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Special Report | Markets in Turmoil: Healthcare & Reopening



Day. One hundred twenty three of the corona virus crisis new information tonight on a key drug to fight the virus as the nation moves closer to reopening stocks are under pressure the best month for stocks since. Nineteen eighty-seven comes to an end but questions persist about the rally and our ability to stop the virus. What we found out is just a little piece of the puzzle. Also tonight when we take a step forward we don't want to take two steps back. One business owners plead to his State. We're not ready to reopen this. Cnbc special report markets in turmoil begins right. Now here's Scott Wapner. Welcome good to have you with us on this Thursday night after the biggest month for stocks in a decade. Let's get to our first look futures right now early but they are lower following lackluster earnings from some big tech names. After the bell today stocks were lower across the board the Dow losing nearly three hundred points but the real story was the month of April. The Dow gaining eleven percent S. and P. Five hundred almost thirteen percent. That was its best performance. Since nineteen eighty-seven you see the major averages putting in that mark tonight the Nasdaq adding more than fifteen percent. It's best month since June of the year. Two thousand there is also new information tonight and the path towards vaccine drug maker AstraZeneca teaming up with Oxford University information on phase. One of their testing is due very soon our farmer reporter make to route following the details for US tonight. High Bank Scott. Well it is. One of the most advanced vaccine programs in development fur-coated nineteen right now. Researchers at the University of Oxford started the first phase of human clinical trials last week and five different centers in southern England with data expected to be available next month. They say if all goes well a later stage trial could begin by the middle of this year. A key question for any successful vaccine though will be the ability to manufacture it at a large enough scale that is where a partner like Astra. Zeneca comes in under the agreement with Oxford. The British drugs giant will be responsible for development and worldwide manufacturing and distribution if the clinical trials. Prove that the vaccine works. Now it's not the only experimental vaccine already in human studies one from dern and the National Institutes of Health in the. Us began testing in healthy volunteers. In March well small biotech company and no view has also said it's begun tests. Several vaccines in China have also entered the first phase of human testing whilst Pfizer and bio tech began trials in Germany last week. And they're expected to start. Us trials imminently a key question for all these potential vaccines will be whether the course of the pandemic will enable efficacy to be proven. It often happens and outbreak scenarios that the science is too slow to keep up with the disease. Many times in the past outbreaks have subsided before a vaccine could be ready to be tested. The development and manufacturing of new drugs and vaccines is also an expensive endeavor and Gilead who's drug desa. There yesterday showed positive results in an NIH. Trial said it spent fifty million dollars on the drug in the first quarter and may spend up to a billion dollars this year. The company's pledged to donate it's available supply of the drug and hasn't commented on pricing plans. After that Daniel Day was asked on a conference call with analysts tonight. Why covert nineteen is different from other diseases? The company does profit from treating like HIV. Hepatitis and flew. There's been no other time like this in the history of the planet than any of us about live. In terms of the far-reaching reaching effects of this pandemic so medically from a patient perspective most importantly but also economically and so I think there is no guidebook out there. There is no rule book out. There and day will join us tomorrow morning to discuss that and more on squawk box Scott Meg. We'll look forward to that very much in the morning on squawk box. That's Meg Terrell reporting tonight on the money as always joining us now. Cnbc CONTRIBUTOR IS DR Scott Gottlieb. The former head of the FDA. Dr Dot leaves good to talk to you again. You must first your reaction to this story about Oxford and AstraZeneca teaming up good news. We're going to need more than one vaccine developer to be successful here and the fact that Oxford's teaming up with Astra Zeneca which has the ability to manufacture this product at scale. Because the big challenge here isn't just going to be demonstrating that these products are safe and effective and running the clinical trials but also engaging in a large scale manufacturing this can be required to produce these in quantities sufficient to provide them to an entire population. Astrazeneca has heft. They have that ability so this is a positive development. We need more than one vaccine developed. It'd be successful here. We need multiple vaccine to be successful across the world if we're GONNA have enough doses to supply the entire world and also the low and middle income countries that locked out of this race right now. There's a lot of exuberance last evening. Plenty of opportunity today for some maybe to walk back. Some of the expectations of having a vaccine ready as quick as some of the timelines have said through this operation warp speed for example though Dr Falcone this morning on the today show certainly didn't back down. Is it really possible to have a vaccine Dr Gotlib by January? Well we're probably GONNA have by January. Is Vaccines in sufficient quantities to run very large scale trials. So we have outbreaks in American cities. We'll be able to deploy thousands probably hundreds of thousands of vaccines in those cities. I run kind large trials that we're going to need to do to prove that these vaccines not just are effective. But that they're safe. In terms of having sufficient quantities to inoculate the entire population. That's really a twenty twenty one event and hopefully we'll we'll have it in time for twenty twenty one but it's unlikely to be available before the end of this year but we could have tens of millions of doses