Covid-19 News Updates

Johnson & Johnson sets ambitious Covid-19 vaccine target

US pharmaceutical giant Johnson & Johnson (J&J) has teamed up with a government office to commit more than US$1 billion (AUD$1.62 billion) for research, development and clinical testing of a Covid-19 vaccine candidate.

The company announced yesterday its subsidiary Janssen Pharmaceutical Companies was expanding a partnership with the Biomedical Advanced Research and Development Authority (BARDA), with a goal to start the first human clinical studies for the vaccine by September at the latest.

The lead vaccine candidate has been chosen from constructs J&J has been working on since January. 

The company expects the first batches of a Covid-19 vaccine could be available for emergency use authorisation in early 2021, and is scaling up manufacturing capacity in a bid to supply more than one billion doses of a vaccine.

Trials advancing for Covid-19 drug and vaccine research

Covid-19 vaccine trial kicks off in Seattle

BARDA is part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) at the US Department of Health and Human Services.

"The world is facing an urgent public health crisis and we are committed to doing our part to make a Covid-19 vaccine available and affordable globally as quickly as possible," says J&J chairman and chief executive officer Alex Gorsky.

"As the world's largest healthcare company, we feel a deep responsibility to improve the health of people around the world every day. Johnson & Johnson is well positioned through our combination of scientific expertise, operational scale and financial strength to bring our resources in collaboration with others to accelerate the fight against this pandemic."

J&J's chief scientific officer Paul Stoffels says the company greatly values the US government's confidence and support for our R&D efforts.

"Johnson & Johnson's global team of experts has ramped up our research and development processes to unprecedented levels, and our teams are working tirelessly alongside BARDA, scientific partners, and global health authorities," says Stoffels.

"We are very pleased to have identified a lead vaccine candidate from the constructs we have been working on since January.

"We are moving on an accelerated timeline toward Phase 1 human clinical trials at the latest by September 2020 and, supported by the global production capability that we are scaling up in parallel to this testing, we expect a vaccine could be ready for emergency use in early 2021."

The partners are also accelerating their push to find potential anti-viral treatments against the novel coronavirus, through ongoing work in screening compound libraries, including compounds from other pharmaceutical companies.

These antiviral screening efforts are being conducted in partnership with the Rega Institute for Medical Research (KU Leuven/University of Leuven), in Belgium.

Updated at 4:11pm AEDT on 31 March 2020.

15-minute coronavirus test turns fortunes for Cellmid

When the share market closed on Friday a little-known Australian life sciences company called Cellmid (ASX: CDY) was in a trading halt after selling at lows not seen since 2009.

The loss-making group has been in the thick of a turnaround strategy that saw its bottom line improve somewhat in the first half of FY20, but investor confidence eroded over the past three months as the Covid-19 crisis took hold. 

That was at least until Friday evening, when a division that normally accounts for just 0.5 per cent of Cellmid's revenue took centre stage.

Diagnostic tests brought in only $18,051 for the company in the last half, dwarfed by the $3.7 million generated by its hair loss brands Jo-Ju and Lexilis along with the évolis-branded range of novel therapies and pharmaceuticals.

But Sydney-based Cellmid had an ace up its sleeve, courtesy of a breakthrough deal with the Australian partner of a Chinese company that developed a rapid diagnostic test for Covid-19.

Just after 7pm on Friday the company announced it had entered a supply agreement for the 15-minute testing kit with Australia Applications, the authorised distributor of Guangzhou Wondfo Biotech.

Australia already has one of the highest testing rates in the world for Covid-19, and if all goes to Cellmid's plan that distinction will be even easier to maintain. 

Requiring only the most basic lab equipment, the test was approved by the Australian Therapeutic Goods Administration (TGA) as a point of care test (POCT) on 25 March.

The Wondfo Covid-19 rapid diagnostic tests are stable at room temperature (2-30°C) for up to one year, which Cellmid claims makes them an attractive option for regional testing or for mobile/rapid screening centers, combined with their ease of use.

Cellmid announced it had placed its first order for the test which could be used either as a bedside POCT, in doctors' surgeries, pathology labs or in remote sites administered by healthcare professionals.

Cellmid buys the tests at a fixed price, and notes it has not entered into any agreement to sell them to customers yet.

