Grifols shares were up 1.5% in early trading, while benchmark Ibex-35 was down 0.7. The company is valued by the market at 13.5 billion euros.

(Reporting by Emma Pinedo, editing by Inti Landauro)

COVID-19 – Pfizer Leads the Race to a COVID-19 Vaccine

The 2nd Wave

The West continues to see rising new COVID-19 cases, with the U.S continuing to report more than 100,000 new cases a day.

Things have not been much better for Europe, which has seen lockdown measures reintroduced in a number of member states.

While the economic impact of the 2nd wave is likely to be particularly severe, hopes of a COVID-19 vaccine continue to prop up the global equity markets.

Maintaining current levels, however, will largely depend upon the timing of a vaccine.

The longer that lockdown measures remain, the slower the economic recovery will likely be.

An effective vaccine will not bring back small to medium-sized companies that collapsed due to the pandemic. A vaccine would also fail to deliver a sharp rebound in labor market conditions.

The Race Participants

There are a vast number of pharma companies that are currently in the race to deliver the 1st effective COVID-19 vaccine.

A number of the leading companies are shown in the chart below:

statistic_id1119090_top-companies-by-covid-19-treatment-vaccines-in-development-2020

While the companies listed above were trialing 60 different drugs and vaccines. There are many more in trial phases, however. As at 5th November, 670 drugs and vaccines were in development, targeting the coronavirus.

The figures are made available by statista.com and Pharma Intelligence.

Looking at the top 10 companies listed above and a few more in more detail:

U.S Headquartered

Mateon Therapeutics: Listed on OTCMKTS (“MATN”) and headquartered in California.

Merck & Co.: Listed on the New York Stock Exchange (“MRK”) and headquartered in New Jersey, USA.

Moderna Inc.: Listed on the NASDAQ (“MRNA”) and headquartered in Cambridge, Massachusetts, USA.

Pfizer Inc.: Listed on the New York Stock Exchange (“PFE”) and headquartered in New York City. (Pfizer Inc. has partnered with Germany’s BioNTech SE)

Sorrento Therapeutics: Listed on the NASDAQ (“SRNE”) and headquartered in California. Currently trailing many of the front runners in the race for an effective vaccine.

Talem Therapeutics: This is a wholly-owned subsidiary of ImmunoPrecise Antibodies USA. Its parent company, ImmunoPrecise Antibodies Ltd is listed on the Toronto Stock Exchange.

Tonix Pharmaceuticals: Listed on the NASDAQ (“TNXP”) and headquartered in New Jersey.

Europe Headquartered

AstraZeneca: Listed on the London Stock Exchange (“AZN”) and headquartered in Cambridge, England and Sodertalje, Sweden.

GlaxoSmithKline: Listed on the London Stock Exchange (“GSK”) and headquartered in Brentford, England.

Grifols, S.A: Listed on the Bolsa de Madrid (“GRF”) and headquartered in Barcelona, Spain.

Asia Headquartered:

GC Pharma: Listed on the Korea Stock Exchange (“006280”) and headquartered in Yongin, South Korea.

As indicated above, the U.S pharmas make up the lion’s share of companies in the race to deliver a COVID-19 vaccine.

Coronavirus – The Latest Numbers

At the time of writing, the total number of COVID-19 cases has risen to 51,241,021. This is up from 49 million cases less than a week ago. More than 20% of the total number of cases has stemmed from the U.S. The U.S has reported 10,421,956 COVID-19 related cases and 244,448 related deaths.

With India not far behind, reporting 8,591,075 COVID-19 related cases, the sense of urgency towards a COVID-19 vaccine has increased.

France, Spain, and the UK have now seen more than 1 million COVID-19 related cases. Italy and Germany have fared somewhat better, but not by much.

For this reason, the EU and U.S economies remain the greatest concern. Biden’s Presidential Election victory adds another dimension to the economic outlook for the U.S and beyond.

Following Trump’s willingness to reopen the U.S economy at any cost, Biden’s stance is likely to be a more conservative one.

The President-Elect has clearly stated that tackling the COVID-19 pandemic will be a priority. This could mean enforced containment measures in the near-term, which would add further pressure on the U.S economy.

A lack of a sizeable stimulus package this year would make things all the more bearish for the U.S economy.

The Clinical Trials

After last week’s review of the key pharmas in the race to develop an effective COVID-19 vaccine, Pfizer delivered a boost for the global equity markets on Monday.

