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Covid variant present in South Africa ‘might evade’ Eli Lilly’s antibody drug: CEO

Covid variant found in South Africa ‘could evade’ Eli Lilly's antibody drug: CEO

Dave Ricks, chairman and CEO of Eli Lilly, told CNBC on Tuesday that he expected the company’s Covid-19 antibody drug to be effective against the variant of coronavirus found in the UK

However, he said the exposure observed in South Africa is likely to be more of a challenge.

“The South African variant … is cause for concern. It has more dramatic mutations to the spike protein that these antibody drugs target,” Ricks told Squawk Box. “In theory, it could evade our drugs.”

Eli Lilly’s antibody drug was approved for emergency use by the US Food and Drug Administration in November. The drug is aimed at people recently diagnosed with Covid-19 in hopes of preventing the need for hospitalization. Regeneron’s Covid-19 antibody treatment, which President Donald Trump received after contracting the disease, has also received limited approval from the FDA.

According to Ricks, Eli Lilly wants to work with the FDA to quickly test different versions of antibodies to see if they are against virus variants like the one in South Africa.

“We actually have a large library of these antibodies now that are pre-clinical,” said Ricks. “We could think of a very expedited way to study them in a month or two and then approve their use. That seems like a smart thing because this virus is mutating.”

Discovery of variants

Coronavirus variants originally found in the UK and South Africa have received significant attention in recent weeks. They are believed to be more transmissible – but not more deadly – than previous tribes. Even so, a more contagious virus that leads to more infections could continue to weigh on healthcare systems and lead to more deaths.

The discovery of these mutations also coincides with the introduction of Covid-19 vaccines from drug companies such as Pfizer and BioNTech, as well as Moderna. It has led to some questions about whether the vaccines – along with treatments for the disease – would keep their effectiveness.

In a CNBC interview on Monday, Dr. Ugur Sahin, CEO of BioNTech, confident that his vaccine, manufactured in partnership with Pfizer, will work against the strains of the virus found in the UK and South Africa.

Daniel O’Day, CEO of Gilead Sciences, told CNBC it was testing its remdesivir treatment against these new strains, but said Monday the antiviral drug would likely be effective. Antiviral drugs like remdesivir try to prevent the virus from replicating. In contrast, antibodies like Eli Lillys bind to the virus present in the body and try to neutralize it.

There have been no confirmed cases of the variant, which was first discovered in South Africa in America, but according to the Wall Street Journal, it was discovered in countries like Japan, South Korea, and Switzerland. According to the Centers for Disease Control and Prevention, there have been around 70 confirmed cases of the coronavirus variant in the US that were originally found in the UK.

“It seems clear that Lilly’s single antibody, and likely Regeneron’s cocktail, will stop this as well as the normal variant,” said Ricks of the UK-affiliated tribe. “We haven’t done a clinical study of this effect, but we do have pre-clinical data that strongly suggests that it won’t be a problem.”

Use of antibody therapies

After the FDA approved emergency use for their antibody therapies to Eli Lilly and later Regeneron, problems arose with actually delivering the drug, which requires an intravenous infusion, to Covid patients. In mid-December, CNBC reported that between 5% and 20% of the doses delivered had been administered.

That number is “climbing” now, Ricks said on Monday. He pointed to Alabama as a state where the antibodies are widespread. Alabama “basically runs out and refills every week,” he said.

“There are quite a few” from state to state, Ricks admitted. “We want all states to learn from these practices and really be able to use this medicine, as the benefit is that patients, especially seniors, are kept out of the hospital. We know if you are a senior and have Covid-19 and end up in a hospital hospital bed, the prospects are not good. “

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BioNTech CEO says vaccine is efficient towards new strains

BioNTech CEO says vaccine is effective against new strains

The CEO of German pharmaceutical company BioNTech remains confident that the company’s Covid vaccine, developed in partnership with Pfizer, will be effective against the highly infectious variants of the virus discovered in the UK and South Africa.

“We are confident that based on the mechanism of our vaccine, although there are mutations, we believe that the immune response induced by our vaccine could also treat (a) mutated virus,” said Dr. Ugur Sahin, co-founder and CEO of BioNTech, said CNBC’s Meg Tirrell on Monday.

