Healthcare Roundup – Cowen bullish on Amarin, President invokes DPA on more companies for ventilator production

Amarin 国防生产法 呼吸机
Published on: April 2, 2020
Author: Amy Liu

Cowen bullish on Amarin, sees potential $20/share

In a note, Cowen’s Ken Cacciatore (Outperform/$8) says Amarin (NASDAQ:AMRN) could be worth $20 a share based on $10 on Vascepa sales in Europe and $10 upon a successful appeal of the recent patent ruling opening the door for generic competition.

He also believes that the company should consider selling itself since its valuation is centered on ex-U.S. opportunities (i.e., $10 a share) and could include a contingent value right (CVR) that would pay out $10/share on a patent win, adding that Merck (NYSE:MRK), Pfizer (NYSE:PFE) and AstraZeneca (NYSE:AZN) could be potential suitors.

Shares up 5% premarket.

President invokes DPA on more companies for ventilator production

General Electric (NYSE:GE), Hill-Rom (NYSE:HRC), Medtronic (NYSE:MDT), ResMed (NYSE:RMD), Royal Philips and Vyaire Medical are the latest manufacturers subject to the Defense Production Act to manufacture needed ventilators.

White House to recommend cloth masks amid COVID-19

STAT reports that the Trump administration, based on guidance from the CDC, is expected to announce a new policy urging Americans to wear cloth masks in an effort to prevent the spread of COVID-19.

The CDC recommended the public use homemade face coverings considering the enormous demand for N95 masks and related gear from healthcare workers.

Alpha Pro Tech (NYSEMKT:APT) is down 15%.

Moderna up 11% on encouraging study timeline for COVID-19 vaccine

In an interview on CNBC, Moderna (MRNA +11.0%) Chairman Noubar Afeyan said that Phase 2 studies evaluating its COVID-19 vaccine candidate should launch this spring or early summer.

Approval for widespread deployment is still 12 – 18 months away, however (emergency use authorization is a certainty if the vaccine is shown to be safe and shows a protective effect, even if preliminary).

Rough session for pharmacies after Walgreens updates on March

Speaking on the earnings call, Walgreens (WBA -8.1%) management notes initially strong growth in a number of categories in early-mid March, but a more-recent drop-off in spending on discretionary items like beauty, and a fall in foot traffic (this morning’s results were for the quarter ended on Feb. 29).

In the U.K., for instance, sales are down 65% over the last 10 days as it appears folks pulled forward scripts and got larger quantities than needed.

CEO Stefano Pessina: For pharmacy, people are trying to use whatever they have at home, and going to the store only if necessary. If the lockdown only goes on for another month, he expects customers to return to old habits. If things take longer, all bets are off.

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