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Celyad Oncology Reports Full Year 2021 Financial Results and Recent Business Highlights | MONT-SAINT-GUIBERT, Belgium -- ( BUSINESS WIRE) -- Regulatory News:
Celyad Oncology SA ( Euronext & Nasdaq: CYAD) ( Brussels: CYAD) ( Paris: CYAD) ( NASDAQ: CYAD) ( the “ Company ”), a clinical-stage biotechnology company focused on the discovery and development of chimeric antigen receptor T cell ( CAR T) therapies for cancer, today announced its financial results for the fiscal year 2021 ended December 31, 2021 and provided a business update.
`` This is a transformative time for Celyad Oncology as we work towards becoming a leading innovator in the allogeneic CAR T space. Over the past year, our team executed in evaluating our dynamic shRNA proprietary technology platform and introduced our armored CAR T franchise while delivering important updates across our CAR T pipeline. In addition, we expect our recently announced private placement with Fortress Investment Group to act as a catalyst for our corporate initiatives to advance our intellectual property and allogeneic CAR T product candidates, ” commented Filippo Petti, Chief Executive Officer of the Company. “ Although we are facing a current challenge with the CYAD-101 Phase 1b trial, the safety of our patients is our first priority, and we are focusing our efforts on the current investigation. The situation does not take away from the important work our team is doing and we believe we can look forward to announcing exciting upcoming milestones in 2022. ”
Update on Clinical and Preclinical Programs
CYAD-211 – Allogeneic shRNA-based, anti-BCMA CAR T candidate for r/r MM
CYAD-101 – Allogeneic TIM-based, NKG2D CAR T Candidate for Metastatic Colorectal Cancer ( mCRC).
CYAD-203 – Preclinical allogeneic shRNA-based, IL-18-armored NKG2D CAR T for Solid Tumors
CYAD-02 – Autologous NKG2D receptor CAR T Candidate for relapsed or refractory Acute Myeloid Leukemia or Myelodysplastic Syndrome ( r/r AML / MDS)
Upcoming Anticipated Milestones
Full Year 2021 Financial Review
As of December 31, 2021, the Company had cash and cash equivalents of €30.0 million ( $ 34.0 million).
Based on the Company’ s current scope of activities, the Company estimates that its cash and cash equivalents as of December 31, 2021, combined with the remaining access to the equity purchase agreement established with Lincoln Park Capital Fund, LLC, should be sufficient to fund operating expenses and capital expenditure requirements until mid-2023.
Key financial figures for full-year 2021, compared with full-year 2020, are summarized below:
Selected key financial figures ( € millions)
Full year 2021
Full year 2020
Revenue
-
-
Research and development expenses
( 20.8)
( 21.5)
General and administrative expenses
( 9.9)
( 9.3)
Change in fair value of contingent consideration
0.8
9.2
Other income/ ( expenses)
3.4
4.6
Operating loss
( 26.4)
( 17.0)
Loss for the period/year
( 26.5)
( 17.2)
Net cash used in operations
( 26.6)
( 27.7)
Treasury position ( 1)
30.0
17.2
( 1) “ Treasury position ” is an alternative performance measure determined by adding Short-term investments and Cash and cash equivalents from the statement of financial position prepared in accordance with IFRS. The purpose of this measure by Management is to identify the level of cash available internally ( excluding external sources of financing) within 12 months.
The Company’ s license and collaboration agreements generated no revenue in 2021 and in 2020.
Research and Development ( R & D) expenses were €20.8 million in 2021 as compared to €21.5 million in 2020, a year-over-year decrease of €0.7 million. The decrease in the Company’ s R & D expenses is primarily driven by the Company’ s decision to discontinue the development of CYAD-01 in the fourth quarter of 2020, as well as a decrease of the expenses associated with share-based payments ( non-cash expenses) related to the warrant plan offered to our employees and directors.
General and Administrative ( G & A) expenses were €9.9 million in 2021 as compared to €9.3 million in 2020, an increase of €0.6 million. This increase is primarily related to higher insurances costs and consulting fees partially compensated by the decrease of the expenses associated with the share-based payments ( non-cash expenses) related to the warrants plan offered to our employees and directors.
The fair value adjustment ( €0.8 million) relating to the contingent consideration and other financial liabilities as of December 31, 2021 was mainly driven by updated assumptions associated with the timing of the potential commercialization of the Company’ s allogenic CYAD-101 CAR T program for mCRC and autologous CYAD-02 CAR T program for r/r AML/MDS as well as to reflect the future development of the program through potential partnership. The decrease of the liability is also driven by an update to the fair value measurement based on factors such as the weighted average cost of capital, the revaluation of the U.S. dollar against the Euro and updated assumptions on probability of success associated with the Company’ s CAR T programs as of December 31, 2021.
The Company’ s other income is associated with grants received from the Walloon Region mainly in the form of recoverable cash advances ( RCAs) and R & D tax credit income:
In 2021, other income was partially compensated by other expenses including the remeasurement income on the RCAs of €0.3 million for the year 2021 and amendment fees associated with the Dartmouth license agreement signed in December 2021 for €1.1 million.
Net loss for the year ended December 31, 2021 was €26.5 million, or €1.70 per share, compared to a net loss of €17.2 million, or €1.23 per share, for the same period in 2020. As noted above, the increase in net loss between periods was primarily due to the decrease change in fair value of contingent consideration combined with the decrease on other income/expenses.
Net cash used in operations for the year ended December 31, 2021, which excludes non-cash effects, amounted to €26.6 million, which is in line with net cash used in operations of €27.7 million for the year ended December 31, 2020.
Annual Report 2021
The Annual Report for the year ended December 31, 2021 will be published on March 24, 2022, and will be available on the Company’ s website, www.celyad.com. The Company’ s statutory auditor, EY Bedrijfsrevisoren BV/Réviseurs d’ Entreprises SRL ( EY), has confirmed that the completed audit has not revealed any material misstatement in the consolidated financial statements. EY also confirmed that the accounting data reported in the press release are consistent, in all material respects, with the consolidated financial statements from which it has been derived.
Conference Call and Webcast Details
A conference call will be held on Friday, March 25th at 1:00 p.m. CET / 8:00 a.m. EDT to review the financial and operating results for full year 2021. Please dial into the call five to ten minutes prior to start time using the appropriate number below and ask to join the “ Celyad Oncology SA call ”:
The conference call will be webcast live and archived within the “ Events ” section of the Celyad Oncology website.
Financial Calendar
Q1 2022 Financial Results
May 5, 2022
H1 2022 Financial Results
August 5, 2022
Q3 2022 Financial Results
November 10, 2022
About Celyad Oncology SA
Celyad Oncology SA is a clinical-stage biotechnology company focused on the discovery and development of chimeric antigen receptor T cell ( CAR T) therapies for cancer. The Company is developing a pipeline of allogeneic ( off-the-shelf) and autologous ( personalized) CAR T cell therapy candidates for the treatment of both hematological malignancies and solid tumors. Celyad Oncology was founded in 2007 and is based in Mont-Saint-Guibert, Belgium and New York, NY. The Company has received funding from the Walloon Region ( Belgium) to support the advancement of its CAR T cell therapy programs. For more information, please visit www.celyad.com.
Forward-looking statements
This release contains forward-looking statements, within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, without limitation, statements regarding: the KEYNOTE-B79 trial, including the clinical hold, the timing and outcomes of additional data from Phase 1 IMMUNICY-1 trial of CYAD-211 and the Phase 1 CYCLE-1 trial of CYAD-02, the timing and outcome of the submission of the IND application for CYAD-203, the safety and clinical activity of the product candidates in Celyad Oncology’ s pipeline, Celyad Oncology’ s financial condition and cash runway, and expected results of operations and business outlook. The words “ may, ” “ might, ” “ will, ” “ could, ” “ would, ” “ should, ” “ plan, ” “ anticipate, ” “ intend, ” “ believe, ” “ expect, ” “ estimate, ” “ future, ” “ potential, ” “ continue, ” “ target ” and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on management's current expectations and may involve known and unknown risks and uncertainties which might cause actual results, financial condition, performance or achievements of Celyad Oncology to differ materially from those expressed or implied by such forward-looking statements. Such risk and uncertainty includes, without limitation: the timing, duration and outcome of the clinical hold on the KEYNOTE-B79 Phase 1b trial, Celyad Oncology’ s ability to continue to access to the equity purchase agreement with Lincoln Park Capital Fund, LLC, our financial and operating results and the duration and severity of the COVID-19 pandemic and global economic uncertainty. A further list and description of these risks, uncertainties and other risks can be found in Celyad Oncology’ s U.S. Securities and Exchange Commission ( SEC) filings and reports, including in the latest Annual Report on Form 20-F filed with the SEC, and subsequent filings and reports of Celyad Oncology. These forward-looking statements speak only as of the date of publication of this document and Celyad Oncology’ s actual results may differ materially from those expressed or implied by these forward-looking statements. Celyad Oncology expressly disclaims any obligation to update any forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.
Celyad Oncology SA Consolidated Statement of Operations and Comprehensive Loss
( €'000)
For the year ended December 31,
2021
2020
Revenue
-
5
Cost of sales
-
-
Gross profit
-
5
Research and Development expenses
( 20 773)
( 21 522)
General & Administrative expenses
( 9 908)
( 9 315)
Change in fair value of contingent consideration
847
9 228
Other income
4 909
4 731
Other expenses
( 1 466)
( 114)
Operating Loss1
( 26 391)
( 16 987)
Financial income
144
217
Financial expenses
( 255)
( 434)
Loss before taxes
( 26 502)
( 17 204)
Income taxes
( 10)
-
Loss for the period
( 26 512)
( 17 204)
Basic and diluted loss per share ( in €)
( 1.70)
( 1.23)
Other comprehensive income/ ( loss)
Items that will not be reclassified to profit and loss
554
( 197)
Remeasurements of post-employment benefit obligations, net of tax
554
( 197)
Items that may be subsequently reclassified to profit or loss
42
( 5)
Currency translation differences
( 5)
( 261)
Other comprehensive income / ( loss) for the period, net of tax
596
( 202)
Total comprehensive loss for the period
( 25 916)
( 29 194)
Total comprehensive loss for the period attributable to Equity Holders ( 1)
( 25 916)
( 17 406)
[ 1 ] For 2021 and 2020, the Group does not have any non-controlling interests and the losses for the year are fully attributable to owners of the parent.
Celyad Oncology SA Consolidated Statement of Financial Position
( €’ 000)
December 31,
December 31,
2021
2020 ( as adjusted)
NON-CURRENT ASSETS
45 651
46 379
Goodwill and Intangible assets
36 168
36 171
Property, Plant and Equipment
3 248
4 119
Non-current Trade and Other receivables
2 209
2 117
Non-current Grant receivables
3 764
3 679
Other non-current assets
262
293
CURRENT ASSETS
34 292
19 705
Trade and Other Receivables
668
615
Current Grant receivables
1 395
145
Other current assets
2 211
1 711
Short-term investments
-
-
Cash and cash equivalents
30 018
17 234
TOTAL ASSETS
79 943
66 084
EQUITY
43 639
30 994
Share Capital
78 585
48 513
Share premium
6 317
43 349
Other reserves
33 172
30 958
Capital reduction reserve
234 562
191 212
Accumulated deficit
( 308 997)
( 283 038)
NON-CURRENT LIABILITIES
22 477
23 256
Bank loans
-
-
Lease liabilities
1 730
2 525
Recoverable Cash advances ( RCAs)
5 851
4 220
Contingent consideration payable and other financial liabilities
14 679
15 526
Post-employment benefits
53
614
Other non-current liabilities
164
371
CURRENT LIABILITIES
13 827
11 834
Bank loans
-
37
Lease liabilities
902
1 076
Recoverable Cash advances ( RCAs)
362
371
Trade payables
6 611
4 736
Other current liabilities
5 952
5 614
TOTAL EQUITY AND LIABILITIES
79 943
66 084
Celyad Oncology SA Consolidated Net Cash Burn Rate2
( €'000)
For the year ended 31 December,
2021
2020
Net cash used in operations
( 26 643)
( 27 665)
Net cash ( used in) /from investing activities
( 126)
157
Net cash ( used in) /from financing activities
39 521
5 396
Effects of exchange rate changes
32
8
Change in Cash and cash equivalents
12 784
( 22 104)
Change in Short-term investments
-
-
Net cash burned over the period
12 784
( 22 104)
1 The operating loss arises from the Company’ s loss for the period before deduction of financial income, financial expenses and income taxes. The purpose of this measure by Management is to identify the Company’ s results in connection with its operating activities. 2 ‘ Net cash burn rate’ is an alternative performance measure determined by the year-on-year net variance in the Group’ s treasury position as above defined. The purpose of this measure for the Management is to determine the change of the treasury position. | general |
Vulnerable Americans are desperate to find this Covid-19 drug. Thousands of boxes are sitting around unused |
Soon after the US Food and Drug Administration gave the green light to Evusheld, a new drug to prevent Covid-19, pharmacist Tom Henry alerted his blog readers. He was thrilled because finally, there was a drug that could protect people like him who are immune-compromised and had a weak response, or no response at all, to their vaccinations.
`` Exciting news -- FDA grants emergency use authorization [ to Evusheld ], '' Henry wrote in a
post
published December 18.
A few weeks later, a reader wrote back that she 'd been able to find the drug.
`` Congratulations on getting this medication, '' Henry responded. `` I know it is in short supply. ''
But Henry, a retired Air Force lieutenant colonel and a pharmacist with multiple advanced degrees, was unable to find Evusheld. He contracted the virus and
died
from complications of Covid-19 on February 9.
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Read More
In the
State of the Union address
this month, President Joe Biden said that `` if you're immunocompromised or have some other vulnerability, we have treatments.... We're leaving no one behind or ignoring anyone's needs as we move forward. ''
But a CNN investigation raises questions about the way federal and state governments have distributed Evusheld and why, more than three months into the rollout, many immune-compromised people are still having trouble getting it.
CNN's investigation found that as the Omicron variant ripped through the United States, infecting and killing Americans, including some who might have been saved with timely access to Evusheld, thousands of boxes of the drug have been sitting on pharmacy shelves.
CNN also found that the government distributed Evusheld, a drug that was developed by AstraZeneca with the
support
of the US government, to unlikely places such as a spa that offers Botox and another location that does eyelash extensions.
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Then, last week, the US Department of Health and Human Services removed at least dozens of locations that have Evusheld from an online locator, which means millions of immune compromised patients and their doctors can no longer find them.
`` This whole thing is sad. It's just very, very sad, '' said Henry's widow, Meli Rockhold. `` It reminds me of the government response to Katrina. It's just a cluster -- I can't say that next word. ''
A leading researcher on Covid-19 and the immune-compromised emphasized that Evusheld, a monoclonal antibody, is the only prevention available for immune-compromised people -- transplant patients and some cancer patients, for example, or people who take certain medications for rheumatoid arthritis and other conditions -- who had a weak response to the Covid-19 vaccines.
`` For people who did everything they could but didn't have an adequate response to the vaccines, [ Evusheld ] is their only hope, and to deny them that because of a disorganized and chaotic distribution and education rollout is just terrible, '' said Dr. Dorry Segev, a transplant surgeon and epidemiologist at NYU Langone Health.
Janet Handal, who runs an advocacy organization for people who are immune-compromised, says she hears every day from people who can't find Evusheld.
`` It's just a tragedy that this is happening because there is such a great need for Evusheld, and there's so many people who don't have it, '' said Handal, the founder of the Transplant Recipients and Immunocompromised Patient Advocacy Group.
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The federal government distributes Evusheld and other Covid-19 medicines to states based on their population. States then distribute the drugs to various locations.
`` We make these allocations to states and territories on a weekly basis, with states and territories ultimately determining how best to distribute the product within their jurisdictions, '' according to a statement to CNN from an official with HHS. `` We encourage jurisdictions to distribute the product in ways that ensure it reaches immunosuppressed patients such as prioritization of medical centers where these populations typically receive care. ''
The head of an association of state health officials noted that state health departments are managing the distribution of five different Covid-19 drugs, including Evusheld.
`` I think most state health departments do not want to be in the medical supply chain business. That's not their core competency, '' said Michael Fraser, the CEO of the Association of State and Territorial Health Officials. `` It's a complex problem, and it's happening in real time. ''
Fraser added that state health departments are looking forward to the time when the private sector starts distributing Covid-19 drugs.
'It's just a waste '
On March 10, Avi Patel walked out the front door of his Florida pharmacy and unexpectedly found himself in possession of 192 boxes of Evusheld.
`` All of a sudden, I see [ these ] huge boxes arriving at my doorstep. It just popped up, '' said Patel, a pharmacist who owns Lemon Bay Drugs East in Englewood, Florida.
Two weeks later, Patel hasn't used a single one of those 192 boxes.
`` It's just a waste, '' Patel said.
CNN interviews with dozens of US pharmacies reveal that Patel's situation is not unique: Many of them have used up none or very little of the Evusheld that their state health departments sent them.
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To see how much Evusheld is sitting unused on pharmacy shelves, CNN in February downloaded an
HHS database
of sites that have Evusheld. CNN identified 59 retail pharmacies and the number of boxes of the drug they had received. Each patient needs two boxes for a full course of treatment.
On March 16-21, CNN confirmed with 58 of those pharmacies the number of boxes they had received and how many boxes they had remaining.
In total, these 58 pharmacies have received 5,372 boxes of Evusheld from the federal government, which is enough to treat 2,686 patients. Most of the shipments were in January and February and some in March.
As of CNN's calls last week, the pharmacies had used up 1,376 of those 5,372 boxes. That means about three-quarters of the drug the pharmacies received, or 3,996 boxes, is still unused. That's enough to treat 1,998 patients.
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Red Rock Pharmacy in Tempe, Arizona, received 480 boxes of Evusheld by early February. It has not used up a single box.
The De Queen Health and Wellness Pharmacy in De Queen, Arkansas, received 264 boxes by March 3 and has used just two of them.
Dr. Aziz Pharmacy in Indianapolis hasn't used any of the 72 boxes they received by January 27.
Trieu Bao, pharmacist and co-founder of Soleil Pharmacy in Glen Burnie, Maryland, said he hasn't used any of the 96 boxes that were sent to him before March 1, and they 've asked the state to stop sending the drug because of lack of space to store it.
The issue, according to pharmacists, doctors and patient advocates, is that unlike the Covid-19 vaccines, pharmacists need a prescription before giving Evusheld, and those prescriptions have been slow in coming.
`` Pharmacists aren't allowed to administer Evusheld [ without a prescription ], so to send this many is ridiculous, '' said Patel, the Florida pharmacist.
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`` Pharmacies don't know what to do with it, '' added Michael Hogue, dean of the Loma Linda University School of Pharmacy and a liaison representative from the American Pharmacists Association to the US Centers for Disease Control and Prevention's
Advisory Committee on Immunization Practices
. `` They're getting Evusheld from states, but pharmacists don't have the authority to prescribe it, so their hands are tied. ''
Hogue said distributing the drug to pharmacists `` really doesn't make a whole lot of sense '' and that the federal government has had `` a not very well-thought-out plan on how to distribute Evusheld. ''
To increase access to the drugs, patients and pharmacists have tried to educate their doctors about Evusheld.
`` We 've had people in our group call their doctor and ask about Evusheld and been told, 'What's that? ' `` said Handal, the founder of the advocacy group for immune-compromised patients.
`` My experience is, most doctors have no clue about these treatment options, '' said Harsh Patel, pharmacist and co-founder of Queens Pharmacy in Charlotte, North Carolina, which has not used any of the 24 boxes it received by late January.
Doctors don't know about Evusheld partly because it came out at a time when there was an `` avalanche '' of news about other Covid-19 drugs, said Dr. William Schaffner, a liaison representative from the National Foundation for Infectious Diseases to the CDC's vaccine advisory committee.
HHS began
distributing
Evusheld on December 17, and around that time, the FDA
authorized
a different monoclonal antibody drug that often gets confused with Evusheld, even though the other drug, bebtelovimab, treats Covid-19 and Evusheld is for prevention. Also around this time, two other monoclonal drugs were taken
out of circulation
, and the FDA
authorized
two antiviral medications.
`` No one knows about Evusheld, '' said Schaffner, an infectious disease specialist at Vanderbilt University Medical Center. `` I think it's very sad. ''
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Even if a doctor does know about Evusheld, locating it can be complicated. Some doctors ' offices have it, but most do not. Some pharmacies have it, but not large retail chains such as CVS and Walgreens, where many Americans get their prescriptions. That means doctors have to know to search for the federal government
locator website
that lists some -- but not all -- of the locations that carry it.
`` There's never been a mechanism that says 'hear ye, hear ye, we have a new way to protect your immune-compromised patients against Covid, and here's how you get it for your patients, ' `` Schaffner said.
If immune-compromised patients want to advocate for themselves and find a pharmacy with Evusheld, they must defy a government warning in large bold type on top of its online locator that tells patients `` the therapeutics locator is intended for provider use '' and that `` patients should not contact locations directly unless instructed to do so by their healthcare provider. ''
If a patient defies the warning and uses the locator, it's of limited use because it's missing at least dozens of locations that have Evusheld.
Of the 59 pharmacies with Evusheld that CNN identified on the HHS database in February, HHS removed 30 on March 16, even though all of them still had Evusheld when CNN contacted them last week. Together, these 30 pharmacies that the government removed from public view have more than 2,400 boxes of Evusheld, and now doctors and patients now have no way of finding them.
Among the pharmacies with Evusheld that HHS removed from its locator are Prescriptions Unlimited, DeliveRxd, Red Rock Pharmacy, Queens Pharmacy and Lemon Bay Drugs East, which all have Evusheld.
HHS's response
At a March 2
meeting
among HHS and state health officials, Dr. Derek Eisnor, the federal government's lead official on allocation and distribution of Covid-19 drugs, said the `` utilization rate is low '' for Evusheld.
At a March 9
meeting
among HHS officials and national health care and medical associations, Eisnor said the agency was `` somewhat dismayed '' about the low utilization numbers.
At that meeting, Cicely Waters, director of external affairs for the HHS's Assistant Secretary for Preparedness & Response, read a question from one of the attendees.
`` [ Are ] there any successful ways to connect prescribers to patients that want product? '' Waters read. `` I 've heard of news stories about patients who want Evusheld and sites that have product, but there's still no way to get it to those patients. '' The attendee then asked HHS for its thoughts on `` closing that treatment gap. ''
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`` It's frustrating, '' Eisnor answered. `` It's really a question of what are the best mechanisms to get that patient in front of that provider and as expeditiously as possible, and so I think some of this is obviously going to depend on the location and the site or the institution. But it is -- it is frustrating. ''
An HHS spokesperson told CNN that the agency has done two dozen meetings recently with states, providers and others `` to not only encourage greater utilization but to do education about how the product works and who it's for and answer questions about how best to manage supply to target those at high-risk. ''
`` We continue to engage provider and advocacy groups that support immunocompromised patients to help increase overall awareness and utilization of Evusheld. In addition to the dozens of engagements we 've held with these groups, we have also created virtual resources as well as a platform for clinician peer-to-peer sharing of best practices, case studies, and administration models, '' an HHS official wrote in another email.
The official said HHS removed a site from its locator if it has `` less than five patient courses '' of Covid-19 therapeutics. Of the 30 pharmacies that CNN found had been removed from the locator, pharmacists at 29 of them told CNN they had more than five boxes left of Evusheld. Most of them had considerably more, and several had hundreds of boxes left each.
HHS also said that `` if a location goes seven days without reporting their product on hand and utilization amounts, that location is removed from the map since we can not confirm product availability at that location. '' The official added that removing `` numerous '' locations from the map last week `` helped improve data reliability and overall product access. ''
The official did not explain how removing sites from the locator that collectively have thousands of boxes of Evusheld improves product access.
`` That makes no sense whatsoever, '' said Handal, the founder of the advocacy group for immune-compromised people. `` How could anybody even say that with a straight face? ''
Evusheld sent to sites offering beauty treatments
CNN also reached out to the two locations offering beauty treatments that received Evusheld from the government.
Twenty-four boxes of Evusheld were sent to a location in Las Vegas that, in a cached version of its website, describes itself as a `` premier medical spa chosen by the stars to help them look younger, '' with services such as Botox and `` facial rejuvenation. '' CNN was unable to find a current website or contact information for anyone at this location.
Shannon Litz, a spokeswoman for the Nevada Department of Health and Human Services, told CNN that `` the Nevada State Board of Pharmacy has reviewed this inquiry and determined it is in compliance, as the medication is being used by the physician in a different part of his practice. ''
`` We did an inquiry on it, and they're operating within the rules of the EUA and the federal program, '' said Dave Wuest, executive secretary of the Nevada State Board of Pharmacy. `` There was a physician that was licensed there at the time that we sent the medicine there. ''
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But a Google Maps search of the address listed for the location shows an outdoor strip mall, with no indication of the business existing. Wuest said the location may have closed, and it would be up to the provider to notify the state if it had.
`` Things change, '' Wuest said. `` I 'm going to send somebody to the location and see if there's a practitioner there. ''
Twenty-four Evusheld boxes were sent to
Integrative Medicine, Laser, and Aesthetics
, in Carmel, Indiana, which offers, along with some health services, eyelash extensions and facial hair removal. The medicine was delivered prior to January 28, according to the HHS database.
None of those boxes has been used, according to Sarah Wygant, a medical assistant and paramedic at Integrative Medicine, Laser, and Aesthetics.
`` Once the Evusheld product was offered, this provider met the necessary requirements to receive an allocation, which included having a physician providing oversight, '' Megan Wade-Taxter, a spokeswoman for the Indiana Department of Health, wrote in an email CNN.
A 'Hunger Games'-like competition for Evusheld
While many pharmacies have too much Evusheld, several medical centers say they don't have nearly enough for their immune-compromised patients.
The Mayo Clinic in Rochester, Minnesota, has received 2,352 boxes of Evusheld, according to now removed HHS data, and the hospital has between 10,000 to 15,000 patients who could benefit, said Dr. Raymund Razonable, an infectious disease expert who heads up the hospital's monoclonal antibody program.
To prioritize who gets the medication, Mayo has set up a tiered priority system -- and the 2,352 boxes doesn't even cover the first tier, which has 3,000 patients, he said.
`` Things are tough right now. There's not enough supply, '' Razonable said.
The Moffitt Cancer Center in Tampa, Florida, has received enough Evusheld for just over 500 patients, according to spokeswoman Kim Polacek, and there are `` potentially thousands '' of Moffitt patients who could benefit from the drug, according to Dr. Robert Keenan, Moffitt's chief medical officer.
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`` When you know there is a therapy that's been developed but you don't yet have the ability to give it to a patient, that's an awful thing to have to tell the patient and an awful thing to have to deal with, '' Keenan said.
CNN spoke with some medical centers that said they are not feeling strapped for Evusheld and have been able to get it to the patients who need it.
But some patients eligible for
Evusheld
have described a `` Hunger Games '' -like endeavor to find the drug.
`` It's almost like we are in a game and competing, '' said Michele Nadeem-Baker, who has chronic lymphocytic leukemia and has not been able to get Evusheld from her doctors in Boston. `` It's almost Darwinian and survival of the fittest. ''
Dr. Brian Koffman, a retired family doctor in Claremont, California, who has CLL, said he's `` one of the lucky ones '' who's been able to get Evusheld. He writes a
blog
to help other CLL patients and describes the roller coaster of emotions that many immune-compromised patients go through upon learning about Evusheld and then not being able to find it.
`` There's this light at the end of the tunnel that says 'we have a way out ' [ but then ] 'oh, sorry, you can't get it, ' `` Koffman said.
Without protection against the virus, many immune-compromised people who did not get a full response from the vaccine and can't find Evusheld are left to stay at home, still on lockdown after more than two years.
`` We're doing everything we can to rejoin society, '' said Doreen Zetterlund of Los Angeles, who has CLL and has been trying unsuccessfully to get the drug. `` [ Evusheld ] is the one last piece that will help us. ''
Keenan, the chief medical officer at Moffitt, remembers Henry, the pharmacist who was unable to get Evusheld and died from Covid-19. Henry got care for his chronic lymphocytic leukemia at Moffitt, and he was the center's chief pharmacy officer in 2018.
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Moffitt didn't start administering Evusheld until January 24, Keenan said. That would have been too late for Henry, since by that time, he was already sick with Covid.
`` Here's Tom Henry -- you couldn't get more sophisticated about medications, [ yet ] he succumbs to Covid, '' added Koffman, the family physician and the chief medical officer of the
CLL Society
. `` Even when you're [ an ] expert, you may not survive this. ''
Now, Henry's family -- and the CLL patients he helped -- wonder whether Henry might be alive today if he 'd been able to get Evusheld in December, when he first excitedly told his readers about the new drug.
`` Would he be alive today, doing the great work that [ he 'd ] been doing? '' said Diane Langan, a CLL patient in Syracuse, New York, who followed Henry's blog. `` It's been very discouraging and very, very disheartening. ''
CNN's Naomi Thomas, Anokhi Saklecha, Dejania Oliver, Tasnim Ahmed, Deidre McPhillips and Brenda Goodman contributed to this report. | general |
Opinion: Russia's days as an energy superpower are coming to an end | Nikos Tsafos is the James R. Schlesinger Chair in Energy and Geopolitics at the Center for Strategic and International Studies ( CSIS). The opinions expressed in this commentary are his own.
In a matter of weeks, the war in Ukraine has upended an energy relationship between Europe and Russia that goes back decades. Europe understands that it can not sever ties with Russia overnight, as it still needs Russian energy. But Russia's role in the European and global energy system has been shaken. This is a profound shift that will mark the end of Russia as an energy superpower.
Russia is central to the global energy system. It is the world's largest
exporter
of oil, making up about 8% of the
global market
. And it supplies
Europe
with 45% of its natural gas, 45% of its coal and 25% of its oil. Likewise, hydrocarbons are the lifeline of Russia's economy. In 2019, before Covid-19 depressed prices,
revenues
from oil and natural gas accounted for 40% of the country's federal budget. And oil and gas accounted for almost half of Russia's total
goods exports
in 2021. It is hard to imagine what the Russian economy looks like without oil and gas.
Since the invasion, Europe has been scrambling to come up with a new energy security strategy. Most European countries had assumed that the dependence on Russian energy was a risk they could manage, uncomfortable as it was at times. They believed that Russia was a rational actor that wanted to earn money selling its energy. But the largest land war in Europe in generations has produced a rapid reassessment of those assumptions. Europe was accustomed to dealing with an adversary; now it must deal with an enemy.
To be sure, the European response has been swift.
Europe
outlined an ambitious plan to cut Russian gas imports by two-thirds in 2022, with a goal to phase out
Russian oil and gas
by 2027. European leaders are meanwhile debating proposals for an immediate ban on
Russian oil imports
. The
United Kingdom
already said it would eliminate imports of Russian oil by the end of 2022. Germany halted approval for the
Nord Stream 2 gas pipeline
and said it would
invest
in infrastructure to import liquefied natural gas ( LNG). A new import facility for LNG is now being built in the
Netherlands
. The turn away from Russia is happening fast.
The receiving station for the Nord Stream 2 gas pipeline stands at twilight on February 02, 2022 near Lubmin, Germany.
Major energy companies like
Shell
,
ExxonMobil
and
Equinor
are walking away from
investments
that go back decades. Public opinion is constraining their willingness to buy Russian oil on the open market, which is shrinking Russia's footprint on the energy stage.
Read More
But Europe is now in a tough spot. Russian oil and gas is indispensable. But relying on Russia is no longer tolerable given Russia's atrocities in Ukraine and the fear that it might shut off gas supplies at any moment. So Europe wants out of the relationship.
These opposing forces create a gap between where Europe is and where it wants to be. How this is resolved in the next few years is unclear given that alternative supplies are limited in the short term. For now, the
European Commission
has called on companies to secure supplies from countries like the United States, Qatar and Egypt, a move that could cause prices to rise further as demand pushes up against limited supply. But what comes after this adjustment period is clear enough: Europe's energy trade with Russia will eventually dwindle to near zero.
Russia will turn elsewhere for customers. Around 20% of
Russia's oil
heads to China, and its natural gas sales there are sure to rise, courtesy of a
pipeline
that runs more than 8,100 kilometers. But Russia's turn to the East is limited by geology, geography and geopolitics. Russia has more oil and gas resources in
West Siberia
than in the East, making it harder to serve Asia. The existing infrastructure is also set up to send energy to Europe. China's willingness to finance a shift of this magnitude — re-wiring Russia's export infrastructure to head East — is unclear. Will China take a bargain deal if it is offered? Probably. Will it choose to depend heavily on Russian energy? Probably not.
What Russia's invasion of Ukraine could mean for the US economic recovery
A decade from now, these dynamics will change Russia's position in global energy and the world economy. Russia will not be cut out from the global energy market completely, but its role will shrink considerably. This war has done irreparable damage to Russia's brand as an energy provider.
