Categories
Health

Future Vaccines Rely upon Take a look at Topics in Quick Provide: Monkeys

Mark Lewis was dying to find monkeys. Millions of lives around the world were at stake.

Mr. Lewis, the CEO of Bioqual, was responsible for providing laboratory monkeys to pharmaceutical companies such as Moderna and Johnson & Johnson, which the animals needed to develop their Covid-19 vaccines. But when the coronavirus spread in the United States last year, there were few of the specially bred monkeys in the world.

About a dozen companies that could not provide scientists with monkeys, which can cost more than $ 10,000 each, looked for laboratory animals at the height of the pandemic.

“We lost our jobs because we couldn’t take care of the animals on time,” said Lewis.

The world needs monkeys whose DNA is very similar to that of humans to develop Covid-19 vaccines. However, a global shortage stemming from unexpected demand due to the pandemic has been exacerbated by a recent ban on the sale of wild animals from China, the leading supplier of laboratory animals.

The recent shortage has rekindled discussion of creating a strategic monkey reserve in the United States, an emergency supply similar to that maintained by the government for oil and grain.

As new variants of the coronavirus threaten to obsolete the current amount of vaccines, scientists are looking for new monkey sources, and the US is rethinking its reliance on China, a rival with its own biotech ambitions.

The pandemic has underscored the extent to which China controls the supplies of life-saving items, including masks and drugs, that the United States needs during a crisis.

American scientists have searched private and government-funded facilities in Southeast Asia and Mauritius, a tiny island nation off Southeast Africa, for populations of their preferred test subjects, rhesus and cynomolgus monkeys, also known as long-tailed macaques.

But no country can make amends for what China delivered before. Before the pandemic, China supplied over 60 percent of the 33,818 primates, mostly cynomolgus macaques, imported to the United States in 2019, according to analyst estimates based on data from the Centers for Disease Control and Prevention.

In the United States, 25,000 laboratory monkeys live in its seven primate centers – predominantly rhesus monkeys with pink faces. About 600 to 800 of these animals have undergone coronavirus research since the pandemic began.

Scientists say monkeys are ideal samples for coronavirus vaccine research before testing in humans. The primates share more than 90 percent of our DNA. Because of their similar biology, they can be tested with nasal swabs and their lungs scanned. Scientists say finding a replacement for testing Covid-19 vaccines is almost impossible, despite drugs like dexamethasone, the steroid used to treat President Donald J. Trump, have been tested in hamsters.

The United States once relied on India to supply rhesus monkeys. In 1978 India stopped exporting after the Indian press reported that the monkeys were being used in the US for military tests. Pharmaceutical companies were looking for an alternative.

Eventually they landed on China.

The pandemic disrupted the decades-long relationship between American scientists and Chinese suppliers.

“When the Chinese market closed everyone was forced to go to fewer animals available,” said Lewis.

Updated

Apr. 23, 2021, 7:02 p.m. ET

For years, several airlines, including the major American airlines, have also refused to transport animals used in medical research because animal rights activists oppose it.

Meanwhile, the price of a cynomolgus monkey has more than doubled year over year to well over $ 10,000, Lewis said. Scientists researching cures for other diseases, including Alzheimer’s and AIDS, say their work has been delayed as coronavirus researchers give priority to the animals.

The shortage has led more and more American scientists to urge the government to ensure constant care for the animals.

Skip Bohm, associate director and senior veterinarian at the Tulane National Primate Research Center outside of New Orleans, The discussion about a strategic monkey sanctuary began about 10 years ago under the directors of the national primate research centers. However, due to the time and money invested in setting up a breeding program, a supply was never created.

“Our idea was like the strategic oil reserve in that there is a lot of fuel somewhere that can only be tapped in an emergency,” said Professor Bohm.

However, when new variants of the virus are discovered that may resume the race for a vaccine, scientists say the government must take immediate action on the supply.

“The strategic monkey reserve is exactly what we needed to deal with Covid and we just didn’t have it,” said Keith Reeves, principal researcher at the Center for Virology and Vaccine Research at Harvard Medical School.

However, a robust strategic reserve may still not be able to meet the skyrocketing demand for laboratory animals, researchers in China have learned. Even with a government-controlled supply of around 45,000 monkeys, researchers in China say they are struggling with a shortage.