But the announcement was enough to send investors into a frenzy, with the share price rising from 10 cents to 31 cents yesterday, and at the time of writing today it had reached 38 cents - a level not seen since October 2018.

"Learning from countries that managed the coronavirus infections well it is clear that widespread Covid-19 testing, isolation of those testing positive and early treatment are the best methods to control the spread of infection, while saving lives and medical resources," says Cellmid CEO Maria Halasz.

"We are excited to be able to contribute to Australia's comprehensive effort to manage this pandemic."

The test consists of a small device that requires only 10 microlitres of patient serum or plasma, or 20 microlitres of whole blood, to be loaded into a receptacle, alongside an included buffer which then mixes with viral S protein fragments and migrates along the device to an area of immobilised capture antibodies.

If virus specific IgG or IgM is present, conjugates are formed, which show up as a distinctive red band on the device.

Updated at 12:22pm AEDT on 31 March 2020.

LiveHire called up to assist with QLD Government staff redeployments

As containment efforts against Covid-19 intensify, Melbourne-based talent acquisition platform LiveHire (ASX: LVH) has been called upon to redeploy Government staff into critical roles.

LiveHire has won a crucial Queensland State Government contract under which its platform will be used to profile, match and engage current employees in order to transition them into new crisis-management roles.

All of the 48 Queensland Government agencies will use LiveHire's platform, while the Queensland Public Service Commission will use LiveHire to support its "BeHere4Qld" project to redeploy over 15,000 public sector employees in a broad Government response to the crisis.

LiveHire CEO Christy Forest says the platform's flexibility made it the ideal choice for the Queensland Government.

"At this important time, we have leveraged the proven functionality of our platform to identify in-demand roles to assign well-fitted, available employees into a newly created Talent Community for the Queensland government," says Forest.

"Perhaps most importantly, our proven speed to implement, our ability to quickly engage and place the staff is crucial to our success with the state. We commend Queensland for its responsiveness to the crisis and its use of the latest technology to engage and communicate with its staff in a way that will deliver meaningful outcomes in service to Australians at this critical time of need."

Updated at 4:15PM AEDT on 31 March 2020.

Rex calls force majeure and cancels Queensland flights

In a strange turn of events regional airline Regional Express (ASX: REX) has announced it will shut down its Queensland services, just days after thanking the Federal Government for much-needed financial support.

Rex has essentially performed an aerial backflip; over the weekend the company's deputy chairman John Sharp welcomed a $198 million support package for regional air networks.

Now the company is blaming a lack of Queensland State Government support for the shutdown of all air services in the State.

"While the Federal Government has announced several assistance packages for airlines, no concrete details have been forthcoming and more importantly, not a single cent has been disbursed," says Rex.

"Further, the Federal Government is only funding a minimum essential service of one return weekly flight per route, and this reduced schedule approach was rejected by the Queensland State Government."

"With cash fast running out and no immediate prospect of a workable solution from the Queensland State Government, Rex has no choice but to declare a force majeure for the contract and suspend all services on Queensland regulated routes indefinitely until it has the ability to service the contract in a commercially viable manner."

The shutdown of services will take effect from tomorrow and will include the five regulated routes operated under Contract with the Queensland Government. Just last week however Queensland was the only State that Rex intended to operate in specfically because of Queensland State Government support.

Since Rex first contacted the Queensland Government for further assistance the airline says its financial position and cash flow has seen a sharp degradation due to a drop of patronage arising from travel being limited to essential travel only, as well as the border control measures being put in place across the nation.

Affected passengers will have their tickets placed on credit for when services resume.

Rex will continue to service its remaining network in Australia outside of Queensland on a scaled back basis.

Air New Zealand to become a "much smaller airline"

In other aviation news Air New Zealand (ASX: AIZ) has announced it will be reducing its workforce by 3,500 people in the coming months as it grapples with the problems raised by Covid-19.

The impact of losing many international tourists to the country will see the group's annual revenue dive from $5.8 billion to an expected $500 million.

"This has the potential to be catastrophic for our business unless we take some decisive action," says Air New Zealand CEO Greg Foran.