Some strategists argue that Russia's capacity to wage war will be diminished without the fossil fuel revenues to fund its military. This is true — to an extent. But Russia has been involved in European affairs for centuries. Russia's aggression, insecurity and meddling in Europe will persist long after the hydrocarbon era. After all, a Russian economy that is isolated from global markets is unlikely to be a pliant neighbor. The war will accelerate the end of the era where Russia is an energy superpower. But whether the new Russia is any better — that is impossible to know. | general |
Nearly half of foreign businesses in Hong Kong are planning to relocate |
Foreign businesses have for decades reaped the benefits of setting up shop in Hong Kong, a historically stable, expat-friendly finance hub at the doorstep of mainland China.
But lately, as Beijing has tightened its grip on the former British colony, those firms are increasingly eyeing the exits.
Nearly half of all European businesses in Hong Kong are considering relocating in the next year, according to a
new report
. Companies cite the local government's extremely strict Covid-19 protocols that mirror those on the mainland.
Among the firms planning to leave, 25% said they would fully relocate out of Hong Kong in the next 12 months, while 24% plan to relocate at least partially. Only 17% of the companies said they don't have any relocation plans for the next 12 months.
Hong Kong tries to'relaunch ' its economy by lifting flight bans and cutting quarantine
The city's `` zero Covid '' strategy led to severe consequences for businesses and residents, the report from the European Chamber of Commerce said. Hong Kong's `` biggest advantage '' — its global connectivity and proximity to mainland China — '' has been almost completely disabled, '' the Chamber said.
Read More
Hong Kong's quarantines are notorious among residents and expats. At one point, the government required most inbound travelers to self-isolate in hotel rooms, on their own dime, for three weeks, one of the world's longest isolation periods.
Although Hong Kong officials recently
lifted flight bans
and scaled back the city's quarantine requirements down to seven days, an exodus is already playing out.
Last week, Hong Kong Chief Executive
Carrie Lam acknowledged
that the protocols were eroding residents ' satisfaction with the city, saying she had a `` very strong feeling that people's tolerance is fading. ''
The European survey released Thursday tracks with a similar report from the American Chamber of Commerce in January, which found that 44% of expats and businesses are likely to leave the city, citing Covid-related restrictions.
`` Hong Kong still holds business opportunities but an array of issues, especially draconian travel restrictions and worsening US-China relations, weigh on sentiment, '' the US report said.
For some, the travel restrictions have proven to be a final straw after years of watching Beijing encroach on Hong Kong's policy.
Even without the Covid crisis, headhunters were
having trouble bringing talent
to Hong Kong because of Beijing's growing oversight of the semiautonomous territory. Massive and at-times violent protests prompted by a Beijing-imposed extradition bill plunged the city into a political crisis in the summer of 2019. A year later, as Covid-19 restrictions kept protesters at bay, China passed a
wide-ranging national security law
that broadly curtails free speech rights in Hong Kong.
More than 80% of US firms in Hong Kong said they had been impacted by the national security law, according to the American Chamber of Commerce report. Nearly half saw staff morale take a hit and said they lost employees who decided to emigrate. | general |
BlackRock says Russia's war in Ukraine is the end of globalization |
Russia's
invasion of Ukraine
has ended globalization as we know it, says the head of
BlackRock
, the world's largest asset manager.
BlackRock CEO Larry Fink told shareholders in a letter on Thursday that Russia's `` decoupling from the global economy '' following its assault on Ukraine has caused governments and companies to examine their reliance on other nations.
`` The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades, '' Fink wrote.
The CEO, whose company manages
$ 10 trillion in assets
, predicted that Russia's isolation will `` prompt companies and governments worldwide to reevaluate their dependencies and reanalyze their manufacturing and assembly footprints. ''
But some countries could benefit from focusing on building up their domestic industries, as companies onshore or `` nearshore '' their operations, he said.
Read More
Fink said that the coronavirus pandemic had already set these wheels in motion.
Early in the pandemic, countries
struggled to secure
desperately needed
personal protective equipment made in China
. When economies reopened — and demand surged — supply-chain bottlenecks helped
push inflation up
to levels not seen in decades. A
shortage of semiconductor chips
, in particular, has plagued industries over the past year, from carmakers to tech companies.
And now Russia's assault on Ukraine — followed by swift and
punishing Western sanctions
and a
raft of company exits
— has disrupted international export markets. The price of Brent crude, the global benchmark,
surged above $ 139 a barrel
in early March as buyers feared supply shocks, though oil
has since come down.
`` Energy security has joined the energy transition as a top global priority, '' Fink said.
While Fink anticipates that coal consumption may increase over the next year as Europe and Asia try to wean themselves off Russian oil and gas, soaring energy prices will likely make renewables more competitive, he said.
`` Longer-term, I believe that recent events will actually accelerate the shift toward greener sources of energy in many parts of the world, '' Fink wrote. | general |
Asia markets: Hong Kong drops nearly 3% as Chinese stocks tumble | SINGAPORE — Chinese stocks fell Friday as the rest of Asia-Pacific traded mixed, while Wall Street stocks rallied overnight and oil prices fell.
Hong Kong's Hang Seng dropped 2.47% to close at 21,404.88, paring some losses after plunging nearly 3% earlier. The Shanghai composite was down 1.17% to close at 3,212.24, and the Shenzhen component fell 1.89% to 12,072.73. The CSI 300 dropped 1.8% to 4,174.57.
Shares of Hong Kong-listed Russian aluminum producer Rusal surged more than 10% in early trade before reversing to tumble 5.74%. The stock dropped earlier this week after the firm said Monday it was evaluating the impact of a ban announced Sunday by the Australian government on exports of alumina and aluminum ores to Russia.
Rusal shares in Moscow had shot up nearly 16% when markets resumed trading in Russia on Thursday after a month-long shutdown.
JD Logistics shares dived nearly 14%, dropping below its offer price. In a filing with the Hong Kong stock exchange in the morning, the firm said it will raise 8.53 billion Hong Kong dollars ( $ 1.09 billion) through a share sale. The subsidiary of e-commerce giant JD.com said the shares will be priced at 20.71 Hong Kong dollars a piece.
The Hang Seng tech index fell nearly 5%, with Alibaba losing 5.62%, Tencent falling 2.62%, JD down 4.72%, and Meituan plunging 8.16%. Delisting fears continued to be in focus with the U.S. Securities and Exchange Commission adding Chinese social media platform Weibo to a list of Chinese stocks facing the risk of being delisted from the U.S.
Japan stocks moved between positive and negative territory, but the Nikkei 225 closed 0.14% up to 28,149.84, and the Topix closed flat to 1,981.47. Japan reported inflation data, showing its core consumer price index hit a two-year high in March, according to Reuters.
Australia's S & P/ASX 200 stayed in positive territory as it inched up 0.26% to 7,406.20, with some gains in miners. South Korean stocks struggled for direction, trading between gains and losses. The Kospi last sat above the flatline and settled at 2,729.98.
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Top gainers in Asia afternoon trade include mining firm MMG and Singapore agricultural firm Olam which was up 4%. Notable losers included Nio, which fell 4.9% and China Life Insurance, which was down 2.3%.
MSCI's broadest index of Asia-Pacific shares outside Japan traded around 1% lower.
Singapore's Straits Times index was up 0.58% in the afternoon. Research firm Capital Economics and DBS Bank analysts said Friday they now expect Singapore's central bank to tighten policy at its meeting next month after a major loosening of the country's Covid restrictions on Thursday.
`` Yesterday's easing of virus restrictions in Singapore exceeded what we had expected and now means the risks to our above-consensus growth forecast of 4.0% this year are to the upside, '' said Alex Holmes, emerging Asia economist at the firm. `` The measures are also likely to add to inflationary pressures, further increasing the chance that the Monetary Authority of Singapore ( MAS) will tighten policy at its meeting next month. ''
U.S. stocks rallied overnight, led by chip stocks. The Dow jumped 349.44 points, or 1%, to close at 34,707.94. The S & P 500 added 1.4% at 4,520.16, and the Nasdaq Composite rose 1.9% to 14,191.84.
Stocks have seesawed this week, alternating between up and down days. The S & P 500 and the Nasdaq are on track to close the week higher.
Investors watched shares of Apple suppliers in Asia. The tech giant is reportedly planning a hardware subscription service for iPhones that could launch as soon as the end of this year. Apple rose over 2% on Thursday.
In Japan, shares of Apple suppliers rose. Murata Manufacturing shares jumped 1.22%, while Alps Alpine climbed 1.15%. Taiyo Yuden was up 1.06%.
Over in Taiwan, Taiwan Semiconductor Manufacturing Company jumped 1.18%, while shares of Hon Hai Precision Industry slipped 0.47%.
Oil prices were in focus, after falling almost 2% overnight after a volatile session. During Asia trade on Friday, U.S. crude was down 0.14% to $ 112.21 per barrel, and Brent was little changed at $ 118.99.
`` [ International Energy Agency ] members are seeking to reduce their use of its crude, '' said ANZ Research analysts Brian Martin and Daniel Hynes. They noted IEA Executive Director Fatih Birol said the group is ready to release more oil from emergency stockpiles if needed.
Contributing to oil's decline, Organization of the Petroleum Exporting Countries officials have also expressed to the EU their discomfort on a proposed ban on Russian oil, Reuters said citing OPEC sources.
In currencies, the U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.613, dropping from levels around 98.7 earlier.
The Japanese yen traded at 121.67 per dollar, softer compared to earlier. The Australian dollar was at $ 0.7504, as it continued to jump from levels around $ 0.74 earlier in the week. | business |
Premarket stocks: Russia is breaking market rules left and right | A version of this story first appeared in CNN Business ' Before the Bell newsletter. Not a subscriber? You can sign up
right here
. You can listen to an audio version of the newsletter by clicking the same link.
London ( CNN Business)
Russia is breaking market rules left and right as its
financial isolation deepens
.
The latest:
Russia's stock market reopened
on Thursday after it was shuttered for a month. Under normal circumstances, there wouldn't be much demand for shares in Russian companies considering they
do most of their business in an economy
that some expect to contract by more than 20% this year.
But, surprise! The benchmark MOEX index surged by as much as 10% in early trading. The index was up roughly 5% in afternoon trade in Moscow.
Here's why: Russia's stock market isn't operating under normal rules. The central bank has blocked foreign investors from selling their shares and banned short selling. Only 33 stocks were allowed to trade on Thursday.
Context: Foreign funds held more than 80% of shares trading on the Moscow Exchange in the first half of 2021, according to Reuters. The United States and Canada accounted for 54% of the total, with 22% from the United Kingdom and 21% from the rest of Europe.
Read More
The Biden administration wasn't very impressed with the `` reopening. ''
`` Russia has made clear they are going to pour government resources into artificially propping up the shares of companies that are trading, '' deputy national security adviser Daleep Singh said in a rare White House statement on another country's financial markets.
`` This is not a real market and not a sustainable model — which only underscores Russia's isolation from the global financial system, '' added Singh.
Preventing foreign investors from selling stocks isn't the only way Moscow is breaking traditional market rules. President Vladimir Putin said Wednesday that `` unfriendly '' countries would have to pay for Russia gas in rubles.
That's not going to go down well with countries and companies that have contracts stipulating they will pay for gas in euros or US dollars. The German government has argued that any demand to pay for gas in rubles would represent a breach of contract.
`` It's unclear how Western countries will be able to access sufficient rubles to fund gas imports, or even whether they 'd be willing to pay in rubles, '' said Liam Peach, emerging Europe economist at Capital Economics.
It's not the first time that Moscow has suggested that it will ditch its financial commitments. Russian finance minister Anton Siluanov said earlier this month that Moscow will repay creditors from `` countries that are unfriendly '' in rubles until the sanctions are lifted — even if contracts call for payment in dollars.
Big picture: Credit rating agencies have responded to Moscow's apparent willingness to disregard the rules by downgrading the country's debt rating. Fitch has warned that a default is `` imminent. ''
Preventing foreign investors from selling shares and attempting to rewrite contracts will further isolate Russia, according to analysts.
`` The longer-term implication is that [ this ] accelerates Russia's strategy of de-dollarisation and reinforces the idea that Russia will continue to drift towards autarky, '' said Peach.
Good news for the economy can be found in these stocks
Here's a promising sign from Wall Street: Transportation stocks are leading the market this year. That could bode well for the broader economy, reports my CNN Business colleague Paul R. La Monica.
The Dow Jones Transportation Average, a group of 20 stocks that includes major railroads, truckers, airlines and freight companies, is up about 7% this month and is flat for the year.
Meanwhile, the more widely known Dow Jones Industrial Average, which includes blue chips like Apple, Coca-Cola and Disney, is down 5% in 2022, as investors grow nervous about rising interest rates and inflation.
When the Dow transports outperform the rest of the market, that is often viewed as a positive macroeconomic indicator.
It means consumers are buying lots of stuff from Amazon and Walmart that needs to be shipped to warehouses and retailers. And it's a sign that people are traveling again, for both leisure and business.
Rental car firm Avis Budget, railroad Union Pacific, trucking company JB Hunt and the airlines Alaska Air, Southwest and JetBlue are among the top transportation stock performers this year.
The strength in transportation stocks is even more remarkable given the surge in energy prices. Oil has soared more than 50%, to around $ 115 a barrel in the United States.
Potential problems remain for the sector, of course. They include supply chain woes, trucker labor shortages and the resulting need to raise wages and a recent surge in Covid cases.
Meme stocks are back
Shares of GameStop and AMC, two companies beloved by traders on Reddit and other social media platforms, are surging again.
Shares of GameStop rose more than 30% on Tuesday and were up another 16% on Wednesday. AMC soared 15% on Tuesday and gained 20% on Wednesday.
GameStop popped after the company's board chairman Ryan Cohen, co-founder of online pet supplies retailer Chewy, bought another 100,000 shares. `` I put my money where my mouth is, '' he tweeted Tuesday. His RC Ventures now owns 9.1 million shares, an 11.9% stake in the retailer.
Cohen is hoping to turn GameStop around with investments in NFTs and other cryptocurrency and blockchain initiatives. He has brought in two former Amazon executives to be the new CEO and chief financial officer.
AMC is also benefiting from some executive chatter on Twitter.
The theater chain's CEO, Adam Aron, tweeted Tuesday about his excitement for the upcoming spring and summer movie slate and defended the company's purchase of a more than 20% stake in miner Hycroft.
`` So amusing. Narrow-minded call our Hycroft investment...'stupid '... 'idiotic. ' AMC so understands how to raise cash and stretch out debt, '' Aron wrote, referring to his company's recent plans to refinance.
`` Tons of crow eating ahead, and it won't be by me! '' the CEO added.
Both GameStop and AMC have fallen this year, along with the broader market. AMC shares are still down nearly 20% in 2022, despite a nearly 45% surge in the past five days. GameStop's stock has fallen about 3% this year, even after skyrocketing 65% in the past week.
Up next
Darden Restaurants, TD Synnex and NIO report earnings on Thursday.
Also today:
US unemployment claims at 8:30 a.m. ET.
EIA data on natural gas inventories
Coming tomorrow: US pending home sales data and consumer sentiment from the University of Michigan. | general |
MOVADO GROUP INC Management's Discussion and Analysis of Financial Condition and Results of Operations ( form 10-K) | GENERAL
Net Sales
The Company operates and manages its business in two principal business segments: Watch and Accessory Brands and Company Stores. The Company also operates in two geographic locations: United States and International.
The Company's retail operations consist of 47 retail outlet locations in the United States and four locations in Canada.
Selling, General and Administrative ( `` SG & A '') Expenses
The Company's SG & A expenses consist primarily of marketing, selling, distribution, general and administrative expenses.
Impairment of Goodwill and Intangible Assets
Other Non-Operating Income
Interest Expense
Income Taxes
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Revenue Recognition
Intangibles
Allowance for Doubtful Accounts
Inventories
Long-Lived Assets
Warranties
Pension Benefit Obligation
Income Taxes
RECENT DEVELOPMENTS AND INITIATIVES
COVID-19
Russia's Invasion of Ukraine
RESULTS OF OPERATIONS
The following is a discussion of the results of operations for fiscal 2022 compared to fiscal 2021 along with a discussion of the changes in financial condition during fiscal 2022. For a discussion of our results of operations in fiscal year 2021 compared to fiscal year 2020,
The following are net sales by category ( in thousands):
The following table presents the Company's results of operations expressed as a percentage of net sales for the fiscal years indicated:
Fiscal 2022 Compared to Fiscal 2021
Net Sales
Watch and Accessory Brands Net Sales
United States Watch and Accessory Brands Net Sales
International Watch and Accessory Brands Net Sales
Company Stores Net Sales
Gross Profit
Selling, General and Administrative ( `` SG & A '')
and an increase of $ 1.2 million in donations primarily to the Movado Group Foundation. For the year ended January 31, 2022, fluctuations in foreign currency rates related to the foreign subsidiaries increased SG & A expenses by $ 2.0 million when compared to the prior year.
Impairment of Goodwill and Intangible Assets
Watch and Accessory Brands Operating Income/ ( Loss)
U.S. Watch and Accessory Brands Operating Income/ ( Loss)
International Watch and Accessory Brands Operating Income/ ( Loss)
Company Stores Operating Income
Other Non-Operating Income
The Company recorded a gain on the sale of a non-operating asset of $ 1.3 million related to a sale of a building in an international location for fiscal 2021.
The Company recorded other income of $ 0.4 million primarily due to the non-service components of the Company's Swiss pension plan for fiscal 2021.
Interest Expense
Income Taxes
The Company recorded an income tax provision of $ 24.8 million and an income tax benefit of $ 31.2 million for fiscal 2022 and 2021, respectively.
Net Income/ ( Loss) Attributable to Movado Group, Inc.
The Company recorded net income attributable to Movado Group, Inc. of $ 91.6 million and net loss attributable to Movado Group, Inc. of $ 111.5 million for fiscal 2022 and 2021, respectively.
LIQUIDITY AND CAPITAL RESOURCES
At January 31, 2022 and January 31, 2021, the Company had $ 277.1 million and $ 223.8 million, respectively, of cash and cash equivalents. Of this total, $ 197.4 million and $ 150.9 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.
The Company had weighted average borrowings under the facility of $ 4.8 million and $ 53.1 million, with a weighted average interest rate of 2.79% and 2.59% during fiscal 2022 and 2021, respectively.
Cash paid for interest, including unused commitments fees, was $ 0.4 million and $ 1.7 million during fiscal 2022 and 2021, respectively.
CONTRACTUAL OBLIGATIONS
Payments due by period ( in thousands):
4-5 More than
Long-term liabilities associated with the Company's defined benefit plan in Switzerland are excluded from the table above due to the uncertainty of the timing of these cash disbursements. The amount and timing of cash funding related to these benefit plans will generally depend on local regulatory requirements, various economic assumptions and Company contributions.
Accounting Changes and Recent Accounting Pronouncements
See Note 3 to the accompanying audited consolidated financial statements for a description of recent accounting pronouncements which may impact the consolidated financial statements in future reporting periods.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
© Edgar Online, source Glimpses | business |
Oscar predictions 2022: Who will win, how many will watch and more revealing Oscars stats |
The Super Bowl of the arts is coming on Sunday night. And while Americans
may not pay attention
to the Academy Awards as they used to, they still pack a punch.
The films and those who make the films ( actors, actresses, producers, directors, etc.) are artists of the highest caliber. The Oscar show, however, is largely about statistics. From who wins to who watches, statistics tell us the story of the Academy Awards.
So what are those statistics telling us about the Oscars this year, and what have they told us about the recent history of the Oscars? Let's talk about it.
Who is likely to win in the Big Five categories
Demi Singleton, Will Smith and Saniyya Sidney in `` King Richard. ''
The
Big Five categories
are best actor, best actress, best director, best screenplay ( original or adapted) and, of course, best picture. Three films have won all Big Five, and the last to do it was `` Silence of the Lambs '' in 1991. No film this year is eligible to pull it off.
Read More
Still, based on the implied probabilities of the
betting markets
, here are who will most likely win the Oscars in those categories.
Best actor
: Will Smith is a clear favorite with north of an 80% chance of winning for his role in `` King Richard. '' Benedict Cumberbatch is really the only somewhat plausible nominee with a little bit more than a 10% chance of winning for his role in `` The Power of the Dog. ''
Best actress
: Unlike in best actor, there are a number of plausible winners. Jessica Chastain has about a 60% chance of winning for her role in `` The Eyes of Tammy Faye. '' She's followed by Nicole Kidman ( `` Being the Ricardos '') with just south of a 20% chance of winning, and Olivia Colman ( `` The Lost Daughters '') and Kristen Stewart ( `` Spencer '') with about a 10% chance of taking home the Oscar.
Best director:
It would be quite surprising if Jane Campion doesn't win here for `` The Power of the Dog. '' She has about a 90% chance of taking home the Oscar. If anyone scores a major upset, it will be Steven Spielberg ( `` West Side Story '') or Kenneth Branagh ( `` Belfast ''), though both have less than 5% chance.
Best original screenplay and best adapted screenplay:
Honestly, I don't know who is going to win in either of these categories. `` Licorice Pizza '' and `` Belfast '' each have about a 40% chance in the best original screenplay category ( with `` Don't Look Up '' at about 15%). `` CODA '' is somewhat ahead ( a little north of 50% chance) of `` The Power of the Dog '' ( a little south of 40%) in the best adapted screenplay race.
Best picture:
This is a two film race. It's very likely either `` The Power of the Dog '' ( a little more than a 50% chance of winning) or `` CODA '' ( a little less than a 40%) who will take home the big prize this year.
No, really, which movie is going to win best picture
Siân Heder directs Eugenio Derbez in `` CODA. ''
One of the best ways to know who is going to win in each category is to look at which films and actors have done best in other award shows so far this year. Some award shows do a better job of predicting the Oscars than others.
I, myself, don't build models to help us know who is going to win Oscars, but I do know somebody who does. Walter Hickey, who runs the
Numlock News
newsletter and
award season supplement
. So I asked him about the awards leading up to the Oscars and why this year's best picture race is difficult to call.
Hickey noted to me that `` it's never been harder to get a good understanding of the Oscar race from precursors given [ how fast the Academy has expanded its membership. Still, ] the Producers Guild has the best track record among the precursors. ''
The Producers Guild has called seven of the last 10 best picture winners, with three of those in the last five years. This favors `` CODA, '' which is actually a slight underdog in the betting markets. Hickey pointed out to me, though, that `` The Power of the Dog '' won a lot of other big time awards, such as BAFTA, the Critics Choice Awards, Directors Guild and the Golden Globe for best drama film.
Put another way, Hickey told me `` it's going to come down right to the finish. ''
One other nugget from Hickey, Chastain did win the Screen Actors Guild Award for best actress ( making her the favorite). The `` usually ridiculously predictive '' BAFTA awards, however, didn't actually nominate any of the Oscar nominees in this category.
The Oscars are becoming more diverse, though not always in the way you may think
Director of photography Ari Wegner, and director and producer Jane Campion on the set of 'The Power of the Dog. '
One of the
big charges against the Oscars
and other award shows is that the winners tend to be White and often men.
I asked Hickey about this, who showed me that the statistics backed this up. For instance, there had been only seven Black women nominated for best actress before 2009. Since that point, there have been an equal number of Black women ( seven) nominated in the category.
This year there are no
Black women nominated
for best actress, but Smith, as mentioned, is a heavy favorite in the best actor category.
We also see that Campion is very likely to win best director. She's just the eighth woman to be
nominated in the category,
and she 'd be just the third to win it. Last year, Chloe Zhao was the second.
So it does seem the awards are becoming more diverse, though, to quote Hickey, it is `` a matter of perspective '' whether the film industry and the Oscars have rectified the lack of diversity enough.
One way in which the Academy is clearly trying to make amends for its past is by opening up its membership. Hickey told me `` by my reckoning, more than half of the current Academy has been admitted since 2011, and the organization will likely settle in at around 10,000 members at some point in the next several years, up from a steady state of around 6,000 members. ''
Much of this growth has been internationally. Per Hickey, `` of the 819 individuals invited to join in 2020, the Academy boasted
49% were international members
from some 68 countries that aren't America. '' This means while we're seeing more `` African Americans... Asian Americans [ and Hispanic Americans ] '', we're really seeing more `` Africans, Asian [ s ]... [ and Central ] and South Americans.
There probably aren't going to be that many people watching
Photos:
The 2021 Academy Awards
From left, producer Peter Spears, actress Frances McDormand, director Chloé Zhao, producer Mollye Asher and producer Dan Janvey pose with their Oscars in the press room after their film `` Nomadland '' won best picture on Sunday, April 25.
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A trio of Oscar winners -- from left, Yuh-jung Youn, Daniel Kaluuya and Frances McDormand -- pose together in the press room. Youn won best supporting actress for her role in `` Minari. '' Kaluuya won best supporting actor for his role in `` Judas and the Black Messiah. '' And McDormand won best actress for `` Nomadland. ''
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Actor Bryan Cranston recognizes some of the vaccinated front-line workers who were at the Dolby Theatre on Sunday night. Cranston was presenting the Jean Hersholt Humanitarian Award to the Motion Picture and Television Fund for the group's help and assistance to productions during the coronavirus pandemic.
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Yuh-jung Youn holds her best supporting actress Oscar as she stands next to presenter Brad Pitt in the press room.
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People watch Youn's acceptance speech from a railway station in Seoul, South Korea. She's the first South Korean actress to win an Oscar.
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Actress Olivia Colman poses for a photo while attending an Oscars screening in London. Many of the nominees were in Los Angeles, but some appeared remotely because of the Covid-19 pandemic.
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Travon Free, left, and Martin Desmond Roe accept the Oscar for the short film `` Two Distant Strangers. '' Their shoes and the inside of their jackets carried the names of George Floyd, Breonna Taylor and other people killed by police violence.
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Nominees attend an Oscars screening in Paris.
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From left, Jon Batiste, Trent Reznor and Atticus Ross enter the press room after winning the Oscar for best original score ( `` Soul '').
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Lakeith Stanfield, a best supporting actor nominee, is interviewed in London.
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Actress Reese Witherspoon enters the Oscars press room. She was one of the award presenters.
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Best actor nominee Gary Oldman was among those in London.
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Chloé Zhao accepts the best director Oscar for `` Nomadland. '' She is the first woman of color and the first woman of Asian descent
to win best director.
`` This is for anyone who has the faith and the courage to hold out to the goodness in themselves and to hold out to the goodness in each other, no matter how difficult it is to do that, '' she said in her acceptance speech. `` You inspire me to keep going. ''
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Anders Hammer, director of the Oscar-nominated documentary `` Do Not Split, '' takes part in the show from Oslo, Norway.
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From left, Mia Neal, Jamika Wilson and Sergio Lopez-Rivera pose with the Oscars they won for best makeup and hairstyling ( `` Ma Rainey's Black Bottom '').
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Director Thomas Vinterberg accepts the Oscar for best international feature film, which went to his film `` Another Round. '' He said this was `` beyond anything I could ever imagine -- except this is something I 've always imagined, since I was 5. ''
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Phillip Bladh, holding the best sound Oscar for `` Sound of Metal, '' enters the press room in Los Angeles.
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Florian Zeller, speaking remotely from Paris, holds the Oscar he won for best adapted screenplay ( `` The Father '').
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Songwriters Fat Max Gsus, left, and Savan Kotecha appear on the show from Stockholm, Sweden.
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Daniel Kaluuya examines his best supporting actor Oscar, which he won for his role as Black Panther leader Fred Hampton in `` Judas and the Black Messiah. ''
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`` Pinocchio '' makeup artist Dalia Colli and hair designer Francesco Pegoretti appear on the show from Rome.
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Emerald Fennell won the first Oscar of the night, for best original screenplay ( `` Promising Young Woman ''). `` I 'm trying very hard not to cry because, as an English person... I don't cry ever, '' she joked.
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Actor Sacha Baron Cohen is cleaned up by his wife, Isla Fisher. They appeared on the show from Sydney.
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People attend a drive-in Oscar party in West Hollywood.
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Actress and director Regina King opened the show at Union Station. She delivered a
hopeful monologue
and said that if things had gone differently in the trial of former Minneapolis police officer Derek Chauvin, she probably would have been out marching instead of presenting. `` As a mother of a Black son, I know the fear that so many live with -- and no amount of fame or fortune changes that, '' she said.
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Attendees prepare for the beginning of the show at Union Station in Los Angeles.
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From left, Nina Parker, Brad Goreski and Zanna Roberts Rassi were part of the panel for the E! channel's red-carpet show.
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Actress Laura Dern walks the red carpet before the show.
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Best actress nominee Viola Davis and her husband, Julius Tennon, are seen on the left after arriving on the red carpet.
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At the top, I said that not as many people watch the Oscars as they used to. About 10 million people
tuned into last year's show
. This is frankly shocking to anyone who has any memories of the Oscars being one of those events that the whole family watched.
As recently as 2014, over 40 million people watched the Oscars. That had trended downward to 30 million for the show in 2019, but the coronavirus pandemic seemed to accelerate the decline further.
Now, to be clear, television shows in general have seen their
viewership drop
. The top-rated non-sports series had its viewership dip by 10 million from
2014
to
last season
, though clearly the Oscars plummeting ratings are something more unique.
The question is will there be a rebound with life mostly returning to normal after the pandemic? We 've already seen
sports have a rebound
after the pandemic, and my examination of some of the polling suggests viewership might be closer to 20 million.
Much of that 20 million will probably be Democrats. They
have long been
twice as likely to watch the Oscars as Republicans.
I 'm not sure ABC ( the network airing the Oscars) is worrying too much about viewership. The
network is getting
around $ 2 million per 30-second advertisement, which is better than last year.
We 'll have to see if those advertisers get their money's worth. | general |
Philippines Construction Market Trends and Opportunities Report 2021-2025: Focus on Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Sectors - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Construction in Philippines - Key Trends and Opportunities to 2025 ( Q2 2021) '' report has been added to ResearchAndMarkets.com's offering.
The Philippine construction industry continues to be severely affected by the disruption caused by the Coronavirus ( COVID-19) pandemic.
The industry had been the fastest growing in the Asia-Pacific before the pandemic, recording growth of 9.1% in real terms in 2019, following growth of 14.9% in 2018. However, following a sharp contraction of 30.3% in 2020, construction output fell in Q1 2021, falling by 27.2%, due to the impact of containment measures on the progress of construction projects across much of the country.
The publisher expects the Philippine construction industry to record growth of 21.9% in 2021, with output surpassing pre-pandemic levels in 2023. In 2022, the industry is projected to register growth of 14.9%, and then expand by an annual average rate of 7.8% over the remainder of the forecast period ( 2023-2025). Government programs promoting the development of affordable housing, transport and renewable energy infrastructure are expected to continue to support the expansion of the industry in the coming years.
In October 2020, the House of Representatives approved the PHP4.5 trillion ( US $ 86.4 billion) national budget for 2021, equivalent to 21.8% of GDP - a budget 9.9% higher than last year's budget of PHP4.1 trillion ( US $ 79.2 billion). The Fiscal Year ( FY) 2021 budget will focus on improving the healthcare system and increasing investment in public and digital infrastructure.
Support will also be provided by the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act ( CREATE), effective from 1st January, 2021; the scheme will run until 30th June, 2023. CREATE will reduce a corporate income tax from 30% to 25%, and is hoped to bolster increased foreign investment. In February 2021, the government announced plans to raise a fund of PHP454.5 billion ( US $ 23.7 billion) to finance major infrastructure development projects.
This report provides detailed market analysis, information and insights into the Philippine construction industry, including:
Scope
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors | general |
Gasoline prices hit $ 6 in parts of the U.S. and summer driving isn't here yet | Gasoline prices have been fluctuating but are likely to keep moving sporadically higher, and more drivers could pay over $ 5 and even $ 6 a gallon for unleaded in the peak summer driving season.
The national average for unleaded gasoline Thursday was $ 4.23 per gallon, down 5 cents from a week earlier and 10 cents below the recent all-time high, according to AAA. But analysts expect prices at the pump to start rising, with the jump this week in oil prices and the increasing price of gasoline in the futures market.
`` I think $ 5 could easily be achieved here if the situation continues to worsen, '' said John Kilduff, a partner at Again Capital. `` In California, I 've seen $ 7 at some stations. ''
California drivers have been hardest hit, paying an average $ 5.88 per gallon of unleaded statewide, in part because of higher taxes and the unique blend of West Coast fuels. Last year at this time, the national average was $ 2.87 per gallon, and Californians were paying $ 3.88 per gallon, according to AAA.
Drivers in Los Angeles County are paying an average $ 6.03 per gallon. Nevada prices are averaging $ 5.17 per gallon, while Washington state's average is $ 4.72 per gallon.