Researchers often collect hundreds of samples from a single monkey, whose tissue can be frozen for years and examined over long periods of time. Scientists say they make the most of every animal, but monkeys infected with Covid-19 cannot be returned to live among other healthy animals and will eventually have to be euthanized.

In January, Shen Weiguo, general manager of Shanghai Technology Venture Capital Group, told local lawmakers that three major biomedical companies in the city were nearly 2,750 research monkeys, according to a report in the state news media last year. The deficit is set to grow 15 percent annually for the next five years, Shen said.

Hubei Topgene Biotechnology breeds monkeys for its own research and for export. The US used to be the top export destination, but the company currently doesn’t have enough animals to conduct its own experiments, said Yan Shuo, a sales manager.

“Now it’s not even about money,” said Mr. Yan. “We don’t even have monkeys to sell abroad.”

The United States has seven national primate research centers where the animals, when unexplored, live in colonies with access to nature and enrichment activities. The facilities are attached to research universities and are funded by the National Institutes of Health. Animal rights activists have long accused the centers of abuse, including separating babies from their mothers.

Matthew R. Bailey, president of the National Association for Biomedical Research, said he was preparing to increase the monkey shortage in the Biden administration. He said China’s decision to stop exports at the start of the pandemic was “likely a prudent emergency,” but suggested that China could resume exports given how the virus is now spreading.

The Chinese Ministry of Foreign Affairs said the ban was not aimed at specific species or countries.

As soon as the international situation improves and the conditions for imports and exports are met, the Ministry will issue a statement actively considering resuming import and export permits and other related work.

Experts said the United States had some responsibility for not having enough research monkeys.

Budgets in the national primate centers have either remained flat or have been falling for more than a decade. Koen Van Rompay, an infectious disease expert at the California National Primate Research Center, said the federal government asked the center to expand its breeding colonies about 10 years ago but did not grant it an increase in funding, so it instead downsized its colony.

“What we did in a number of cases was give birth control to our women,” said Dr. Van Rompay. “So fewer babies would be born in the spring.”

At a panel organized by the National Institutes of Health in December 2018, the scientists discussed the challenges facing American primate care. There was an awareness then that “if China chooses to turn the cone off, we will be in big trouble,” said Jeffrey Roberts, associate director of the California National Primate Research Center.

Participants “agreed that the need to breed cynomolgus macaques domestically is essential and, if not met, could jeopardize biomedical research in the United States as a whole,” a report from the meeting said. “They stressed that it may be too late to meet these needs, but it will certainly be too late within a few months.”

Amber Wang and Elsie Chen contributed to the research.

Categories
Business

Why a quick meals inventory might be Wall Avenue’s subsequent brief squeeze

The Jack in the Box inventory could soon live up to its name.

Growing brief interest in stocks in the West Coast-based fast food chain appears to be preparing the stock for a brief press, Danielle Shay, director of options at Simpler Trading, told CNBC’s Trading Nation on Friday.

“I like Jack in the Box here, but for a short-term option trade,” Shay said.

While the stock isn’t far from its all-time highs, which would normally prevent Shay from buying in, it made an exception due to the unusual activity. According to FactSet, Jack in the Box currently has 9.2% short interest.

“With something like that that has a short interest, it has the potential for short press and profit,” Shay said. “This is why I like to trade shorter term calls on the profit line. That way I can only take advantage of the dynamics of the profit report and the increase in [implied volatility]. “

For investors looking to trade longer-term in this space, Shay suggested McDonald’s stock.

“If you look at a weekly McDonald’s chart, it has been consolidating for a while. I think that consolidation is going to break out on the upside. I’m aiming for $ 240,” she said. “It’s more of a long-term trade so you can sell put credit spreads on a regular basis [or] Buy long calls 90-120 days. “

McDonald’s stock lost less than half of 1% on Friday at $ 213.90.

“Indoor restaurants will take a while,” Shay said. “People will worry that they can leave. They can’t open to full capacity. … For me personally, I’d rather focus on the fast-food chains whose model is already geared specifically towards drive-thru is. “

Limited-service restaurants are now a better choice than their full-service counterparts, agreed Piper Sandler’s Craig Johnson.

“There you start to see that some of the sales in the same store are really positive,” he said in the same interview with Trading Nation, pointing to a table with Chipotle Mexican Grill.