Working with Germany’s BioNTech SE, Pfizer released its latest results, which were particularly promising.

On Monday, Pfizer Inc. announced that its COVID-19 vaccine had an efficacy rate of more than 90%. This meant that the trial vaccine prevented COVID-19 in more than 90% of candidates in phase 3 testing. In response, Pfizer Inc.’s share price jumped by 7.69% on Monday. BioNTech SE’s share price shot up by an even more impressive 14.69% in response to the news.

While this is a huge step towards an effective vaccine, however, there is some way to go before a worldwide distribution of a vaccine.

In addition to efficacy rates, safety and consistent manufacturing are additional requirements that need to be met in order to receive FDA approval.

The markets will therefore need to monitor progress in the coming weeks, as Pfizer delivers more data.

So, with Pfizer Inc. and BioNTech SE leading the charge, other pharmas will now be under pressure to deliver similar results.

Since last week’s review, the front runners and main players remain the same.

The Front Runners

  • Pfizer Inc. (“PFE”) and BioNTech SE will announce further results in the next few weeks. The results will not only include efficacy numbers but also details on safety and manufacturing sustainability. Pfizer Inc. will apply from the FDA for emergency use authorization once it satisfies all three criteria. This could come as soon as the end of November.
  • AstraZeneca (“AZN”) announced last week that they are on track to deliver a vaccine as early as this year. In response to last week’s announcement, news hit the wires yesterday that AstraZeneca has commenced vaccine production in Australia. This is despite the fact that the AstraZeneca and University of Oxford vaccine is still in phase-3 clinical trials. Vaccine tests results are scheduled to be delivered by the end of the year. The move is a gamble, with the group producing vaccines in the hope of acceptable results. In response to Pfizer Inc.’s news on Monday, AstraZeneca’s stock fell by 2.03% on the day.
  • Moderna Inc. (“MRNA”) is expected to have similar results to that of Pfizer Inc. as it has relied upon the same mRNA tech in vaccine development. Moderna Inc. is due to release its clinical trial results in the coming weeks.

What Lies Ahead

So, as the big pharmas make progress towards an effective COVID-19 vaccine, there are a few issues to consider.

Key considerations will include

  • Duration of effectiveness: The shorter the duration of the vaccine’s effectiveness, the less effective the vaccine.
  • Asymptomatic prevention: Clarity on whether the vaccine can prevent asymptomatic carriers.
  • Initial support and supply projections near to medium-term: For bringing an end to the global pandemic, supply will be a key consideration.
  • Side effects: Major side effects could reduce the number of the population willing to take the vaccine.
  • Storage requirements: The storage requirements of the virus will also influence delivery on a global scale.

While the efficacy numbers are impressive, therefore, the pharma world will need to deliver more to end the COVID-19 pandemic. This could therefore lead to sizeable swings across the global financial markets as optimism shifts to reality.

COVID-19 – The Race to a Vaccine

The 2nd Wave

The 2nd wave of the COVID-19 pandemic has hit Europe hard. As a result, a number of countries across the EU have had little choice but to reintroduce lockdown measures.

Britain has also reintroduced lockdown measures across England this week.

For the U.S, things are not much better. New daily COVID-19 cases continue to set new records as the West enters an uncertain winter.

The economic devastation from the 1st wave could pale into insignificance when considering the likely impact of the 2nd wave.

For this very reason, the race towards an effective and widely available COVID-19 vaccine is all the more important.

Until an effective vaccine is readily available, containment measures, border control, and more will remain economically debilitating.

The Race Participants

There are a vast number of pharma companies that are currently in the race to deliver the 1st effective COVID-19 vaccine.

Some of these companies are researching more drugs than others, suggesting that they may be more likely to deliver first. Others may argue, however, that having too many varieties to test will result in a lack of progress.

The companies are shown in the chart below

statistic_id1119090_top-companies-by-covid-19-treatment-vaccines-in-development-2020

While the companies listed above are trialing 60 different drugs and vaccines, as at 28th October, there were reportedly 674 drugs and vaccines in development, targeting COVID-19.

The figures are made available by statista.com and Pharma Intelligence.

Looking at the top 10 companies listed above and a few more in more detail:

U.S Headquartered

EpiVax: Unlisted and headquartered in Providence, USA.

Mateon Therapeutics: Listed on OTCMKTS (“MATN”) and headquartered in California.

Merck & Co.: Listed on the New York Stock Exchange (“MRK”) and headquartered in New Jersey, USA.