The company is planning on becoming a "much smaller airline" and is transitioning into a domestic airline with limited international services to keep supply lines open for the foreseeable future.

"Our monthly labour cost alone is $110 million," says Foran.

"We have $960 million in cash reserves today, but with very little revenue coming in, our cash balance will fall by tens of millions of dollars each week."

"And I am acutely conscious that a smaller Air New Zealand also comes with a significant impact on many of our suppliers, some of whom will probably have to reduce the size of their workforces because we won't be doing as much business with them."

Updated at 10:30AM AEDT on 31 March 2020.

Nick Scali closes all stores, stands down majority of staff

Furniture retailer Nick Scali (ASX: NCK) has announced it will temporarily shut all stores from the close of business today, standing down the majority of its 500-strong workforce in the process.

The group said it took the decision due to social isolation and distancing measures implemented by governments in Australia and New Zealand, as well as the "increased level of risk for our staff and customers should stores continue to operate".

Stores will be closed until at least 1 May, but distribution centres will continue to operate at normal capacity during April and May to support the delivery of customer orders.

The company has also rolled out the following cost reduction measures:

• reducing marketing expenses in line with trading;
• delaying store roll-out and discretionary capex in FY20;
• engaging with landlords in respect of rent relief; and
• reducing non-essential general operating expenditure

"The decision we have made today to close stores and stand down loyal team members was not made lightly, but I believe it is the right decision for our people and our Company in the long-term," says Nick Scali's managing director Anthony Scali.

"We thank our customers, suppliers, landlords and most importantly our team members for their understanding and support during this difficult time."

In the company's annual report last year Nick Scali reported a staff count of 515, and in its most recent half year results it noted a store count of 58.

The decision follows similar announcements from other furniture retailers including Matt Blatt and Adairs.

King Living recently announced its showrooms remain open, but with social distancing guidelines implemented along with minimal physical contact between visitors in showrooms.

"King Living product experts will be operating video chat consultations, via Whatsapp, Facetime and Google Duo and all Australian showrooms currently remain open. Please contact your nearest showroom for further enquiries on these services," the company said.

Updated at 6:48pm AEDT on 30 March 2020.

Genetic Signatures sends first shipments of Covid-19 testing kits

Specialist molecular diagnostics company Genetic Signatures (ASX: GSS) is sending its first shipments of a new Covid-19 testing kit to labs in Europe and Australia, with its manufacturing facilities in Sydney gearing up for "anticipated initial high-volume orders".

The company announced today it had submitted formal applications to European and Australian regulators to register the kits, and its shares jumped 23.64 per cent to $1.36 each.

Since the beginning of the year when it became apparent the Covid-19 outbreak was a serious global problem, Genetic Signatures has directed resources to develop a test for the coronavirus strain that causes it - SARS-CoV-2.

By supplementing existing assays and utilising its unique 3base technology, Genetic Signatures reports it has been able to specifically identify SARS-CoV-2.

Genetic Signatures' current EasyScreen Respiratory Pathogen Detection Kit and the new SARS-CoV-2 Detection Kit can be used on high throughput instruments that allow for rapid detection of up to 188 patient samples in approximately 4.5 hours with minimal hands-on time for laboratory technicians.

Confirmation from European regulators would allow for the continued marketing and supply throughout Europe and UK, as regulatory exemptions are for a defined period.

The data submitted for European approval will also support a planned FDA EUA (Emergency Use Authorisation) regulatory application in the USA in the near term.

At home, the company has sought inclusion on the Australian Register of Therapeutic Goods (ARTG). Licensed Australian laboratories are permitted to self-validate the tests to use the kits commercially.

Genetic Signatures CEO Dr John Melki says the company recently increased its capabilities in Europe and is ready to serve hospitals and test labs across the UK and European Union.

"Customers will be able to use the test to screen for the SARS-CoV-2 on its own or as part of our existing EasyScreen Respiratory Pathogen Detection Kit which identifies more than 14 common respiratory pathogens," says Melki.

"Our hope is it will help clinicians move faster and better manage their urgent work, to detection infection and save lives."

As a global supplier of Covid-19 test kits Genetic Signatures expects it will be classified as an essential service and, as such will not see its operations unduly impacted by increasingly strict lockdowns.