“This is a long-term winner. It’s a name we’ve had on our model portfolio for a while, and we still think it should be bought,” Johnson said, noting the stock was above its 50 and 200 Days moving averages lies in an upward channel and strong performance compared to the S&P 500.

“This stock seems to have even more room to run,” he said. Chipotle finished trading 1% on Friday.

Johnson’s second choice was Chili’s mother Brinker International.

“On a weekly chart looking back a few years, you’ll see that you’ve finally reversed a downward trend from those 14’s highs and are now making new highs,” he said.

Brinker’s performance is also improving compared to the S&P and “confirms to us that something positive is happening here,” said Johnson. The Brinker share closed on Friday by about half, 1% lower.

“It looks like a lot of these restaurants are looking for another leg in really good tech,” said Johnson.

New York City restaurants reopened for indoor use on Friday at 25% capacity.

Disclaimer of liability

Categories
World News

GameStop breaks beneath $50 a share as brief squeeze involves an finish

The GameStop Corp. logo on a smartphone and the Robinhood website on a laptop.

Tiffany Hagler-Geard | Bloomberg | Getty Images

GameStop, the figurehead of a recent speculative retail frenzy, fell below $ 50 apiece on Tuesday as the massive short squeeze took effect and investors posted gains.

The brick and mortar video game retailer fell 20% to $ 47.81 per share Tuesday after falling 80% last week and posting its worst weekly performance ever. At an all-time high on Jan. 28, the stock was trading at $ 483 per share.

GameStop stepped into the spotlight two weeks ago when an army of retail investors who coordinated trading on Reddit’s WallStreetBets forum rose its stock 400% in just a week. The brief press caused great pain to hedge funds betting against GameStop, while the mania forced several online brokers to restrict trading in a number of highly volatile names.

According to S3 Partners, short interest in GameStop as a percentage of stocks available for trading fell from more than 130% two weeks ago to around 50% on Friday. So most of the short bets have been covered and short sellers have little strength to keep the squeeze going.

Trading volume also fell sharply this week as retail momentum slowed.

Some on Wall Street compare GameStop’s brief print to that of Volkswagen in 2008, when the German automaker briefly became the largest company in the world.

Other stocks that have seen speculative trading activity are also rallying. AMC Entertainment is down 20% this week after falling 48% last week. Koss is down 11% this week and 68% the week before.

Wall Street breathed a sigh of relief when it turned out that the frenzy was limited within a handful of names and seemed to have subsided. Many had feared that this could spill over into other areas of the market and further affect investor confidence.

“We know financial conditions are supportive and investors have become more enthusiastic … but that doesn’t mean the stock market is in a speculative bubble,” said Kristina Hooper, Invesco’s chief global markets strategist.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
Health

Pfizer PFE This autumn 2020 earnings fall brief, however income beats expectations

Pfizer said Tuesday it expects to sell about $ 15 billion in coronavirus vaccine doses this year and make a profit on the high 20% sales margin for the vaccinations.

At the time of its fourth quarter earnings release, Pfizer was forecasting revenue of between $ 59.4 billion and $ 61.4 billion for this year and anticipating high pre-tax adjusted earnings of 20% for the vaccine.

The company also raised its full-year earnings guidance from $ 3.10 to $ 3.10-3.20, citing “additional improvements” to its guidance for vaccine sales.

According to Refinitiv’s average estimates, Pfizer performed in the fourth quarter compared to Wall Street expectations.

  • Adjusted EPS: 42 cents compared to 48 cents expected.
  • Revenue: $ 11.68 billion versus $ 11.43 billion expected.

Revenue rose 12% from $ 10.44 billion in the same quarter last year to $ 11.68 billion – better than analysts expected.

Pfizer shares were down 2.8% in midday trading.

“As a company, we have seen the culmination of Pfizer’s decades of transformation into a pure science and innovation-driven company,” said CEO Albert Bourla in a press release. “Our ability to move forward quickly and use the latest scientific knowledge to address the world’s major medical challenges has been tested by the COVID-19 pandemic.”

The company’s Covid-19 vaccine, which it makes together with German partner BioNTech, was the first to be approved for emergency use in the United States

Pfizer, like other Covid vaccine manufacturers, is struggling to meet demand for shots which, hopefully, will help end the pandemic. Recently, the French pharmaceutical company Sanofi was asked for help with making cans.