“Last week we reported another mutation that is present in both the UK and South African variants. This mutation is believed to be important as it could structurally alter the protein. However, it appears that the immune response to our vaccine does also neutralizes mutation. “

His comments were based on research published Thursday showing that Pfizer-BioNTech’s Covid-19 vaccine appeared to be effective against a key mutation in the more infectious variants of the virus discovered in the UK and South Africa.

The study, carried out by US pharmaceutical giant Pfizer and not yet peer-reviewed, suggested that the vaccine neutralized the so-called N501Y mutation. This mutation has been reported in the coronavirus variants discovered in the UK and South Africa.

The variants, which emerged separately, both share a genetic mutation of the so-called spike protein, which the virus uses to penetrate the cells of the body.

Doctors tentatively welcomed the results of the study last week, but cautioned that the research focused only on the N501Y mutation found in both new variants.

BioNTech’s Sahin said the company will be able to present more data in the coming days examining the full set of mutations.

The new vaccine could be ready “within six weeks”.

Pfizer-BioNTech’s Covid vaccine uses messenger RNA or mRNA technology, like Moderna’s. In practice, the US Centers for Disease Control and Prevention says this “teaches our cells how to make a protein – or even a piece of a protein – that will trigger an immune response in our bodies.”

The resulting immune response produces antibodies that protect people from becoming infected with the virus.

Ugur Sahin, co-founder and CEO of Biontech, is on the company premises. Biontech is a biotechnology company that researches vaccines against the coronavirus, among other things. (Photo by Andreas Arnold / Image Alliance via Getty Images)

Andreas Arnold | Image alliance via Getty Images

When asked how fast BioNTech could turn if the existing Covid vaccine were found to be ineffective against new variants, Sahin said “a key benefit” of mRNA technology is that the company is adapting the vaccine relatively quickly could. “”

“We can change the order of the vaccine in a matter of days and, in principle, deliver a new vaccine within six weeks. This is technically possible and if necessary we would go for it,” he said, noting that it is is would also require discussions with regulators such as the Food and Drug Administration.

“We are therefore confident that the technology with which we can react to a mutation or a virus variant with different problems will react extremely quickly,” said Sahin.

Public health experts have raised concerns that the new mutant strains could pose a threat to vaccination efforts. In recent weeks, optimism about the mass adoption of Covid vaccines has been tempered by the resurgent rate of virus spread around the world.

To date, more than 90.3 million people worldwide have contracted the coronavirus, with 1.93 million deaths, according to data from Johns Hopkins University.

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JC Penney CEO Jill Soltau to depart retailer after rising from chapter

JC Penney CEO Jill Soltau to leave retailer after emerging from bankruptcy

The signage will be displayed outside a JC Penney Co. store in Chicago, Illinois.

Christopher Dilts | Bloomberg | Getty Images

Jill Soltau, CEO of JC Penney, who wanted to flip the contested department store, will leave the company on Thursday.

The company’s new owners, Simon Property Group and Brookfield Asset Management, said Wednesday that they are looking for a new leader “focused on modern retail, the customer experience and the goal of creating a sustainable and lasting JCPenney.”

The Plano, Texas-based retailer filed for bankruptcy in May. It was bought by the two US mall owners in the fall and showed up earlier this month. It joined a growing list of retailers marginalized by the coronavirus pandemic. However, the old retailer’s problems began before the global health crisis. Sales have decreased annually since 2016. At the time of filing for bankruptcy, the sales area of ​​around 860 stores in 2001 was less than a quarter of the store base.

About two years ago, the company hired Soltau to advance its turnaround efforts after its former CEO Marvin Ellison left to run Lowe’s. Before that she was CEO of the fabric and handicraft retailer Joann Stores. She also worked for Sears, Kohl’s and Shopko stores. At the time, news of her hiring sent stocks up as investors hoped she would bring fresh ideas and fuel growth in the department store.

This year, however, the company’s efforts were scaled back as its stores were temporarily closed during the pandemic and its already tight finances were hit.