However, the group does note worldwide supply chain constraints could impact its ability to supply product to more remote locations.

Updated at 6:20pm AEDT on 30 March 2020.

PM announces $130 billion job keeper plan to keep businesses alive

Prime Minister Scott Morrison has announced a $130 billion stimulus package to partially pay the salaries of workers around the nation for the next six months.

The JobKeeper Coronavirus Supplement will see the Government pay Australian employers $1,500 per fortnight - around 70 per cent of the median wage - per employee.

"We will pay employers to pay employees, and we will make sure they do," he said, explaining the package would likely apply to around six million people.

"This is an incentive for businesses to adapt to these circumstances, to keep people on the books."

Payments - which will be at a flat rate - will start reaching Australian wallets in the first week of May and be backdated to today's date (30 March) for wages on the books since 1 March.

Workers who have been stood down since 1 March are still eligible for the supplement.

"Stood down employees should ring their employer and ask whether they are taking part in the JobKeeper scheme," he said.

To be eligible, business revenue needs to have fallen by 30 per cent or more, or 50 per cent in the case of companies with turnovers above $1 billion.

The Supplement is being delivered via the Australian Tax Office (ATO), which has the mechanisms available to follow up on employers.

Morrison says the package is an "economic lifeline" that businesses will need in the months ahead and survive the Covid-19 financial crisis, but notes payments will not include superannuation levies.

"Some will say it's too little, other will say that it's too much. I say we must work together to make this work and to make it go as far as possible," says Morrison.

"We want to keep the engine of the economy running through this crisis.

"In the worst circumstances we may see countries fall into chaos - that will not be Australia."

The $130 billion represents 6.9 per cent of Australia's gross domestic product (GDP) in 2019, adding to existing fiscal stimulus packages and quantitative easing worth around 10 per cent of GDP.

Treasurer Josh Frydenberg says the wage subsidy scheme is unlike those announced by other nations.

"It's more generous than New Zealand's scheme, it's broader than the United Kingdom's scheme, as it applies to all employees - not just those that have been stood down - and it's available to all eligible firms, not just small businesses, as is the case with the Canadian scheme."

Retail mogul Solomon Lew, who chairs Premier Investments, applauded the Prime Minister and the Treasurer for their announcement this afternoon.

"This will give employers like Premier a greater ability to retain team members during the COVID-19 crisis," said Lew, whose company is known for brands such as Jay Jays, Just Jeans, Portmans, Jacqui E, Peter Alexander, Dotti, and Smiggle.

"Premier's 9,000 staff have been stood down due to necessary store closures associated with social distancing and health measures mandated by the Prime Minister, the State Premiers and Chief Medical Officers.

"Premier's employees will now be able to access the Job Keeper subsidy in addition to the special arrangements we have put in place for them to access accrued annual and long service leave entitlements to reduce the financial impact over this time."

Lew added the National Cabinet, led by the Prime Minister, is doing and should continue to do all it can to help Australia survive this crisis.

"We all have a role to play and it's time for everyone to step up and play their part," he said.

"The ability to retain team members during this challenging time will give businesses the best possible opportunity to bounce back and thrive.

"Premier remains focused on the health and safety of its employees, its customers and the broader community and the company is committed to doing everything it can to stop the spread of Covid-19."

Updated at 4:19PM AEDT on 30 March 2020.

Matt Blatt closes all stores

Matt Blatt is the latest in a long line of retailers to close indefinitely because of Covid-19 and gathering restrictions.

In a letter to customers the furniture retailer said the temporary closures, effective today, are necessary to protect the health of staff, customers and colleagues.

New online orders have also been temporarily suspended but all existing orders will be delivered as normal.

READ MORE: Matt Blatt co-founder Deborah Drexler on the best risks her company ever took

Read the company's full statement below:

Updated at 3:09PM AEDT on 30 March 2020.

Guidance withdrawal update: QBE Insurance, BOQ, Tyro Payments

A string of new ASX-companies have today joined the long list of businesses opting to withdraw or suspend earnings guidance due to the uncertain economic outlook with Covid-19.

Click here for a full list of Australia's leading companies that have withdrawn guidance since the saga began.