In slides released ahead of the earnings call, Pfizer plans to ship 200 million doses of its coronavirus vaccine to the U.S. by May, earlier than originally forecast in July.

The company also said it could potentially deliver 2 billion doses globally by the end of this year, as healthcare providers can extract an additional sixth dose of the vaccine from the vials. In December, the Food and Drug Administration announced that additional doses from vials could be used after the cans were discarded due to labeling confusion.

The company also said Tuesday it would be “ready to respond” if a variant of Covid shows evidence of bypassing its vaccine. In the past few weeks, U.S. health officials, including Dr. Anthony Fauci, raised concerns that vaccines currently on the market may not be as effective against new, more contagious strains of the virus.

Novavax said Thursday its vaccine was only 49% effective against B.1.351, the highly contagious strain in South Africa. Johnson & Johnson also said its vaccine was less effective against the strain. On Friday, his one-time vaccine was 66% effective overall, but only 57% in South Africa.

A study conducted by Pfizer found that the new, highly contagious strains in the UK and South Africa had little impact on the effectiveness of the vaccine. Nevertheless, Pfizer is developing a booster shot to protect itself from the new variants. Moderna and Novavax are also developing modified vaccines.

In the slides, Pfizer said that patients “likely need regular boosting to maintain the immune response and counter newly emerging variant strains.”

Categories
Business

American Airways surges after better-than-expected outcomes, squeezing brief sellers

An American Airlines Airbus A321-200 aircraft takes off at Los Angeles International Airport (LAX) in Los Angeles, California.

Mike Blake | Reuters

American Airlines shares rose Thursday after posting less-than-expected loss and higher sales than analysts forecast.

Shares rose more than 7% in the late morning, after rising as much as 31% at the beginning of the session. Analysts were quick to say the big move early Thursday wasn’t based on the state of American business. The airline and its competitors are battling to get a foothold in the coronavirus pandemic, and American posted a record annual net loss of $ 8.9 billion.

The airline is the worst-shortened U.S. carrier, according to FactSet, and the big move comes after explosive rallies at other sharply shortened stocks, GameStop and AMC Entertainment Holdings.

Those names popped up on Reddit’s WallStreetBets chat room, where a wave of home traders bought sharply-discounted stocks, skyrocketed, and drove out short-selling of hedge funds. Short positions are bets that stocks will fall when an investor or trader sells a stock with an agreement to buy it later when they think the price will fall and they can pocket the profits.

Short’s percentage of American Airlines stock far exceeds that of its competitors. Short interest in American was 25% of the company’s free float, according to FactSet, compared to 14% for Spirit Airlines and about 5% for United Airlines.

“We don’t think the move is fundamentally driven as the outlook for Americans is similar to what we’ve heard in this earnings cycle,” said Helane Becker, an analyst for Cowen & Co. airline. “We believe the move was due to risk reduction in the marketplace and American remains one of the most consensual short airlines in our coverage universe.”

She said Americans could take advantage of this rally to offer stocks. Americans’ profits in premarket trading had exceeded 80% at one point during premarket trading.

CNBC’s Yun Li contributed to this report.

Categories
World News

AMC inventory quadruples as retail traders raid hedge-fund brief targets

Street performers in Minnie Mouse costumes walk past an AMC movie theater in New York’s Times Square at night on October 15, 2020.

Amir Hamja | Bloomberg | Getty Images

Shares in contested cinema giant AMC Entertainment more than quadrupled at the opening bell on Wednesday, amid a spate of trading activity in some of Wall Street’s worst-shortened stocks.

Approximately 10 minutes after the session began, trading in stocks ceased for the first time due to volatility. The stocks were stopped several times during the first hour of trading when there was heavy activity.

At 3 p.m. on Wall Street, it was trading 265% higher at $ 18.06. Previously, it rose up to 310% immediately after the shares opened. During premarket trading, stocks were up as much as 360%.

About an hour after trading, more than 500 million shares had already changed hands – well above the average 30-day volume of the share of 86.8 million shares per day. More than 1 billion shares had been traded by 3 p.m. CET.

Individual investors create brief bottlenecks by piling up in these names, while hedge funds, on the other hand, in short supply, cover their losses quickly. They promote their activities on the Wallstreetbets Reddit Board, which has 2.8 million members. AMC appeared to be a growing topic on the board.

