Plus, Gilead is gearing up to test an inhaled version of its antiviral drug remdesivir in the treatment of COVID-19, Microsoft is acquiring a cybersecurity startup, and Wirecard shares tanked after it said the $2.1 billion missing from its balance sheet likely doesn’t exist.
Stocks were mixed to start Monday with the Dow falling 20 points, or less than 0.1%. The S&P 500 traded flat, while the Nasdaq added 0.2%.
Twelve states hit record highs of new coronavirus cases over the weekend, including Arizona, Florida, Montana, Nevada, South Carolina, and Utah, with the U.S. reporting more than 30,000 new cases on Friday and Saturday, marking the highest daily totals since May 1. While new daily cases had been going down throughout May and into early June, cases have ticked up as states reopen, and the CDC now forecasts between 129,000 and 145,000 total reported COVID-19 deaths by July 11. Former FDA Commissioner Dr. Scott Gottlieb said that this will be a “pivotal week” for states seeing major spikes in new cases that may determine whether “they’re tipping over into exponential growth or not.” “They’re having major outbreaks underway. There’s no question about it,” Gottlieb said. “They might be past the point that they can control this just with simple interventions like trying to get more people to wear masks and people being mindful of their social interactions.”
In other coronavirus news, Gilead Sciences said it will begin human trials for an inhaled version of its antiviral drug remdesivir in August. While the drug was given emergency use authorization by the FDA for intravenous use to treat COVID-19 patients, the company has said it will look at developing easier-to-administer versions of the drug, which cannot be taken orally. An inhaled version of remdesivir “could potentially allow for easier administration outside the hospital, at earlier stages of the disease,” said Gilead Chairman and CEO Danial O’Day. “That could have significant implications in helping to stem the tide of the pandemic.”
Microsoft shares are up nearly 2% this morning after it said it is acquiring CyberX Labs, a cybersecurity start-up focused on internet-connected industrial equipment. With the acquisition, Microsoft will get additional technology for monitoring corporate hardware like alarms, cameras, phones, and industrial control systems for security vulnerabilities. “CyberX will complement the existing Azure IoT security capabilities, and extends to existing devices including those used in industrial IoT, operational technology and infrastructure scenarios,” Microsoft vice presidents Michal Braverman-Blumenstyk and Sam George wrote in a blog post. “With CyberX, customers can discover their existing IoT assets, and both manage and improve the security posture of those devices. With CyberX, customers can see a digital map of thousands of devices across a factory floor or within a building and gather information about their asset profile and vulnerabilities.”
Virgin Galactic shares are up more than 12% after the company shocked investors this morning by signing a Space Act Agreement with NASA, proving its more than just a space tourism business. The new agreement will have Virgin Galactic help train non-NASA astronauts to go to space, so more people can participate in the “low earth economy.” Virgin Galactic will develop a “private orbital astronaut readiness program” to groom a new generation of private, non-NASA, space travelers. “We are excited to partner with NASA on this private orbital spaceflight program, which will not only allow us to use our spaceflight platform, but also offer our space training infrastructure to NASA and other agencies,” said CEO George Whitesides in a news release.
And Wirecard shares are down more than -41% after the beleaguered German payments firm said the $2.1 billion in cash missing from its balance sheet likely doesn’t exist. The company said it is assessing the “prevailing likelihood” that unaccounted cash balances flagged by auditors at year-end last week which represent roughly a quarter of Wirecard’s balance sheet “do not exist.” Even before today’s statement, the unfolding scandal that sparked headlines last week has seen Wirecard’s shares and bonds collapse, its CEO resign, and has left the company renegotiating debt terms with its lenders as Wirecard has lost nearly 90% of its value in less than a week. “It’s a complete disaster we’re looking at,” said Felix Hufeld, head of BaFin, Germany’s top financial regulator. “It’s a shame that something like that happened.”
Stocks We’re Watching
Seattle Genetics (NASDAQ: SGEN): Seattle Genetics shares are up nearly 7% since Thursday after the biotech announced the dosing of its first patient in a phase 1 clinical trial evaluating investigational agent SEA-TGT, an anti-TIGIT antibody for patients with solid tumors and lymphomas. “We believe that anti-TIGIT antibodies may have an important therapeutic role in the evolving immuno-oncology landscape,” said Roger Dansey, M.D., Chief Medical Officer at Seattle Genetics. “SEA-TGT utilizes our novel SEA technology, which in preclinical research has demonstrated enhanced effector function that potentially differentiates it from other TIGIT antibodies in the clinic. The initiation of clinical trials for both SEA-TGT and the ADC, SGN-B6A, underscore our commitment to advancing novel drug candidates from our pipeline into clinical testing.”