QBE Insurance (ASX: QBE) and Bank of Queensland (ASX: BOQ) were the two largest groups to pull out today, while others included Tyro Payments (ASX: TYR), Evans Dixon (ASX ED1), ARB Corporation (ASX: ARB), AngloGold Ashanti (ASX: AGG), APN Property Group (ASX: APD) and Atomos (ASX: AMS).

Both QBE and BOQ both highlighted strong capital positions to see them through this time.

"These are extraordinarily difficult times for all of our stakeholders: our customers, our broker partners, our staff, our shareholders and the community at large," says QBE Group CEO Pat Regan.

"Despite the obvious and extreme disruption to normal business practices, our priority is to maintain the health and wellbeing of our staff and continue to support our customers in this time of need."

Similarly to the big four and as part of relief measures announced by the Australian Banking Association, BOQ highlighted the following initiatives to support its customers:

• Deferred repayment periods of up to six months on business loans up to $10m;
• The option to choose between deferred mortgage repayments or Interest Only repayments
  for an initial period of three months; and
• Fast track hardship assistance for impacted customers.

"We have a strong balance sheet with solid capital and funding, and robust risk management," says BOQ managing director & CEO George Frazis.

"We will support our customers in any way we can, especially at a time when some are feeling at their most vulnerable. We are here for our customers and will work with them through the challenges ahead."

Evans Dixon, which has been struggling with an underperforming US fund, noted it had seen a significant increase in trading activity by clients over the past two months, generating strong brokerage revenues.

"However, revenue in Wealth Advice will likely be impacted in coming months on the back of a significant reduction in the market value of funds under advice," the company said.

"In Funds Management, revenue from managing equities portfolios will likely be impacted as a result of market weakness."

Tyro Payments' decision came despite recording transaction growth through the first few months of this year.

"We are in the midst of a rapidly evolving situation and a prime focus is continuing to provide such assistance we possibly can to support those of our merchants experiencing hardship and keeping our team together in what are extraordinary times," says Tyro managing director and CEO Robbie Cooke.

"I am pleased to be able to say we continue to operate on a business as usual basis, providing the level of service, availability and support our merchants have come to expect from our team and we have in fact have increased our customer support teams in place 24 hours a day to assist our merchants.

"We had been on track to deliver our Prospectus forecast, however the unfortunate reality of the measures being implemented to contain COVID-19 have compressed our transaction growth rates and, with the current uncertainty both as to the duration of the pandemic and the extent to which it will continue to impact our merchants, we can no longer be assured of achieving our forecast."

Updated at 3:45pm AEDT on 30 March 2020.

Ansell maintains guidance as glove demand stays strong

Glove and protective equipment manufacturer Ansell (ASX: ANN) saw its shares surge 17 per cent this morning after reaffirming earnings guidance and noting "very strong demand" for its AlphaTec range.

The company explains that despite the unprecedented uncertainties and implications from the unknown extent of the Covid-19 pandemic, it still expects to deliver earnings per share (EPS) of US112¢-US122¢.

In addition, demand has been high for Ansell's Microflex and TouchNTuff single-use examination gloves, as well as its Gammex and Encore surgical gloves.

This however will likely be offset by declining demand for some industrial products, temporary lockdowns, export restrictions within the EU and elsewhere, and other restrictions relating to the outbreak.

The group explains its teams are working closely with government authorities around the world so they can continue to manufacture protective products and distribute them to areas where they are needed most. 

Selective investments in new capacity are also being made, and the company expects to be able to continue to ship large quantities of product to key markets by leveraging locations that are not affected.

"As a safety company, the safety of our Ansell team members and the millions of customers we protect around the world remains our top priority," says Ansell's managing director and chief executive officer Magnus Nicolin.

"We are working to keep our Ansell people safe through home working where possible, social distancing and by providing PPE equipment and monitoring the health of all.

"This in turn, allows us to do even more to protect millions of customers worldwide."

Ansell used to be known for its condom brand which was sold in 2018. Reuters reports a condom shortage may be looming due to a factory shutdown for the world's biggest manufacturer, Malaysia's Karex Bhd.

Karex reportedly has not produced a single condom in a week, meaning shortfall of 100 million condoms that are normally distributed under the Durex brand.

Updated at 12:57pm AEDT on 30 March 2020.