Short selling is a strategy in which investors borrow shares of a stock at a certain price in the expectation that the market value will drop below that level when it is time to pay for the borrowed shares.

Retail investor influence – most notably in GameStop – has drawn the streets under its spell for the past few days, appealing to a new class of traders who grew up amid the pandemic. GameStop stock more than doubled on Wednesday, up 110%.

“The limelight has moved from Large Cap Tech / Retail Favorites to a largely ignored corner of severely shortened small cap stocks,” Barclays said in a statement to clients on Tuesday. “Within a month, retail has made a significant impact on the price and sentiment in these heavily truncated names, cementing investor dominance of retail options.”

TD Ameritrade announced on Wednesday lunchtime that certain transactions with GameStop and AMC Entertainment have been restricted “in the interests of reducing the risk to our company and our customers”.

AMC has pegged 24% of its float to short rates, and GameStop’s short rate is 138%, according to FactSet.

AMC rose 26% on Monday and 12% on Tuesday and is up more than 370% this week. On Monday, the company announced it had received enough funding to stay open and operational through 2021.

“This means that any talk of an impending bankruptcy for AMC is completely off the table,” said CEO Adam Aron.

During the month, AMC stocks are up more than 650%. Given the stock’s downtrend over the past few years, lower profit is now responsible for a much larger percentage move.

The passion spread to some other heavily shortened names in early trading. Bed Bath & Beyond jumped more than 35%. According to data from S3 Partners, the retailer is the second most-trimmed stock on the market. 64% of its float is sold short. Eastman Kodak, another speculative name, was up 16%. The short interest in this stock is around 20%.

Amid the surge in AMC Entertainment, AMC Networks stocks were also in motion. The stock rose as much as 22% before returning those gains. Shares recently fell 7%.

Short interest is the number of stocks that are being sold short relative to a company’s total available stock of stocks.

Categories
Business

GameStop shares soar once more, however quick sellers aren’t backing down

Ramin Talaie | Bloomberg | Getty Images

GameStop is resurfacing after a wild session, pushing the stock back above $ 100, but short sellers betting against the brick and mortar video game dealer are far from easing.

GameStop’s shares rose more than 50% on Tuesday to a high of $ 124.58. The stock rose sharply after Social Capital’s Chamath Palihapitiya said in a tweet that he bought GameStop call options and bet that the stock will go higher. Trading was suspended several times due to the volatility.

GameStop surged more than 400% in January alone when an army of retail investors took on short sellers in online chat rooms, encouraging each other to stack up and push the stock higher. Short sellers have lost more than $ 5 billion in market value year-to-date, including a loss of $ 917 million on Monday and $ 1.6 billion on Friday, according to S3 Partners.

Despite the massive shortages, short sellers are doubling their bearish bets. In the past 30 days, GameStop stock borrowed and sold rose 1.4 million shares, valued at $ 91 million. This corresponds to an increase of 2%, as the share price has more than doubled, according to S3 Partners.

Short sellers have also reloaded bets in the past seven days, with short selling stocks up 769,000, valued at $ 50 million. GameStop’s interest in shorts is unchanged from a week ago at 139%.

“Similar to the Revolutionary War, the first line of troops is drowning in a shower of musket fire, but is being replaced by the next troops,” said Ihor Dusaniwsky, S3 managing director for predictive analytics, in an email. “We’re seeing a short squeeze on older shorts that have suffered massive mark-to-market losses on their positions, but are seeing new shorts.”

“This keeps the short positions in GME stock relatively flat overall, although there is a significant short squeeze on a significant number of existing short sellers,” added Dusaniwsky.

The explosive rally in GameStop was mainly due to the buying frenzy of individual investors in online forums, especially the notorious Reddit chat room “wallstreetbets” with more than 2 million subscribers. A trend post on Tuesday includes a screenshot of the user portfolio showing a return of over 1,000% on GameStop stock.

GameStop had a roller coaster ride on Monday, during which the stock more than doubled and turned negative within a few hours. The stock closed 18% on Monday at $ 76.79.