According to a press release, Simon and Brookfield have selected Simon’s chief investment officer Stanley Shashoua as interim CEO. You have started an executive search with the strategic partner Authentic Brands Group. The licensing firm owns interests in other retailers that have emerged from bankruptcy, including Brooks Brothers and Forever 21.

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Imax CEO expects ’embarrassment of riches’ from slate of 2021 film releases

Imax CEO expects 'embarrassment of riches' from slate of 2021 movie releases

Despite the number of productions delayed this year by the coronavirus pandemic, Imax CEO Richard Gelfond said on CNBC Monday the New Year could prove to be a lucrative one for his company.

While studios paused recording, film releases were also delayed as cinemas closed across the country in response to the Covid-19 outbreak earlier this year. Gelfond expects at least some of the revenue that was missed in 2020 will be amortized if optimistic forecasts to contain the global health crisis work as hoped and give Imax a boost when movie lovers look for immersive entertainment they can’t can at home.

“In a way, 2021 is an embarrassment of wealth when things open at the beginning of the year,” he said in an interview with Closing Bell. “There is a lot of content, and that applies worldwide.”

Highly anticipated films Gelfond is betting on release next year include “Top Gun: Maverick”, “Black Widow” and “Fast & Furious 9”. Each of their planned releases for 2020 has been postponed to 2021. Imax also has contact with overseas box offices with locations in 82 countries where other films are also lagging behind, Gelfond said. North America accounts for a third of Imax’s global business.

Imax had its most successful year in 2019 with box office sales of $ 1.035 billion. It was the second year in a row that the company had revenues of more than $ 1 billion. This streak was broken in 2020.

Imax sales reached $ 395.7 million in 2019 for three consecutive years of at least $ 370 million. Sales have suffered heavily in the last three quarters and are 70% lower than in the same period last year of 70 months.

“Fortunately, there is already a large backlog of films,” said Gelfond.

As vaccination campaigns begin around the globe and health professionals plan potential reopening schedules, companies are planning when to expect business to rebound to pre-pandemic levels.

Gelfond plans to improve business at the Imax theaters by the summer with the launch of Top Gun: Maverick starring Tom Cruise and Jennifer Connelly.

“I think by then you will be nearing 100% and then it will surely be fully open by the fourth quarter,” he said. Given the optimism that the US economy will recover quickly after the country hits ideal immunity levels, “I think it is very likely that things will open up here from the second quarter onwards.”

Imax’s shares rose 4% on Monday to trade at $ 17.70. The stock has fallen 13% since the start of the year.

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CEO says Hawaiian Airways is optimistic on 2021, new flight routes

CEO says Hawaiian Airlines is optimistic on 2021, new flight routes

After a bloody year for the aviation industry, Peter Ingram, CEO of Hawaiian Airlines, told CNBC that he believes it can only be done from here.

Airlines have spent much of 2020 cutting routes and cutting flights as the demand for travel has fallen due to the coronavirus pandemic. However, companies like Delta and United Airlines have announced some new additions in the past few months.

Hawaiian Airlines joins the battle with new nonstop flights from Honolulu to Austin, Texas. Orlando, Florida and Ontario, California will be added in the spring. The Honolulu-based company expects air traffic to recover in the new year and is trying to take advantage of the population development in the southern states.

“The reason it is time to announce three new routes is that … we are very optimistic for 2021,” he said at Closing Bell. “These are places we’ve been looking for. They have good demand for Hawaii.”

Austin has established itself among the top tech scenes in the country, competing with the traditional tech ecosystem for which the San Francisco Bay Area is known. The Texas capital has caught the interest of several tech companies that have either opened factories there or announced plans to relocate their headquarters from California.

Earlier this month, Oracle, a mainstay of Silicon Valley, announced that the company would move its headquarters to Austin. It is among a number of companies planning to relocate outside of California.

Elon Musk, CEO of Tesla, has moved his personal residence to Texas and has split most of his time between Austin and Boca Chica, where SpaceX facilities are located. Tesla, headquartered in Palo Alto, California, and Musk’s tunnel start-up Boring Co. both operate in Austin.