With the exception of Illinois, at $ 4.49, the lowest prices are in the Midwest and South. Prices in Texas and Iowa are averaging $ 3.88 per gallon, and Ohio and Georgia are at $ 3.99 per gallon, according to AAA.
Some states have rolled back gas taxes or are considering doing so. Connecticut plans to put a three-month moratorium on its 25 cents per gallon gas tax starting April 1.
Maryland last week suspended its 36 cents per gallon gasoline tax, and its average price for unleaded at the pump is now $ 3.79 per gallon, well below the $ 4.31 per gallon in neighboring Pennsylvania, a state with a high gas tax. Georgia is also suspending its gasoline tax.
Legislation has been proposed by Democrats in the U.S. Senate and House to temporarily lift an 18.4 cent per gallon federal gas tax. Those proposals have been referred to committees.
Gasoline prices have fallen from a record $ 4.33 nationally per gallon of unleaded on March 11. Prices of gasoline declined as oil prices dipped, but crude has moved higher again and analysts say gasoline prices could too.
How high prices at the pump can go is hard to say, particularly in the peak summer driving season between Memorial Day and the Fourth of July. Analysts say that will depend on oil prices, which have been fluctuating as the world scrambles to replace Russian oil exports.
`` The honest answer is I have no idea, '' said Tom Kloza, global head of energy analysis at OPIS. `` I think on the West Coast we could see prices close to $ 6 a gallon. I think for the rest of the country, I 'm in the $ 4.25 to $ 4.75 camp. ''
Kloza said this is a gap year for the global refining industry, with some lost capacity and more planned refining operations about to come online.
There is about 1.2 million barrels a day less refining capacity in North America than there was just before the Covid pandemic in early 2020, he said.
`` Refineries in California, North Dakota, Wyoming and Newfoundland are among those that have or are being repurposed to make renewable diesel and sustainable aviation fuel, '' Kloza said. Capacity was also lost when Shell closed a refinery in Convent, Louisiana, and Phillips 66 turned its Alliance refinery in Louisiana into a storage facility after it was damaged by Hurricane Ida, he said.
New refining capacity is expected to come online in Southeast Asia, the Middle East and Nigeria, Kloza said.
`` Those refineries were designed to maximize yields of the middle of the refined barrel and will be capable of making large amounts of diesel and jet fuel, '' he wrote in a note. `` But the rest of 2022 and early portions of 2023 will be dependent on existing global capacity, against the backdrop of the most uncertainty for crude oil supply since the 1970's. ''
Analysts said if the Ukraine conflict were to end, crude could fall sharply, but the situation is uncertain. For now, an estimated 2 million to 3 million barrels per day of Russian oil is off the market. Russia had also exported about 2.5 million barrels a day of refined products, mainly to Europe, and the world is also making up for some of that lost supply.
Kloza said for every $ 10 increase in the price of oil per barrel, gasoline prices typically rise by 24 cents a gallon.
U.S. gasoline supplies are slightly below normal but refiners are running at 91% capacity, and should be able to provide sufficient amounts of gasoline to meet demand, said Kilduff.
Diesel fuel has already crossed the $ 5 threshold nationally, and was at an average of $ 5.05 per gallon Thursday. Analysts said that market is much more tightly supplied, and if refiners switch more capacity to create diesel, it could add pressure to gasoline prices.
The U.S. is a net exporter of refined fuels, exporting about 1 million barrels a day of gasoline last week. But at the same time, the United States imported 268,000 barrels a day of gasoline, according to the U.S. Energy Information Administration.
One way to prevent any shortfalls in the next couple of months would be to suspend the U.S. requirement for summer fuels, said Kilduff. Refineries typically shut down temporarily at this time of year to retool for the transition to fuels that are better suited for warmer weather.
`` Waving the patchwork of environmental regulations for summer gasoline would greatly reduce prices at the pump and assist consumers, '' he said.
Even though consumers are watching prices rise quickly, gasoline retailers on average are not scooping up bigger profits, Kloza said
`` The margin right now for the typical retailer in 50 states is 33.4 cents per gallon, which is absolutely consistent with where it's been for the last few years, '' Kloza said.
Drivers are seeing big discrepancies in gasoline prices from state to state but also from station to station in their own neighborhoods.
Sal Risalvato, executive director of the New Jersey Gasoline, Convenience Store, Automotive Association, said one reason is that gasoline prices have been fluctuating and moving quickly — so quickly that his association's 1,000 members are having trouble keeping up with price changes.
`` I 've been watching the wholesale prices. They go up one day by 20 cents, down the next day by 15 cents, then up 20 and down 25. It's been an absolute roller coaster, '' he said. `` When you get a gas delivery on a down day, it's like winning the lottery. ''
Oil price volatility is behind the fluctuating prices at the pump. West Texas Intermediate crude futures were trading lower Thursday, on the prospect of a deal that would allow Iran to export oil in exchange for an agreement on its nuclear project.
On Wednesday, prices soared on reports that the Caspian Pipeline Consortium terminal on the Black Sea suffered storm damage and loadings had stopped of more than 1 million barrels a day of Kazakh and Russian oil.
WTI crude was trading at about $ 112.40 per barrel Thursday, well off its recent high of $ 130.50 per barrel. It has been trading in a wide range, falling below $ 95 per barrel last week. | business |
Singapore Covid measures: To reopen borders, drop outdoor mask mandate | SINGAPORE — Singapore will ease most of its Covid restrictions including outdoor mask mandates starting March 29, Prime Minister Lee Hsien Loong announced Thursday.
Limits on social gatherings will be doubled from five to 10 people, more employees can return to offices and capacity limits for large events will be increased, Lee said in a national address.
Masks will still be needed indoors, and safe distancing of 1 meter between groups in mask-off settings will still be required.
Throughout the pandemic, Singapore has been more consistent and strict about measures such as mask mandates and traceability than most of the rest of the world.
Lee also said Singapore will `` drastically streamline '' testing and quarantine requirements, making travel abroad easier — `` almost like before Covid-19. ''
`` Resume more normal lives, enjoy larger gatherings of family and friends, go outdoors without masks, or reunite with loved ones abroad, '' Lee said. `` But do not throw all caution to the wind. ''
Read CNBC's latest global coverage of the Covid pandemic:
He called on people to comply with the relaxed rules and test regularly.
On travel restrictions and measures, all fully vaccinated travelers and non-fully vaccinated children aged 12 and below can enter Singapore without needing to apply for entry approvals starting April 1.
They will not be tested upon arrival in Singapore, Transport Minister S. Iswaran said at a press briefing.
Travel-related stocks jumped on Thursday following the national address. Singapore Airlines rose 4.25%, while ground-handling and in-flight catering services firm Sats gained 5.04%.
Under current arrangements, fully vaccinated travelers have to enter Singapore on specific flights to avoid quarantines. They must also take an on-arrival antigen rapid test.
Pre-departure tests will be removed for people entering via land borders but will still be needed for those entering via air and sea routes.
Returning Singapore residents previously needed to pay for Covid-related medical bills if they tested positive within 14 days of their arrival, but will no longer need to with immediate effect.
The peak of the omicron wave in Singapore appears to have passed. New daily cases stood at 8,940 on Wednesday, down from a record 26,032 infections on Feb. 22.
The majority of people infected in Singapore have mild or no symptoms. Around 0.3% required oxygen supplementation over the last 28 days, and 0.04% were in the intensive care unit.
As of Tuesday, 92% of the population has completed the primary vaccination series, while 71% has received boosters.
Authorities announced a second booster dose for people 80 years old and over, people living in nursing homes and medically vulnerable people. The recommended time to take that shot is five months after the first booster dose. | business |
China may be looking to ease regulations. Is it time to invest? | In this article
There are signs regulatory scrutiny in China may start easing following months of clampdown on its tech giants — but investors remain divided on what it could mean for Chinese stocks.
Chinese stocks have bounced back following the release of a Chinese state media report last week signaling support for Chinese markets and calling for closure on a months-long tech crackdown by Beijing.
The rebound came after days of big losses as investor fretted over a myriad of concerns — from the economic impact of a Covid outbreak in China to comments by JPMorgan calling China's internet sector `` uninvestable. ''
Still, the Shanghai composite in mainland China remains 10% lower year-to-date as of Wednesday's close, while the Shenzhen component has plunged more than 16% in the same period.
In Hong Kong, the Hang Seng index is still down more than 5% so far this year — even after last week's gains of more than 4%, and after rising more than 3% on Tuesday.
`` Even after the rebound we still see valuation as attractive, '' Jack Siu, chief investment officer of Greater China at Credit Suisse, told CNBC's `` Street Signs Asia '' on Friday.
Prior to the recent bounce in China's markets, valuations had been at close to 10-year lows, Siu said.
`` It's going to be volatile, but it's time to start dipping our toes in, '' he said
The stock markets have priced in sufficient risk premium on issues such as Covid in China and lingering concerns over the real estate market, he added.
Management consultant Richard Martin, on the other hand, warned that China is `` investable but as a policy-controlled market. ''
Wall Street banks name their favorite Asia stocks — and Citi says one could have upside of 167%
Xpeng and more: Morgan Stanley says these stocks will benefit from rising oil prices
Morgan Stanley upgrades Chinese TikTok rival and predicts over 60% in share price gains
Any market that falls around 30% in 10 days due to policy and geopolitical concerns — and then bounces back after the announcement of government support, is driven by policy and not the value or performance of its companies, said Martin, who is managing director at IMA Asia.
`` You can invest. Just make sure you 've understood the political/policy winds, '' Martin said.
Meanwhile, Michael Yoshikami from Destination Wealth Management said it will be a `` tough road ahead '' for Chinese firms as the regulatory environment remains uncertain.
`` Just because they say they're going to have some sort of foundation built for Chinese stocks, I still think the Chinese government wants things stabilized, '' said Yoshikami, founder and CEO at the firm. `` It's still going to be pretty active, and I think investors should be pretty cautious of the China sector right now. ''
Investors are now also watching for moves on the policy front in China as Beijing seeks to meet its gross domestic product growth target of about 5.5% for 2022.
On Monday. the central bank left the benchmark lending rate unchanged.
`` We expect China's policymakers to be proactive in supporting growth from here. On the macro front, in the coming weeks we now expect both an interest rate cut and a reduction to the reserve requirement ratio ( RRR) for banks, as well as a strong increase in fiscal spending support for the economy, '' Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, in a Tuesday note.
RRR refers to the amount of funds banks need to hold in reserve.
— CNBC's Evelyn Cheng contributed to this report. | business |
Putin's invasion of Ukraine is his biggest mistake and weakens Russia | Russian President Vladimir Putin has been in power for more than two decades and during that time has carefully cultivated an image of himself as a tough, strongman leader, fighting for Russia's interests and reinstating the country as a geopolitical and economic superpower.
With his decision to invade neighboring Ukraine, however, analysts say Putin has made the biggest mistake of his political career and has weakened Russia for years to come.
`` Everything he has done up to this point [ conferred ] reputational damage to Russia, but it also enhanced power. And he just kept going and kept going and kept going, '' Kurt Volker, former U.S. ambassador to NATO, told CNBC.
`` But now he has actually dramatically weakened Russia, in every respect, '' he said, adding that he could not think of anything that Putin has done in his political career that's comparable.
Global leaders are gathering in Europe on Thursday to discuss the war in Ukraine and how to help the country survive Russia's onslaught. An extraordinary NATO summit is taking place in Brussels, as well as meetings of EU leaders and the G-7.
NATO is expected to commit to `` major increases '' in troop numbers along its eastern flank as well as more arms and humanitarian assistance for Ukraine, although the military alliance has been reluctant to go further, fearing a direct confrontation with nuclear power Russia.
Speaking to CNBC Thursday, NATO Secretary General Jens Stoltenberg told CNBC: `` President Putin has made a big mistake and that is to launch a war, to wage a war, against an independent sovereign nation. ''
`` He has underestimated the strength of the Ukrainian people, the bravery of the Ukrainian people and armed forces, '' he told CNBC's Hadley Gamble Thursday.
NATO's plans to step up support for Ukraine and deployments in Eastern Europe would allow it to respond to `` any threat, any challenge, to our security. ''
Russia's invasion of Ukraine has, in one month, prompted over 3.5 million civilians to flee the country, with hundreds of thousands losing their homes in relentless bombardment by Russian forces.
The southern city of Mariupol has been the worst hit so far, with the port — a key export hub for Ukraine — still under siege and heavily destroyed.
Ukraine's President Volodymyr Zelenskyy has said there are around 100,000 civilians still trapped in the city, where water, food, electricity and medical supplies are scarce.
Despite deploying near-constant shelling attacks and siege tactics in some areas, Russian forces have only captured one city — Kherson — and a much-feared assault on the capital Kyiv has yet to begin. In addition, the country's second-largest city Kharkiv continues to resist Russian attacks and the western city of Lviv is currently relatively unscathed.
The U.K. Defense Ministry said on Wednesday that little had been gained by Russian forces, despite attempts to envelop Ukrainian troops in the east of the country.
It's becoming clear to both Moscow and Kyiv that this war will not be easily won — and in the meantime, Putin has made Russia a pariah on the international stage.
Secretary of State Antony Blinken announced Wednesday that the U.S government believes Russia committed war crimes in Ukraine and should be prosecuted.
In a statement, Blinken compared the destruction in Mariupol to similar Russian campaigns against Grozny in the Second Chechen War and Aleppo during the Syrian civil war.
`` Russia's forces have destroyed apartment buildings, schools, hospitals, critical infrastructure, civilian vehicles, shopping centers, and ambulances, leaving thousands of innocent civilians killed or wounded, '' he said.
Russia has repeatedly said it does not target civilian infrastructure, despite much evidence to the contrary. CNBC has contacted the Kremlin for a response to the U.S. ' accusation that Russia has committed war crimes and is awaiting a response.
Under Putin's leadership — and until now — Russia's economy has prospered.
Putin attracted much foreign direct investment to the country and exploited its natural resources, particularly its abundance of oil and gas, as well as trying to diversify the economy.
During his tenure, however, Russia has also been hit by economic misfortunes both of its own making — such as international sanctions after its 2014 annexation of Crimea from Ukraine, a nerve agent attack in the U.K. and its meddling in the 2016 U.S. election — and some it had no control over, such as the 2008 financial crash, 2014 oil price crash and most recently, the Covid-19 pandemic.
Now, Russia's economic misfortunes are once again ones that Putin has brought upon the country himself with the invasion of Ukraine.
The economy is already creaking under the weight of international sanctions and on Thursday, when U.S. President Joe Biden meets with European and NATO leaders in Brussels, even more sanctions could be imposed squeezing energy exporter Russia hard.
The Institute of International Finance has said it expects Russia's economy to contract by 15% in 2022, driven by both official sanctions and the `` self-sanctioning '' of foreign companies that have pulled out of Russia.
Predicting a further economic decline of 3% in 2023, the IIF said Wednesday that the war `` will wipe out fifteen years of economic growth. '' Moreover, it said the impact on medium- and long-term prospects is likely to be even more severe, with a `` brain drain '' and low investment likely to weigh heavily.
Despite making limited progress in his invasion so far, Putin appears undeterred.
Russian forces are now believed to be conducting a period of reorganization before resuming large-scale offensive operations on and around Kyiv.
Taras Kuzio, a research fellow at the Henry Jackson Society, wrote in an article for the Atlantic Council on Tuesday that it is `` increasingly obvious that Russian President Vladimir Putin has badly miscalculated. ''
'He appears to have sincerely believed Kremlin propaganda fairytales about the weakness of the Ukrainian military and the readiness of ordinary Ukrainians to welcome his invading troops with cakes and flowers, '' Kuzio said, stating that Putin had drunk the Kremlin `` kool-aid. ''
In addition, Putin seems to have been unprepared for the ferocity of the international response or for the scale of domestic opposition to his invasion, Kuzio noted. `` Thanks to these catastrophic miscalculations, Putin now finds himself with no good options to end a war that is threatening to accelerate Russia's geopolitical decline as a great power. ''
Russia has few friends left on the global stage, with the invasion almost universally condemned. Even Russia's ally China appears uneasy about the potentially prolonged conflict in Ukraine and its impact on the global economy.
At a U.N. General Assembly in early March, 141 countries adopted a resolution demanding that Russia immediately end its military operations in Ukraine. Only a handful of countries — a rogue's gallery of Belarus, North Korea, Eritrea and Syria, all of which are run by dictators — supporting Russia's invasion. Russia's allies Cuba, Nicaragua and China abstained in the vote.
Close watchers of Putin say there are increasing signs of desperation in Russia's military campaign and have questioned how far Putin will go to achieve his objectives.
`` There are deep mysteries about Russian intentions, '' Ian Lesser, vice president of the German Marshall Fund of the U.S., told CNBC earlier this month. `` How far will they go? What would they consider a victory? ''
`` There are all sorts of possibilities, from a complete occupation of Ukraine, which I think most observers would say is not possible, to control over a couple of critical political centres in Ukraine, including Kyiv and possibly including Odesa, or perhaps they take have a larger territorial gambit in mind. ''
In such a scenario, he said Russia would be `` very exposed '' to an ongoing insurgency which also implies ongoing humanitarian costs. `` So there are large dilemmas here, '' Lesser added.
Michal Baranowski, senior fellow and director of the German Marshall Fund's Warsaw office, told CNBC Tuesday, that Putin has `` really over-extended himself. ''
`` We might be looking at the end of Russia as we have known it, '' he said. `` But if he survives this, I think what we might be looking at is the foothills of a new Cold War. '' | business |
European markets watch NATO summit focused on Ukraine | LONDON — European stocks struggled for direction on Thursday with regional investors keeping a close eye on developments in Ukraine, and key meetings of NATO, EU and G-7 leaders in Brussels.
The pan-European Stoxx 600 slipped 0.2% by late morning, reversing earlier gains. Retail stocks dropped 1.4% while oil and gas added 1.1%.
Global markets are closely following high-profile meetings in Brussels on Thursday with a NATO summit, a meeting of EU leaders, and a Group of Seven summit taking place.
The war in Ukraine is top of the agenda as Russia's invasion continues. U.S. President Joe Biden is attending the meetings and Ukrainian President Volodymyr Zelenskyy is expected to join the NATO summit via videolink.
NATO's Secretary General Jens Stoltenberg said Wednesday that the Western military alliance's leaders are expected to commit `` major increases '' in troops along its eastern flank when they meet to discuss Russia's war on Ukraine. More sanctions on Russia could also be announced, Biden has indicated.
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Elsewhere, Asia-Pacific markets struggled for direction on Thursday as yesterday's 5% jump in oil prices took a pause. Meanwhile, U.S. stock futures were little changed on Wednesday night as investors recovered from losses during the regular trading session.
Daimler Truck and Poste Italiane reported earnings on Thursday.
Daimler Truck shares gained more than 8% in early trade after its earnings report, in which the German truck and bus manufacturer said it expects little impact on its business from Russia's invasion of Ukraine and the Covid-19 pandemic.
At the top of the Stoxx 600, British investment company Bridgepoint jumped 11% after reporting a sharp rise in 2021 profit and revenue, and declaring a dividend.
At the bottom of the index, Sweden's Handelsbanken fell 6% by late morning.
On the data front, euro zone and U.K. business growth came in stronger than expected in March, according to new purchasing managers ' index readings published Thursday.
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Oscars producers say show will'respectfully acknowledge ' Ukraine crisis |
The Oscars will not shy away from acknowledging the ongoing war in Ukraine, according to the show's executive producer Will Packer.
`` This is a really [ momentous ] time in humankind history, and we're very aware of that, '' Packer told reporters during a virtual press conference on Thursday. `` And so you don't go into a show like this, I don't think, and not be aware of that and not find a way to respectfully acknowledge where we are and how fortunate we are to even be able to put on this show. ''
This year's Academy Awards will take place amid an increasingly devastating conflict following Russia's invasion of Ukraine roughly one month ago and more than two years after the start of the Covid-19 pandemic, the latter of which Packer said has `` felt like decades. ''
`` You think about the difficulties and challenges of doing a show like this last year -- and we're not completely, obviously, out of that situation in terms of Covid and we 've got other challenges now -- and then you think about the world stage. We will acknowledge those things and do it in a way that is respectful and shows how grateful we are, '' he added. `` And I think part of being grateful is to make sure that we use this opportunity to be a celebration, to be a release and to be an escape for folks out there that really need it. ''
Amy Schumer, Wanda Sykes and Regina Hall are set to host the ceremony, taking place Sunday.
Read More
Schumer, who was not present at the press conference but assured via statement that her absence was not Covid-related, had previously said she suggested to producers that they try to get
Ukrainian President Volodymyr Zelensky
to appear via satellite.
Packer would not say whether the idea was nixed or not, saying only the show's planning was `` still in progress. ''
Skyes quipped, however, `` Isn't he busy right now? ''
Hall, meanwhile, called the producer's plans for an acknowledgment of Ukraine `` beautiful. ''
`` It's a delicate situation and... I think the audience will enjoy it, '' she said. | general |
BlackRock's Fink says Russia-Ukraine crisis could accelerate digital currencies | In a letter to the shareholders of the world's largest asset manager, Fink said the war will push countries to reassess currency dependencies, and that BlackRock was studying digital currencies and stablecoins due to increased client interest.
`` A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption '', he said.
That appeared to strike a different tone from May of last year, when Fink raised some concerns around volatility and said it was too early to determine whether cryptocurrencies were just a speculative trading tool.
In the letter on Thursday, the chairman and CEO of the $ 10 trillion asset manager said the Russia-Ukraine crisis had put an end to the globalization forces at work over the past 30 years.
Access to global capital markets was a `` privilege, not a right, '' he said, adding BlackRock had suspended the purchase of any Russian securities in its active index portfolios following Moscow's invasion of Ukraine.
`` Over the past few weeks, I 've spoken to countless stakeholders, including our clients and employees, who are all looking to understand what could be done to prevent capital from being deployed to Russia. We believe this is the definition of our fiduciary duty, '' Fink said.
BlackRock Inc's total client exposure to Russia had declined to less than $ 1 billion earlier this month from $ 18 billion before Moscow's invasion of Ukraine led to Western sanctions and the closure of the Russian stock market, according to figures supplied by the asset manager this month.
Russia calls its actions in Ukraine a `` special operation. ''
The conflict's impact on global supply chains - already hammered over the past two years because of the coronavirus crisis - is expected to contribute to inflationary pressures that are pushing global central banks to tighten monetary policies and reverse COVID-19-driven accommodative measures.
`` While companies ' and consumers ' balance sheets are strong today, giving them more of a cushion to weather these difficulties, a large-scale reorientation of supply chains will inherently be inflationary, '' said Fink.
He said central banks were dealing with a dilemma they had not faced in decades, having to choose between living with high inflation or slowing economic activity to contain price pressures.
Energy prices have jumped as sanctions on Moscow prompted companies and countries to reassess supply chains and to try to reduce dependence on Russian commodities.
`` Energy security has joined the energy transition as a top global priority, '' Fink said.
( Reporting by Davide Barbuscia in New York; Editing by Matthew Lewis) | business |
ABIONYX Announces Positive Clinical Findings for CER-001 in Treating COVID-19, Published in Biomedecines, Demonstrating That CER-001 Limits Inflammation Effects | TOULOUSE, France -- ( BUSINESS WIRE) -- Regulatory News:
ABIONYX Pharma ( FR0012616852 - ABNX - PEA PME eligible) ( Paris: ABNX), a new generation biotech company dedicated to the discovery and development of innovative therapies for patients, announced today the publication in Biomedecines of the first clinical data demonstrating that CER-001 limits inflammation effects in acute inflammatory conditions such as COVID-19.
COVID-19 is associated with respiratory symptoms characterized by acute lung injury, rapidly progressing to acute respiratory distress syndrome. The pulmonary dysfunction is rapidly accompanied by a major `` cytokine storm '' in which inflammatory cytokines are abundantly released into the bloodstream leading to host tissue damage.
Decreased levels of total cholesterol, LDL and HDL have been observed in patients with COVID-19 infections. Patients with low HDL levels at hospital admission have an increased risk of developing severe disease compared with patients with high HDL levels. With recovery from COVID-19 infections, serum lipid levels return to pre-infection levels
High-density lipoproteins ( HDL) in addition to their reverse cholesterol transport function, exhibit pleiotropic properties, including antiinflammatory, anti-apoptotic, anti-thrombotic, and antioxidant functions.
CER-001 is an HDL mimetic previously tested in various pathological conditions, but never in COVID-19 before a compassionate access authorization ( CAA) granted by the ANSM for bio-HDL ( CER-001) in COVID-19 in January 2021.
The Biomedecines publication reports on the first clinical administration of recombinant HDL particles, CER-001, in a patient with severe COVID-19 infection in an intensive care unit.
Shotgun proteomics were performed on HDL before and after CER-001 infusions and serve to identify the type of proteins contained in HDL. These analyses demonstrated that apoA-I increased after injections while most pro-inflammatory proteins decreased following injections.
Measurement of serum amyloid A-1, inflammatory markers, and cytokines showed a significant decrease in most of them during CER-001 treatment. The results suggest recombinant HDL infusions are a potential therapeutic strategy to be explored in COVID-19 patients.
The publication shows for the first time that intravenous HDL supplementation ( through CER-001 infusion for instance) is feasible in acute inflammatory conditions such as COVID-19, with a tendency to limit inflammation. HDLs have been shown to reduce inflammation in models of bacterial sepsis in part via their ability to bind and remove circulating endotoxins. However, in viral sepsis, HDL infusion may be also beneficial, particularly by reducing inflammationvia a still unknown mechanism.. This case report encourages the conduct of a randomized placebo-controlled trial to evaluate the contribution of rHDL in severe ICU COVID-19 patients.
This scientific publication, entitled `` First Recombinant High-Density Lipoprotein Particles Administration in a Severe ICU COVID-19 Patient, a Multi-Omics Exploriatory Investigation, '' is available online in the journal Biomedecines: https: //www.mdpi.com/2227-9059/10/4/754/htm
ABIONYX Pharma is awaiting further results from ongoing clinical studies in inflammatory conditions.
Next financial press release: Annual Results, April 28th 2022 | general |
In-store digitisation: the secret to high street survival | Recently there has been cautious optimism on high streets around the world. Footfall is slowly creeping up and retailers are looking for ways to make physical stores more attractive to consumers now accustomed to the convenience of online shopping. Kamran Hedjri, CEO of PXP Financial, looks at how physical stores can maintain a foothold in an increasingly digital world. The COVID-19 pandemic saw high street footfall drop dramatically after March 2020. French-based footfall analysis company Mytraffic and commercial property agency Cushman & Wakefield found that from March 2020 to March 2021, major shopping locations across Europe - including London’ s Oxford Street, the Champs-Élysées in Paris and Kurfürstendamm in Berlin - all suffered significant reductions in both domestic and international customer footfall. Meanwhile, according to a report by the Retail Industry Leaders Association in collaboration with McKinsey, e-commerce as a share of total retail sales is set to reach 25-40% after the pandemic. So how can bricks-and-mortar stores lure shoppers back over their thresholds? Creating a new in-store experience The buzzword here is ‘ personalisation’. Consumers only have to login to any online shopping account to be presented with a range of recommendations based on their personal preferences and previous purchases. In essence, they expect retailers to know what they want before they do, and will want to see this functionality replicated in-store. Blanket recommendations will lead to lost loyalty and revenue. Fortunately, the technology exists to help retailers create highly personalised customer experiences that will not only meet new consumer expectations, but set them apart from their competitors. Hyper-personalisation uses a combination of insights from user behaviours and artificial intelligence ( AI) to interpret real-time and historical data about an individual. It can help optimise messaging to ensure it is highly relevant to the customer, and allows for customer profiles to be adjusted in real time, as AI algorithms can re-adjust behavioural data based on each new interaction. An example of this in practice comes from Target, which used AI to detect when customers were about to become new parents and therefore offer essential parenting items. The technology could predict when someone was pregnant by analysing common purchases made shortly before they opened a baby registry. The technology was not only able to predict pregnancy, it could pinpoint which trimester the customer was in. For example, a purchase of unscented lotion could indicate the woman was at the start of her second trimester. Target used this data to personalise messaging and create relevant offers. Target also sent coupons for the most commonly purchased products to pregnant customers, helping cement brand loyalty. Some retailers have also started using GPS-based geofencing technology to target customers. It allows them to define a range around their location, so when a customer comes close to that defined location, they will automatically receive a notification. This message might include news of a sale, or offers on products they might be interested in. When executed well, these technologies give brands a point of differentiation and a competitive advantage, and when the data collected is used responsibly, retailers can create a seamless shopping experience. But consistency is key; it is important that regardless of the channel used by the consumer, the shopping experience remains the same. Inevitably, the adoption of new technologies will transform the look and feel of bricks-and-mortar stores. So, what can shoppers expect to see on their hi-tech high street? The store of the future The most obvious difference will potentially be the absence of a traditional till. Point of Sale ( POS) will no longer be a stationary counter, but wherever sales staff can interact with customers most effectively and safely. The global Mobile Point-of-Sale ( mPOS) market is expected to be worth around 293.1Bn USD by 2031, growing at a CAGR of 5.99% during the forecast period 2021 to 2031. There were 1,490.5 million users of mPOS payments worldwide as of 2021, all benefitting from the speed and convenience it offers. There will also be a rise in self-service and checkout-free stores. These are a relatively new concept in many European countries, but well established in other parts of the world, including China and South Korea. In Norway and Sweden, some small rural stores are operating with no staff at all, with customers able to unlock stores doors with their smartphones. More retailers are likely to embrace this technology as it addresses shoppers’ number one pain point – queuing. Less checkout space means more floor space for merchandising, which will appeal to many retailers. Others, however, will opt not to display much merchandise at all in a bid to further personalise their in-store experience. Instead of browsing rails and shelves, shoppers will be able to pre-book an appointment in-store with a personal shopper who will present a pre-prepared or pre-paid selection of items. Because this approach calls for more backroom storage space, it will still benefit from the space created by removing fixed POS stations. Of course, technology can not completely replace the human interaction that makes in-store shopping unique. But in future, sales assistants will be able to use technology to improve the customer experience. Assisted selling mobile devices will enable sales associates to bridge the gap between physical and online intelligence to provide a unique, omni-channel experience. Staff will have instant access to essential product details to answer customer queries on the spot, but even more important, they will have customer preferences at their fingertips. This means having the ability to make tailored recommendations, create upselling opportunities and increase customer satisfaction and loyalty. New ways to pay As we emerge from the pandemic, and in a bid to meet new consumer expectations, retailers will also have to recognise the importance of accepting a wider range of alternative payment methods ( APMs) to meet new customer expectations not only online but in store too. APMs are growing in popularity and in many countries are already the de facto way to pay online. For example, 57% of German shoppers prefer to use PayPal when shopping online, and in the Netherlands, consumers make 60% of their online purchases with the local bank transfer payment, iDEAL. In physical stores, consumers will expect the option not just to pay by card, but with a tap of their smartphones. For this reason, QR code payments, ( in which consumers scan a QR code displayed by the merchant with their smartphone to pay for their goods), may see a rise in popularity. Not only is it an incredibly secure card-not-present payment method, because all information is encrypted and no customer details are stored on file, but it works on and offline. Venmo is a U.S.-based digital wallet service owned by PayPal. According to a February 2022 survey of online payment users in the United States, 32% of respondents had used Venmo in the past 12 months. After installing the Venmo app and linking their Venmo accounts to their credit card, debit card, or bank accounts, Venmo users can instantly exchange funds among one another, with Venmo functioning as a virtual intermediary. This peer-to-peer ( P2P) payment app allows for the exchange of money directly between individuals, and is one of a number of enterprises capitalising on the growing P2P economy. P2P is a simple way for retailers to accept a new way to pay without the hurdles typical of new payment technology. It puts the technology in the hands of the consumers who have the app, have tied it to their bank account, and learned how to use it. All retailers have to do is let them pay with it. Buy Now Pay Later ( BNPL) is also set to play an increasingly important role in retail as consumers move away from credit cards and look for more flexible payment options in store. In recent years the retail industry has seen companies such as Affirm, Afterpay and Sezzle grow in popularity, and the growth of BNPL hit record-breaking levels. In 2021 Cornerstone Advisors predicted consumers would make nearly $ 100 billion in retail purchases using BNPL. Finally, open banking will extend its reach to retail. As yet, retailers have not fully appreciated the implications of open banking for their sector, but this will soon change as payment service providers are already preparing commercial solutions, and merchants will soon be able to take advantage of the new SEPA credit transfers ( SCT) which supports instant payments. By using immediate payments rather than traditional card payments, retailers will not only receive their funds faster, but the processing fees are expected to be less than a card payment. Both online and bricks and mortar retailers, will benefit from these features. Many traditional retailers are actively embracing the idea of connected commerce. Abercrombie & Fitch, for example, is investing in the ‘ phygital’ concept by focusing on a seamless digital checkout experience for customers. It is among a growing number of retailers who recognise that to compete with their online counterparts, stores must become more experiential, and innovation must be used to reinvigorate traditional customer service. All this can be facilitated with payments technology.
