Facebook, Regeneron, Southwest: Stocks That Defined the Week
10 October 2020 - 11:30AM
Dow Jones News
By Derek Hall
Facebook Inc.
Scrutiny of Silicon Valley is mounting in Washington. A
Democratic-led House panel released a report Tuesday that said
America's biggest technology companies leveraged their dominance to
stamp out competition and stifle innovation. The report capped a
16-month inquiry into the market power of Facebook, Google, Amazon
and Apple. Republicans issued a separate response that didn't
endorse many of the Democrats' policy prescriptions and accused the
companies of bias against conservative viewpoints. Facebook shares
fell 2.3% Tuesday.
Regeneron Pharmaceuticals Inc.
A treatment meant to jump-start President Trump's immune
response to Covid-19 provided a healthy boost to Regeneron
Pharmaceuticals shares on Monday. The President touted Regeneron's
drug cocktail after doctors administered it along with other
treatments, including Gilead Sciences Inc.'s remdesivir, which has
been authorized for emergency use to treat hospitalized Covid-19
patients. The Regeneron treatment hasn't been approved for broad
use, and the company said that Mr. Trump received the drug under a
compassionate-use request, which allows the use of unapproved
medicines in patients with serious diseases and no other treatment
options. Regeneron shares rose 7.1% Monday.
Eli Lilly & Co.
Eli Lilly's stock is also looking healthier after the company
said it asked the FDA to authorize its Covid-19 antibody drug. The
company requested U.S. authorization for emergency use of the
experimental treatment for people with recently diagnosed,
mild-to-moderate Covid-19. If approved, the drug could be the first
to treat less severe cases of Covid-19 and open the door for a new
class of coronavirus treatments capable of helping early cases and
perhaps even preventing them. The drug was derived from a blood
sample of one of the earliest U.S. survivors of the virus, and Eli
Lilly said it could supply 100,000 doses this month and as many as
one million by the end of the year if emergency use is allowed. Eli
Lilly shares rose 3% Thursday.
Southwest Airlines Co.
Southwest Airlines wants employees to ease some of the
discomfort building in its cabin. The carrier is asking workers to
accept pay cuts for the first time to avoid furloughs, saying it
could avoid taking that step through the end of next year if it
could reach a deal with labor unions. Southwest has never
furloughed or laid off employees. Chief Executive Gary Kelly, who
has been receiving reduced pay since March, also said Monday that
he will forgo his salary altogether through the end of 2021.
Airlines have started to take more drastic action without a
pandemic relief package from Congress. Southwest shares fell 2.4%
Tuesday.
MyoKardia Inc.
Bristol-Myers Squibb Co. is cutting its cancer risk. The
drugmaker, which derives much of its revenue from treatments for
lung cancer and multiple myeloma, said it would pay $13.1 billion
in cash for MyoKardia to bolster its lineup of heart drugs.
Bristol's reliance on cancer therapies has grown heavier since its
$74 billion acquisition of multiple-myeloma drug leader Celgene
Corp. last year. MyoKardia's lead pipeline drug, which Bristol
plans to seek approval for next year, treats a chronic heart
condition that can cause irregular heart rhythms in some patients
and even death. The drug, code-named mavacamten, could fetch more
than $1.5 billion in world-wide sales by 2025, according to BMO
Capital Markets analysts. MyoKardia shares rose 58% Monday.
AT&T Inc.
AT&T's WarnerMedia, owner of HBO and Warner Bros., plans to
part ways with thousands of its supporting players. It is
restructuring its workforce to reduce costs by as much as 20%,
according to people familiar with the matter, and that strategy
includes thousands of job cuts.
The coronavirus pandemic has pummeled the film and TV business,
prompting rivals including Walt Disney Co. and Comcast Corp.'s
NBCUniversal to also cut jobs in recent months. The overhaul at
WarnerMedia would result in thousands of layoffs across Warner
Bros. studios and TV channels like HBO, TBS and TNT, people
familiar with the matter said. AT&T shares fell 1% Friday.
Eaton Vance Corp.
Eaton Vance is benefiting from a Wall Street giant's desire to
reduce its reliance on trading. Morgan Stanley said it is paying $7
billion to buy the fund manager as it continues to move toward
steadier, simpler businesses like money management. The shift is
part of a decadelong turnaround project for Chief Executive James
Gorman, who closed risky trading operations and doubled down on
wealth and asset management. Morgan Stanley completed its $11
billion takeover of E*Trade Financial Corp. just days before the
Eaton Vance deal. Eaton Vance shares rose 48% Thursday.
(END) Dow Jones Newswires
October 09, 2020 20:15 ET (00:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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