Apple is also expanding its presence in the Texas capital, where it is investing $ 1 billion in a 3 million square foot campus. The site is expected to employ 5,000 people and is due to open in 2022.

“I’ve seen coverage in your air of how Austin is booming as a technology hub these days, and we think a lot of those people want to go to Hawaii,” Ingram said. “Same goes for Orlando with a growing population.”

Florida has been a long-standing hotspot for retirees looking to move, and the state’s population has grown steadily. Due to US population shifts, Texas is expected to add three seats for its US home delegation and Florida is expected to get two seats, the Associated Press reported.

The Census Bureau estimates that 10 states, including New York, Michigan and California, are at risk of losing at least one seat in the House of Representatives, which the AP said could have a noticeable impact on the country’s political map.

Hawaiian Airlines recorded a drop in revenue of around 90% in the last two quarterly reports.

“At a time when the depth of some of our traditional routes may not be what they were, this is a great opportunity for us to expand our network and we see great opportunities in all of these, not just for the next year but also for the long term, “said Ingram.

Hawaiian Airlines shares fell 1.55% on a shortened trading day in recognition of Christmas Eve. At $ 17.78 a share, the stock is down 39% year-to-date.

The stock is more than double its pandemic low of $ 7.55 as of mid-March.

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Adidas will preserve opening new shops regardless of Covid e-commerce surge: CEO

Adidas will keep opening new stores despite Covid e-commerce surge: CEO

Kasper Rorsted, CEO of Adidas, told CNBC that the German sportswear company will continue to invest in brick and mortar stores despite the boom in e-commerce sales during the coronavirus pandemic.

“There is no doubt that online business has accelerated in two to three years in the future … but I think if you ask most people, going out and shopping is a great social element and the products are easy to see and feel again, “Rorsted said in an interview that aired on Closing Bell on Wednesday.

“So we’re going to keep building stores. We’ll announce that in March next year, where we’re going to build and create a great store experience,” he added.

Adidas posted a 51% increase in online sales in the third quarter compared to the same period last year. This followed a 93% increase in the second quarter, despite total sales decreasing 34% on a currency-neutral basis. For the year, Adidas plans online sales of more than 4 billion euros (4.9 billion US dollars), said Rorsted, a significant improvement from around 1 billion euros about four years ago.

Rorsted, Adidas CEO since 2016, said the company’s growing e-commerce strength will affect the in-store shopping experience going forward. “We believe the stores are still here, but much closer to the online experience,” he said. “I think most people are really bored of sitting at home,” added Rorsted.

Adidas announced earlier this week that it has initiated a “strategic alternative evaluation” process for Reebok, including a potential sale of the brand, which it acquired in 2006. Rorsted told CNBC that the pandemic was “not at all” the reason Adidas decided to rethink its approach with Reebok. Rather, he claimed that the health crisis had actually improved the underlying fundamentals of the sporting goods industry, as more and more people wear casual clothing while working from home and taking up outdoor recreational activities.

“I think there will still be a long way to go before people want to get back into suits and brown shoes. This trend continued. There is no doubt that the pandemic really accelerated this,” said Rorsted. “Working from home and having a much more casual lifestyle is a big part of a lot of the clothes we have,” he added.

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Costco CEO says brick-and-mortar stays key at the same time as e-commerce grows

Costco CEO says brick-and-mortar remains key even as e-commerce grows

Craig Jelinek, CEO of Costco, told CNBC on Monday that the company’s physical stores will continue to be of vital importance, despite the wholesaler seeing a surge in e-commerce sales during the coronavirus pandemic.

“Our entire online business will continue to grow. Will we be difficult? No, we will not,” said Jelinek to “Closing Bell”. “We will simply continue to attach importance to high-quality goods and quality goods and deliver them either via the warehouse, stationary trade or electronic trade.”

Before the pandemic, Costco had made a name for itself for its personal shopping experience, with cheap items on its food court like the hot dog and soda combo for $ 1.50. However, many Costco members turned to their website this year, resulting in strong online sales growth that many competitors saw as well.