948 | tech |
Mister Car Wash Announces Fourth Quarter and Fiscal 2021 Financial Results | Net revenues increased 18.2% in Q4 and 31.9% in 2021
Comparable store sales increased 14.6% in Q4 and 31.7% in 2021
Unlimited Wash Club memberships increased 34.3% in 2021
Added 36 net new locations in Q4 and 54 new locations in 2021
Provides Fiscal 2022 Outlook
TUCSON, Ariz. -- ( BUSINESS WIRE) -- Mister Car Wash, Inc. ( the “ Company ”) ( NYSE: MCW), the nation’ s largest car wash brand, today announced its financial results for the quarter and year ended December 31, 2021.
“ We are pleased with the way we closed 2021 and the strong start we are seeing in 2022. Demand for our services remains healthy as more motorists value the convenience of professional car washing and the ease of being an Unlimited Wash Club member, ” commented John Lai, Chairperson and CEO of Mister Car Wash. “ As we continue to add more units through greenfields and acquisitions, we remain focused on investing in our team members and developing our future generation of leaders. Our people first culture and unwavering commitment to operational excellence creates our amazing customer experience. 2021 was an extraordinary year for Mister Car Wash, and I thank our team members for their passion and commitment to our customers and our business. ”
Highlights for the Fourth Quarter 2021
Highlights for the Fiscal 2021
* Compounded two-year comparable stores sales growth is calculated as the compounded growth rate of 2021 comparable stores sales growth and 2020 comparable stores sales growth for the three- month and full year periods ending December 31, 2021 and December 31, 2020.
( 1) See Use of Non-GAAP Financial Measures and Reconciliation of GAAP to Non-GAAP Financial Measures disclosures included below in this press release.
Store Count
Three Months Ended December 31,
Year Ended
December 31,
2020
2021
2021
Beginning location count
338
360
342
Locations acquired
2
31
38
Greenfield locations opened
3
6
17
Closures
1
1
1
Ending location count
342
396
396
Balance Sheet and Cash Flow Highlights
Fiscal 2022 Outlook
The Company’ s outlook for the fiscal year ending December 31, 2022 compared to the actual results of fiscal 2021 is the following:
2022 Outlook
2021 Actual
Net revenues
$ 875 to $ 895 million
$ 758 million
Comparable stores sales growth%
5.0% to 7.0%
31.7%
GAAP net income ( loss)
$ 139 to $ 149 million
$ ( 22) million
Adjusted net income
$ 144 to $ 153 million
$ 137 million
Adjusted EBITDA
$ 284 to $ 297 million
$ 254 million
Adjusted net income per share, diluted
$ 0.44 to $ 0.47
$ 0.44
Weighted average common shares outstanding, diluted, full year
329 million
309 million * *
New greenfield locations
Approx. 30
17
Capital expenditures
$ 285 to $ 315 million
$ 126 million
Sale leasebacks
$ 140 to $ 150 million
$ 97 million
* * Represents adjusted weighted average common shares outstanding for potentially dilutive securities. GAAP diluted weighted average common shares outstanding were 280 million for fiscal 2021. Refer to the included reconciliation tables.
Conference Call Details
A conference call to discuss the Company’ s financial results for the fourth quarter and fiscal 2021 and to provide a business update is scheduled for today, March 24, 2022 at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 855-209-8213 ( international callers please dial 1-412-542-4146) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https: //ir.mistercarwash.com/.
A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at https: //ir.mistercarwash.com/ for 90 days.
About Mister Car Wash® | Inspiring People to Shine®
Headquartered in Tucson, Arizona, Mister Car Wash, Inc. ( NYSE: MCW) operates approximately 400 car washes nationwide and has the largest car wash subscription program in North America. With over 25 years of car wash experience, the Mister team is focused on operational excellence and delivering a memorable customer experience through elevated hospitality. The Mister brand is anchored in quality, friendliness and a commitment to the communities we serve as good stewards of the environment and the resources we use. We believe that when you take care of your people, they will take care of your customers. To learn more visit: https: //mistercarwash.com.
Use of Non-GAAP Financial Measures
This press release includes references to non-GAAP financial measures, including Adjusted EBITDA, Adjusted net income ( loss), Adjusted net income ( loss) per share and Adjusted net income ( loss) per share, on a diluted basis ( the “ Company’ s Non-GAAP Financial Measures ”). These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with the Company’ s financial statements prepared in accordance with GAAP. The reconciliations of the Company’ s non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
The Company’ s Non-GAAP Financial Measures are non-GAAP measures of the Company’ s financial performance and should not be considered as an alternative to net income as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP, and should not be construed as an inference that the Company’ s future results will be unaffected by unusual or nonrecurring items. Adjusted EBITDA is defined as net ( loss) income before interest expense, net, income tax ( benefit) expense, depreciation and amortization expense, ( gain) loss on sale of assets, gain on sale of quick lube facilities, dividend recapitalization fees and payments, loss on early debt extinguishment, stock-based compensation expense, acquisition expenses, management fees, non-cash rent expense, expenses associated with the IPO, and other nonrecurring charges. Adjusted net income ( loss) is defined as net income ( loss) before interest expense, ( gain) loss on sale of assets, dividend recapitalization fees and payments, loss on debt extinguishment, stock-based compensation expense, acquisition expenses, management fees, non-cash rent expense, expenses associated with the IPO, other nonrecurring charges and the tax impact of adjustments to net ( loss) income. Adjusted net ( loss) income per share is defined as basic net ( loss) income per share before ( gain) loss on sale of assets, gain on sale of quick lube facilities, dividend recapitalization fees and payments, loss on debt extinguishment, stock-based compensation expense, acquisition expenses, management fees, non-cash rent expense, expenses associated with the IPO, other nonrecurring charges and the tax impact of adjustments to basic net ( loss) income per share. Diluted adjusted net income per share is defined as diluted net ( loss) income per share before ( gain) loss on sale of assets, gain on sale of quick lube facilities, dividend recapitalization fees and payments, loss on debt extinguishment, stock-based compensation expense, acquisition expenses, management fees, non-cash rent expense, expenses associated with the IPO, other nonrecurring charges and the tax impact of adjustments to basic net ( loss) income per share.
The Company presents the Company’ s Non-GAAP Financial Measures because management believes that these measures assist investors and analysts in comparing the Company’ s operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company’ s ongoing operating performance. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating Company’ s Non-GAAP Financial Measures, investors should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in the Company’ s presentation of Company’ s Non-GAAP Financial Measures. The Company’ s presentation of Company’ s Non-GAAP Financial Measures should not be construed as an inference that the Company’ s future results will be unaffected by unusual or nonrecurring items. There can be no assurance that the Company will not modify the presentation of the Company’ s Non-GAAP Financial Measures in future periods, and any such modification may be material. In addition, the Company’ s Non-GAAP Financial Measures may not be comparable to similarly titled measures used by other companies in the Company’ s industry or across different industries.
Management believes that the Company’ s Non-GAAP Financial Measures are helpful in highlighting trends in the Company’ s core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Management also uses Adjusted EBITDA in connection with establishing discretionary annual incentive compensation; to supplement U.S. GAAP measures of performance in the evaluation of the effectiveness of the Company’ s business strategies; to make budgeting decisions; and because the Company’ s credit facilities use measures similar to Adjusted EBITDA to measure the Company’ s compliance with certain covenants.
The Company’ s Non-GAAP Financial Measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company’ s results as reported under U.S. GAAP. Some of these limitations include, for example, Adjusted EBITDA does not reflect: the Company’ s cash expenditure or future requirements for capital expenditures or contractual commitments; the Company’ s cash requirements for the Company’ s working capital needs; the interest expense and the cash requirements necessary to service interest or principal payments on the Company’ s debt; cash requirements for replacement of assets that are being depreciated and amortized; and the impact of certain cash charges or cash receipts resulting from matters management does not find indicative of the Company’ s ongoing operations. In addition, other companies in the Company’ s industry may calculate similarly titled non-GAAP financial measures differently than the Company.
A reconciliation of the Company’ s full year guidance for Adjusted EBITDA, Adjusted net income ( loss) and Adjusted net income per share, diluted, for fiscal 2022 to the most directly comparable GAAP financial measures can not be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including acquisition expenses, other expenses and the other adjustments reflected in our reconciliation of historical non-GAAP financial measures, the amounts of which, could be material.
Forward-Looking Statements
This press release includes “ forward-looking statements ” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to Mister Car Wash’ s expansion efforts and expected growth and financial and operational results for fiscal 2022. Words including “ anticipate, ” “ believe, ” “ continue, ” “ could, ” “ estimate, ” “ expect, ” “ intend, ” “ may, ” “ might, ” “ plan, ” “ potential, ” “ predict, ” “ seek, ” or “ should, ” or the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
These forward-looking statements are based on management’ s current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’ s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: developments involving the Company’ s competitors and its industry; the Company’ s ability to attract new customers, retain existing customers and maintain or grow its number of subscription members; potential future impacts of the COVID-19 pandemic, including from variants thereof; the Company’ s ability to open and operate new locations on a timely and cost-effective manner; the Company’ s ability to identify suitable acquisition targets and consummate such acquisitions on attractive terms; the Company’ s ability to maintain and enhance its brand reputation; the Company’ s reliance on and relationships with third-party suppliers; risk related to the Company’ s indebtedness and capital requirements; risk related to governmental laws and regulations applicable to the Company and its business; the Company’ s ability to maintain data and information security and prevent unauthorized access to electronic and other confidential information; and the other important factors discussed under the caption “ Risk Factors ” in the Company’ s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, as such factors may be updated from time to time in its other filings with the SEC, including the Company’ s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, accessible on the SEC’ s website at www.sec.gov and Investors Relations section of the Company’ s website at www.mistercarwash.com.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Condensed Consolidated Statements of Operations ( Amounts in thousands, except share and per share amounts) ( Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2021
2020
2021
2020
Net revenues
$
191,459
$
162,037
$
758,357
$
574,941
Cost of labor and chemicals
62,120
52,097
265,171
193,971
Other store operating expenses
71,180
60,067
266,069
224,419
General and administrative
28,800
14,272
254,815
51,341
Gain on sale of assets
( 17,629
)
( 34,115
)
( 23,188
)
( 37,888
)
Total costs and expenses
144,471
92,321
762,867
431,843
Operating ( loss) income
46,988
69,716
( 4,510
)
143,098
Other expense:
Interest expense, net
6,008
14,668
39,424
64,009
Loss on extinguishment of debt
21
-
3,204
1,918
Total other expense
6,029
14,668
42,628
65,927
( Loss) income before taxes
40,959
55,048
( 47,138
)
77,171
Income tax ( benefit) provision
4,654
14,620
( 25,093
)
16,768
Net ( loss) income
$
36,305
$
40,428
$
( 22,045
)
$
60,403
Other comprehensive income ( loss), net of tax:
Gain ( loss) on interest rate swap
941
72
1,342
( 1,117
)
Total comprehensive income ( loss)
$
37,246
$
40,500
$
( 20,703
)
$
59,286
Net ( loss) income per share:
Basic
$
0.12
$
0.15
$
( 0.08
)
$
0.23
Diluted
$
0.11
$
0.15
$
( 0.08
)
$
0.22
Weighted-average common shares outstanding:
Basic
297,509,674
261,906,007
280,215,579
261,773,267
Diluted
326,014,063
276,158,642
280,215,579
275,920,367
Condensed Consolidated Balance Sheets ( Amounts in thousands, except share and per share amounts) ( Unaudited)
As of
December 31, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
19,738
$
114,647
Restricted cash
120
3,227
Accounts receivable, net
1,090
1,397
Other receivables
22,796
4,258
Inventory, net
6,334
6,415
Prepaid expenses and other current assets
8,766
5,026
Total current assets
58,844
134,970
Property and equipment, net
472,448
263,034
Operating lease right of use assets, net
718,533
681,538
Other intangible assets, net
129,820
127,019
Goodwill
1,060,221
737,415
Other assets
8,236
4,477
Total assets
$
2,448,102
$
1,948,453
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
27,346
$
24,374
Accrued payroll and related expenses
16,963
12,531
Other accrued expenses
20,201
19,157
Current maturities of debt
—
8,400
Current maturities of operating lease liability
37,345
33,485
Current maturities of finance lease liability
559
495
Deferred revenue
27,815
24,505
Total current liabilities
130,229
122,947
Long-term portion of debt, net
896,336
1,054,820
Operating lease liability
717,552
685,479
Financing lease liability
15,359
15,917
Long-term deferred tax liability
22,603
46,082
Other long-term liabilities
8,871
6,558
Total liabilities
1,790,950
1,931,803
Stockholders’ equity:
Common stock, $ 0.01 par value, 1,000,000,000 shares authorized, 300,120,451 and 261,907,622 shares outstanding as of December 31, 2021 and December 31, 2020, respectively
3,007
2,622
Additional paid-in capital
752,343
91,523
Accumulated other comprehensive income ( loss)
225
( 1,117
)
Accumulated deficit
( 98,423
)
( 76,378
)
Total stockholders’ equity
657,152
16,650
Total liabilities and stockholders’ equity
$
2,448,102
$
1,948,453
Condensed Consolidated Statements of Cash Flows ( Amounts in thousands) ( Unaudited)
Year Ended December 31,
2021
2020
Cash flows from operating activities:
Net ( loss) income
$
( 22,045
)
$
60,403
Adjustments to reconcile net ( loss) income to net cash provided by operating activities:
Depreciation and amortization expense
50,559
45,289
Stock-based compensation expense
216,579
1,493
Gain on sale of assets
( 23,188
)
( 37,888
)
Loss on extinguishment of debt
3,204
1,918
Amortization of deferred debt issuance costs
1,155
1,139
Non-cash lease expense
36,005
34,280
Deferred income tax
( 27,330
)
21,640
Changes in assets and liabilities:
Accounts receivable, net
540
1,031
Other receivables
( 17,956
)
( 742
)
Inventory, net
540
935
Prepaid expenses and other current assets
( 3,531
)
( 58
)
Accounts payable
1,827
( 2,813
)
Accrued expenses
( 6,336
)
4,844
Deferred revenue
1,697
( 4,297
)
Operating lease liability
( 34,266
)
( 30,784
)
Other noncurrent assets and liabilities
( 4,100
)
5,456
Net cash provided by operating activities
$
173,354
$
101,846
Cash flows from investing activities:
Purchases of property and equipment
( 125,764
)
( 58,744
)
Acquisition of car wash operations, net of cash acquired
( 514,003
)
( 33,584
)
Proceeds from sale of property and equipment
95,935
23,589
Proceeds from sale of Oil Change Express
—
55,386
Net cash used in investing activities
$
( 543,832
)
$
( 13,353
)
Cash flows from financing activities:
Proceeds from issuance of common stock pursuant to initial public offering
468,750
—
Proceeds from exercise of stock options
4,972
46
Payments for repurchases of common stock
( 308
)
( 372
)
Proceeds from secondary offering for employee tax withholdings
20,859
—
Tax withholdings paid on behalf of employees for secondary offering
( 20,859
)
—
Proceeds from debt borrowings
290,000
45,625
Proceeds from revolving line of credit
—
111,681
Payments on debt borrowings
( 456,972
)
( 8,400
)
Payments on revolving line of credit
—
( 125,681
)
Payments of debt extinguishment costs
( 28
)
—
Payments of debt issuance costs
( 4,263
)
—
Principal payments on finance lease obligations
( 495
)
( 223
)
Payments of issuance costs pursuant to initial public offering
( 29,194
)
—
Net cash provided by financing activities
$
272,462
$
22,676
Net change in cash and cash equivalents, and restricted cash during period
( 98,016
)
111,169
Cash and cash equivalents, and restricted cash at beginning of period
117,874
6,705
Cash and cash equivalents, and restricted cash at end of period
$
19,858
$
117,874
Supplemental disclosure of cash flow information:
Cash paid for interest
$
39,126
$
56,669
Cash paid for income taxes
$
8,889
$
( 7,437
)
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment in accounts payable
$
17,280
$
16,625
Stock option exercise proceeds in other receivables
$
582
$
-
Non-cash property and equipment additions from financing obligations
$
-
$
15,597
GAAP to Non-GAAP Reconciliations ( Amounts in thousands, except share and per share amounts) ( Unaudited)
Three Months Ended
December 31,
Year Ended December 31,
2021
2020
2021
2020
Reconciliation of net ( loss) income to Adjusted EBITDA:
Net income ( loss)
$
36,305
$
40,428
$
( 22,045
)
$
60,403
Interest expense, net
6,008
14,668
39,424
64,009
Income tax ( benefit) provision
4,654
14,620
( 25,093
)
16,768
Depreciation and amortization expense
14,029
11,785
50,559
45,289
Gain on sale of assets
( 17,629
)
( 4,342
)
( 23,188
)
( 8,115
)
Gain on sale of quick lube facilities
—
( 29,773
)
—
( 29,773
)
Dividend recapitalization fees and payments
—
( 124
)
—
650
Loss on extinguishment of debt
21
—
3,204
1,918
Stock-based compensation expense
6,287
306
216,579
1,493
Acquisition expenses
2,640
598
4,617
2,163
Management fees
—
—
500
250
Non-cash rent expense
523
520
1,659
3,695
Expenses associated with initial public offering
25
—
1,599
—
Expenses associated with secondary public offering
—
—
498
—
Other
4,485
789
6,035
2,334
Adjusted EBITDA
$
57,348
$
49,475
$
254,348
$
161,084
Three Months Ended
December 31,
Year Ended December 31,
2021
2020
2021
2020
Reconciliation of weighted-average common shares outstanding - diluted to Adjusted weighted-average common shares outstanding - diluted:
Weighted-average common shares outstanding - diluted
326,014,063
276,158,642
280,215,579
275,920,367
Adjustments for potentially dilutive securities
—
—
28,504,389
—
Adjusted weighted-average common shares outstanding - diluted
326,014,063
276,158,642
308,719,968
275,920,367
Three Months Ended
December 31,
Year Ended December 31,
2021
2020
2021
2020
Reconciliation of net ( loss) income to Adjusted Net Income:
Net ( loss) income
$
36,305
$
40,428
$
( 22,045
)
$
60,403
Gain on sale of assets
( 17,629
)
( 4,342
)
( 23,188
)
( 8,115
)
Gain on sale of quick lube facilities
—
( 29,773
)
—
( 29,773
)
Dividend recapitalization fees and payments
—
( 124
)
—
650
Loss on extinguishment of debt
21
—
3,204
1,918
Stock-based compensation expense
6,287
306
216,579
1,493
Acquisition expenses
2,640
598
4,617
2,163
Management fees
—
—
500
250
Non-cash rent expense
523
520
1,659
3,695
Expenses associated with initial public offering
25
—
1,599
—
Expenses associated with secondary public offering
—
—
498
—
Other
4,485
789
6,035
2,334
Tax impact of adjustments to net ( loss) income
912
8,006
( 52,876
)
6,346
Adjusted Net Income
$
33,569
$
16,408
$
136,582
$
41,364
Diluted Adjusted Net Income per Share
$
0.10
$
0.06
$
0.44
$
0.15
Adjusted weighted-average common shares outstanding - diluted
326,014,063
276,158,642
308,719,968
275,920,367 | general |
Orion Office REIT Inc.® Announces Fourth Quarter 2021 Operating Results | PHOENIX -- ( BUSINESS WIRE) -- Orion Office REIT Inc. ( NYSE: ONL) ( “ Orion ” or the “ Company ”), a fully-integrated real estate investment trust focused on the ownership, acquisition and management of single-tenant net lease mission-critical suburban office properties located across the U.S., announced today its operating results for the fourth quarter ended December 31, 2021. Financial results for the periods prior to November 1 only include Orion’ s assets previously owned by Realty Income Corporation ( “ Realty Income ”), and financial results for the period from November 1 to December 31 include Orion’ s entire portfolio of 92 properties which were previously owned by Realty Income and VEREIT, Inc. ( “ VEREIT ”).
“ We are excited by the progress we have made to position Orion for future success. Since the spin, we have executed lease extensions with high quality tenants at some of our largest properties, increasing the Company’ s weighted average lease term to 4.1 years as of December 31, 2021 in the process. We have actively grown the portfolio in our targeted markets through our joint venture with Arch Street Capital Advisors and have agreed to sell and are continuing to negotiate the sale of certain non-core properties, as we look to optimize the portfolio, ” stated Paul McDowell, Orion’ s Chief Executive Officer and President.
“ Additionally, we refinanced the short-term bridge loan we entered into at the time of the spin-off from Realty Income with five-year fixed rate mortgage debt, and have put in place a strong balance sheet with ample liquidity to help fuel our growth. Driven by de-urbanization and the continued push of corporate campuses out to suburban markets, we remain confident in our strategy to build the only pure-play net lease REIT dedicated to suburban office as America returns to the workplace in the coming years. ”
Fourth Quarter 2021 Financial and Operating Highlights
Subsequent to Quarter-End Highlights
Fourth Quarter 2021 Financial Results
Revenues Revenues for the fourth quarter 2021 were $ 40.8 million. Pro forma revenues for the two-month period November 1, 2021 through December 31, 2021 were $ 36.5 million.
Net Loss and Net Loss Per Share Net loss attributable to common stockholders for the fourth quarter 2021 was $ ( 54.9) million, or $ ( 0.97) per share. On a pro forma basis for the two-month period from November 1, 2021 through December 31, 2021, net loss attributable to common stockholders was $ ( 1.4) million, or $ ( 0.02) per share.
EBITDA, EBITDAre and Adjusted EBITDA For the fourth quarter of 2021, EBITDA was a loss of $ ( 25.0) million, EBITDAre was $ 24.9 million, and Adjusted EBITDA was $ 30.0 million. On a pro forma basis for the two-month period from November 1, 2021 through December 31, 2021, EBITDA and EBITDAre were each $ 26.5 million, and Adjusted EBITDA was $ 26.3 million.
Funds from Operations ( “ FFO '') and FFO per Share FFO for the fourth quarter 2021 was $ 21.4 million, or $ 0.38 per share. On a pro forma basis for the two-month period from November 1, 2021 through December 31, 2021, FFO was $ 23.1 million, or $ 0.41 per share.
Core FFO and Core FFO per Share Core FFO for the fourth quarter 2021 was $ 26.8 million, or $ 0.47 per share. On a pro forma basis for the two-month period from November 1, 2021 through December 31, 2021, Core FFO was $ 23.1 million, or $ 0.41 per share.
Funds Available for Distribution ( “ FAD ”) and FAD per Share FAD for the fourth quarter 2021 was $ 17.1 million, or $ 0.30 per share. On a pro forma basis for the two-month period from November 1, 2021 through December 31, 2021, FAD was $ 13.3 million, or $ 0.24 per share.
Real Estate Portfolio
As of December 31, 2021, the Company had a real estate portfolio comprised of 92 properties, and a 20% ownership interest in a joint venture comprising six properties. The Company’ s portfolio occupancy rate was 91.9%, approximately 67.7% of the Company’ s annualized base rent as of December 31, 2021 was from tenants with an investment grade credit rating, and the weighted average remaining lease term was 4.1 years.
Leasing Activity
In November 2021, Orion signed a 11-year lease extension with Merrill Lynch, Pierce, Fenner & Smith Incorporated at three Class A office buildings located near Princeton, NJ, in Hopewell. The properties comprise approximately 482,000 rentable square feet and represent Orion’ s largest investment measured by annualized base rent. The early renewal extends the lease with Merrill Lynch for 11 years beyond the initial term until 2035, and the lease extension increases the Company’ s weighted average lease term from 3.4 years prior to the spin-off to 4.1 years as of December 31, 2021. The extension is on market terms for renewals of this magnitude and duration, and includes customary tenant concessions. The extension also includes a tenant contraction option with respect to one of the three buildings at the end of years six and eight of the extension term, subject to payment of a fee and the satisfaction of certain other conditions.
On January 1, 2022, the leases with tenants at Orion’ s Northbrook, IL and Berkeley, MO properties expired, and those properties are currently vacant. Orion now has 10 vacant assets.
Orion believes that lease maturities and vacant assets may represent a value creation opportunity in the coming years for the Company. Orion will employ active asset management strategies and leverage its tenant and broker relationships to attract and retain high-quality creditworthy tenants, drive re-leasing and renewal activity and maximize tenant retention rates.
Subsequent to year end, at one of the Company’ s properties in The Woodlands, TX, Orion executed a new lease expansion for approximately 41,000 square feet of vacant space with an existing tenant, which now leases 92% of the building on an 11-year lease term. Additionally, at the Company’ s property in Plano, TX, Orion and an existing tenant executed a 2-year extension covering approximately 54,000 square feet, and at Orion’ s property in Augusta, GA, the existing tenant executed a 5-year extension of the entire approximately 78,000 square feet.
Acquisitions and Dispositions
Orion and Arch Street Capital Advisors have entered into a joint venture focused on the acquisition of long-term net leased, single-tenant office properties ( the “ Joint Venture ”). Orion’ s 20% interest in the Joint Venture was assumed from Realty Income as part of the Company’ s spin-off. Through February 28, 2022, the Joint Venture has acquired six assets for approximately $ 227.0 million.
On December 29, 2021, the Joint Venture acquired an approximately 127,000 square foot office property in St. Louis, MO leased to an investment grade tenant with a 13-year remaining lease term, for $ 30.5 million.
Orion is actively reviewing a number of potential property acquisitions for both its balance sheet and the Joint Venture.
Orion has also made solid progress on selling non-core assets and is in various stages of negotiation and agreement to sell three properties for approximately $ 21.4 million.
Balance Sheet
As of December 31, 2021, the Company has total debt of $ 647.3 million, comprised of $ 175.0 million under the bank term loan, $ 90.0 million under the Company’ s $ 425.0 million-capacity revolving credit facility, $ 355.0 million under the short-term bridge loan, and $ 27.3 million which represents Orion’ s pro rata share of indebtedness of the Joint Venture.
Subsequent to year end, Orion refinanced its short-term bridge loan with a $ 355.0 million five-year, 4.971% fixed-rate CMBS loan that is collateralized by 19 properties. As part of closing the CMBS loan, the company deposited $ 35.5 million of required lender reserves primarily for future rent concessions and tenant improvements with cash on hand and borrowings on the revolving credit facility. '
As of March 15, 2022, Orion had $ 346.4 million of liquidity, comprised of $ 12.4 million cash on hand and $ 334.0 million undrawn availability on the Company’ s revolving credit facility.
Dividend
On March 22, 2022, Orion’ s Board of Directors declared a quarterly cash dividend of $ 0.10 per share for the first quarter of 2022, payable on April 15, 2022, to stockholders of record as of March 31, 2022. The dividend was sized to permit future growth while preserving meaningful free cash flow for reinvestment into the current portfolio and for accretive investments.
2022 Outlook
Based on current economic conditions and the Company’ s financial condition, Orion is providing the following guidance for fiscal year 2022:
Low
High
Core FFO per share
$ 1.66
-
$ 1.74
General and Administrative Expenses
$ 17 million
-
$ 18 million
Net Debt to Adjusted EBITDA
4.7x
-
5.5x
Webcast and Conference Call Information
Orion will host a webcast and conference call to review its financial results at 5:00 p.m. ET on Thursday, March 24th, 2022. The call will be led by Paul McDowell, Chief Executive Officer and President, and Gavin Brandon, Chief Financial Officer, Executive Vice President and Treasurer. To participate, the webcast may be accessed live by visiting the “ Investors ” section of Orion’ s website at https: //www.onlreit.com/investors.
To join the conference call, callers from the United States and Canada should dial 1-877-407-3982, and international callers should dial 1-201-493-6780, ten minutes prior to the scheduled call time.
Replay Information
A replay of the call may be accessed via the web by visiting the “ Investors ” section of Orion’ s website at https: //www.onlreit.com/investors. The conference call replay will be available after 8:00 p.m. ET on Thursday, March 24th, 2022 through 11:59 a.m. ET on Thursday, April 7th, 2022. To access the replay, callers may dial 1-844-512-2921 ( domestic) or 1-412-317-6671 ( international) and use passcode, 13726911.
Non-GAAP Financial Measures
To supplement the presentation of the Company’ s financial results prepared in accordance with U.S. generally accepted accounting principles ( `` GAAP ''), this press release and the accompanying quarterly supplemental information as of and for the period ended December 31, 2021 contain certain financial measures that are not prepared in accordance with GAAP, including Funds from Operations ( “ FFO ”), Core Funds from Operations ( “ Core FFO ”), Funds Available for Distribution ( “ FAD ”), Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ( “ EBITDAre ”), Adjusted EBITDA, and Pro Forma Results of Operations for the two-month period November 1, 2021 through December 31, 2021. Please see the attachments to this press release for how Orion defines these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.
About Orion Office REIT Inc.
Orion Office REIT Inc. ( NYSE: ONL) is an internally-managed real estate investment trust engaged in the ownership, acquisition and management of a diversified portfolio of mission-critical and headquarters office buildings located in high-quality suburban markets across the U.S. and leased primarily on a single-tenant net lease basis to creditworthy tenants. The company was founded on July 1, 2021, spun-off from Realty Income ( NYSE: O) on November 12, 2021 and began trading on the New York Stock Exchange on November 15, 2021. The company is headquartered in Phoenix, Arizona and has an office in New York, New York. For additional information on the company and its properties, please visit onlreit.com.
About the Data
This data and other information described herein are as of and for the three months ended December 31, 2021, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with the financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in Orion Office REIT Inc.'s ( the `` Company, '' `` Orion, '' `` us, '' `` our '' and `` we '') Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.
In compliance with the applicable GAAP requirements, results for the three months ended December 31, 2021 include the results of operations of only the Company’ s office properties formerly owned by Realty Income for the period from October 1 to October 31, and all of the Company’ s properties for the period from November 1 to December 31. Because the Company’ s results do not include all of the Company’ s operating properties for the entirety of the three months ended December 31, 2021, we have included in this presentation, on a supplemental basis, certain results of operations of the entire portfolio for the two-month period from November 1, 2021 to December 31, 2021. In addition, we also include in this presentation, non-GAAP pro forma financial information for the two-month period from November 1, 2021 to December 31, 2021, which adjusts the results of operations from that period for certain non-recurring items, such as impairment charges, acquisition fees related to our unconsolidated joint venture, transaction costs related to our spin-off from Realty Income and lease termination income. We believe presentation of the Company’ s pro forma results of operations is helpful supplemental information because they exclude the effects of certain infrequent or non-recurring items which can create significant earnings volatility, but which do not directly relate to our core recurring business operations. As a result, we believe the pro forma results can help facilitate comparison of operating performance between periods. Other REITs may not report pro forma results or define pro forma results in the same manner as us; therefore our computation of pro forma results may not be comparable to other REITs.
Definitions
Annualized Base Rent is the monthly aggregate cash amount charged to tenants under our leases ( including monthly base rent receivables and certain contractually obligated reimbursements by our tenants), as of the final date of the applicable period, multiplied by 12, including the Company's pro rata share of such amounts related to the Unconsolidated Joint Venture.
Cash Cap Rate for real estate properties equals the estimated future 12-month Cash NOI, excluding any rent concessions or abatements, at the time of the acquisition or disposition divided by the purchase or sale price. For any properties acquired or disposed of as a portfolio, the amount presented represents the portfolio cash cap rate. For certain properties, the Cash Cap Rate may be equal to future 12-month contractual rental revenue, excluding any rent concessions or abatements, divided by the purchase price or sale price, as the majority of the Company's properties are subject to Net Leases.
CPI refers to a lease in which base rent is adjusted based on changes in a consumer price index.
Double Net Lease ( `` NN '') is a lease under which the tenant agrees to pay all operating expenses associated with the property ( e.g., real estate taxes, insurance, maintenance), but excludes some or all major repairs ( e.g., roof, structure, parking lot, in each case, as further defined in the applicable lease).
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ( `` EBITDAre '') and Adjusted EBITDA
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ( `` Nareit ''), an industry trade group, has promulgated a supplemental performance measure known as Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income or loss computed in accordance with GAAP, adjusted for interest expense, income tax expense ( benefit), depreciation and amortization, impairment write-downs on real estate, gains or losses from disposition of property and our pro rata share of EBITDAre adjustments related to the Unconsolidated Joint Venture. We calculated EBITDAre in accordance with Nareit's definition described above.
In addition to EBITDAre, we use Adjusted EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Adjusted EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as acquisition-related expenses and transaction costs. We also exclude certain non-cash items such as impairments of intangible and right of use assets, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, amortization of intangibles, above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities and our pro rata share of Adjusted EBITDA adjustments related to the Unconsolidated Joint Venture. Management believes that excluding these costs from EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, EBITDAre and Adjusted EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP. The Company uses Adjusted EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. EBITDAre and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
Occupancy Rate equals the sum of Leased Square Feet divided by Rentable Square Feet and includes the Company's pro rata share of such amounts related to the Unconsolidated Joint Venture, in each case, as of an applicable date.
