Plus, the FDA issued emergency use authorization of convalescent plasma to treat hospitalized coronavirus patients, TikTok is suing the U.S. government, and another electric vehicle startup is going public.
Stocks were higher to start Monday with the Dow rising 250 points, or 0.9%. The S&P 500 and Nasdaq both gained 0.8%, with both indexes hitting all-time highs.
The Trump administration granted emergency authorization of convalescent plasma to treat hospitalized COVID-19 patients, despite objections from some of the nation’s top health officials including White House coronavirus advisor Dr. Anthony Fauci and Dr. Francis Collins, the director of the National Institutes of Health, that the data from clinical trials thus far has been too weak to support widespread application of the treatment at this time. The FDA said Sunday that it had granted emergency use authorization because it is reasonable to believe that convalescent plasma may be an effective treatment for COVID-19 patients, and that the known and potential benefits outweigh the known and potential risks of the treatment. “Today’s action will dramatically expand access to this treatment,” President Donald Trump said at a White House press conference on Sunday. “We’re removing unnecessary barriers and delays.”
AstraZeneca shares got a boost this morning on reports that the Trump administration is considering fast tracking its experimental coronavirus vaccine developed in the U.K. for use in the U.S. ahead of the presidential election in November. The Financial Times reported that the administration is pushing for the FDA to issue emergency use authorization for AstraZeneca’s coronavirus vaccine, which is being developed with Oxford University, ahead of the election, however, the drugmaker says it has had no discussions with the federal government about such an emergency use authorization. “AstraZeneca has not discussed emergency use authorization with the U.S. government and it would be premature to speculate on that possibility,” the company said in a statement, adding that efficacy data on the vaccine wouldn’t be available until “later this year.”
TikTok is suing the U.S. government. In a suit filed this morning, the social media app which is owned by Chinese company ByteDance said that the Trump administration’s ban of the app prevents the company from due process, as guaranteed by the Fifth Amendment of the U.S. Constitution. TikTok added in a blog post that President Trump’s executive order banning the app ignores the company’s efforts to prove it doesn’t share data with the Chinese government and isn’t a national security threat. “We do not take suing the government lightly, however we feel we have no choice but to take action to protect our rights, and the rights of our community and employees,” TikTok said in the blog post. “With the Executive Order threatening to bring a ban on our U.S. operations—eliminating the creation of 10,000 American jobs and irreparably harming the millions of Americans who turn to this app for entertainment, connection and legitimate livelihoods that are viral especially during the pandemic—we simply have no choice.”
American Airlines shares are up more than 10% today following reports that the EPA is set to announce that it will issue an emergency exemption to the state of Texas permitting it to allow the airline to use a new surface coating that kills coronaviruses for up to seven days. EPA officials said the agency would approve the emergency exemption requests under the Federal Insecticide, Fungicide and Rodenticide Ace (FIFRA) to allow the use of SurfaceWise2—which is manufactured by Allied BioScience—by American Airlines for up to a year. EPA officials said the product is aimed at providing added protection in public spaces and could increase consumer confidence in resuming air travel as airlines continue to struggle to convince people that it is safe to return to the skies. “This is a groundbreaking step that is expected to provide a longer-lasting protection in public spaces, increasing consumer confidence in resuming normal air travel and other activities,” said EPA Administrator Andrew Wheeler.
Another electric car startup is going public. Chinese EV-maker Xpeng Motors in a filing with the SEC said it planned to sell 85 million American depositary shares for $11 to $13 each, bringing its market value to around $9.17 billion at the top of that range. Xpeng has delivered 18,741 of its first vehicle, the G3 SUV, through July 31, according to the filing, and the company began deliveries of its second vehicle—the P7 sedan—in May. For the six months ended June 30, XPeng said it had a net loss of $113 million on revenue of $142 million. And in other IPO news, Peter Thiel-backed Luminar Technologies is going public via a $3.4 billion merger with blank-check company Gores Metropoulos Inc, bolstering the startup’s efforts to get its laser sensors onto the production lines of global automakers.
Stocks We’re Watching
Cryoport Inc (NASDAQ: CYRX): Cryoport shares gained as much as 18% on Friday following the company’s announcement that it has agreed to acquire CRYOPDP, a leading global provider of innovative temperature-controlled logistics solutions to the clinical research, pharmaceutical, and cell and gene therapy markets. Jerrell Shelton, CEO of Cryoport, said in a statement, “Our acquisition of CRYOPDP is an important milestone in carrying out Cryoport’s strategy to further entrench and strengthen our global footprint and support capabilities for the entire life sciences industry and especially for the fastest growing segment of high value, lifesaving cell and gene therapies. CRYOPDP is made up of a strong team of professionals and led by experienced and highly motivated leadership. CRYOPDP is especially strong in EMEA and APAC, where it enjoys a strong reputation as a valued specialist logistics provider to CROs (clinical research organizations), the pharmaceutical industry, and the life sciences clinical research community. Over the coming months we anticipate focusing more attention on the fast-growing cell and gene therapy industry, where CRYOPDP will play an increasing role. CRYOPDP’s best-in-class temperature-controlled logistics solutions are complementary to Cryoport Systems’ existing offering, which will allow both companies to leverage each other’s strengths and expand our high growth profile as well as provide a broader array of temperature-controlled supply chain solutions to our respective client bases through coordinated cross-selling and up-selling of our new unified capabilities.”