For the 13 week period ending November 29, Costco’s total comparable revenue increased 14.5%. In particular, e-commerce increased by 82% compared to the same period in the previous year. A similar trend emerged in the company’s fourth quarter. Online sales increased 91% over the previous year.

“We will continue to grow this business,” said Jelinek, noting some of the technology investments the company had made. In March, for example, Costco acquired $ 1 billion worth of Innovel Solutions, which provides last-mile delivery services. It was owned by the company that has Sears and Kmart businesses.

“We see a great opportunity to build our last mile business with large ticket items and bulk items. … Our clothing business continues to grow online,” added Jelinek.

Even so, it remains an essential part for the retailer to have members shop in the store, Jelinek said. “It’s still important to physically get people into stores. I still think brick and mortar retail isn’t going to go away. We want to keep getting people into stores and there’s no better way to do it than a $ 1.50 price. ” Dog and a Roast Chicken “for $ 4.99, he said.

During the pandemic, Costco saw customers stock up on items like toilet paper, which resulted in a limit on the number of purchases. Jelinek said Costco began monitoring some of shoppers’ inventory behavior this fall as coronavirus cases rise in the US and state and local officials reintroduce public health restrictions. However, he said it was “not quite as much” as it was this spring during the first wave of the pandemic.

“They are still buying extra toilet paper, toiletries, and the like to keep making sure they are in place as some of those items … will continue to be a long-term need,” Jelinek predicted that some of the increased buying patterns will “likely be in the middle of next year if I had to guess “could persist.

Costco’s shares closed the session slightly on Monday at $ 374 apiece. The stock is up 27% since the start of the year.

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Pfizer negotiating with U.S. to supply a further 100 million doses, CEO says

Pfizer negotiating with U.S. to provide an additional 100 million doses, CEO says

Vials in cartons containing the Pfizer-BioNTech Covid-19 vaccine are being prepared for shipment on December 13, 2020 at Pfizer Global Supply’s Kalamazoo manufacturing facility in Kalamazoo, Michigan.

Morry Gash | AFP | Getty Images

Albert Bourla, CEO of Pfizer, said the company is negotiating with the federal government to provide an additional 100 million Covid-19 vaccine doses next year, as Americans will receive some of the first shots on Monday.

Pfizer and the US are working out timing details, Bourla said Monday morning in an interview with CNBC’s “Squawk Box”. The company could provide many of these cans in the third quarter of 2021, but the U.S. government is pushing for them in the second quarter, he said.

“We are working very cooperatively to find a solution and allocate that 100 million [doses] in the second quarter if possible or in many of them, “Bourla said, adding the company has not yet signed an agreement with the US.

The comment came after the Food and Drug Administration approved Pfizer and BioNTech’s emergency coronavirus vaccine late Friday. The vaccine has been approved for people aged 16 and over.

The first doses of a Pfizer vaccine with BioNTech were shipped to the US over the weekend. Trucks carrying boxes of vaccine doses left Pfizer’s Kalamazoo, Michigan manufacturing facility on Sunday and should arrive on Monday, according to Pfizer. The company said 189 boxes for a total of 184,275 cans will be shipped to locations in all 50 states and 4 boxes will be shipped to US territories. The vaccine consists of two doses, with the doses given three weeks apart.

Initial doses of the Pfizer vaccine will be limited as production begins. Officials predict it will be months before everyone in the US who wants to be vaccinated is vaccinated. The vaccine is expected to be distributed in phases where the most critical U.S. workers and vulnerable people receive it first. The CDC has given states an outline recommending that priority be given to health workers and nursing homes first. However, states may distribute the vaccine at their own discretion.

General Gustave Perna, who oversees logistics for Operation Warp Speed, said Wednesday the government would distribute 2.9 million doses of the vaccine within 24 hours of FDA approval, followed by another 2 , 9 million doses 21 days later for patients to get their second shot. Pfizer’s vaccine takes two doses three weeks apart.

Pfizer has already signed a contract with the U.S. government to supply 100 million doses of the vaccine under the Trump administration’s Operation Warp Speed ​​vaccine program, enough to vaccinate 50 million people. Under the agreement, the Americans will receive the vaccine for free.