Enterprise Value equals the sum of the Implied Equity Market Capitalization and Net Debt, in each case, as of an applicable date.
Fixed Charge Coverage Ratio is ( a) the sum of ( i) Interest Expense, excluding non-cash amortization and ( ii) secured debt principal amortization on Adjusted Principal Outstanding, divided by ( b) Adjusted EBITDA. Management believes that Fixed Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed financing obligations.
Fixed Dollar or Percent Increase refers to a lease that requires contractual rent increases during the initial term of the lease agreement. A Fixed Dollar or Percent Increase lease may include a period of free rent at the beginning or end of the lease.
Flat refers to a lease that requires equal rent payments, with no contractual increases, throughout the initial term of the lease agreement. A Flat Lease may include a period of free rent at the beginning or end of the lease.
Funds Available for Distribution ( `` FAD '')
Funds available for distribution, as defined by the Company, represents Core FFO, as defined below, modified to exclude capital expenditures, as well as certain non-cash items such as amortization of deferred financing costs, amortization of above market leases and deferred lease incentives, net of amortization of below market lease liabilities, straight-line rental revenue, equity-based compensation, equity in income or losses of the Unconsolidated Joint Venture and our pro rata share of FAD adjustments related to the Unconsolidated Joint Venture. Management believes that adjusting these items from Core FFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides useful information regarding the Company's ability to fund its dividend.
However, not all REITs calculate FAD and those that do may not calculate FAD the same way, so comparisons with other REITs may not be meaningful. FAD should not be considered as an alternative to net income ( loss) or cash flow provided by operating activities as determined under GAAP.
Nareit Funds from Operations ( `` Nareit FFO '' or `` FFO '') and Core Funds from Operations ( `` Core FFO '')
Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of a REIT. FFO is not equivalent to our net income or loss as determined under GAAP.
Nareit defines FFO as net income or loss computed in accordance with GAAP adjusted for gains or losses from disposition of real estate assets, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of FFO adjustments related to the Unconsolidated Joint Venture. We calculate FFO in accordance with Nareit's definition described above.
In addition to FFO, we use Core FFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. Core FFO, as defined by the Company, excludes from FFO non-recurring or infrequent items such as acquisition-related expenses, transaction costs and gains or losses on extinguishment of swaps and/or debt. Core FFO allows for a comparison of the performance of our operations with other publicly-traded REITs, as Core FFO, or an equivalent measure, is routinely reported by publicly-traded REITs, and we believe often used by analysts and investors for comparison purposes.
For all of these reasons, we believe FFO and Core FFO, in addition to net income ( loss), as defined by GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and Core FFO the same way, so comparisons with other REITs may not be meaningful. FFO and Core FFO should not be considered as alternatives to net income ( loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate Core FFO and its use as a non-GAAP financial performance measure.
GAAP is an abbreviation for generally accepted accounting principles in the United States.
Gross Lease is a lease under which the landlord is responsible for all expenses associated with the property ( e.g., real estate taxes, insurance, maintenance and repairs).
Gross Real Estate Investments represent total gross real estate and related assets of Operating Properties and the Company's pro rata share of such amounts related to properties owned by the Unconsolidated Joint Venture, net of gross intangible lease liabilities. Gross Real Estate Investments should not be considered as an alternative to the Company's real estate investments balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP.
Implied Equity Market Capitalization equals shares of common stock outstanding as of an applicable date, multiplied by the closing sale price of the Company's stock as reported on the New York Stock Exchange on such date.
Industry is derived from the Global Industry Classification Standard ( `` GICS '') Methodology that was developed by Morgan Stanley Capital International ( `` MSCI '') in collaboration with S & P Dow Jones Indices to establish a global, accurate, complete and widely accepted approach to defining industries and classifying securities by industry.
Interest Coverage Ratio equals Adjusted EBITDA divided by Interest Expense, excluding non-cash amortization. Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations.
Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt and the Company's pro rata share of the Unconsolidated Joint Venture's interest expense incurred on its outstanding principal balance. This measure excludes the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP. Interest Expense, excluding non-cash amortization should not be considered as an alternative to the Company's interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP.
Investment-Grade Tenants are those with a Standard & Poor’ s credit rating of BBB- or higher or a Moody’ s credit rating of Baa3 or higher. The ratings may reflect those assigned by Standard & Poor’ s or Moody’ s to the lease guarantor or the parent company, as applicable.
Leased Square Feet is Rentable Square Feet leased and includes such amounts related to the Unconsolidated Joint Venture.
Modified Gross Lease is a lease under which the landlord is responsible for most expenses associated with the property ( e.g., real estate taxes, insurance, maintenance and repairs), but passes through some operating expenses to the tenant.
Net Debt, Principal Outstanding and Adjusted Principal Outstanding
Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Adjusted Principal Outstanding includes the Company's pro rata share of the Unconsolidated Joint Venture's outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP.
Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and the Company's pro rata share of the Unconsolidated Joint Venture's cash and cash equivalents. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.
Net Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments.
Net Operating Income ( `` NOI '') and Cash NOI
NOI is a non-GAAP performance measure used to evaluate the operating performance of a real estate company. NOI represents total revenues less property operating expenses and excludes fee revenue earned for services to the Unconsolidated Joint Venture, impairment, depreciation and amortization, general and administrative expenses, acquisition-related expenses and transaction costs. Cash NOI excludes the impact of certain GAAP adjustments included in rental revenue, such as straight-line rent adjustments and amortization of above-market intangible lease assets and below-market lease intangible liabilities. Cash NOI includes the pro rata share of such amounts from properties owned by the Unconsolidated Joint Venture. It is management's view that NOI and Cash NOI provide investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. NOI and Cash NOI should not be considered as an alternative to operating income in accordance with GAAP. Further, NOI and Cash NOI may not be comparable to similarly titled measures of other companies.
Operating Properties refers to all properties owned and consolidated by the Company as of the applicable date.
Property Operating Expense includes reimbursable and non-reimbursable costs to operate a property, including real estate taxes, utilities, insurance, repairs, maintenance, legal, property management fees, etc.
Rentable Square Feet is leasable square feet of Operating Properties and the Company's pro rata share of leasable square feet of properties owned by the Unconsolidated Joint Venture.
Triple Net Lease ( `` NNN '') is a lease under which the tenant agrees to pay all expenses associated with the property ( e.g., real estate taxes, insurance, maintenance and repairs in accordance with the lease terms).
Unconsolidated Joint Venture includes the Company's investment in the Arch Street unconsolidated joint venture formed to acquire and own real estate properties.
Unencumbered Asset Ratio equals unencumbered Gross Real Estate Investments divided by Gross Real Estate Investments. Management believes that Unencumbered Asset Ratio is a useful supplemental measure of our overall liquidity and leverage.
Weighted Average Remaining Lease Term is the number of years remaining on each respective lease as of the applicable date, weighted based on Annualized Base Rent and includes the years remaining on each of the respective leases of the Unconsolidated Joint Venture, weighted based on the Company's pro rata share of Annualized Base Rent related to the Unconsolidated Joint Venture.
Forward-Looking Statements
Information set forth in this press release contains “ forward-looking statements ” which reflect the Company's expectations and projections regarding future events and plans, the Company's future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, the payment of future dividends, the Company’ s future growth and the impact of the coronavirus ( COVID-19) on the Company's business. Generally, the words `` anticipates, '' `` assumes, '' `` believes, '' `` continues, '' `` could, '' `` estimates, '' `` expects, '' `` goals, '' `` intends, '' `` may, '' `` plans, '' `` projects, '' `` seeks, '' `` should, '' `` targets, '' `` will, '' “ guidance, ” variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to the Company and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which may be difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. Further, information regarding historical rent collections should not serve as an indication of future rent collections.
The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements:
Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available at the SEC’ s website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.
ORION OFFICE REIT INC.
CONSOLIDATED BALANCE SHEETS
( In thousands, except for share and per share data) ( Unaudited)
December 31, 2021
Assets
Real estate investments, at cost:
Land
$
250,194
Buildings, fixtures and improvements
1,231,551
Total real estate investments, at cost
1,481,745
Less: accumulated depreciation and amortization
128,109
Total real estate investments, net
1,353,636
Accounts receivable, net
17,916
Intangible lease assets, net
298,107
Cash and cash equivalents
29,318
Other assets, net
60,501
Total assets
$
1,759,478
Liabilities and Equity
Bridge facility, net
$
354,357
Credit facility term loan, net
172,490
Credit facility revolver
90,000
Mortgages payable, net
—
Accounts payable and accrued expenses
17,379
Below-market lease liabilities, net
20,609
Distributions payable
—
Other liabilities, net
16,355
Total liabilities
671,190
Net parent investment
—
Common stock
57
Additional paid-in capital
1,145,278
Accumulated other comprehensive income ( loss)
299
Accumulated deficit
( 58,715
)
Total stockholders ' equity
1,086,919
Non-controlling interests
1,369
Total equity
1,088,288
Total liabilities and equity
$
1,759,478
ORION OFFICE REIT INC.
CONSOLIDATED STATEMENT OF OPERATIONS
( In thousands, except for share and per share data) ( Unaudited)
Quarter Ended December 31, 2021 ( 1)
November 1, 2021 to December 31, 2021 ( 2)
Pro Forma Adjustments ( 3)
November 1, 2021 to December 31, 2021 ( Pro Forma) ( 4)
Revenues:
Rental
$
40,530
$
36,648
$
( 270
)
$
36,378
Fee income from unconsolidated joint venture
271
271
( 183
)
88
Total revenues
40,801
36,919
( 453
)
36,466
Operating expenses:
Transaction costs
5,112
5,112
( 5,112
)
—
Property operating
8,801
8,367
—
8,367
General and administrative
2,167
1,999
—
1,999
Depreciation and amortization
26,067
24,083
—
24,083
Impairments
49,859
49,859
( 49,859
)
—
Total operating expenses
92,006
89,420
( 54,971
)
34,449
Other ( expense) income:
Interest expense
( 3,187
)
( 3,187
)
—
( 3,187
)
( Loss) gain on extinguishment and forgiveness of debt, net
( 283
)
—
—
—
Other income, net
—
—
—
—
Equity in income of unconsolidated joint venture
( 56
)
( 56
)
—
( 56
)
Total other ( expenses) income, net
( 3,526
)
( 3,243
)
—
( 3,243
)
( Loss) income before taxes
( 54,731
)
( 55,744
)
54,518
( 1,226
)
Provision for income taxes
( 157
)
( 157
)
—
( 157
)
Net ( loss) income
( 54,888
)
( 55,901
)
54,518
( 1,383
)
Net ( income) loss attributable to non-controlling interest
( 17
)
( 17
)
—
( 17
)
Net ( loss) income attributable to common stockholders
$
( 54,905
)
$
( 55,918
)
$
54,518
$
( 1,400
)
Weighted-average shares outstanding - basic and diluted
56,626
56,626
56,626
56,626
Basic and diluted net ( loss) income per share attributable to common stockholders
$
( 0.97
)
$
( 0.99
)
$
0.96
$
( 0.02
)
ORION OFFICE REIT INC.
EBITDA, EBITDAre AND ADJUSTED EBITDA
( In thousands) ( Unaudited)
Quarter Ended December 31, 2021
November 1, 2021 to December 31, 2021
Pro Forma Adjustments ( 1)
November 1, 2021 to December 31, 2021 ( Pro Forma)
Net ( loss) income
$
( 54,905
)
$
( 55,918
)
$
54,518
$
( 1,400
)
Adjustments:
Interest expense
3,187
3,187
—
3,187
Depreciation and amortization
26,067
24,083
—
24,083
Provision for income taxes
157
157
—
157
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable
501
501
—
501
EBITDA
$
( 24,993
)
$
( 27,990
)
$
54,518
$
26,528
Impairment of real estate
49,859
49,859
( 49,859
)
—
EBITDAre
$
24,866
$
21,869
$
4,659
$
26,528
Transaction costs
5,112
5,112
( 5,112
)
—
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities
( 295
)
( 213
)
—
( 213
)
( Gain) loss on extinguishment and forgiveness of debt, net
283
—
—
—
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable
( 1
)
( 1
)
—
( 1
)
Adjusted EBITDA
$
29,965
$
26,767
$
( 453
)
$
26,314
Adjustments include lease termination income ( $ 270k), acquisition fees related to the Arch Street Unconsolidated Joint Venture ( $ 183k), transaction costs related to the spin-off from Realty Income ( $ 5.1M) and impairments ( $ 49.9M).
ORION OFFICE REIT INC.
FFO, CORE FFO and FAD
( In thousands, except for share and per share data) ( Unaudited)
Quarter Ended December 31, 2021
November 1, 2021 to December 31, 2021
Pro Forma Adjustments ( 1)
November 1, 2021 to December 31, 2021 ( Pro Forma)
Net ( loss) income
$
( 54,905
)
$
( 55,918
)
$
54,518
$
( 1,400
)
Depreciation and amortization of real estate assets
26,060
24,076
—
24,076
Impairment of real estate
49,859
49,859
( 49,859
)
—
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable
397
397
—
397
FFO attributable to common stockholders
$
21,411
$
18,414
$
4,659
$
23,073
Adjustments:
Transaction costs
5,112
5,112
( 5,112
)
—
Loss on extinguishment of debt, net
283
—
—
—
Core funds from operations attributable to common stockholders
$
26,806
$
23,526
$
( 453
)
$
23,073
Adjustments:
Amortization of deferred financing costs
729
729
—
729
Amortization of above and below market leases and deferred lease incentives, net of amortization of below-market lease liabilities
( 295
)
( 213
)
—
( 213
)
Straight-line rental revenue
( 575
)
( 638
)
—
( 638
)
Equity-Based Compensation
180
180
—
180
Equity in income of Unconsolidated Joint Venture
56
56
—
56
Capital expenditures
( 9,933
)
( 9,933
)
—
( 9,933
)
Other adjustments, net
96
95
—
95
Proportionate share of Unconsolidated Joint Venture adjustments for the items above, as applicable
( 3
)
( 3
)
—
( 3
)
Funds available for distribution
$
17,061
$
13,799
$
( 453
)
$
13,346
Weighted-average shares outstanding - basic and diluted
56,626
56,626
56,626
56,626
FFO attributable to common stockholders per share
$
0.38
$
0.33
$
0.08
$
0.41
Core FFO attributable to common stockholders per share
$
0.47
$
0.42
$
( 0.01
)
$
0.41
FAD per share
$
0.30
$
0.24
$
( 0.01
)
$
0.24
Adjustments include lease termination income ( $ 270k), acquisition fees related to the Arch Street Unconsolidated Joint Venture ( $ 183k), transaction costs related to the spin-off from Realty Income ( $ 5.1M) and impairments ( $ 49.9M).
Refer to the Statement of Operations for basic and diluted net income ( loss) per share attributable to common stockholders.
ORION OFFICE REIT INC.
FINANCIAL AND OPERATIONS STATISTICS AND RATIOS
( Dollars in thousands) ( Unaudited)
Three Months Ended
December 31, 2021
Interest expense - as reported
$
3,187
Adjustments:
Amortization of deferred financing costs and other non-cash charges
( 729
)
Proportionate share of Unconsolidated Joint Venture Interest Expense, excluding non-cash amortization
64
Interest Expense, excluding non-cash amortization ( 2)
$
2,522
Interest Coverage Ratio
November 1, 2021 to December 31, 2021
Pro Forma Adjustments ( 1)
November 1, 2021 to December 31, 2021 ( Pro Forma)
Interest Expense, excluding non-cash amortization ( 2)
$
2,522
$
—
$
2,522
Adjusted EBITDA ( 3)
26,767
( 453
)
26,314
Interest Coverage Ratio
10.61x
10.43x
Fixed Charge Coverage Ratio
Interest Expense, excluding non-cash amortization
$
2,522
$
—
$
2,522
Total fixed charges
2,522
—
2,522
Adjusted EBITDA ( 3)
26,767
( 453
)
26,314
Fixed Charge Coverage Ratio
10.61x
10.43x
( 1)
Adjustments include lease termination income ( $ 270k), acquisition fees related to the Arch Street Unconsolidated Joint Venture ( $ 183k), transaction costs related to the spin-off from Realty Income ( $ 5.1M) and impairments ( $ 49.9M).
( 2)
Refer to the Statement of Operations for interest expense calculated in accordance with GAAP and to the table above for the required reconciliation to the most directly comparable GAAP financial measure.
( 3)
Refer to the Statement of Operations for net income calculated in accordance with GAAP and to the EBITDAre and Adjusted EBITDA tables above for the required reconciliation to the most directly comparable GAAP financial measure.
Net Debt
December 31, 2021
CMBS bridge facility, net
$
354,357
Credit facility term loan, net
172,490
Credit facility revolver
90,000
Total debt - as reported
616,847
Deferred financing costs, net
3,153
Principal Outstanding
620,000
Proportionate share of Unconsolidated Joint Venture Principal Outstanding
27,332
Adjusted Principal Outstanding
$
647,332
Cash and cash equivalents
( 29,318
)
Proportionate share of Unconsolidated Joint Venture cash and cash equivalents
( 590
)
Net Debt
$
617,424
December 31, 2021
Gross Real Estate Investments
$
1,481,745
Adjustments:
Intangible lease assets, net
370,049
Gross intangible lease liabilities
( 35,068
)
Proportionate share of Unconsolidated Joint Venture Gross Real Estate Investments
45,401
Gross Real Estate Investments
$
1,862,127
December 31, 2021
Net Debt Ratios
Net Debt ( 1)
$
617,424
Gross Real Estate Investments ( 1)
1,862,127
Net Debt Leverage Ratio
33.2
%
Unencumbered Assets/Real Estate Assets ( 2)
Unencumbered Gross Real Estate Investments ( 1)
$
1,816,726
Gross Real Estate Investments ( 1)
1,862,127
Unencumbered Asset Ratio
97.6
%
ORION OFFICE REIT INC. CORE FUNDS FROM OPERATIONS PER DILUTED SHARE - 2022 GUIDANCE ( Unaudited)
The Company expects its 2022 Core FFO per diluted share to be in a range between $ 1.66 and $ 1.74. This guidance assumes:
The estimated net income per diluted share is not a projection and is provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.
The Company does not provide a reconciliation of Net Debt to Adjusted EBITDA guidance to the most directly comparable GAAP measure, due to the inherent difficulty and uncertainty in quantifying certain adjustments principally related to the Company’ s investment in the unconsolidated joint venture.
Low
High
Diluted net income per share attributable to common stockholders
$
( 0.90
)
$
( 0.83
)
Depreciation and amortization of real estate assets
2.50
2.50
Proportionate share of adjustments for unconsolidated joint venture
0.05
0.06
FFO attributable to common stockholders per diluted share
1.65
1.73
Adjustments ( 1)
0.01
0.01
Core FFO attributable to common stockholders per diluted share
$
1.66
$
1.74 | general |
Tufin Technical Support Awarded a Bronze Stevie Award | Company’ s Superior Customer Support Program Recognized by the 2022 Stevie Awards for Sales & Customer Service
BOSTON -- ( BUSINESS WIRE) -- Tufin® ( NYSE: TUFN), a company pioneering a policy-centric approach to security and IT operations, today announced that Tufin Technical Support won a Bronze Stevie® Award in the Customer Service Department of the Year – Computer Software category in the 16th Annual Stevie Awards for Sales & Customer Service.
Since its inception, Tufin solutions have been purchased by over 2,000 customers in more than 70 countries. Tufin’ s Technical Support team is dedicated to making these deployments a reality for customers, leading them in their operationalization of Tufin, in order to drive value and ROI for their business. Tufin’ s Support Team reports a 94% customer satisfaction rate and a 99% first response SLA.
“ Supporting our customers has long been our most critical responsibility, ” said Raj Motwane, Senior Vice President, Services & Operations, Tufin. “ Through our support program, customers are receiving the assistance they need to ensure a seamless implementation, as well as ongoing advice to ensure they are optimizing their use of the platform. The entire team is thrilled to have their hard work and dedication be recognized with a Stevie award. ”
With three Centers of Excellence around the globe, Tufin provides 24x7 follow-the-sun support. Tufin offers several levels of fee-based technical support as well as free opportunities for customer support and troubleshooting, including the Tufin Technical Forum and Knowledge Center. Tufin hosts regular Tufin User Group localized events, a customer Slack channel, and holds annual events in the U.S. and EMEA for customer training, education, and networking.
“ The nominations we received for the 2022 competition illustrate that business development, customer service, and sales professionals worldwide, in all sorts of organizations, have continued to innovate, thrive, and meet customer expectations during the COVID-19 pandemic, ” said Stevie Awards’ President, Maggie Gallagher Miller. “ The judges recognized and rewarded their achievements, and we join them in applauding this year's winners for their continued success. We look forward to recognizing them on May 11. ”
The Stevie Awards for Sales & Customer Service are the world’ s top honors for customer service, contact center, business development, and sales professionals. The Stevie Awards organizes eight of the world’ s leading business awards programs, also including the prestigious American Business Awards® and International Business Awards®. Winners will be recognized during a virtual awards ceremony on May 11.
More than 2,300 nominations from organizations of all sizes and in virtually every industry, in 51 nations, were considered in this year’ s competition. Winners were determined by the average scores of more than 150 professionals worldwide on eight specialized judging committees. Details about the Stevie Awards for Sales & Customer Service and the list of Stevie winners in all categories are available at www.StevieAwards.com/Sales.
About The Stevie Awards Stevie Awards are conferred in eight programs: the Asia-Pacific Stevie Awards, the German Stevie Awards, the Middle East & North Africa Stevie Awards, The American Business Awards®, The International Business Awards®, the Stevie Awards for Great Employers, the Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Stevie Awards competitions receive more than 12,000 entries each year from organizations in more than 70 nations. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at http: //www.StevieAwards.com. | general |
CynergisTek Reports Fourth Quarter and Full Year 2021 Financial Results | AUSTIN, Texas -- ( BUSINESS WIRE) -- CynergisTek, Inc. ( NYSE AMERICAN: CTEK) ( the “ Company ” or “ CynergisTek ”), a leader in cybersecurity, privacy, and compliance, today announced financial results for the three and twelve months ended December 31, 2021.
Q4 and Full Year 2021 Operational Highlights
“ Our focus in the second half of the year was on sales and operational improvements that would drive growth, ” said Mac McMillan, President and CEO of CynergisTek. “ Our strong renewal rate and bookings growth in the second half of the year added to our presold revenue, leading to a strong finish. The company’ s second half was stronger, but we fell short of our overall goal. As we look ahead, we now have a clear strategy focused on organic growth, strategic partnerships, and M & A. ”
For the Year End December 31, 2021, as Compared to the Year End December 31, 2020
Revenue was $ 16.3 million for the year ended December 31, 2021, as compared to $ 18.9 million for the same period in 2020. Managed Services revenue decreased by $ 2.3 million due primarily to the impact of the COVID-19 pandemic on our healthcare customers, resulting in delayed renewals, reduced bookings, and new customer contracts. Consulting and professional services revenue decreased by $ 0.3 million, primarily due to the completion of two customer contracts in the first half of 2020, combined with lower revenues from our Backbone business unit and delays and reductions in delivery of previously sold professional services due to the COVID-19 pandemic.
While the COVID-19 pandemic has negatively impacted our bookings and revenue in the current periods, it has also led to new services and additional opportunities. In the fourth quarter of 2021, we saw an increase in bookings, partially as a result of our investments in sales and marketing, increased demand for our services, and the size of our target contracts.
Gross margin was 46% of revenue for the year ended December 31, 2021, and 33% for the same period in 2020. Excluding the $ 1.5 million benefit from the employee retention tax credit in 2021, gross margin was improved by 37% as a result of targeted expense reductions.
SG & A expenses increased for the year ended December 31, 2021, to $ 12.6 million, as compared to the same period in 2020. Excluding the costs related to the departure of our former CEO of $ 0.6 million, SG & A expenses increased as we reinstated benefits terminated during the height of the pandemic, such as higher compensation related to additional headcount and other sales and marketing-related costs as we began executing on our growth initiatives. These increases were offset by the benefit of $ 0.6 million in employee retention tax credits provided under the CARES Act.
GAAP net loss for the year ended December 31, 2021, was $ 2.2 million, or $ ( 0.18) per basic and diluted share, as compared to a net loss of $ 18.5 million, or $ ( 1.75) per basic and diluted share, for the same period of 2020.
Non-GAAP adjusted EBITDA loss was $ 3.2 million, or $ ( 0.26) per basic and diluted share, for the year ended December 31, 2021, compared to a loss of $ 3.8 million, or $ ( 0.36) per basic and diluted share, last year. The reconciliation of GAAP to non-GAAP information can be found in the table at the end of this release, which provides the details of CynergisTek’ s non-GAAP disclosures and the reconciliation of non-GAAP information.
Use of Non-GAAP Measures
CynergisTek, Inc. ( “ CynergisTek ” or the “ Company ”) prepares its consolidated financial statements in accordance with generally accepted accounting principles ( “ GAAP ”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding Adjusted EBITDA ( “ Adjusted EBITDA ”), which differs from the commonly-used “ EBITDA. ” In addition to adjusting net income ( loss) to exclude income taxes, interest, depreciation, and amortization, Adjusted EBITDA also excludes share-based compensation, impairment charges, fair value adjustments, severance, and other cash and non-cash charges and gains.
Adjusted EBITDA is not a measure of performance as defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company’ s operating performance. Accordingly, management believes that disclosure of this metric offers investors, bankers, and other stakeholders an additional view of the Company’ s operations that, when coupled with the GAAP results, provides a more complete understanding of the Company’ s financial results.
Adjusted EBITDA should not be considered as an alternative to loss-from-continuing-operations or net-cash-used-in-operating-activities as measures of operating results or liquidity. The Company’ s calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating the Company’ s performance.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of the Company’ s results as reported under GAAP. Some of these limitations are ( i) it does not reflect the Company’ s cash expenditures, or future requirements for capital expenditures or contractual commitments, ( ii) it does not reflect changes in, or cash requirements for, the Company’ s working capital needs, ( iii) Adjusted EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’ s debt, ( iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements, ( v) it does not adjust for all non-cash income or expense items that are reflected in the Company’ s statements of cash flows, ( vi) it does not reflect the impact of earnings or charges resulting from matters the Company considers not to be indicative of its ongoing operations, and ( vii) other companies in the same industry may calculate this measure differently than the Company does, limiting its usefulness as a comparative measure.
Management believes Adjusted EBITDA facilitates operating performance comparisons from period to period by isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. These potential differences may be caused by variations in capital structures ( affecting interest expense), tax positions ( such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment ( affecting relative depreciation expense). Management also presents Adjusted EBITDA because ( i) management believes this measure is frequently used by securities analysts, investors and other interested parties to evaluate companies in the same industry, ( ii) management believes investors will find this measure useful in assessing the Company’ s ability to service or incur indebtedness, and ( iii) management uses Adjusted EBITDA internally as a benchmark to evaluate the Company’ s operating performance or compare the Company’ s performance to that of its competitors.
Conference Call Information
Date: Thursday, March 24, 2022 Time: 4:30 pm ET / 1:30 pm PT U.S.: 1-888-256-1007 International: 1-786-789-4783 Conference ID: 1507111
Webcast: https: //themediaframe.com/mediaframe/webcast.html? webcastid=E6g5IJjw
A replay of the call will be available from 7:30 PM ET on March 24, 2022, to 11:59 PM ET on March 31, 2022. To access the replay, please dial 1-844-512-2921 from the U.S. and 1-412-317-6671 from outside the U.S. The PIN is 1507111.
About CynergisTek, Inc.
CynergisTek is a top-ranked cybersecurity consulting firm helping organizations in highly-regulated industries, including those in healthcare, government, and finance navigate emerging security and privacy issues. CynergisTek combines intelligence, expertise, and a distinct methodology to validate a company's security posture and ensure the team is rehearsed, prepared, and resilient against threats. Since 2004, CynergisTek has been dedicated to hiring and retaining experts who bring real-life experience and hold advanced certifications to support and educate the industry by contributing to relevant industry associations. For more information, visit www.cynergistek.com or follow us on Twitter or LinkedIn.
Cautionary Note Regarding Forward Looking Statements
This release contains certain forward-looking statements relating to the business of CynergisTek. These forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended ( the “ Securities Act ”) and Section 21E of the Securities Exchange Act of 1934, as amended ( the “ Exchange Act ”) and can be identified by the use of forward-looking terminology such as “ believes, ” “ expects, ” “ anticipates, ” “ would, ” “ could, ” “ intends, ” “ may, ” “ will, ” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including but not limited to uncertainties relating to product/services development; long and uncertain sales cycles; the ability to obtain or maintain proprietary intellectual property protection; future capital requirements; competition from other providers; the ability of the Company’ s vendors to continue supplying the Company with supplies and services at comparable terms and prices; the Company’ s ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments; the Company’ s ability to maintain its brand and reputation and retain or replace its significant customers; cybersecurity risks and risks of damage and interruptions of information technology systems; the Company’ s ability to retain key members of management and successfully integrate new executives; the Company’ s ability to complete acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or other transactions on acceptable terms, or at all; potential risks and uncertainties relating to the existing and ultimate impact of the COVID-19 pandemic, including actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact, and the potential negative impacts of COVID-19 on the global economy and financial markets; the general economic impact of the ongoing war in Ukraine, including the impact of related sanctions being imposed by the U.S. Government and the governments of other countries, and the impact of potential reprisals as a consequence of the war in Ukraine and any related sanctions; and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in the Company’ s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http: //www.sec.gov. Given the risks and uncertainties, readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results which may not occur as anticipated. Many of the risks listed above have been, and may further be, exacerbated by the COVID-19 pandemic, including its impact on the healthcare industry, or the ongoing war in Ukraine. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. CynergisTek is under no obligation ( and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
CYNERGISTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31,
2021
2020
ASSETS
Current assets:
Cash and cash equivalents
$
3,575,682
$
5,613,654
Accounts receivable, net of allowance for doubtful accounts
2,007,136
2,063,136
Unbilled services
542,952
566,713
Prepaid and other current assets
1,840,178
2,032,420
Income taxes receivable
1,484,851
1,680,866
Total current assets
9,450,799
11,956,789
Property and equipment, net
243,791
541,525
Deposits
34,310
64,586
Deferred income taxes
6,060,129
4,959,125
Intangible assets, net
4,701,491
6,063,617
Goodwill
8,394,483
8,394,483
Total assets
$
28,885,003
$
31,980,125
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
1,453,454
$
1,326,919
Accrued compensation and benefits
1,189,472
814,830
Deferred revenue
1,663,719
1,265,864
Current portion of earnout liability
432,000
-
Current portion of promissory note to related party
140,625
562,500
Current portion of operating lease liability
45,233
252,398
Total current liabilities
4,924,503
4,222,511
Long-term liabilities:
Earnout liability, less current portion
-
1,300,000
Promissory note to related party, less current portion
-
140,625
Paycheck Protection Program loan
-
2,825,500
Operating lease liability, less current portion
-
40,031
Total long-term liabilities
-
4,306,156
Commitments and contingencies
Stockholders’ equity:
Common stock, par value at $ 0.001, 33,333,333 shares authorized, 13,248,024 shares issued and outstanding at December 31, 2021 and 12,024,967 shares issued and outstanding at December 31, 2020
13,248
12,024
Additional paid-in capital
41,318,917
38,564,520
Accumulated deficit
( 17,371,665
)
( 15,125,086
)
Total stockholders’ equity
23,960,500
23,451,458
Total liabilities and stockholders’ equity
$
28,885,003
$
31,980,125
CYNERGISTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
( UNAUDITED)
Year Ended December 31,
2021
2020
Net revenues
$
16,301,905
$
18,872,235
Cost of revenues
8,807,429
12,624,389
Gross profit
7,494,476
6,247,846
Operating expenses:
Sales and marketing expenses
4,866,881
5,567,360
General and administrative expenses
7,796,136
6,512,607
Change in valuation of contingent earnout
( 606,923
)
( 1,100,000
)
Depreciation
194,081
189,638
Amortization of acquisition-related intangibles
1,362,126
1,664,765
Impairment of intangible assets and goodwill
-
16,446,500
Finance cost for equity commitment
-
390,000
Total operating expenses
13,612,301
29,670,870
Loss from operations
( 6,117,825
)
( 23,423,024
)
Other income ( expense):
Gain on forgiveness of PPP loan and other income and expense
2,825,500
11
Interest income
-
9,990
Interest expense
( 34,259
)
( 100,714
)
Total other income ( expense)
2,791,241
( 90,713
)
Loss before income tax benefit
( 3,326,584
)
( 23,513,737
)
Income tax benefit
1,080,005
5,045,249
Net loss
$
( 2,246,579
)
$
( 18,468,488
)
Net loss per share
Basic
$
( 0.18
)
$
( 1.75
)
Diluted
$
( 0.18
)
$
( 1.75
)
Number of weighted average shares outstanding:
Basic
12,362,078
10,573,123
Diluted
12,362,078
10,573,123
CYNERGISTEK, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP LOSS FROM OPERATIONS TO NON-GAAP ADJUSTED EBITDA
( UNAUDITED)
Twelve Months Ended December 31,
2021
2020
GAAP loss from continuing operations
$
( 6,117,825
)
$
( 23,423,024
)
Adjustments:
Depreciation
194,081
189,638
Amortization of acquisition-related intangibles
1,362,126
1,664,765
Impairment of intangible assets
16,446,500
Adjustment in contingent consideration from acquisition
( 606,923
)
( 1,100,000
)
Finance cost from equity commitment
390,000
Non-recurring severance, restructuring and legal costs
587,000
472,000
Stock-based compensation
1,403,794
1,510,931
Non-GAAP adjusted EBITDA
$
( 3,177,747
)
$
( 3,849,190
)
Non-GAAP adjusted EBITDA per share
Basic
$
( 0.26
)
$
( 0.36
)
Diluted
$
( 0.26
)
$
( 0.36
) | general |
LiqTech International Announces Financial Results for the Fourth Quarter and Full Year of 2021 | BALLERUP, Denmark, March 24, 2022 /PRNewswire/ -- LiqTech International, Inc. ( NASDAQ: LIQT) ( `` LiqTech ''), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2021.