before the end of this year if you if you see multiple manufacturers being successful because each manufacturer could probably produce millions if not upwards of around ten million doses and so you have involved fires of the company that I'm involved with. You have a couple of small biotech companies engaged to no fee. Gsk's engaged now you have Astra Zeneca J. and J. Working on an ad no viral vaccine. These are large companies that know how to manufacture at significant scale overall. How would you describe your own level of optimism about where we are in our fight against this virus tonight? I'm very optimistic. And we're making very rapid progress and trying to drug this this virus and there's nothing particularly complex about a corona virus. That would suggest that. We're not going to be able to develop an effective therapeutic vaccine against it. We haven't had a vaccine against the corona virus before but we haven't tried really except for SARS emerge typically corona viruses caused common colds. And we haven't really sought vaccines for them. We already probably have one antiviral drug. That's effective not a home run but a drug that looks effective in severe. I think we're GONNA have antibody drugs by the fall. At some point this fall that starts to be the makings of a pretty potent toolbox. Those are the first generation products and so we'll see second and third generation drugs come online. The entire by pharmaceutical sectors really focused on this intently. And I think we're making very rapid progress and so I'm optimistic that we're going to have therapeutics. Never seen anything like it really. Let's move from Therapeutics and vaccines to talk about more reopenings Georgia now set to lift a most shelter in place restrictions tomorrow. Is that a good idea. Well look I think what's taking shape in this country is that we've reached a plateau in the number of infections at about thirty thousand a day. We're bouncing around. But is that about three thousand a day so you have to assume about three hundred thousand infections a day in this country because we're probably diagnosing one in ten infections to one in twenty infections and the number of deaths has plateaued as well. I think we're likely to bounce around on that plateau for a sustained period of time and the risk we face by reopening isn't necessarily that we have very rapid surge in infections and run into another epidemic but we never really snuff out the infections that we have smoldering infections all through the summer. And if that's the case if we continue to have three hundred thousand infections a day by the time you reach September first upwards of fifteen percent of the US population will have had corona virus. And so you starting to get pretty significant proportion of the population. I think that's the risk we face by some of the reopenings that we're seeing when you still see cases going up now Georgia. The cases are going down in recent days. But they're still not testing a lot and so you don't know how reliable those that data is but they haven't seen the kind of sustained declines that we've all said at the outset that you'd want to see to try to safely reopen an economy. We've had this conversation about Georgia. Numerous occasions you tweeted a few days ago that they were still having an epidemic there that cases were on the rise. Though I saw today you did say that. They've seen a big improvement. It seems like a fairly short period of time to have some level of improvement. No improvement was in the model that model that everyone looks at from Washington state and that model is just based on trends. And so what they're doing is they're looking at current trends fitting lines curves so they're trying to project from what the current trends are so. Georgia has shown in the last week of reduction in the number of new cases on a daily basis. Some events probably improvement some of. It's probably under testing Georgia ranks in the lower echelon of states in terms of the testing that. They're doing their population. So it's unclear whether or not the epidemic Israeli subsiding in that state. When you look across the country you see a lot of states probably about twenty five states. Where the epidemic is rising in terms of the number of new cases on a daily basis. So the number of cases being diagnosed on a daily basis is actually going up. Some of that's a function of the fact that we're testing a lot more so we're capturing more cases but some of it's also a function of our seeing expanding epidemics in a lot of states. Now that's said many of these states are states with a very low number of infections. So they're going from one hundred infections of data one hundred ten to one hundred twenty so they're not states that had a big epidemic to begin with but nonetheless it just shows that we're really not through the woods yet when it comes to this national epidemic New York showing a lot of improvement and that distorts the national figures but nationally. You still see a lot of states with a lot of spread. What do you think about New Jersey's plan to open golf courses and parks this weekend? Is that a good idea. I think it sound for the states to try to contemplate what they can do to give people a sense of normalcy again. And the first thing you can do is try to open back up. Recreational activity done outdoors. We know the risk of spread is lower. I've been advocating and talked to a number of local officials about the idea of trying to move things that are traditionally done indoors outdoors and so two extent that we want to restart religious services holding them outside. We want to restart gym classes holding those outside. Even as we contemplate reopening restaurants lifting local ordinances that make it easier to businesses to try to move some of that business outside maybe closing blocks and sectioned off more real estate more public real estate for businesses to try to open up at venues outside. That's not going to be foolproof but holding these things outside does reduce risk and. I think it's important that we try to start reintroducing activities that give people a sense of normalcy about their lives and the first thing to do really is to put the nets backup in parts. Let's let's finish by discussing the

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