The previous Monday, Pfizer board member Dr. Scott Gottlieb told CNBC that the US government turned down an offer to receive additional doses of the Pfizer vaccine in November.

The vaccine couldn’t come at a more crucial time. Hospitals in the U.S. already have higher numbers of Covid patients than ever before, and the country’s outbreak is poised to break even grimmer records. The director of the Centers for Disease Control and Prevention, Dr. Robert Redfield, warned earlier this month that the next few months of the pandemic would be “some of the most difficult in the history of this country’s public health.”

President Donald Trump previously said he would invoke the Defense Production Act if necessary to ensure Americans can get a vaccine.

Bourla said Monday it was “very positive,” he said. “I hope they will do that very soon as we are facing critical delivery restrictions on some components in particular. But I think they will, so it won’t be a problem.”

– CNBC’s Spencer Kimball contributed to this report.

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Warner Bros. CEO defends 2021 movie launch mannequin, in talks with expertise

Warner Bros. CEO defends 2021 film release model, in talks with talent

Last week, AT & T’s Warner Bros. announced that all films set to release in 2021 will be released on HBO Max as soon as they hit theaters. Ann Sarnoff, chairman and CEO of Warner Bros. Entertainment, defended the decision on Tuesday.

“We have been trying to find the best way forward for the last eight months since we were first suspended,” Sarnoff told CNBC’s Julia Boorstin on Squawk Alley. “We have a lot of movies that are ready and they’re on the shelves, so we thought this was the most creative and win-win situation to get them not only in theaters but also on HBO Max for 31 days at the same time . “

Like many film studios, Warner Bros. has been forced to postpone blockbuster features due to the coronavirus pandemic. Now they are looking for a way to get theatrical releases but also improve the HBO Max streaming service.

However, the company’s decision was not well received by many filmmakers or cinema chains. Warner Bros. has not consulted with the actors, agents, or directors of the 17 films that make up the 2021 film, and has not entered into distribution agreements with cinemas that have traditionally opposed simultaneous theatrical and streaming releases.

Indeed, some media reports suggest that filmmakers and cinema owners were only informed of the announcement less than two hours before it was released.

In addition, the New York Times reported that “Wonder Woman 1984” star Gal Gadot and director Patty Jenkins were each rewarded with a check for $ 10 million when Warner Bros. decided to send that film to HBO Max if it came to Christmas is coming to theaters. This was seen as minor to other talents who had worked with the company.

“It’s a unilateral decision that the studio made,” Christopher Nolan, a notable filmmaker and contributor to Warner Bros., told the Associated Press on Monday. “You didn’t even tell anyone involved. You have these great filmmakers who have worked passionately and diligently for years on projects that are supposed to be feature films with fantastic movie stars. And everyone has now been told it is a loss leader for a boy Streaming service. “

Nolan is known to pressure Warner Bros. to release his movie “Tenet” on the big screen instead of offering it for purchase as a premium video upon request. As of August, Tenet has had domestic sales of $ 57.6 million and $ 302.1 million from international markets.

“We work through the system with our talent and their agents,” said Sarnoff. “I think the more they see how well they’re getting paid, the more we find that people understand the economy. And that’s unprecedented. So it’s always a bit difficult to work something new through for the first time.”

Sarnoff did not disclose details of financial dealings with parties, but said filmmakers and talent “have access to some additional economic aspects of HBO Max.”

“We are in the process of having a lot of conversations with the talent, agents and exhibitors to see how this can work and be good for everyone,” she said.

Currently, that same-day movie release strategy in theaters and on HBO Max only appears to apply for 2021. Sarnoff called it a “workaround” but said the company needs to see how 2022 plays out before making any decisions about future sales models.

Jason Kilar, CEO of WarnerMedia, made similar comments in an interview with CNBC last week.

“Everyone should take a breather,” said Kilar. “Let’s play for the next six, eight, ten months. And then let’s check in again.”

AT&T CEO John Stankey said earlier Tuesday that the streaming service had added subscribers even before the new content hit the service. HBO Max has approximately 12.6 million subscribers, up from 8.6 million activated accounts at the end of the third quarter.