2021 Highlights
Highlights Subsequent to End of Year
Management Commentary
Results were largely in line with expectations, and while the Company powered through another year of depressed market activity caused by the global pandemic and its associated economic repercussions, it remains bullish on the long-term prospects of the business.
To be sure, the current global business environment is very challenging; however, the Company is seeing encouraging signs in its core marine scrubber business after a sustained lull in the market. Importantly, the Company will stay the course with respect to its diversification strategy and will continue to work to increase its share in what will ultimately become buoyant end markets that are supported by regulatory tailwinds and increased environmental awareness.
While the Company remains optimistic about its prospects in 2022 and beyond, we also cautiously acknowledge the reality of the current business environment, where geopolitical tensions, supply chain disruptions and sustained inflation create inevitable market uncertainty. Considering such heightened uncertainty, the Company believes it is appropriate to revise its guidance for the first quarter and full year of 2022. We anticipate revenue of $ 3.5 to $ 4.0 million in Q1 and $ 25 to $ 30 million for the full year 2022. Despite what is best characterized as a push to the right, the Company remains confident with respect to its long-term growth trajectory and commercial success across multiple end markets.
Alex Buehler, Interim CEO, stated, `` In light of Sune's medical leave of absence, I am honored to lead the Company at this time with the full support of the Board of Directors. Each of our investors has my commitment that I will work tirelessly to provide strong leadership, strategic clarity, commercial intensity and execution discipline. '' Commenting further, Buehler said, `` As we face continued uncertainty in our target markets, we will carefully evaluate the pace of our strategic investments to balance current cash flow with future revenue opportunity. This does not imply that we are tempering our growth ambitions or altering our strategy. Rather, it remains our intent to continue progressing our sales efforts to fully deploy our water systems filtration technology and leverage our deep experience manufacturing silicon carbide ceramic filters into several large, growing markets. We are fortunate to benefit from a strong, adaptive organization, market-leading products and technology, and stable corporate governance. ''
2021 Financial Results
Revenue in 2021 was $ 18.3 million compared to $ 22.5 million in 2020, representing a decrease of 19%. Results for 2021 were unfavorably impacted by a decrease in sales of liquid filters and wash water filtration systems for the marine scrubber industry, partly offset by an increase in sales of DPF filters and plastics. The decrease in sales of liquid filters and water treatment systems was a result of the ongoing negative impacts of the COVID-19 pandemic, exacerbated by continued supply chain disruptions and general market volatility. The higher demand for the Company's DPF filters reflects a continued interest in environmental solutions to reduce global CO2 emissions amid increased political awareness and regulatory legislation.
Gross profit in 2021 was $ 1.6 million, reflecting a gross profit margin of 8.6%, compared to $ 2.1 million, or a 9.5% gross profit margin for the same period in 2020. The decrease in gross profit was due to the decline in sales of liquid filters and water treatment systems that generally carry a higher gross margin. Gross profit was further impacted by increased costs related to decisions made prior to COVID-19, when the Company had invested in the expansion and improvement of production facilities along with increased hiring of R & D and sales personnel. Finally, there were higher costs related to the ramp-up of the China manufacturing facility, higher depreciation expense and changes in the sales mix that also negatively impacted gross profit in 2021.
Total operating expense in 2021 was $ 12.3 million compared to $ 10.4 million in 2020, representing an increase of 18% compared to the prior period. The increase in operating expense was due to strategic decisions made in 2020 to increase sales and R & D investments to drive revenue growth, although this expense was partially offset by a decrease in general and administrative expense. Further, fourth quarter 2021 operating expense was exceptionally high due to elevated sales and marketing efforts, IT and legal costs, as well as cost related to our activities in China.
Net other expense in 2021 was $ ( 0.5) million compared to $ ( 2.0) million in 2020. Included in other income/ ( expense) for 2020 was the negative effect of $ ( 0.9) million in expense resulting from the fair value remeasurement of the prefunded warrants that were issued in May 2020. Additionally, the gain on currency transactions from the USD/DKK exchange rate favorably benefited other income by $ 0.7 million in 2021, compared to a loss of $ ( 1.5) million in 2020. Further, in 2021 interest expense was $ ( 0.7) million compared to $ ( 0.1) million in 2020, which together with the amortization discount of $ ( 0.8) million reflect the issuance of the Convertible Note in 2021.
The net loss in 2021 was $ ( 11.1) million compared to $ ( 9.8) million in 2020, primarily attributable to the decrease in revenue from lower sales of marine scrubbers along with higher comparative cost of goods sold ( as a percentage of revenue) caused by increased investments in production capacity at our Danish manufacturing facilities and inflationary cost pressures related to raw materials, electricity and wages for hourly employees. The year-on-year comparison also reflects investments in our sales organization and R & D activities, leading to an overall increase in operating expenses compared to 2020.
Cash on hand and restricted cash at December 31, 2021 was $ 17.5 million, compared to $ 13.3 million at December 31, 2020. Cash used in operating activities was negative $ ( 7.2) million, mainly due to the net loss for the period adjusted for non-cash activities with cash flow from investing activities of $ ( 1.5) million reflecting continued investments in our Danish manufacturing facilities.
Mr. Buehler remarked, `` While clearly we were not pleased with our financial results, we remain confident in the strength of our product portfolio, our position across large and growing end markets and the quality of our talent and organization. In summary, we are facing head-on the challenges of the moment, rising to the occasion as a team, and fully committed to achieving a bright and exciting future for the company. ''
Marine Scrubber Market
The Company continued to face challenges in its marine scrubber business due to order delays. Recent feedback from ship owners indicates a strong desire to keep their ships on the water and operational during this time of increased shipping volumes and rates to normalize global supply chains. Despite the very favorable economics today for scrubber investments, ship owners remain reluctant to dry dock for the installation of a marine scrubber system amid such frenzied activity and pricing power. On a positive note, quotation activity in the past month for new marine scrubbers exceeds the pace and levels recorded by the Company throughout 2021, highlighting pent-up demand for the Company's solutions after the prolonged lull during the pandemic.
Oil & Gas Market
The Company has received orders for several oil and gas projects from industry leaders such as Baker Hughes, Chevron and ONGC. These orders span global geographies and feature applications in produced water treatment and deep-sea oil drilling. The order from Baker Hughes for the Middle East is a significant milestone for the Company, as it allows entry into a very large end market for water filtration system applications. Due to various logistical challenges, two large orders that were scheduled for delivery in the first half of 2022 are now expected to deliver later in 2022. Additionally, owing to the uncertainty resulting from the conflict in Ukraine and the overall geopolitical environment, the Company is experiencing order release delays from its oil & gas customers, pushing out expected orders into the second half of 2022.
Black Carbon / NOx Reduction Marine Market
Tightening legislation in the marine industry has created an enormous market opportunity to utilize the Company's extensive experience in diesel particulate filters ( DPF) to also reduce black carbon emissions. China is taking the lead in reducing its black carbon emissions, but the Company also sees new mandates in several European countries and expects that the IMO could likely implement global regulations pertaining to black carbon emissions. Considering strong investment and regulatory tailwinds, the Company remains focused to optimize and expand its manufacturing capacity to supply new global end markets like black carbon.
Other Applications
Reflecting its efforts to diversify the revenue base, in January the Company announced a three-year membrane supply agreement, which has an estimated total value of $ 23 million over the life of the contract. This agreement is with a large European customer for drinking water treatment. First deliveries are expected to begin in the third quarter of 2022, with regularly scheduled deliveries over the final two years of the agreement.
Conference Call Details
Date and Time: Thursday, March 24, 2022 at 9:00 a.m. ET
Call-in Information: Interested parties can access the conference call by dialing ( 833) 535-2206 or ( 412) 902-6741.
Webcast: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations section of the Company's website at https: //www.liqtech.com/investor-relations/ or at https: //app.webinar.net/GvZznbw7m9L.
Replay: A teleconference replay of the call will be available until March 31, 2022 at ( 877) 344-7529 or ( 412) 317-0088, confirmation # 6117628. | business |
China CITIC Bank's Net Profit Rose 14% in 2021 | By Yongchang Chin
China CITIC Bank Corp. said its net profit rose nearly 14% in 2021 amid an improvement in both asset quality and business scale.
Net profit rose to 55.64 billion yuan ( $ 8.74 billion) compared with CNY48.98 billion in the prior year, the bank said late Thursday.
Operating income also rose to CNY204.55 billion versus CNY195.40 billion in 2020.
The lender's net interest margin fell slightly to 2.05% compared with 2.26% in 2020.
China CITIC's nonperforming loan ratio decreased to 1.39% from 1.64% in 2020 and its nonperforming-loan balance fell 8.2% to CNY67.46 billion as of end-2021.
The bank's total assets rose 7.1% to CNY8.043 trillion in 2021 and it guided for its assets to grow by 6% -8% in 2022.
`` Asset quality kept improving and risk resistance ability further enhanced '' over the year, the lender said.
China CITIC Bank flagged the resurgence of Covid-19 and the likely `` shifting the extremely loose monetary policy '' as risks in its outlook. `` The mounting protectionism and unilateralism, the growing geopolitical tensions and the slow recovery of the global industry chain and supply chain all pose challenges, '' it added.
China CITIC proposed an annual dividend of CNY3.02 for every ten shares.
Write to Yongchang Chin at yongchang.chin @ wsj.com
( END) Dow Jones Newswires
03-24-22 2126ET | business |
Tech lifts Wall Street | Investors are still torn between their natural inclination to take advantage of prices that are still below their level at the start of the year, and anxiety about geopolitics, inflation and an uncertain future. Commodity prices rose sharply after Vladimir Putin announced the closure of the Caspian Pipeline Consortium's Black Sea terminal due to `` storm damage. '' He also asked that the Russian gas bill for countries contesting the war in Ukraine be paid in rubles.
This is a way of reducing the weight of sanctions on the Russian currency. This possibility had already been mentioned in the past and echoes other measures such as the ability for the Kremlin to repay debts in rubles rather than in dollars or euros. Since the beginning of the conflict, we know that European dependence on Russian fossil fuels is Putin's main lever…
The week ends with Joe Biden's trip to Europe. First in Brussels, then in Poland on Friday. Energy prices are likely to be very volatile today, as POTUS is said to be bringing new sanctions against Russia, and will also unveil a draft project to reduce European dependence on Russian gas.
This March 24 coincides with the reopening of the Moscow Stock Exchange, where shares have not been traded since February 25. A partial and supervised reopening, which will concern 33 companies. And again, short selling will be banned and only Russian residents will be able to place sell orders. Meanwhile, the retreat from Russia continues for Western companies. French carmaker Renault, which was still resisting international pressure, finally gave up by closing its local subsidiary Avtovaz, which is also the leading Russian carmaker, better known through some of its brands such as Lada. Every day, companies that were trying to go under the radar are now taking measures to comply strictly with international sanctions, or to go beyond them by ceasing all activity.
Economic highlights of the day:
The Flash PMI indicators of the world's major economies for the month of March are published throughout the day. US durable goods orders and weekly jobless claims are also on the agenda.
The dollar is trading at EUR 0.9103. The ounce of gold rallies to around USD 1962. Oil remains firm, with North Sea Brent at USD 119.4 and US WTI light crude at USD 113.04. US debt yields moderate a bit to 2.35% over 10 years, while German debt offers a coupon of 0.46% over the same duration. Bitcoin is trading around USD 42,900.
On markets:
* Uber - Uber shares jump more than 6% in pre-market trading after signing an agreement to integrate all New York City cabs into its VTC service booking app. Its competitor LYFT's stock is down 3%.
* The Boeing Company - The team of investigators dispatched to the crash site of China Eastern Airlines flight MU5735, which crashed in the mountains of southern China on Monday, is still searching for the second black box of the Boeing 737-800.
* Google, a subsidiary of Alphabet, announced Wednesday that it would allow Spotify to use its own payment system in its online app store as part of a test program while the internet giant is under investigation for anti-competitive practices. Spotify shares are up 4% in pre-market trading.
* Qualcomm - Swedish automotive technology group VEONEER announced Thursday that its $ 4.5 billion buyout by Qualcomm and investment group SSW Partners would close on April 1. Qualcomm shares advanced 1.4% in pre-market trading and Veoneer gained 2.1%.
* Moderna - The U.S. drugmaker on Thursday raised its full-year sales forecast for its COVID-19 vaccine from $ 19 billion to about $ 21 billion.
* Eli Lilly - The U.S. Food and Drug Administration rejected an application for approval of a lung cancer treatment from Eli Lilly and its partner Innovent Biologics, the U.S. drugmaker said Thursday.
* American Airlines, United Airlines, Delta Air Lines - Executives from the three airlines and other transportation groups urged U.S. President Joe Biden on Wednesday to end mask wearing, COVID-19 testing and other health measures on domestic and international flights.
* Nikola announced Wednesday that it would start production of its electric truck on March 21 with the goal of delivering 300 to 500 this year. The group's stock jumped about 9% in pre-market trading.
* KKR - The U.S. investment fund is sticking to its request for access to Telecom Italia's books before formally making a proposal to buy the group, a source close to the matter said.
Analyst recommendations:
British American Tobacco: J.P. Morgan upgrades from neutral to overweight, targeting GBp 4,000.
Drax: Jefferies downgrades from buy to hold, targeting GBp 700.
GDS Holdings: Deutsche Bank raised its recommendation on GDS Holdings Ltd. Class A ADRs to buy from hold. PT up 29% to $ 55.
Huya: Daiwa adjusts price target to $ 5.70 from $ 7, keeps outperform rating
Hyatt Hotels: Truist Securities adjusts price target to $ 111 from $ 106, keeps buy rating.
International Consolidated Airlines Group: Deutsche Bank downgrades to hold from buy. PT up 12% to 155 pence.
Leidos: Wells Fargo Securities downgrades to equal-weight from overweight. PT up 5.8% to $ 113.
Occidental Petroleum: Mizuho Securities raises occidental petroleum's price target to $ 78 from $ 50, maintains buy rating.
Rightmove: RBC moves from Underperform to Market Perform targeting GBp 630.
Ryman Hospitality: SMBC Nikko initiates coverage with neutral rating, $ 95 price target
Schnitzer: KeyBanc Capital Markets upgrades to overweight from sector weight. PT up 19% to $ 58.
Werner Enterprises: Wells Fargo Securities raised the recommendation to equal-weight from underweight. PT up 9.2% to $ 46. | business |
Singapore extends quarantine-free entry as Asia shifts to `` living with COVID '' | Prime Minister Lee Hsien Loong said the financial hub will also drop requirements to wear masks outdoors and allow larger groups to gather.
`` Our fight against COVID-19 has reached a major turning point, '' Lee said in a televised speech that was also streamed on Facebook. `` We will be making a decisive move towards living with COVID-19. ''
Singapore was one of the first countries to shift from a containment strategy to new COVID normal for its 5.5 million population, but had to slow some of its easing plans due to subsequent outbreaks.
Now, as infection surges caused by the Omicron variant begin to subside in most countries in the region and vaccination rates improve, Singapore and other nations are removing a host of social distancing measures designed to stop the spread of the virus.
Singapore began lifting quarantine restrictions for vaccinated travellers from certain countries in September, with 32 countries on the list before Thursday's extension to vaccinated visitors from any nation.
Japan lifted this week restrictions imposed on Tokyo and 17 other prefectures that had limited hours of eateries and other businesses.
South Korea, where COVID infections this week topped 10 million but appear to be stabilizing, pushed back a curfew on eateries to 11 p.m., stopped enforcing vaccine passes and dropped quarantine for vaccinated travellers arriving from overseas.
Indonesia dropped quarantine requirements for all arrivals from overseas this week, and its Southeast Asian neighbours of Thailand, the Philippines, Vietnam, Cambodia and Malaysia took similar measures, as they seek to rebuild tourism sectors.
Indonesia is also lifting a ban on travel for a Muslim holiday in early May that traditionally sees millions of people head to villages and towns to celebrate Eid al-Fitr at the end of the holy month of Ramadan.
Australia will lift its entry ban for international cruise ships next month, effectively ending all major COVID-related travel bans after two years.
New Zealand this week ended mandatory vaccine passes to visit restaurants, coffee shops and other public spaces. It will also lift vaccine mandates for a number of sectors from April 4 and open the borders for those on visa-waiver programmes from May.
Hong Kong, which has registered the most deaths per million people globally in recent weeks, plans to relax some measures next month, lifting a ban on flights from nine countries, reducing quarantine and reopening schools after a backlash from business and residents.
TRAVEL HOPES
Singapore travel and movement related stocks surged on Thursday, with a gain of nearly 5% for airport ground-handling firm SATS and 4% for Singapore Airlines. Shares in public transport and taxi operator Comfortdelgro Corp rose 4.2%, their sharpest one-day gain in 16 months. The Straits Times index was up 0.8%.
Lee said Singapore officials would continue to remove restrictions at a measured pace.
`` After this major step, we will wait a while to let the situation stabilise, '' he said. `` If all goes well, we will ease up further. ''
As well as allowing up to 10 people to gather, Singapore will remove a 10:30 p.m. curfew on dining and alcohol sales, and allow more employees to return to their workplace.
Still, mask wearing mandates remain in place in several places including South Korea and Taiwan, while facial covering is almost ubiquitous in Japan.
China remains a major holdout, sticking to a `` dynamic clearance '' policy to stamp out flare-ups as quickly as possible. It reported around 2,000 new confirmed cases for Wednesday. The latest outbreak is tiny by global standards but the country conducts rigorous testing, seals off hotspots and isolates infected people in quarantine facilities to prevent a surge that could strain its healthcare system.
( Reporting by Chen Lin and Aradhana Aravindan, additional reporting by Tom Westbrook; Editing by Ed Davies and Jane Wardell)
By Aradhana Aravindan and Chen Lin | business |
Citi's Mexico unit to define sale terms in April | - Citigroup's retail unit in Mexico, known as Citibanamex, has said it hopes to define the terms of its sale in April, amid signs of intensifying interest in the bank, expected by analysts to fetch between $ 4 billion and $ 8 billion.
Citi country head Manuel Romo told reporters on Wednesday the unit would open its `` data room '' next month to those it thinks meet the necessary requirements to launch a bid for the bank, which Citi chief executive Jane Fraser announced for sale in January.
`` We're doing this in a timely and appropriate manner, '' Romo said in a press conference ahead of the country's annual banking convention, which is taking place in Acapulco for the first time since the coronavirus pandemic hit.
Earlier this week, Mexican bank Banorte said that, if it decided to go forward with a bid, it would invite '' all Mexicans '' to take part in the purchase.
Mexican President Andres Manuel Lopez Obrador has said he wants to see investors `` Mexicanize '' the bank.
On Thursday, Lopez Obrador said he `` will not put up any obstacles '' to the sale but underscored that his preference would be for the bank to be in Mexican hands.
Lopez Obrador has mentioned several Mexican magnates, such as Ricardo Salinas, who controls Banco Azteca, and Carlos Hank Gonzalez of Banorte as potential buyers.
In February, Romo said that Citibanamex could be sold directly or through an initial public offering, but that the bank wasn't open to selling it piecemeal.
He said the sale, which could take up to two years, had received interest from banks and non-banks, both local and foreign.
Analysts have priced Citibanamex from $ 4 billion to $ 8 billion, though Citi, which acquired the bank for $ 12.5 billion in 2001, has yet to put a price tag on it.
Paco Ybarra, chief executive officer of the Institutional Clients Group at Citi, will steer the sale from New York, Romo said Wednesday. ( Reporting by Anthony Esposito in Acapulco and Kylie Madry in Mexico City Editing by Nick Zieminski) | business |
Exor agrees increased sale price for PartnerRe by 328 million euros | Exor last year signed an agreement to sell PartnerRe to French insurance group Covea for $ 9 billion, reviving a deal that had been derailed by the coronavirus pandemic.
The holding company on Thursday said in a statement from its full-year results that, based on PartnerRe's common shareholders ' equity at the end of last year, `` the agreed cash consideration will be adjusted, as per the agreed terms, to include additional proceeds for around $ 328 million ''.
The increased amount will be paid to Exor for $ 150 million by Covea and for $ 178 million by PartnerRe thorough a special dividend, it added.
Exor, which is the single largest investor in carmaker Stellantis and has controlling stakes in companies including Ferrari, CNH Industrial and Juventus football club, said on Thursday it turned to a 1.717 billion euro ( $ 1.89 billion) net profit last year.
That compares with a 30 million loss in Covid-hit 2020.
The company net asset vale ( NAV) increased to 31.069 billion euros at the end of 2021 from 24.041 billion a year earlier.
Exor, however, said it could not assess the impact of the conflict in Ukraine on its business given its developments were highly uncertain.
It said it acknowledged the unpredictability of the war `` regarding the duration, outcome and long-lasting consequences ''.
`` The overall effect of these factors on Exor's business can not be estimated with a sufficient degree of confidence, and Exor will continue to monitor closely the developments, '' it added.
The company proposed a dividend of 0.43 euros per share on its 2021 results, worth a total of around 99 million euros.
( $ 1 = 0.9095 euros)
( This story refiles for dropped word in paragraph 2)
( Reporting by Giulio Piovaccari, editing by Giulia Segreti, Bernard Orr) | business |
ADRs End Higher; China Eastern Airlines Traded Actively | International stocks trading in New York closed higher Thursday.
The S & P/BNY Mellon index of American depositary receipts rose 0.9% to 157.59. The European index was up 1.1% at 144.03. The Asian index increased 0.7% to 195.12. The Latin American index rose 1.4% to 223.39. And the emerging-markets index improved 0.5% to 331.96.
China Eastern Airlines Corp. was among those whose ADRs traded actively.
ABB Ltd. said Thursday that it plans to launch a new share-buyback program worth up to $ 3 billion. ADRs closed 0.1% lower at $ 34.78.
AstraZeneca PLC said Thursday that its Evusheld drug for Covid-19 prevention has been recommended for marketing authorization in the European Union. ADRs rose 2.6% to $ 66.02.
Search and rescue teams on Thursday discovered engine parts from the plane carrying 132 people that crashed in a mountainous area in southern China, as the hunt continued for the second black box. With no signs of survivors three days after the crash, all aboard the Boeing 737 operated by China Eastern Airlines -- nine aircrew and 123 passengers -- are feared dead in what would be China's worst air disaster in nearly three decades. ADRs closed down 2.9% at $ 17.22.
-- WSJ staff
( END) Dow Jones Newswires
03-24-22 1729ET | business |
EU regulator advises AstraZeneca's COVID drug be cleared | LONDON ( AP) — The European Union's drug regulator said Thursday it was recommending that an antibody medication developed by AstraZeneca be authorized to help some vulnerable people avoid getting sick with the coronavirus.
The European Medicines Agency said in a statement that it was advising the use of the new drug, sold as Evusheld, in people age 12 and over before they were exposed to COVID-19, to prevent future infections.
It is now up to the EU's executive arm, the European Commission, to officially authorize the drug.
The U.S. Food and Drug Administration cleared the medication in December for people with serious health problems or allergies who can’ t get adequate protection from vaccination. Britain authorized the use of Evusheld last week.
“ When the antibodies in Evusheld attach to the spike protein, the virus can not enter the cells to multiply and is unable to cause COVID-19 infection, ” the EMA said. The agency said it had assessed data on the drug from more than 5,000 people and found Evusheld reduced the risk of infection by 77%, with protection estimated to last at least six months.
EMA said the drug's side effects were mostly mild, with some people reporting reactions at the injection point. The agency noted that research was done before the emergence of the hugely infectious omicron variant and said that it was evaluating data to determine if a different dose might be needed.
Although antibody drugs have been a standard treatment for treating COVID-19 infections for more than a year, AstraZeneca's is the first intended for long-term prevention against COVID-19 infection rather than as a short-term treatment.
People who could benefit from the antibody drug include cancer patients, organ transplant recipients and individuals taking immune-suppressing drugs for conditions like rheumatoid arthritis.
Follow AP’ s coverage of the pandemic at https: //apnews.com/hub/coronavirus-pandemic
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News | business |
BioAlberta Recognizes Alberta Innovators and Entrepreneurs at 2021 Achievement Awards Ceremony, Sir Michael Houghton Inducted Into Alberta Bioindustry Hall of Fame | EDMONTON, Alberta -- ( BUSINESS WIRE) -- BioAlberta announced the induction of Sir Michael Houghton into the Alberta Bioindustry Hall of Fame, as well as the recipients of its 2021 Achievement Awards in recognition of the outstanding contributions of the individuals and companies whose innovation and achievements have contributed to the growing success of Alberta's life sciences sector. The awards were presented at BioAlberta’ s Policy Forum and 2021 Awards Gala, held in Edmonton on March 22.
“ We are honoured that Sir Michael Houghton has accepted our invitation to enter the Alberta Bioindustry Hall of Fame. His commitment to research excellence led to the discovery of the Hepatitis C virus, which allowed for screening tools that eliminated Hepatitis C from our blood supply. His research at the Li Ka Shing Applied Virology Institute puts Alberta at the forefront of research, ” said Robb Stoddard, President and CEO of BioAlberta.
Accepting this award, Sir Michael Houghton, said: “ Thank you very much to BioAlberta for this high honour. Alberta has already made substantial contributions to healthcare advances but with the continued support of BioAlberta and our provincial and federal governments in research commercialisation and manufacture, I am convinced that our excellent academics, trainees and biotech companies can in the future generate a quantum jump in producing many more much needed medicines along with a thriving and major industrial economy for the province and for Canada. ”
The Alberta Bioindustry Hall of Fame recognizes individuals who have made extensive and tangible contributions to the Alberta life sciences community. This work can be in scientific achievement and research, industry development, public policy, education and ambassadorship. Inductees are selected by the Board of Directors based on the notable impact of an individual's work or lifetime achievement. Recipients are known to be passionate advocates for science and technology, accomplished scientists, business leaders and mentors whose dedication left an indelible mark in the life sciences sector.
BioAlberta Annual Achievement Awards “ Our life sciences sector is growing by leaps and bounds, and our 2021 award winners exemplify Alberta’ s capacity to accelerate drug discovery and development, pivot their business generating real-world solutions with global impact, ” said Robb Stoddard, President and CEO of BioAlberta.
2021 Company of the Year – Providence Therapeutics Inc This award acknowledges a company that has shown significant achievement within the marketplace and Alberta’ s business community through strong performance or a leadership role.
“ Providence Therapeutics Inc. is a true leader in Alberta’ s life sciences ecosystem, ” said Robb Stoddard, President and CEO of BioAlberta. “ It’ s an honour for us to recognize Dr. Jared Davis and the Providence team for their ability to pivot from their traditional oncology focus toward development of a made-in-Alberta COVID-19 solution. ”
Since its incorporation in 2015, Providence Therapeutics has focused on oncology research and personalized cancer therapies. However, when the COVID-19 crisis hit, Providence pivoted from its original mission in oncology, devoting its energy, knowledge, and resources to creating a world-class mRNA COVID-19 vaccine. From the Health Canada approval of their phase 1 clinical trial of PTX-COVID19-B in December 2020, it was only 10 months later that Providence Therapeutics announced a licensing deal with Everest Medicine for its mRNA vaccine candidates, plus deals with Northern RNA to provide critical raw materials and Emergent BioSolutions to manufacture its vaccine at their Winnipeg facility.
Accepting the award on behalf of his team, Dr. Jared Davis, President of Providence Therapeutics Inc, said: “ It is an honor to be recognized as the BioAlberta company of the year. This award represents years of dedication hard work and determination by the Providence team. Providence Therapeutics looks forward to continuing fruitful collaboration within the Alberta biotechnology ecosystem in the years to come. ”
2021 Scientific Achievement and Innovation – Dr. Ratmir Derda This award recognizes an individual or a team responsible for a breakthrough innovation with commercial application.
“ Dr. Ratmir Derda’ s use of proprietary algorithms and machine learning to accelerate drug discovery is providing new and better drug leads for therapeutics, imaging and diagnostics. His company, 48 Hour Discovery builds on long standing expertise at the University of Alberta in the fields of glycomics and machine learning, ” said Robb Stoddard, President and CEO of BioAlberta. | general |
Why don't kids get Covid badly? Scientists are starting to understand | LONDON — One of the enduring mysteries of the Covid-19 pandemic, a global health crisis that has led to over 6 million fatalities, is that children have been spared by the virus — for the most part — and have not experienced anywhere near the severity of illness that adults have.
When Covid emerged in late 2019 and began to spread around the world, scientists scrambled to understand the virus and how to combat it, with hospitals trying different techniques to save the worst-off Covid patients in intensive care units.
Mercifully, few of those patients were children, posing a mystery for public health experts as to why kids were not becoming severely ill or dying with Covid.
Scientists are still somewhat baffled as to why children are not badly affected by Covid, although studies are slowly shedding light on how, and why, children's responses to Covid differ from those among adults.
`` A number of theories have been suggested, including a more effective innate immune response, less risk of immune over-reaction as occurs in severe Covid, fewer underlying co-morbidities and possibly fewer ACE-2 receptors in the upper respiratory epithelium — the receptor to which SARS-CoV-2 [ Covid ] binds, '' Dr. Andrew Freedman, an academic in infectious diseases at the U.K.'s Cardiff University Medical School, told CNBC in emailed comments, adding that nonetheless the phenomenon was not `` fully understood. ''
He noted more research will be required before we have a definitive answer but a body of evidence has already emerged showing that Covid poses a much smaller risk to kids, and why that might be.
It's widely understood that the risk posed to adults from Covid rises with age as our immune systems become slower to respond to, and less effective at combating, infections.
In particular, the risk increases for people in their 50s and increases again for those in their 60s, 70s, and 80s, the Centers for Disease Control and Prevention says, with people 85 and older the most likely to get very sick. Having certain underlying medical conditions can also make adults more likely to get severely ill.
There have been several recent studies looking at the difference between adults ' immune response to Covid, and children's, and these have found fundamental differences between the two with the latter having a more robust and `` innate '' immune response.
Research carried out by the Wellcome Sanger Institute and University College London, and published in the Nature journal in December, found a stronger `` innate '' immune response in the airways of children, characterized by the rapid deployment of interferons — which are released in the presence of viral or bacterial threats and help to restrict viral replication early on — UCL said.
Meanwhile in adults, the researchers saw a less rapid immune response which meant the virus `` was better able to invade other parts of the body where the infection was harder to control. ''
Kristin Mondy, a division chief of infectious diseases at the Dell Medical School at The University of Texas, told CNBC that `` out of the many hypotheses currently circulating in the literature, the best evidence to date supports the hypothesis and findings that children have a stronger innate immune response compared to adults, particularly in nasal mucosal tissue where immune cells can more rapidly control and eradicate the virus compared to adults. ''
`` That being said, we also know that children are more susceptible ( than adults) to the Multisystem Inflammatory Syndrome which is an overactive immune response to Covid-19, resulting usually in excessive inflammation in organs other than the lung ( usually the heart/circulatory system and gastrointestinal tract). ''
Another advantage children have is their greater exposure to viruses, particularly during term time when viruses are able to spread easily among children at school. The most common virus children get are innocuous colds and these are commonly caused by several types of virus including rhinoviruses ( the most common cause of the common cold) as well as respiratory syncytial virus ( RSV) and coronaviruses.
