Friday, November 4, 2016
Thursday, October 20, 2016
Verizon’s Revenue Falls Due to Disappointing Subscriber Numbers
Amid a price war with the competition in an over saturated phone market, Verizon Communications Inc tallied far fewer wireless subscribers than expected in the 3rd quarter. The company hopes to draw out new revenue from its fledgling digital advertising and media business.
The company said on Thursday total operating revenue fell 6.7 percent to $30.94 billion, from $33.16 billion. Analysts had anticipated revenue in the quarter of $31.14 billion, according to Thomson Reuters I/B/E/S.
Verizon’s shares were down 2.6 percent at $49.07 in premarket trading. Share prices have surged about 9 percent this year so far.
It said it added a net 442,000 retail postpaid subscribers, those who pay their bills on a monthly basis. This number falls
Smaller rivals such as Sprint Corp and T-Mobile US Inc have launched aggressive promotions to convert Verizon’s subscriber base.
As the company staves off competition in a ripening wireless market, it has picked up AOL and plans to buy Yahoo. Moreover, their attempts for a set of digital web properties and ad technology tools that will help it compete with internet giants Alphabet Inc’s Google and Facebook Inc.
Verizon may ‘call off’ Yahoo acquisition
Since the Yahoo data breach concerning 500 million email accounts was reported in September, investors have pondered how Verizon will proceed. Verizon’s general counsel has said the incident may signify a material event that could allow Verizon to call off the deal.
The company netted $1.01 per share excluding items, outdoing the average analyst estimate of 99 cents per share.
Churn, or customer defections, among postpaid wireless retail customers improved to 1.04 percent of total wireless subscribers, in relation with the average estimate of 0.99 percent, according to FactSet.
See Related News: Yahoo’s Sudden Revenue Increase Places Merger with Verizon Under Hazy Cloud
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Tuesday, October 4, 2016
Massive Revenue: The Driving Force Behind Race to Develop Zika Cure
Big names in the Pharmaceutical world battle out in a race to find a Zika virus cure. The development to find a vaccine against the mosquito-borne virus captured the attention of multinational drug makers. Enhancement and acceleration in the development caught the attention of Sanofi, GlaxoSmithKline Plc and Takeda Pharmaceuticals for its foreseeable revenue.
Zika Panic
Pharmaceutical and Disease experts say Zika virus has more devastating effect on humans. Zika infections are asymptomatic or showing no immediate signs, it can cause deadly birth defects. Additionally, Zika virus is the only mosquito-borne virus that can be acquired thru sexual intercourse. For this reason, a demand for a fast and effective anti-virus is needed.
The biggest market seen for Zika injections are travelers seeking immunization since the virus proliferated across the US.
A virologist from University of Texas Scott Weaver said, “It scares people”. Weaver is also the chairman of the Zika task force for the Global Virus Network. He added, “Europeans and Americans can pay a pretty high price for these kinds of vaccines.”
Travelers in wealthy nations such as the US would want to get vaccinated against virus before travelling to Zika infected nations. These travellers number in the tens of millions, together with business men who have corporate sponsored health coverage. Definitely not a measly revenue for the Zika vaccine demand.
Inovio Pharmaceutical Chief Executive said, “If you consider just a portion of the U.S. traveler population, we can conservatively envision a Zika market opportunity exceeding $1 billion a year”.
Inovio, a Pennsylvania company is the leading pharmaceutical company in the development of Zika anti-virus. Their vaccine is on the way to the human testing phase in the most infected region of Puerto Rico.
Scientists visualize a vaccine to be a mandatory health care immunization for women before puberty to prevent birth defects in future pregnancies. Correspondingly to men who could be susceptible to the virus to protect sexual partners.
Weaver is optimistic in saying, “Hopefully a vaccine can be developed that’s sold for a low cost in endemic areas”.
Some vaccines produced out of kindness
Constant demands for mosquito borne diseases vaccines are inevitable. The number one top grossing vaccine to date is Sanofi’s dengue vaccine, Dengavaxia. The vaccine approved in nine countries worldwide, created the biggest forecasted revenue. According to Thomson Reuter’s records, it will generate income reaching at least $900 million in 2020.
Conversely, not all pharmaceutical companies go after revenue. Malaria vaccine is done purely out of goodwill. The Bill and Melinda Gates Foundation supported GSK’s dedication to produce vaccine for African children. Although development is still in progress, the company does not anticipate any earnings.
Generating vaccine is dependent on the severity of the virus. The US National Institutes of Health (NIH) created a potential vaccine for West Nile virus but failed to commercialize. Only 1% of the total infected population continues to have serious complications. The virus did not progress to public alarm levels to have a necessity for the anti-virus.
Unlike the Zika Virus that leads to microcephaly, the World Health Organization categorized it to be a global epidemic in February. Microcephaly is a birth defect of abnormal smallness of head associated with incomplete brain development. Evidence of fetal brain abnormalities paved the way for immediate vaccine discovery.
NIH is collaborating with other companies for the development of the Zika Vaccines. Nevertheless, having its own pilot trial they will commence early clinical testing with their first batch of candidates in August.
Dr. Anthony Fauci the director of the NIH’s National Institute of Allergy and Infectious Diseases (NIAID) said, “We’re not dependent on a company until you prove it works and then you need somebody to manufacture millions of doses”.
Three potential Zika anti-viruses
NIH designed three potential vaccines: DNA type, inactivated viral material and weakened live virus. DNA vaccine which the NIH designed is similar to their West Nile vaccine in 2007. It contains no actual virus but a genetically designed antigen that triggers immune response. The agency is discerning to enroll thousands of patients in efficacy study or move to the next level.
Innovio created another innovation on the DNA vaccine. They created the vaccine involving exposure to low voltage electronic pulse. This created a reaction which the cell membranes open making them receptive and to accept genetic material from the vaccine.
The second vaccine NIH designed comprises of inactivated viral material.
Finally, the third type uses the weakened version of the virus.
The pharmaceutical company Sanofi in France develops a weakened live vaccine. They received initial US government funding of $43 million. Their developments however are at the back of the pack, but are confident they can catch up with the competition.
Nick Jackson the head of research for Sanofi’s vaccine unit said “We’ve got technologies, infrastructure, and experience dealing with regulators in this field. All of that gives us a jumpstart”.
DNA vaccines are proven safe although requires multiple doses. Live virus vaccines are considered to be most effective with dose but is unsafe for pregnant women. Commercialization of the product also takes more time.
If the Zika virus remains extensive, development of anti-virus will be un-problematic. Fauci said, “If the infections die down, then it’s going to take much longer to find out if it works”.
Use of proven vaccine innovation
Some of the pharmaceutical companies pattern the Zika vaccine utilizing clinically proven vaccine design used on the previous outbreaks.
Protein Science Corp, a private agency develops its Zika vaccine using expertise already proven to the Flublok flu vaccine. The agency is working together with companies in Argentina, Brazil, Japan and Mexico, planning to build partnership from Brazil and NIH. Human trial will commence in January.
The cost of developing and acquiring legalities will cost as high as $1 billion without government funding. Chief Executive Manon Cox said, “”that product has got to have a market of a few billion dollars”.
Valneva, another French agency uses the same technology as the Japanese approved encephalitis vaccine.
GSK and NIAID gamble on their newly developed type of vaccine. Japan’s Takeda secured US government funding using killed Zika virus and will begin human trial in the second half of 2017.
Takeda’s President for global vaccine unit said, “If there is a huge need there will be a business model that works.”
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