“The flow of orders in retail in Options is accelerating the short squeeze,” said CC Lagator of Options AI. “The call buyers are essentially leveraging the market makers’ hedges. As stocks go up, more stocks are bought to cover the increase in short deltas. This is market inefficiency and eventually ends when those who sell the calls , are over-hedged for a share that no longer rises and then actually has to sell shares in order to remain delta-neutral. “

The hedge fund Melvin Capital Management, which is short on GameStop, is down 30% through Friday this year, according to The Wall Street Journal.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Categories
Health

Joe Biden says Trump’s Covid vaccine effort far brief its personal objectives

U.S. President-elect Joe Biden speaks to reporters after making remarks at The Queen in Wilmington, Delaware ahead of the December 22nd, 2020 holiday.

Alex Edelman | AFP | Getty Images

President-elect Joe Biden on Tuesday criticized the Trump administration’s efforts to distribute and administer Covid vaccine shots, saying the administration had failed to achieve its own goals.

“The Trump administration’s plan to distribute vaccines is falling far behind,” he said at a press conference. “As I have long feared and warned, efforts to distribute and administer the vaccine are not progressing as they should.”

He said his government will “move heaven and earth” to expedite the distribution and delivery of the Covid vaccines once he takes office on Jan. 20. He reiterated his government’s pledge to have administered 100 million doses of vaccine by his 100th day in office.

“This will be the greatest operational challenge we have ever faced as a nation,” he added. “We’ll get there. It’s going to take a tremendous new effort. It’s not underway yet.”

While more than 11.4 million doses of vaccine had been distributed to states on Monday, just over 2.1 million doses were given, according to the Centers for Disease Control and Prevention. The agency notes that when states and jurisdictions report the data, their data may lag behind the actual number of doses given.

“A large difference between the number of doses distributed and the number of doses administered is expected at this point in the COVID vaccination program due to several factors including delays in reporting doses administered, managing available vaccine stocks by jurisdiction, and imminent vaccination launch the federal program for pharmacy partnership for long-term care, “says the agency on its vaccine tracking website.

CDC officials did not respond to CNBC’s request for further comment on the inequality between administered and administered doses.

Dr. Anthony Fauci, director of the National Institute for Allergies and Infectious Diseases, admitted Tuesday on CNN that the vaccine roll-out has been slower than expected.

“We are certainly not at the numbers we wanted at the end of December,” he said in an interview with Jim Sciutto. “I think we will see an increase in momentum in January that will hopefully allow us to catch up on the planned pace Jim.”

Michael Pratt, a spokesman for Operation Warp Speed, reiterated that the number of doses reported by the CDC is likely to be too few due to delays in reporting data.

“Operation Warp Speed ​​remains on track to deliver approximately 40 million vaccine doses and 20 million primary vaccination doses by the end of December 2020. The distribution of the 20 million primary doses extends into the first week of January when states place orders she, “he said in a statement.

Dr. Atul Gawande, a member of Biden’s Covid-19 advisory team, said on CBS This Morning Tuesday that the in-depth administration “does not have all the information it needs to understand where the bottlenecks are”.

He also noted that he is concerned that the Trump administration is overly optimistic about the vaccination schedule. Trump’s HHS Secretary Alex Azar has said the general public can be vaccinated by March.

“I worry that if things get back to normal, I’ll be over-promising,” said Gawande, a surgeon at Brigham and Women’s Hospital in Boston and a professor at Harvard University.

He vowed that the Biden administration would be more transparent about where the problems lie, be it with the production, the distribution or the administration of the recordings.

Categories
Business

Darden Eating places (DRI) Q2 2021 earnings beat, gross sales fall brief

Customers arrive at an Olive Garden location in San Antonio, Texas.

Callaghan O’Hare | Bloomberg | Getty Images

Darden Restaurants reported quarterly sales on Friday that fell short of analysts’ expectations as another wave of pandemic food restrictions weighed on sales in the same store.

For the next quarter, usually the best of the year, Olive Garden’s parent company expects sales to decline by 30% to 35%. CFO Rick Cardenas said the company doesn’t expect significant revenue improvements until the fourth quarter of fiscal 2021, which ends in May.

The company’s shares fell 1.6% in premarket trading.

The company reported for the quarter ended November 29th, versus Wall Street’s expectations, based on an analyst survey conducted by Refinitiv:

  • Earnings per share: 73 cents compared to 71 cents expected
  • Revenue: $ 1.66 billion versus $ 1.69 billion expected

The company reported net income of $ 96 million, or 73 cents per share, for the second quarter, compared to $ 24.7 million, or 20 cents per share, a year earlier. Analysts polled by Refinitiv expected earnings of 71 cents per share.