Coronaviruses are a family of viruses that usually cause mild to moderate upper-respiratory tract illnesses in humans but several, including Covid-19 and SARS and MERS, have emerged as global health threats.
Ralf Reintjes, professor of epidemiology at the Hamburg University of Applied Sciences, explained to CNBC that children's immune systems have a number of advantages when it comes to fighting infections.
`` First of all, they're younger so their immune systems are challenged a lot anyway... when they're one year or two years old until up to 10 or 12 years old, they they go through lots of infections, '' Reintjes told CNBC on Monday.
`` They get lots of contact with other coronaviruses at this time so their immune system is in training anyway, and is very young and fit, '' he said, adding that when children's immune systems are then confronted with Covid-19, having had a lot of practice fighting off various infections and coronaviruses, they have much stronger immune response than adults who tend to get less of those kinds of infections.
The phenomenon is not unique to Covid-19 either, Dr Andrew Freedman said, with children often able to fight off other kinds of infection better than adults, albeit not in all cases.
`` For instance, most children do not develop symptoms from Hepatitis A infection and Epstein-Barr infection is usually asymptomatic in younger children as opposed to teenagers and young adults who present with glandular fever. There are, of course, other infections which are more severe in younger children compared to older ones and adults, such as RSV [ respiratory syncytial virus ] and flu. ''
Research published in late 2021 looking into the overall risk posed by the virus to children found that this was very low for the absolute majority of children and young people aged below 18.
The study, carried out by researchers from several British universities, studied deaths among children and young people in England from March 2020 to February 2021 — the first year of the pandemic — differentiating between those who died of Covid and those who died of an alternative cause but had coincidentally tested positive for the disease.
It found that of the 3,105 children and young people who died from all causes during the first pandemic year in England, 25 had died of Covid, corresponding to an overall mortality rate of 2 deaths per million children in England.
Of the 25 children that sadly died of Covid, 19 had chronic underlying health conditions, including some children with multiple comorbidities and life-limiting conditions.
While the other six children that died appeared to have no underlying health conditions, researchers cautioned there may have been an unidentified comorbidity or undiagnosed genetic predisposition to severe disease with Covid infection.
While the study found that the overall risk to children was `` extremely low '' it did note that those above the age of 10, of Asian and Black ethnicity, and those with comorbidities ( neurological conditions were the commonest comorbidity) were over-represented in the mortality data compared to other children.
The study concluded that Covid `` is very rarely fatal '' even among those children with underlying comorbidities. Indeed, within the year that was studied, an estimated 469,982 children in England had Covid, meaning that a child's chance of surviving an infection was found to be 99.995%.
Pediatric Covid case and mortality data from the U.S. show similarly low risks to children.
The U.S. Centers for Disease Control and Prevention reported last week that a total of 966,575 deaths had been caused by Covid in the U.S. during the pandemic. Between 2020 and 2022 there were 921 deaths among 0-17 year olds that were caused by Covid, out of 73,508 deaths in this age group that were caused by all causes.
Since the pandemic began, children have accounted 19% of all Covid cases in the U.S., according to the American Academy of Pediatrics ' latest state-based data summary published last week, but the academy said that `` among states reporting, children were 0.00% -0.27% of all Covid-19 deaths, and 3 states reported zero child deaths. ''
Children continue to represent around a fifth of all Covid cases; for the week ending March 17, children accounted for 18.3% of reported weekly cases. Children under the age of 18 make up 22.2% of the U.S. population. | business |
Germany news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
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Singapore Moves to Relax Covid-19 Curbs -- Update | By Ben Otto and P.R. Venkat
Singapore next week will begin relaxing most of its Covid-19 restrictions, including by easing border controls, with the virus largely under control in the Southeast Asian nation.
Beginning March 29, the city-state will allow up to 75% of employees who can work from home to return to offices, as well as double the permissible size of groups to 10 people, Singapore Prime Minister Lee Hsien Loong said Thursday.
Cross-border travel will be eased `` substantially, '' with officials lifting most restrictions for fully vaccinated visitors to the country, Mr. Lee said. The use of masks will now be optional outdoors while remaining mandatory indoors.
`` Our fight against Covid-19 has reached a major turning point, '' Mr. Lee said. `` We are not quite yet at the finish line, though we are getting closer. ''
Mr. Lee added that the Omicron wave has crested in Singapore and is now subsiding, but the country is stopping short of a full end to Covid measures to allow conditions to further stabilize. He noted some countries that declared the pandemic finished `` are anxiously watching their infection and mortality numbers rising rapidly again. ''
The Civil Aviation Authority of Singapore said separately that beginning April 1, all fully vaccinated travelers will be able to enter Singapore quarantine free and without a requirement to obtain entry approvals. Fully vaccinated travelers will be required to purchase travel insurance and to produce a negative test results prior to travel to Singapore, but will no longer need to take a test upon arrival.
Children ages 12 and below are exempt from the vaccination requirement.
The Maritime and Port Authority of Singapore added that vaccinated travelers arriving via sea will be allowed to enter the country quarantine-free under similar conditions from April 1.
Travel and tourism stocks rose on the news, with flag-carrier Singapore Airlines Ltd. gaining 3.9% and casino operator Genting Singapore Ltd. adding 3.1%. CDL Hospitality Trusts, transportation company ComfortDelGro Corp. and Frasers Centrepoint Trust rose 5.1%, 4.2% and 2.15%, respectively.
The relaxation comes two years after the regional financial hub introduced mobility and gathering curbs to address the onset of the Covid-19 pandemic.
According the country's health ministry, 93% of the total population in Singapore has received at least one vaccination dose, while 71% of the total population has received booster shots.
Write to Ben Otto at ben.otto @ wsj.com
( END) Dow Jones Newswires
03-24-22 0052ET | business |
On the Edge: Thousands of CUPE Education Workers Share Stories of Living on Poverty Wages | TORONTO -- ( BUSINESS WIRE) -- A new report from the Canadian Union of Public Employees ( CUPE) offers insight into the cruel impacts of low wages on the lives of thousands of school support workers in Ontario’ s public education system.
Education Workers’ Wages in Ontario: The Impact of Ten Years of Cuts is based on recent survey responses from more than 16,000 CUPE education workers, who shared the often terrible choices they must make as they try to live on what they earn as the lowest paid employees in the school system.
“ This report shows unmistakably that education assistants, custodians, early childhood educators, school secretaries, and other support staff are suffering true hardship, as they try to survive on low wages that haven’ t kept up with the cost of living, ” said Laura Walton, president of CUPE’ s Ontario School Board Council of Unions ( OSBCU), which represents 55,000 CUPE education workers.
“ From the survey, we know that many education workers are working two and three jobs to make ends meet. Some have to choose between buying groceries and paying bills. They can’ t save money for their own or their children’ s future. Many shared that they dread the thought of their car breaking down, because they know can’ t afford the repairs. ”
CUPE/OSBCU points to years of underfunding to Ontario’ s education budget as the root cause of workers’ current situation. The problems have been made worse by a decade of below-inflation pay increases and now, rising inflation.
Walton emphasized that education workers are “ the backbone of our education system. They were in school and on the job throughout the COVID pandemic. They are vital to Ontario’ s public education system and yet they aren’ t earning enough to live on. ”
The report’ s findings also help to dispel the widespread misapprehension that the pay of school support staff is on par with teachers’ salaries. Rather, education workers earn an average $ 39,000 per year, with women’ s wages in the sector mirroring the overall gender wage gap. In part – but only in part – this is because women are overrepresented in positions in which workers are laid off during the summer and over December and March breaks.
Among other findings in the report: | general |
2022 Turkey Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics Databook - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Turkey Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics ( Databook) - Q1 2022 Update '' report has been added to ResearchAndMarkets.com's offering.
According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to grow by 13.9% on annual basis to reach US $ 1752.5 million in 2022. Despite near-term challenges in 2022, medium to long term growth story of gift cards in Turkey remains strong.
The gift card industry in Turkey is expected to grow steadily in H1 2022 and record a strong growth in H2 2022. The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 11.5% during 2022-2026. The gift card market in the country will increase from US $ 1539.2 million in 2021 to reach US $ 2708.9 million by 2026.
Robust growth in the e-commerce market is expected to boost gift card adoption among consumers in Turkey
The e-commerce industry has been on a consistent growth over the last few quarters, as more and more consumers are shifting to online shopping due to the coronavirus outbreak in the country. According to the publisher's projection, the e-commerce revenue exceeded US $ 20 billion in 2021 in Turkey. It is expected that the shift in consumers ' shopping behavior to continue even in the post-pandemic era. Consequently, the publisher is projecting further growth in the e-commerce sector in Turkey over the next four to eight quarters.
Consumers exchanging crypto for gift cards expected to boost gift card market growth in Turkey
One of the reasons why gift cards have grown into popularity over the last four to eight quarters is their innovative use cases. For instance, gift cards can be used to buy cryptocurrencies as well as convert cryptocurrencies into gift cards to make purchases. Similar use cases in Turkey have been boosting the gift card market growth over the last four to six quarters.
Consumers are looking for easier ways to invest in Bitcoin and other altcoins and similarly want simpler ways to spend their holdings. Notably, platforms such as Paxful are allowing consumers to buy crypto using gift cards. On the other hand, Bitrefill, the global payments platform, allows consumers to exchange Bitcoin for branded gift cards, which can then be used to complete purchases. Some of the brands for which consumers can buy gift cards through Bitrefill include Carrefour, Amazon, Google Play, Boyner, IKEA, and Turk Telecom, among several others.
Consequently, as the popularity of cryptocurrencies continues to grow in Turkey, the publisher expects it to support the overall growth of the gift card market over the next four to eight quarters.
Scope
Total Spend on Gifts in Turkey
Gift Card Market Size by KPIs across Consumer Segments in Turkey
Gift Card Market Size by Consumer Segment in Turkey
Digital Gift Card Market Size in Turkey
Gift Card Market Size by Retail Consumer in Turkey
Gift Card Spend by Consumer Behavior and Demographics in Turkey
Gift Card Market Size by Corporate Consumer in Turkey
Gift Spend by Product Categories ( Split by Retail and Corporate Consumers) in Turkey | general |
Victoria Gold: 2021 Fourth Quarter And Full Year 2021 Results | TORONTO, March 24, 2022 ( GLOBE NEWSWIRE) -- Victoria Gold Corp. ( TSX-VGCX) ( “ Victoria ” or the “ Company ”) is pleased to announce its fourth quarter and year ended December 31, 2021 summary financial and operating results. The Company will host a video conference call and webcast Monday, March 28th at 8:00am PST ( 11:00am EST) to discuss the fourth quarter and year ended December 31, 2021 consolidated results ( details are provided at the end of this news release). The Company uses certain non-IFRS performance measures throughout this news release. Please refer to the “ Non-IFRS Performance Measures ” section of this new release for more information.
All amounts are in Canadian dollars unless otherwise indicated. This release should be read in conjunction with the Company’ s Financial Statements and Management’ s Discussion and Analysis ( “ MD & A ”) for the years ended December 31, 2021 and 2020, available on the Company’ s website or on SEDAR.
“ 2021 saw record annual gold production of 164,222 ounces, an increase of over 40% from 2020. Our increased production led to other record highs for Victoria including revenues of $ 356 million and net income of $ 108 million, ” noted Mr. John McConnell, President and CEO. “ 2021 Capital expenditures and all-in-sustaining-costs were higher as the Company not only dealt with the impacts of COVID-19 and inflation, but continued advancing growth initiatives. These growth initiatives, which include Project 250 and exploration at Eagle and Raven, will continue through 2022 and are expected to lead to material increases in production and reduction in unit costs for 2023 and beyond. ”
Operational Summary – Fourth Quarter and Year Ended 2021
Financial Summary – Fourth Quarter and Year Ended 2021
Fourth Quarter and Year to Date 2021 Operating Results
The Company issued original 2021 Guidance for the Eagle Gold Mine on March 1, 2021. Revised 2021 Guidance was issued on December 16, 2021. The following table shows the Company’ s performance compared to the revised Guidance:
Results vs. Revised 2021 Guidance
Gold production and salesDuring the three months ended December 31, 2021, the Eagle Gold Mine produced 49,496 ounces of gold, compared to 42,436 ounces of gold production in Q4 2020. The 17% increase in gold production is attributed to the increase in ore mined and stacked during the current and preceding quarters along with higher ore grades.
During the three months ended December 31, 2021, the Company sold 49,219 ounces of gold, compared with 40,023 gold ounces sold in Q4 2020. The 23% increase in gold sold is attributed to the increase in gold produced.
During the year ended December 31, 2021, the Eagle Gold Mine produced 164,222 ounces of gold, compared to 116,644 ounces of gold production in 2020. The 41% increase in gold production is attributed to the increase in ore mined and stacked along with higher ore grades.
During the year ended December 31, 2021, the Company sold 158,736 ounces of gold, compared with 102,551 gold ounces sold in 2020. The 55% increase in gold sold is attributed to the increase in gold produced.
MiningDuring the three months ended December 31, 2021, a total of 2.5 million tonnes of ore were mined, at a strip ratio of 1.3:1 with a total of 5.7 million tonnes of material mined. In comparison, a total of 2.2 million tonnes of ore were mined, at a strip ratio of 1.4:1 with a total of 5.3 million tonnes of material mined for the prior comparable period in 2020.
Total tonnes mined were 7% higher during the three months ended December 31, 2021 as a result of higher stacking rates allowing for higher mining rates.
During the year ended December 31, 2021, a total of 9.5 million tonnes of ore were mined, at a strip ratio of 1.6:1 with a total of 24.5 million tonnes of material mined. In comparison, a total of 7.5 million tonnes of ore were mined, at a strip ratio of 1.6:1 with a total of 19.9 million tonnes of material mined for the prior comparable year in 2020.
Total tonnes mined were 23% higher during the year ended December 31, 2021 as a result of higher stacking rates allowing for higher mining rates.
ProcessingDuring the three months ended December 31, 2021, a total of 2.5 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 27.6 k tonnes per day. A total of 2.3 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 25.2 k tonnes per day for the prior comparable period in 2020.
Ore stacked on the pad increased by 10% during the three months ended December 31, 2021 as increased efficiencies started to materialize from ongoing improvement efforts.
Ore for the quarter had an average head grade of 0.83 g/t Au, compared to 0.81 g/t Au in the prior comparable period in 2020 due to mine sequencing.
During the year ended December 31, 2021, a total of 9.2 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 25.1 k tonnes per day. A total of 7.3 million tonnes of ore was stacked on the heap leach pad at a throughput rate of 19.9 k tonnes per day for the prior comparable year in 2020.
Ore stacked on the pad increased by 26% during the year ended December 31, 2021 due to improved material handling.
Ore for the year had an average head grade of 0.85 g/t Au, compared to 0.84 g/t Au in the prior comparable year in 2020 due to mine sequencing.
As at December 31, 2021, the Company estimates there are 104,015 recoverable ounces within mineral inventory.
CapitalThe Company incurred a total of $ 24.8 million in capital expenditures during the three months ended December 31, 2021, including: ( 1) sustaining capital of $ 15.0 million ( including scheduled capital component rebuilds on mobile mining fleet of $ 2.9 million, expansion to the heap leach pad of $ 2.8 million and continued construction of the truck shop and water treatment facility of $ 8.0 million); ( 2) capitalized stripping activities of $ 4.3 million; ( 3) $ 4.1 million spend on growth capital expenditures ( growth exploration and mine expansion) and; ( 4) $ 1.4 million adjustment to the Company’ s asset retirement obligation during the quarter.
The Company incurred a total of $ 107.6 million in capital expenditures during the year ended December 31, 2021, including: ( 1) sustaining capital of $ 59.9 million ( including upgrades to the material handling system including chute liners of $ 12.8 million, scheduled capital component rebuilds on mobile mining fleet of $ 14.6 million, expansion to the heap leach pad of $ 5.9 million, $ 7.0 million for light vehicle and machinery purchases and construction of the truck shop and water treatment facility of $ 18.0 million); ( 2) capitalized stripping activities of $ 31.0 million; ( 3) $ 5.7 million spend on growth capital expenditures ( growth exploration and mine expansion), and; ( 4) $ 11.0 million adjustment to the Company’ s asset retirement obligation during the year ended December 31, 2021.
Fourth Quarter and Full Year 2021 Financial Results
RevenueFor the fourth quarter, the Company recognized revenue of $ 110.6 million compared to $ 98.2 million for the previous year’ s comparable period. The increase in revenue is attributed to a higher number of gold ounces sold, partially offset by a lower average realized price. Revenue is net of treatment and refining charges, which were $ 0.5 million for the quarter. The Company sold 49,219 ounces of gold at an average realized price1 of $ 2,251 ( US $ 1,786), compared to 40,023 ounces at an average realized price1 of $ 2,453 ( US $ 1,883), in the fourth quarter of 2020.
For the year ended December 31, 2021, the Company recognized revenue of $ 356.5 million compared to $ 178.7 million for the previous year’ s comparable year, which only includes six months of revenue as the Company declared commercial production on July 1, 2020. Revenue is net of treatment and refining charges, which were $ 1.0 million for the year. The Company sold 158,736 ounces of gold at an average realized price1 of $ 2,243 ( US $ 1,790), compared to 102,551 ounces at an average1 realized price of $ 2,480 ( US $ 1,882), in 2020.
Cost of goods soldCost of goods sold was $ 44.5 million for the fourth quarter compared to $ 40.9 million for the previous year’ s comparable period. The increase in cost of goods sold is primarily attributed to the increase in production costs as a result of higher tonnes mined and gold ounces produced, ( including mining, processing, site services and site general and administration costs), royalty and selling costs.
Cost of goods sold was $ 145.5 million for the year compared to $ 75.3 million for the previous year, which only includes six months of costs as the Company declared commercial production on July 1, 2020.
Depreciation and depletionDepreciation and depletion was $ 16.3 million for the fourth quarter compared to $ 14.1 million for the previous year’ s comparable period.
For the year ended December 31, 2021, depreciation and depletion was $ 60.0 million compared to $ 27.1 million for the previous year, which only includes six months of depreciation and depletion as the Company declared commercial production on July 1, 2020.
Assets are depreciated on a straight-line basis over their useful life, or depleted on a units-of-production basis over the reserves to which they relate.
Liquidity and Capital ResourcesAt December 31, 2021, the Company had cash and cash equivalents of $ 31.3 million ( December 31, 2020 - $ 56.1 million) and a working capital surplus of $ 62.8 million ( December 31, 2020 – $ 25.4 million surplus). The decrease in cash and cash equivalents of $ 24.9 million over the year ended December 31, 2020, was due to changes in working capital primarily an increase in inventory ( $ 55.2 million decrease in cash), a decrease in investing activities ( $ 96.0 million decrease in cash) primarily from property, plant and equipment purchases and a decrease in financing activities ( $ 60.9 million decrease in cash) from principal and interest repayments made on credit facilities. This is partially offset by an increase in cash from operating activities ( $ 187.2 million increase in cash).
2022 Outlook Victoria’ s operational outlook assumes that operations will continue without any significant COVID-19 related interruptions. The Company has taken precautions to mitigate the risk of COVID-19 on operations. However, the COVID-19 pandemic and any future emergence and spread of similar pathogens could have a material adverse impact on our business, operations and operating results, financial condition, liquidity and market for our securities.
On February 24, 2022, Russia commenced a military invasion of Ukraine. In response, many jurisdictions have imposed strict economic sanctions against Russia and its interests, including Canada, the United States, the European Union, the United Kingdom, and others. While Victoria does not have any operations in Ukraine or Russia, our business may be impacted by the ongoing conflict between Russia and Ukraine and the related economic sanctions. The conflict and economic sanctions may also give rise to additional indirect impacts, including increased fuel prices, supply chain challenges, logistics and transport disruptions and heightened cybersecurity disruptions and threats. Increased fuel prices and ongoing volatility of such prices may have adverse impacts on our costs of doing business.
Refer to the “ Risk and Uncertainties ” section of the December 31, 2021 MD & A.
Production at the Eagle Gold Mine for 2022 is estimated to be between 165,000 and 190,000 ounces.
Mining, crushing, irrigation of ore on the heap leach pad and gold production are all expected to operate at full capacity during 2022. Stacking of ore on the heap leach pad was paused for six weeks in the first quarter of 2022 ( late January through early March 2022) for regularly scheduled maintenance activities. Gold production, which lags stacking activities in heap leach operations will have a seasonal bias due to the winter scheduled maintenance program which will result in lower gold production in the first half of 2022 and higher production in the last half of 2022, similar to 2021.
AISC1 for 2022 are expected to be between US $ 1,225 and US $ 1,425 per oz of gold sold.
Sustaining capital, not including waste stripping, is estimated at US $ 55 million for 2022. Sustaining capital will be high in 2022 compared with future years due to one-time infrastructure expenditures including construction of the water treatment plant ( US $ 17 million) and higher than normal mobile equipment rebuilds ( US $ 8 million higher than normal).
Capitalized waste stripping is estimated at US $ 21 million and is included in AISC1 but is not included in the sustaining capital above. Waste stripping will be expensed or capitalized based on the actual quarterly stripping ratio versus the expected life of mine stripping ratio and may be quite variable quarter over quarter and year over year. This accounting treatment for waste stripping will affect earnings and capital but will not affect AISC1 or cash flow.
Growth capital related to Eagle Gold Mine expansion initiatives is estimated at US $ 40 million for 2022. In addition, growth exploration spending in 2022 is estimated to be US $ 20 million.
The Company has initiated ‘ Project 250’ aimed at increasing the average annual gold production of the Eagle Gold Mine toward 250,000 ounces of gold during 2023. The two primary opportunities to increase production are the scalping of fine ore from the crushing circuit and adjusting the seasonal stacking plan.
Scalping of fine ore is expected to reduce wear and energy requirements as well as increase overall capacity of the crushing circuit. There is potential to increase design throughput of the crushing circuit by approximately 15%, thereby increasing potential annual ore stacking on the heap leach pad by approximately 1.5 million tonnes annually. Detailed engineering and procurement of equipment is underway to enable construction to start in H2 2022 to benefit 2023 production.
The Company also intends to reduce the winter stacking curtailment down to 1 month increasing annual stacking to 11 months. Project 250 will require the addition of two 785 haul trucks and a loader.
Qualified PersonThe technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo, as the “ Qualified Person ” as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Conference Call and Webcast DetailsThe webcast and conference call to discuss the 2021 fourth quarter and year ended December 31, 2021 operating and financial results and updates will take place on Monday, March 28, 2022 at 8:00am PST ( 11:00am EST). Call in details will be available on the Company’ s website.
An audio webcast of the conference call will be available on the Company’ s website at www.vgcx.com.
Zoom Video Conference Details
Victoria Gold Corp invites you to join the video conference via Zoom to discuss the 2021 fourth quarter and year ended December 31, 2021 operating and financial results on Monday, March 28, 2022 at 8:00am PST ( 11:00am EST).
Join Zoom Meeting
https: //us02web.zoom.us/j/84108407927
Meeting ID: 841 0840 7927One tap mobile+13017158592,,84108407927 # US ( Washington DC) 13126266799,,84108407927 # +US ( Chicago)
Find your local number: https: //us02web.zoom.us/u/kxfj0NzLY
A playback version will be available for two weeks following the call on the Company’ s website at www.vgcx.com.
About the Dublin Gulch PropertyVictoria Gold's 100% -owned Dublin Gulch gold property ( the “ Property ”) is situated in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 85 kilometers from the town of Mayo. The Property is accessible by road year round, and is located within Yukon Energy's electrical grid.
The Property covers an area of approximately 555 square kilometers, and is the site of the Company's Eagle and Olive Gold Deposits. The Eagle Gold Mine is Yukon's newest operating gold mine. The Eagle and Olive deposits include Proven and Probable Reserves of 3.3 million ounces of gold from 155 million tonnes of ore with a grade of 0.65 grams of gold per tonne, as outlined in a National Instrument 43-101 Technical Report for the Eagle Gold Mine dated December 3, 2019. The Mineral Resource under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ( “ NI 43-101 ”) for the Eagle and Olive deposits has been estimated to host 227 million tonnes averaging 0.67 grams of gold per tonne, containing 4.7 million ounces of gold in the `` Measured and Indicated '' category, inclusive of Proven and Probable Reserves, and a further 28 million tonnes averaging 0.65 grams of gold per tonne, containing 0.6 million ounces of gold in the `` Inferred '' category.
Non-IFRS Performance Measures The Company has included certain non-IFRS measures in this new release. Refer to the Company’ s MD & A for an explanation, discussion and reconciliation of non-IFRS measures. The Company believes that these measures, in addition to measures prepared in accordance with International Financial Reporting Standards ( “ IFRS ”), provide readers with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.
Cautionary Language and Forward-Looking StatementsThis press release includes certain statements that may be deemed `` forward-looking statements ''. Except for statements of historical fact relating to Victoria, information contained herein constitutes forward-looking information, including any information related to Victoria's strategy, plans or future financial or operating performance. Forward-looking information is characterized by words such as “ plan ”, “ expect ”, “ budget ”, “ target ”, “ project ”, “ intend ”, “ believe ”, “ anticipate ”, “ estimate ” and other similar words, or statements that certain events or conditions “ may ”, “ will ”, “ could ” or “ should ” occur, and includes any guidance and forecasts set out herein ( including, but not limited to, production and operational guidance of the Corporation). In order to give such forward-looking information, the Corporation has made certain assumptions about the its business, operations, the economy and the mineral exploration industry in general, in particular in light of the impact of the novel coronavirus and the COVID-19 disease ( “ COVID-19 ”) on each of the foregoing. In this respect, the Corporation has assumed that production levels will remain consistent with management’ s expectations, contracted parties provide goods and services on agreed timeframes, equipment works as anticipated, required regulatory approvals are received, no unusual geological or technical problems occur, no material adverse change in the price of gold occurs and no significant events occur outside of the Corporation's normal course of business. Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those described in, or implied by, the forward-looking information. These factors include the impact of general business and economic conditions, risks related to COVID-19 on the Company, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, anticipated metal production, fluctuating metal prices, currency exchange rates, estimated ore grades, possible variations in ore grade or recovery rates, changes in accounting policies, changes in Victoria's corporate resources, changes in project parameters as plans continue to be refined, changes in development and production time frames, the possibility of cost overruns or unanticipated costs and expenses, uncertainty of mineral reserve and mineral resource estimates, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, final pricing for metal sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, requirements for additional capital, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcomes of pending litigation and labour disputes, risks related to remote operations and the availability of adequate infrastructure, fluctuations in price and availability of energy and other inputs necessary for mining operations. Although Victoria has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in, or implied by, the forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding Victoria's expected financial and operational performance and Victoria's plans and objectives and may not be appropriate for other purposes. All forward-looking information contained herein is given as of the date hereof, as the case may be, and is based upon the opinions and estimates of management and information available to management of the Corporation as at the date hereof. The Corporation undertakes no obligation to update or revise the forward-looking information contained herein and the documents incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by applicable laws.
For Further Information Contact: John McConnellPresident & CEOVictoria Gold Corp.Tel: 604-696-6605ceo @ vgcx.com
1 Refer to “ Non-IFRS Performance Measures ” section.
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Mycobacterium tuberculosis transmission in Birmingham, UK, 2009–19: An observational study - The Lancet Regional Health – Europe | BackgroundOver 10-years of whole-genome sequencing ( WGS) of Mycobacterium tuberculosis in Birmingham presents an opportunity to explore epidemiological trends and risk factors for transmission in new detail.MethodsBetween 1st January 2009 and 15th June 2019, we obtained the first WGS isolate from every patient resident in a postcode district covered by Birmingham's centralised tuberculosis service. Data on patients’ sex, country of birth, social risk-factors, anatomical locus of disease, and strain lineage were collected. Poisson harmonic regression was used to assess seasonal variation in case load and a mixed-effects multivariable Cox proportionate hazards model was used to assess risk factors for a future case arising in clusters defined by a 5 single nucleotide polymorphism ( SNP) threshold, and by 12 SNPs in a sensitivity analysis.Findings511/1653 ( 31%) patients were genomically clustered with another. A seasonal variation in diagnoses was observed, peaking in spring, but only among clustered cases. Risk-factors for a future clustered case included UK-birth ( aHR=2·03 ( 95% CI 1·35–3·04), p < 0·001), infectious ( pulmonary/laryngeal/miliary) tuberculosis ( aHR=3·08 ( 95% CI 1·98-4·78), p < 0·001), and M. tuberculosis lineage 3 ( aHR=1·91 ( 95% CI 1·03–3·56), p = 0·041) and 4 ( aHR=2·27 ( 95% CI 1·21–4·26), p = 0·011), vs. lineage 1. Similar results pertained to 12 SNP clusters, for which social risk-factors were also significant ( aHR 1·72 ( 95% CI 1·02–2·93), p = 0·044). There was marked heterogeneity in transmission patterns between postcode districts.InterpretationThere is seasonal variation in the diagnosis of genomically clustered, but not non-clustered, cases. Risk factors for clustering include UK-birth, infectious forms of tuberculosis, and infection with lineage 3 or 4.FundingWellcome Trust, MRC, UKHSA
Over 10-years of whole-genome sequencing ( WGS) of Mycobacterium tuberculosis in Birmingham presents an opportunity to explore epidemiological trends and risk factors for transmission in new detail.
Between 1st January 2009 and 15th June 2019, we obtained the first WGS isolate from every patient resident in a postcode district covered by Birmingham's centralised tuberculosis service. Data on patients’ sex, country of birth, social risk-factors, anatomical locus of disease, and strain lineage were collected. Poisson harmonic regression was used to assess seasonal variation in case load and a mixed-effects multivariable Cox proportionate hazards model was used to assess risk factors for a future case arising in clusters defined by a 5 single nucleotide polymorphism ( SNP) threshold, and by 12 SNPs in a sensitivity analysis.
511/1653 ( 31%) patients were genomically clustered with another. A seasonal variation in diagnoses was observed, peaking in spring, but only among clustered cases. Risk-factors for a future clustered case included UK-birth ( aHR=2·03 ( 95% CI 1·35–3·04), p < 0·001), infectious ( pulmonary/laryngeal/miliary) tuberculosis ( aHR=3·08 ( 95% CI 1·98-4·78), p < 0·001), and M. tuberculosis lineage 3 ( aHR=1·91 ( 95% CI 1·03–3·56), p = 0·041) and 4 ( aHR=2·27 ( 95% CI 1·21–4·26), p = 0·011), vs. lineage 1. Similar results pertained to 12 SNP clusters, for which social risk-factors were also significant ( aHR 1·72 ( 95% CI 1·02–2·93), p = 0·044). There was marked heterogeneity in transmission patterns between postcode districts.
There is seasonal variation in the diagnosis of genomically clustered, but not non-clustered, cases. Risk factors for clustering include UK-birth, infectious forms of tuberculosis, and infection with lineage 3 or 4.
Research in context Evidence before this studyWe searched PubMed for English language research articles up to 6th December 2021 using the search term ‘ tuberculosis’, interchangeably with ‘ seasonality’ and ‘ transmission’. Seasonal variation in tuberculosis diagnoses have been observed in multiple settings. A previous analysis of clusters defined largely on circumstantial evidence reported that seasonality may be restricted to those clustered cases only. Whole genome sequencing ( WGS) data provide unprecedented precision for identifying clusters of tuberculosis, and thereby for precisely mapping epidemiological trends. Previous studies using WGS for tuberculosis epidemiology have described outbreaks; assessed patient and strain-based risk factors for transmission; and trace the origins of local epidemics back to sources. Individual patient social risk factors have previously been associated with an increased risk of transmission, as has strain lineage 2. However, WGS data have not yet been used to understand the impact of policy interventions, explore seasonal trends, or to provide local public health teams with details on where, when, and after whom to expect further clustered cases in their area. Added value of this studyWe exploit over 10 years of data obtained from dense sampling and WGS of M. tuberculosis isolates in Birmingham to understand epidemiological patterns of relevance to local practice and beyond. We find unambiguous evidence for seasonality among clustered cases and not among non-clustered cases. We show that some policy interventions have not had their desired effect in Birmingham, with a levelling-off in the decline in non-clustered cases after 2015, even though there is evidence of impact elsewhere in England. We assess both patient and strain-based risk factors for local cluster growth, showing that UK birth and lineages 3 and 4 are all independently associated with cluster growth in our setting. We also identify where in the city clustering remains largely local and where it does not, providing detailed information on local transmission patterns. Implications of all the available evidenceSeasonal variation in tuberculosis diagnoses is different for clustered and non-clustered cases. This raises questions of whether this is due to amplification of transmission in-doors in the winter and a predominantly short incubation period, or whether other factors are responsible. However, whilst this epidemiological pattern has wider significance, other patterns we observed are potentially more locally determined. WGS is an essential tool to investigate local patterns with implications for where, when, and after whom to expect further cases of tuberculosis. These data should become key considerations in decisions about the deployment of public health resources, and should be repeated locally in other settings.