Moderna Inc.: Listed on the NASDAQ (“MRNA”) and headquartered in Cambridge, Massachusetts, USA.

Pfizer Inc.: Listed on the New York Stock Exchange (“PFE”) and headquartered in New York City. (Pfizer Inc. has partnered with Germany’s BioNTech SE)

Sorrento Therapeutics: Listed on the NASDAQ (“SRNE”) and headquartered in California. Currently trailing many of the front runners in the race for an effective vaccine.

Talem Therapeutics: This is a wholly-owned subsidiary of ImmunoPrecise Antibodies USA. Its parent company, ImmunoPrecise Antibodies Ltd is listed on the Toronto Stock Exchange.

Tonix Pharmaceuticals: Listed on the NASDAQ (“TNXP”) and headquartered in New Jersey.

Europe Headquartered

AstraZeneca: Listed on the London Stock Exchange (“AZN”) and headquartered in Cambridge, England and Sodertalje, Sweden.

GlaxoSmithKline: Listed on the London Stock Exchange (“GSK”) and headquartered in Brentford, England.

Grifols, S.A: Listed on the Bolsa de Madrid (“GRF”) and headquartered in Barcelona, Spain.

Asia Headquartered:

GC Pharma: Listed on the Korea Stock Exchange (“006280”) and headquartered in Yongin, South Korea.

As indicated above, the U.S pharmas make up the lion’s share of companies in the race to deliver a COVID-19 vaccine.

Coronavirus – The Latest Numbers

When considering the fact that the U.S has recorded an alarming 9,919,522 COVID-19 cases and 240,953 COVID-19 related deaths, it is not surprising that Pharma U.S is leading the charge.

Looking at the latest Coronavirus figures, the total number of cases currently sits at 49.031. While 34.98m have reportedly recovered, there have been 1.24m reported deaths.

For Europe and the U.S, the number of cases reported amidst the 2nd wave has been far more significant than in the 1st wave.

When considering the fact that the winter has just begun, these numbers are likely to balloon further.

For the Global Economy, the key to any recovery rests on finding an effective vaccine and soon. Failure to successfully trial a vaccine by the end of the year will leave the world exposed for another full quarter.

Larger multinational companies may be able to tighten the belt. Small to medium-sized companies, however, will begin to shut down in far greater numbers than seen in the 1st wave.

The damage to the economy would be so severe that some nations will be in the economic wilderness for a decade if not more.

So, having identified the key players in the race to an effective COVID-19 vaccine, the next step is to understand at what stage of clinical trials each currently stands.

The Clinical Trials

Companies that are more advanced may not ultimately reach the end goal first, but they do have a greater chance.

For this reason, share prices have tended to reflect how advanced and successful trials have been to date.

According to Pharmaintellgence.informa.com,

Of the total 674 drugs, 510 are currently in the preclinical trial phase. This means that the vast majority may not make it to clinical trials.

Of the remainder:

  • 49 are currently in phase 1 clinical trial.
  • 75 are in phase 2, and
  • 28 are in phase 3.

Taking a closer look at the current trials testing drugs for the treatment and/or prevention of COVID-19 fund in Trialtrove, the breakdown in phases is as follows:

  • I: 431
  • II: 1,728
  • III: 1,011
  • IV: 327

From the numbers above, it is clear that the sector is making strong progress towards effective treatment and/or vaccine.

The Front Runners

  • AstraZeneca (“AZN”) announced this week that they are on track to deliver a vaccine as early as this year. The company is due to deliver test results by the end of the year. AstraZeneca is working with the University of Oxford to deliver an effective vaccine.
  • Moderna Inc. (“MRNA”) is reportedly getter ready for a global launch. In late October, the company stated that it had already accepted in excess of $1bn in deposits from governments. Late-stage trials are underway.
  • Pfizer Inc. (“PFE”) and BioNTech SE have announced that they may release initial late-stage trial data this month. If results are positive, Pfizer Inc. will apply from the FDA for emergency use authorization.

While the above are in their final stages, there are a number of other pharmas also making progress.

FDA approvals, however, may be hard to come by for pharmas looking to enter the largest COVID-19 market. That will, therefore, give the likes of Moderna Inc. and Pfizer Inc. the upper hand for now. The flood gates could open, however, should both hit snags at this late stage. Such an event could give AstraZeneca a green light to enter the U.S market.

In the days and weeks ahead, we will continue to monitor progress towards a vaccine and review other pharmas in the race.