Net sales declined 19.4% to $ 1.66 billion, falling short of expectations of $ 1.69 billion. Sales of all brands in the same store decreased 20.6% in the quarter. Revenue was also impacted by the timing of Thanksgiving, which shifted from the third fiscal quarter to the second fiscal quarter this year.

Olive Garden, the jewel in Dardens portfolio, saw sales drop 19.9% ​​in the same store. The chain has focused its marketing on its convenient pickup options and main menu items, rather than limited-time promotions that could hurt profit margins. LongHorn Steakhouse, which saw strong demand for its take-out, saw sales in the same store decline just 11.1%.

Dardens gourmet business, which also includes The Capital Grille, was hit hardest. The segment’s revenue in the same store decreased 31% for the quarter.

During the previous quarter’s earnings call, CEO Gene Lee said Darden needs states to relax its food restrictions in order to improve sales in the same business. Instead, the governors did the opposite when the number of new Covid-19 cases increased. About a quarter of Darden restaurants had their dining rooms closed by December 13, up from just 8% of locations in the week ending November 8.

“We have been able to do business effectively and move it off-premise, and we can do it effectively again,” Lee told analysts.

During November and December, combined sales of Darden in the same store declined in turn as more states rolled back restrictions on personal dining and temperatures dropped. After falling just 23.4% for the week ending November 8, sales in the same store were down 36.9% for the week ending December 13.

The company reintroduced its program to pay employees whose dining rooms were closed, costing Darden $ 3 million in the quarter.

For the third quarter of the financial year, Darden expects earnings per share from continuing operations of 50 to 75 cents. The company reiterated its full year guidance of 35 to 40 net new restaurants and total investments of $ 250 to 300 million.

Lee said the company is seeing more availability in real estate, but rents have not fallen significantly despite permanent closings. Darden predicts that 5% to 15% of restaurants will close permanently due to the pandemic.

Darden also announced some changes in its management. Cardenas will become President and Chief Operating Officer in January and Treasurer Rajesh Vennam will take over as Chief Financial Officer. The board also voted to appoint Lee as chairman, replacing Charles Elseeby, the former CFO of Brinker International and Michaels Stores.

The company will pay a dividend of 37 cents to shareholders on February 1st.

Categories
Health

Shares of Penumbra tank after brief vendor releases important report

Penumbra’s shares were down about 17% Tuesday after short seller Quintessential Capital Management released a critical report on the California-based medical device maker. The stock halted shortly after 2 p.m. ET due to outstanding news.

Quintessential Capital is short in Penumbra, which means they are betting that the stock will fall. The company first began targeting penumbra last month, releasing a report of more than 100 slides claiming, among other things, its JET 7 catheter had been linked to at least 18 deaths and 39 injuries. Quintessential Capital also alleged penumbra misled doctors and investors alike.

In its most recent report, Quintessential Capital claims that an “essential part” of the company’s scientific research was carried out by a fake person named Dr. Antique Bose. “This person is a fake. We have no doubts,” said Gabriel Grego, managing partner of Quintessential Capital, on Tuesday in CNBC’s “mid-term report”.

Quintessential Capital directed its allegations of misconduct to the US Food and Drug Administration and wrote to the regulator on Tuesday to open an investigation. According to records that Grego shared with CNBC, the company has also given the SEC a whistleblower tip.

Penumbra has a market cap of around $ 7 billion as of Tuesday afternoon. At the time of Quintessential Capital’s November report for the company, its market cap was approximately $ 9.4 billion.

In a statement accompanying the Mid-Term Report, Penumbra denied Quintessential Capital’s claims, saying that its “innovative medical devices have helped save the lives of hundreds of thousands of patients suffering from life-threatening diseases since its inception in 2004”.

“This attack by bad QCM short sellers reads like an internet conspiracy written by teenagers. It is impossible to deny the facts because there are no facts,” the company said in an email. “Penumbra is very comfortable finding that none of the claims made in the diatribe of these short sellers are true. The claims are nothing more than a baseless campaign of shameless short sellers willing to risk lives for a quick profit. “

– CNBC’s Lora Kolodny contributed to this report.