We searched PubMed for English language research articles up to 6th December 2021 using the search term ‘ tuberculosis’, interchangeably with ‘ seasonality’ and ‘ transmission’. Seasonal variation in tuberculosis diagnoses have been observed in multiple settings. A previous analysis of clusters defined largely on circumstantial evidence reported that seasonality may be restricted to those clustered cases only. Whole genome sequencing ( WGS) data provide unprecedented precision for identifying clusters of tuberculosis, and thereby for precisely mapping epidemiological trends. Previous studies using WGS for tuberculosis epidemiology have described outbreaks; assessed patient and strain-based risk factors for transmission; and trace the origins of local epidemics back to sources. Individual patient social risk factors have previously been associated with an increased risk of transmission, as has strain lineage 2. However, WGS data have not yet been used to understand the impact of policy interventions, explore seasonal trends, or to provide local public health teams with details on where, when, and after whom to expect further clustered cases in their area.
We exploit over 10 years of data obtained from dense sampling and WGS of M. tuberculosis isolates in Birmingham to understand epidemiological patterns of relevance to local practice and beyond. We find unambiguous evidence for seasonality among clustered cases and not among non-clustered cases. We show that some policy interventions have not had their desired effect in Birmingham, with a levelling-off in the decline in non-clustered cases after 2015, even though there is evidence of impact elsewhere in England. We assess both patient and strain-based risk factors for local cluster growth, showing that UK birth and lineages 3 and 4 are all independently associated with cluster growth in our setting. We also identify where in the city clustering remains largely local and where it does not, providing detailed information on local transmission patterns.
Seasonal variation in tuberculosis diagnoses is different for clustered and non-clustered cases. This raises questions of whether this is due to amplification of transmission in-doors in the winter and a predominantly short incubation period, or whether other factors are responsible. However, whilst this epidemiological pattern has wider significance, other patterns we observed are potentially more locally determined. WGS is an essential tool to investigate local patterns with implications for where, when, and after whom to expect further cases of tuberculosis. These data should become key considerations in decisions about the deployment of public health resources, and should be repeated locally in other settings.
Before the COVID-19 pandemic, England saw a steep decline in tuberculosis incidence over the preceding decade, with numbers falling from 8280 in 2011 to 4655 in 2018.1Public Health England. Tuberculosis in England, 2019 report. ( 1). Accessed 29 November 2021Google Scholar This decline in incidence is seen in both UK and non-UK born populations.1Public Health England. Tuberculosis in England, 2019 report. ( 1). Accessed 29 November 2021Google Scholar,2Thomas H.L. Harris R.J. Muzyamba M.C. et al.Reduction in tuberculosis incidence in the UK from 2011 to 2015: a population-based study.Thorax. 2018; 73: 769-775Google Scholar Some of this success has been attributed to structural changes to tuberculosis services, including a move to pre-entry screening for tuberculosis disease in new migrants from 2011; the implementation of the Collaborative TB Strategy 2015–20 and the establishment of TB control boards; and a focus on testing for tuberculosis infection in people aged 16–35 who arrived from a high-incidence country within 5 years.2Thomas H.L. Harris R.J. Muzyamba M.C. et al.Reduction in tuberculosis incidence in the UK from 2011 to 2015: a population-based study.Thorax. 2018; 73: 769-775Google Scholar, 3Public Health England, Collaborative tuberculosis strategy for England 2015 to 2020. https: //www.gov.uk/government/publications/collaborative-tuberculosis-strategy-for-england. Accessed 29 November 2021.Google Scholar, 4Public Health England. Latent TB infection testing and treatment programme; technical guidance and specification. 2019. https: //assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment data/file/807363/LTBI technical specification and guidance.pdf. Accessed 29 November 2021Google Scholar
The precise impact of each intervention on the declining incidence remains unclear,2Thomas H.L. Harris R.J. Muzyamba M.C. et al.Reduction in tuberculosis incidence in the UK from 2011 to 2015: a population-based study.Thorax. 2018; 73: 769-775Google Scholar and the task of eliminating tuberculosis is only likely to get harder as managing the residual case-load is inevitably more complex. As the competition for public health resources will remain fierce in the aftermath of the COVID-19 pandemic, there is an imperative to design and implement efficient and high-value interventions if the WHO's targets for ending the TB pandemic by 2035 are to be achieved in England, and indeed elsewhere.5World Health Organization. The end TB strategy. https: //www.who.int/teams/global-tuberculosis-programme/the-end-tb-strategy. Accessed 29 November 2021Google Scholar
Whole-genome sequencing ( WGS) data have long been promoted as a tool of potential value in monitoring trends and designing tuberculosis control measures. Birmingham is England's second largest city whose population grew from 1·05 million in 2009 to 1·14 million in 2019.6Office for National Statistics, Estimates of the population for the UK, England and Wales, Scotland and Northern Ireland: mid-2001 to mid-2019 detailed time series. https: //www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/populationestimatesforukenglandandwalesscotlandandnorthernireland. Accessed 29 November 2021Google Scholar Birmingham's population is younger and more ethnically diverse than the English average, with almost 25% of residents born overseas, of whom almost half have been UK resident for over 10 years.7Birmingham City Council. Website. https: //www.birmingham.gov.uk/info/20057/about birmingham/1294/population and census/2. Accessed 24 November 2022Google Scholar Neighbouring Solihull, which is less diverse, has a population that grew from 205,000 in 2009 to and 216,000 in 2019.6Office for National Statistics, Estimates of the population for the UK, England and Wales, Scotland and Northern Ireland: mid-2001 to mid-2019 detailed time series. https: //www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/populationestimatesforukenglandandwalesscotlandandnorthernireland. Accessed 29 November 2021Google Scholar Tuberculosis incidence in Birmingham peaked at over 40 cases per 100,000 population in 2009.8Public Health England. Tuberculosis in the West Midlands: annual review ( 2018 data). 2018. https: //assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment data/file/857030/Tuberculosis in the West Midlands Annual review - 2018 data.pdf. Accessed 29 November 2021Google Scholar WGS of all M. tuberculosis cultures has been undertaken in Birmingham and Solihull for over 10 years, initially as research and latterly part of routine service provision that expanded nationwide in 2018. Here we explore 10·5 years of M. tuberculosis WGS data and associated meta-data from patients diagnosed in Birmingham and Solihull to investigate how this can reveal trends in transmission and disease control, potentially aid contact investigations, help assess the impact of interventions past, and help inform the design of future control strategies.
The Birmingham and Solihull tuberculosis service provides tuberculosis care to the populations of Birmingham and Solihull, who constituted the study population. One isolate from each patient who was resident at diagnosis in a postcode district covered by the service between 1st January 2009 and 13th June 2019 was cultured and sequenced on Illumina platforms ( see supplementary Table S1 for postcode districts). Starting in 2012, all retrospective cultures were retrieved from a frozen archive at the UK Health Security Agency ( UKHSA) mycobacterial reference laboratory, Birmingham. These were cultured either in liquid media Mycobacteria Growth Indicator Tubes ( BACTEC™ MGIT™ 960, Becton Dickinson) or on Löwenstein-Jensen media, and DNA extracted as previously described.9Walker T.M. Ip C.L. Harrell R.H. et al.Whole-genome sequencing to delineate Mycobacterium tuberculosis outbreaks: a retrospective observational study.Lancet Infect Dis. 2013; 13: 137-146Google Scholar From 2012 isolates were cultured and sequenced prospectively. From 2015, DNA was extracted directly from early positive MGIT cultures as previously described.10Votintseva A.A. Pankhurst L.J. Anson L.W. et al.Mycobacterial DNA extraction for whole-genome sequencing from early positive liquid ( MGIT) cultures.J Clin Microbiol. 2015; 53: 1137-1143Google Scholar Only samples identified as M. tuberculosis sensu stricto were included, and where postcode details were available to place the patient in the catchment area.
Short reads were mapped to the H37Rv ( Genbank accession number NC 000962.2) M. tuberculosis reference genome using Stampy version 1.0.17.11Lunter G. Goodson M. Stampy: a statistical algorithm for sensitive and fast mapping of Illumina sequence reads.Genome Res. 2011; 21: 936-939Google Scholar Repetitive regions were masked along-side four genes with previously noted high levels of artefactual variation ( tuf, rrs, rrl, Rvnt38).9Walker T.M. Ip C.L. Harrell R.H. et al.Whole-genome sequencing to delineate Mycobacterium tuberculosis outbreaks: a retrospective observational study.Lancet Infect Dis. 2013; 13: 137-146Google Scholar,12Wyllie D.H. Sanderson N. Myers R. et al.Control of artifactual variation in reported intersample relatedness during clinical use of a Mycobacterium tuberculosis sequencing pipeline.J Clin Microbiol. 2018; 56: e00104-e00118Google Scholar SAMtools mpileup version 0.1.1813Li H. Handsaker B. Wysoker A. et al.The sequence alignment/map format and SAMtools.Bioinformatics. 2009; 25: 2078-2079Google Scholar was used to call variants based on a minimum read depth of 5x and at least one read on each strand. 76 samples for which < 88% of the reference genome was called A, C, G, T were excluded. A single nucleotide polymorphism ( SNP) threshold was used to generate clusters after multi-FASTA alignment, as previously described,9Walker T.M. Ip C.L. Harrell R.H. et al.Whole-genome sequencing to delineate Mycobacterium tuberculosis outbreaks: a retrospective observational study.Lancet Infect Dis. 2013; 13: 137-146Google Scholar whereby any sequence within the defined SNP threshold of another in a cluster was considered part of the same cluster. Python software is available.14Eyre D. runListCompare Available from: https: //github.com/davideyre/runListCompare, 2022Google Scholar
Data on date of diagnosis, sex, social risk factors, anatomical focus of the disease, postcode district, UK birth or year of entry into the UK were obtained from the national tuberculosis surveillance system at UKHSA. Data on M. tuberculosis lineage were derived from lineage specific SNPs extracted from the genomic sequences.15Stucki D. Malla B. Hostettler S. et al.Two new rapid SNP-typing methods for classifying Mycobacterium tuberculosis complex into the main phylogenetic lineages.PLoS One. 2012; 7: e41253Google Scholar
The Birmingham and Solihull tuberculosis service use a generous ( sensitive) 12 SNP threshold to cluster isolates, meaning that any sequence within 12 SNPs of another was clustered with that isolate. They then assess possible transmission events using phylogenetic and epidemiological data to optimise specificity. As we did not have data on shared time, space or contacts here, we base the primary analysis on clusters defined by 5 SNPs as this distance is more suggestive of person-to-person transmission than 12 SNPs.12Wyllie D.H. Sanderson N. Myers R. et al.Control of artifactual variation in reported intersample relatedness during clinical use of a Mycobacterium tuberculosis sequencing pipeline.J Clin Microbiol. 2018; 56: e00104-e00118Google Scholar,16Diel R. Kohl T.A. Maurer F.P. et al.Accuracy of whole-genome sequencing to determine recent tuberculosis transmission: an 11-year population-based study in Hamburg, Germany.Eur Respir J. 2019; 541901154Google Scholar However, we repeated all analyses using the 12 SNP cluster cut-off as a sensitivity analysis.
We used a segmented Poisson harmonic regression to characterise the temporal dynamics of incidence for clustered and non-clustered patients. The harmonic part consisted of a linear combination of sine and cosine transformations of time to capture seasonal variation in the data. The segmented part allowed two prespecified breakpoints, 2011 and 2015, to capture potential effects of public health policy changes described in the introduction. The significance of the seasonality and the breakpoints were assessed by likelihood ratio tests comparing models with and without sine and cosine functions and with 1, 2 or 3 segments in the trends around 2011 and 2015. As Birmingham and Solihull's population increased over the study period, we considered a version of the Poisson model in which Office of National Statistics mid-year estimates of the population sizes were included as an offset. To assess the impact of other effect, such as border effects where cases at the beginning and end of the study might be wrongly classified as non-clustered, we used a generalized additive Poisson model ( as implemented by the mgcv R package) 17Wood S.N. Generalized Additive Models: An Introduction with R.2nd ed. Chapman and Hall/CRC, 2017Google Scholar with spline smoothers on the time variables to allow visual characterization of the temporal trend with greater flexibility than segmented harmonic Poisson regression allows. The number of knots were automatically found by cross-validation to optimize the bias-variance trade-off.
Univariable logistic regressions were used to characterise the temporal trends in the proportions of male patients, UK-born patients, clustered patients, and patients with social risk factors among the cases. Univariable linear regression was used to characterise the relationship between the total number of patients resident in a postcode district and the number of patients clustered within and between those districts.
We conducted a time-to-event analysis of patient and strain-based risk factors for a future genomically related case emerging ( our unit of analysis). We first used Kaplan-Meier plots to show the cumulative risk of a further case based on the characteristics of each case seen. Time was counted from the previous case ( t = 0) to the next case or censored at 13 June 2019 when the last two patients in the study were diagnosed. The risk factors we explored included the presence of infectious forms of tuberculosis ( pulmonary, laryngeal or miliary); social risk factors ( for which we pooled illicit drug use, alcohol dependence, history of homelessness or time in prison, to increase power); whether patients were born in the UK or overseas; and M. tuberculosis lineage.
We then used a multivariable mixed-effects Cox proportionate hazards model to quantify the independent effect of each of the above risk factors. As perfectly sequential transmission between patients was highly unlikely within clusters, and as the characteristics of the previous patient might not therefore best predict the emergence of the next, we used the mean of each risk factor in a cluster at the time each additional patient was diagnosed. We also controlled for cluster size and the mean number of males in the cluster at the time. Cluster identifier was included as a random effect. We used a likelihood ratio test to compare models with and without interaction terms, ultimately excluding all interaction terms as none were significant ( p > 0·05).
Missing data on country of birth were assumed to be missing completely at random and corresponding observations were dropped from the relevant regression analyses. Missing data on social risk factors were assumed to be missing not at random as these data are more likely to have been entered routinely by nurses if the risk factors had been present. For the purpose of the relevant regression analyses these observations were handled as if no risk factor were present.
Analyses were performed in STATA 17 and R 4.1.0.18R Core Team ( 2021). R: A language and environment for statistical computing. R Foundation for Statistical Computing, Vienna, Austria. URL https: //www.R-project.orgGoogle Scholar
All work was undertaken as part of UKHSA ( then known as Public Health England) service evaluation under the authority of the Health and Social Care Act 2012. As such, no additional research ethics committee approval was required.
The funders had no role in the study design, in the collection of data, its analysis or interpretation, the writing of the report or the decision to submit for publication.
All data are available in the supplementary tables, including European Nucleotide Archive accession numbers.
Between 01 January 2009 and 13 June 2019 there were 1653 patients in Birmingham and Solihull with culture confirmed tuberculosis and an M. tuberculosis sensu stricto whole-genome sequence available for analysis. Among the retrospective isolates ( 2009–12), 64 could not be sequenced as these were missing. 695 ( 42·0%) were female and 958 ( 58·0%) were male. 448 ( 27·1%) were UK born, 1195 ( 72·3%) were non-UK born, and data were missing for 10 ( < 1%). 354/448 ( 79·0%) UK born patients had pulmonary, laryngeal or miliary tuberculosis, of whom 96 ( 27·1%) had at least one social risk factor ( alcohol dependency, illicit drug use, history of homelessness, or time in prison). This compared to 707/1195 ( 59·2%) non-UK born patients who had infectious tuberculosis, of whom 38 ( 5·4%) had at least one social risk factor. 34 ( 2·1%) patients had TB meningitis, of whom 1 had a social risk factor, and 105 ( 6·4%) had TB osteomyelitis or spondylitis, of whom 4 had a social risk factor. Lineages 1–4 were represented by 214, 86, 704 and 649 isolates, respectively. 247 ( 38·1%) patients with lineage 4 were UK born compared to 15–21% for the other three lineages. 511/1653 ( 30·9%) patients could be genomically clustered with at least one other case ( supplementary Table S2 and S3).
Cases declined at a rate of 6·7% ( 95% confidence interval 5·2–8·2) per year over the study period. Among these, clustered cases declined at a rate of 7·4% ( 4.7–10·0) per year whereas for non-clustered cases the trend changed from an 11% decline ( 7·2–14·7) per year prior to 2015 when the Collaborative TB Strategy was introduced, to a 3·7% ( -3·7–10·6) decline subsequently ( chi2=5·2, df=1, p = 0·023). Interestingly a seasonal trend was also seen, but only among clustered cases, with diagnoses of patients genomically linked to another case peaking in spring and corresponding troughs seen in the autumn ( Figure 1). To check that this phenomenon was not an artefact of how we defined a cluster, we repeated the analysis using a 12 SNP threshold and found the same seasonal patterns as for the 5 SNP threshold, with a similar levelling off of the decline in non-clustered cases after 2015 ( chi2=4·3, df=1, p = 0·038; supplementary Figure 1). Increases in Birmingham and Solihull's population were not responsible for these findings, nor were any effects around the start and end dates of the study that could have resulted in clustered cases being missed ( supplementary Figure 2).Figure 1All cases from the beginning to end of the study. Red model shows seasonal trend in the diagnosis of patients in a 5 SNP cluster. Blue model shows trends for patients unrelated to another in the study. Vertical green lines indicate the introduction of the UK's new entrant screening programme ( dashed) and the introduction of the national Collaborative TB Strategy ( solid).View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
As cases steadily decreased over time, we found a significant increase in the proportion of patients who were male, and in the proportion of patients with a social risk factor ( supplementary Figure 3).
To understand how future public health resources might best be invested we assessed risk factors for cluster growth associated with host, organism and location.
The number of new introductions into the catchment area was determined by defining a new strain as any clinical sample which was > 5 SNPs from any other sample previously seen in the study; there were 1285 new introductions. Of 511 genomically clustered cases, 158 ( 30.9%) were clustered in pairs, 108 ( 21.1%) in triplets, and 245 ( 47·9%) were part of a clusters of 4 or more individuals ( supplementary Table S4a; see S4b for 12 SNP clusters). 30/214 ( 14·0%) lineage 1 isolates were genomically clustered compared to 20/86 ( 23·3%) lineage 2, 202/704 ( 28·7%) lineage 3 and 260/649 ( 40·1%) lineage 4 ( p < 0·001) ( supplementary Figure 4).
To understand how particular risk factors predict the emergence of another case in the cluster over time, we plotted Kaplan-Meier survival curves. In this univariable analysis, 38·6% ( 95% CI 30·8–46·8%) of patients with at least one social risk factor had already been followed by another case of tuberculosis in the same cluster after 1 year, rising to 47·1% ( 95% CI 38·9–55·3%) at two years. Similarly, 33·0% ( 95% CI 28·7–37·6%) of UK born patients were followed by another case within one year, and 37·9% ( 95% CI 33·4–42·6%) within 2 years. Among the different lineages, lineage 4 posed the greatest risk of another case at one year ( 24·2%, 95% CI 20·9–27·7) ( Figure 2). Very similar results were seen for 12 SNP clusters ( supplementary Figure 5).Figure 2Risk of a future case arising in a cluster, given: A, the presence of one or more social risk factors B, where the patient was born; C, what lineage the patient is infected with; D, whether the patient has infectious ( pulmonary, laryngeal or miliary) tuberculosis.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
A mixed-effects multi-variable Cox proportional hazards model assessed which risk factors, averaged over the cluster to date, were independently associated with a future case being diagnosed within the same cluster. Covariables included the presence of any social risk factors, UK vs. overseas birth, sex, M. tuberculosis lineage, the presence of an infectious form of tuberculosis ( pulmonary, laryngeal or miliary), and cluster size. Cluster identifier was included as a random effect. Ten patients for whom their place of birth was unknown were excluded.
The mean number of patients in the cluster to date who had an infectious form of tuberculosis or who were UK born were the main patient centred factors associated with a future case emerging in a cluster ( adjusted hazard ratio ( aHR) 3·08, 95% confidence interval 1·98–4·78, p < 0.001; and aHR 2·03, 95% CI 1·36–3·04, p = 0·001, respectively). The cluster's M. tuberculosis lineage was also significant ( aHR 1·91, 95% CI 1·20–3·56, p = 0·041 and aHR 2·27, 95% CI 1·21–4·26, p = 0·011 for lineages 3 and 4, respectively vs. lineage 1) ( Table 1a). There was no evidence of differences by sex, cluster size, or the mean number of patients with a social risk factor. Very similar results were obtained after repeating this analysis with 12 SNP clusters, with the exception that mean number of social risk factors in the cluster to date was significant with the more relaxed threshold ( Table 1b). See supplementary Table S5 for unadjusted hazard ratios, and supplementary Figure 6 for the mean interval days between cases by cluster size.Table 1Risk factors for a future, genomically related case being diagnosed.A future case is diagnosedNo future case is diagnosedNRisk factor presentRisk factor not present% with risk factorNRisk factor presentRisk factor not present% with risk factoraHR ( 95% CI) p-valueRisk of a future related case being diagnoseda. For clusters defined by 5 SNPsPulmonary, laryngeal or miliary tuberculosis3673095884.2127475252259.03·08 ( 1·98–4·78) < 0·001Drug use3675431314.712743912353.1Alcohol dependency367233446.312741612581.3Time spent in prison3673832910.412743612382.8History of homelessness367203475.412742212521.7Composite 'any social risk factor ' present3677729021.012747611986.01·60 ( 0·87–2·93) 0·129Born in the UK36718917851.51274259101520.32·03 ( 1·35–3·04) 0·001Lineage 1367173504.61274196107815.4Lineage 2367123553.312747412005.81·36 ( 0·52–3·53) 0·526Lineage 336713922837.9127455771743.71·91 ( 1·03–3·56) 0·041Lineage 436719916854.2127444782735.12·27 ( 1·21–4·26) 0·011Male36722714061.9127472754757.11·14 ( 0·78–1·66) 0·503Cluster size after each consecutive case is diagnosed1·00 ( 0·98–1·01) 0·641b. For clusters defined by 12 SNPsPulmonary, laryngeal or miliary tuberculosis4163417582.0122572050558.82·36 ( 1·61–3·45) < 0·001Drug use4166135514.712253211932.6Alcohol dependency416253916.012251412111.1Time spent in prison416413759.912253311922.7History of homelessness416233935.512251912061.6Composite 'any social risk factor ' present4168732920.912256611595.41·72 ( 1·02–2·93) 0·044Born in the UK41622219453.4122522699918.43·16 ( 2·21–4·53) < 0·001Lineage 1416203964.81225193103215.8Lineage 2416134033.112257311526.01·28 ( 0·53–3·11) 0·581Lineage 341615825838.0122553868743.92·12 ( 1·21–3·74) 0·009Lineage 441622519154.1122542180434.42·56 ( 1·45–4·53) 0·001Male41626315363.2122569153456.41·35 ( 0·96–1·90) 0·084Cluster size after each consecutive case is diagnosed1·00 ( 0·98–1·01) 0·671Results of mixed-effect Cox proportional hazards model shown as adjusted hazard ratio ( aHR) for the mean number of patients with each risk factor in a cluster at the time each consecutive case in a cluster is diagnosed. ( 1653 patients in the study, of whom 10 were excluded from this model as had missing data on place of birth, and 2 were censored as were diagnosed on the last day of the study, leaving 1641 patients in this Cox proportional hazards model). Open table in a new tab
Results of mixed-effect Cox proportional hazards model shown as adjusted hazard ratio ( aHR) for the mean number of patients with each risk factor in a cluster at the time each consecutive case in a cluster is diagnosed.
( 1653 patients in the study, of whom 10 were excluded from this model as had missing data on place of birth, and 2 were censored as were diagnosed on the last day of the study, leaving 1641 patients in this Cox proportional hazards model).
We next explored in which 3-digit postcode districts transmission events based on 5 SNP clusters might be occurring. The median number of cases seen in a postcode district over the entire study period was 65 [ inter-quartile range 30–127 ]. Postcode districts 7, 11 and 18 saw the most cases, with 141, 151 and 127, respectively, whilst postcode districts 39 saw just 2 cases in 10·5 years. We distinguished between patients with no prior genomically linked cases anywhere in the study, and those with a linked prior case. The latter might be considered preventable through contact tracing, whereas the former might not. Figure 3 shows all postcode districts, highlighting those that saw preventable cases.Figure 3All patients in the study by date and postcode district where they lived at diagnosis. Dots indicate non-infectious TB, and triangles indicate infectious TB. Grey colour indicates patients whose strains are genomically unrelated to a previous strain and as such constitute new introductions. Green = related to one or more other strains, but not in the same postcode district. Orange = related to one other strain within the same postcode district, and possibly others in other postcode districts. Red = related to two other strains within the same postcode district, and possibly others in other postcode districts. Purple = related to more than two other strains within the same postcode district, and possibly others in other postcode districts. Postcode districts 1, 6 and 11 each have 2 clusters contributing 3 or more secondary cases. Where other postcode districts see 3 or more secondary cases, these are always from just one cluster.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
Linear regression was then used to characterise the relationship between the number of cases in a postcode district and the subset of secondary, or preventable, cases in that district from a source anywhere in the catchment area, over the study period. A mean of one additional secondary case for roughly every 5 cases in each postcode district was seen ( coefficient 0·21, R2 0·85, Figure 4a). However, among those cases with a related case somewhere in Birmingham or Solihull, a mean of one additional patient linked to another in the same postcode district was seen for roughly every 2·5 patients ( coefficient 0·38, R2 0·13, Figure 4b). There was significant heterogeneity across postcode districts, with postcode district 11 ( having the highest number of cases) also seeing the highest proportion of within district clustering ( 75%), and postcode district 7 ( having the second highest number of cases) seeing only low clustering ( 19%) ( Figure 4a, b). Repeating this analysis for 12 SNP clusters produced very similar results ( coefficient 0·22, R2 0·84; coefficient 0·40, R2 0·10, respectively, supplementary Figure 7a, b). Postcodes 7 and 11 are among the most deprived areas in Birmingham.Figure 4a: Number of cases over whole study period by the number of secondary cases in 5 SNP clusters. Data shown by postcode district. Linear regression line plots predicted mean with shaded area showing 95% confidence interval of the mean. 4b: Of patients who are genomically linked to at least one other one patient in Birmingham, the y-axis plots the number that are linked within the postcode district, and the x-axis the total number. The two postcode districts with the most number of cases overall are marked by red ( postcode district 11) and orange ( postcode district 7) triangles.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
All data are available ( see supplementary Table S2 for details).
Birmingham, England's second largest city, was the first in the world to start routine WGS of all M. tuberculosis samples for public health purposes. It was expected that the data would aid contact tracing and provide accurate data on trends in transmission and overall disease control.9Walker T.M. Ip C.L. Harrell R.H. et al.Whole-genome sequencing to delineate Mycobacterium tuberculosis outbreaks: a retrospective observational study.Lancet Infect Dis. 2013; 13: 137-146Google Scholar,19Wyllie D.H. Davidson J.A. Smith E.G. et al.A quantitative evaluation of MIRU-VNTR typing against whole-genome sequencing for identifying mycobacterium tuberculosis transmission: a prospective observational cohort study.EBioMedicine. 2018; 34: 122-130Google Scholar Here we present a largely prospective, 10-and-a-half-year population study of tuberculosis in the city. The findings demonstrate how routinely sequencing all culture positive samples can generate data to help direct when, around whom, and where to focus limited public health resources.
A steadily declining case-load was seen over the course of the study. Male sex and social risk factors became proportionally more common over time, independently of one another, and independently of country of birth. There was clear seasonal variation in diagnoses that applied to patients in clusters, but not to those who were unrelated to another case. Seasonality in tuberculosis diagnoses has previously been described, with speculation around the role of vitamin D deficiency in winter as a potential driver.20Fares A. Seasonality of tuberculosis.J Glob Infect Dis. 2011; 3: 46Google Scholar, 21Koh G. Hawthorne G. Turner A.M. Kunst H. Dedicoat M. Tuberculosis incidence correlates with sunshine: an ecological 28-year time series study.PLoS One. 2013; 8: e57752Google Scholar, 22Wingfield T. Schumacher S.G. Sandhu G. et al.The seasonality of tuberculosis, sunlight, vitamin D, and household crowding.J Infect Dis. 2014; 210: 774-783Google Scholar Data from the USA also found that seasonality could be restricted to clustered cases, although those clusters were defined largely by spatio-temporal criteria.23Willis M.D. Winston C.A. Heilig C.M. Cain K.P. Walter N.D. Mac Kenzie W.R. Seasonality of tuberculosis in the United States, 1993–2008.Clin Infect Dis. 2012; 54: 1553-1560Google Scholar WGS data allow clusters to be defined with greater precision,9Walker T.M. Ip C.L. Harrell R.H. et al.Whole-genome sequencing to delineate Mycobacterium tuberculosis outbreaks: a retrospective observational study.Lancet Infect Dis. 2013; 13: 137-146Google Scholar and here for the first time help to unambiguously distinguish between two distinct epidemic trends; one seasonal, of recent transmission and early breakdown to disease, and another non-seasonal, of reactivation of disease after past infection and initial latency. Each requires different interventions. It could be that peaks in the spring and troughs in the autumn relate to indoor transmission in winter months.24Thorpe L.E. Frieden T.R. Laserson K.F. Wells C. Khatri G.R. Seasonality of tuberculosis in India: is it real and what does it tell us?.Lancet. 2004; 364: 1613-1614Google Scholar Clinical trial data suggests that Vitamin D deficiency is unlikely to be responsible.25Ganmaa D. Uyanga B. Zhou X. et al.Vitamin D supplements for prevention of tuberculosis infection and disease.N Engl J Med. 2020; 383: 359-368Google Scholar We are also unaware of any seasonal population changes in our setting. Our findings do however lend support to the case that the incubation period is often short, as the seasonal pattern is consistent with many patients developing tuberculosis within 6 months of infection.26Behr M.A. Edelstein P.H. Ramakrishnan L. Revisiting the timetable of tuberculosis.BMJ. 2018;: k2738Google Scholar
The Public Health England Collaborative TB Strategy and screening for tuberculosis infection in high-risk communities came into effect in 2015.2Thomas H.L. Harris R.J. Muzyamba M.C. et al.Reduction in tuberculosis incidence in the UK from 2011 to 2015: a population-based study.Thorax. 2018; 73: 769-775Google Scholar It was therefore unexpected that the rate of decline among non-clustered cases levelled off after 2015. One could speculate that the impact of the introduction of pre-entrant screening in 2011 began to wear off by 2015, leaving a residual case load of UK-born patients, but there was only marginal evidence for an increase in the proportion of UK born patients over time ( supplementary Figure 2). It is much less likely that the levelling off of the decline had anything to do with the new Collaborative TB Strategy, which was introduced to have the opposite effect.
We identified clear risk factors for the emergence of future cases within a genomically defined cluster, based on the characteristics of that cluster to date. Reflecting the finding of other population studies, a greater risk for an early additional case was seen in clusters enriched for UK-born patients and for patients with pulmonary, laryngeal or miliary tuberculosis.16Diel R. Kohl T.A. Maurer F.P. et al.Accuracy of whole-genome sequencing to determine recent tuberculosis transmission: an 11-year population-based study in Hamburg, Germany.Eur Respir J. 2019; 541901154Google Scholar,19Wyllie D.H. Davidson J.A. Smith E.G. et al.A quantitative evaluation of MIRU-VNTR typing against whole-genome sequencing for identifying mycobacterium tuberculosis transmission: a prospective observational cohort study.EBioMedicine. 2018; 34: 122-130Google Scholar It is possible that UK-born patients are prone to later diagnosis, and therefore more transmission, if health providers don't consider tuberculosis within the differential in this population. Interestingly, infection with lineages 3 and 4 was also an independent risk factor, even after correcting for the random effect of cluster identifier. Social risk factors were only significant for 12 SNP clusters, perhaps as more geographically dispersed, and therefore less well sampled, clusters would have been better captured by the more generous threshold. Some of these clusters are known to the local tuberculosis team to be associated with social risk factors. Of particular relevance to public health teams tasked with outbreak control is the expected time to another case, based on individual patient risk factors. Although these were based on a univariable analysis ( Figure 2), they are informative as predictors. These results show not just which characteristics of a patient, cluster or strain could be used to prioritise contact investigations, but also by when.
Others have reported that lineage 2 is more transmissible, including in the wider West Midlands region around Birmingham,19Wyllie D.H. Davidson J.A. Smith E.G. et al.A quantitative evaluation of MIRU-VNTR typing against whole-genome sequencing for identifying mycobacterium tuberculosis transmission: a prospective observational cohort study.EBioMedicine. 2018; 34: 122-130Google Scholar,27Holt K.E. McAdam P. Thai P.V.K. et al.Frequent transmission of the Mycobacterium tuberculosis Beijing lineage and positive selection for the EsxW Beijing variant in Vietnam.Nat Genet. 2018; 50: 849-856Google Scholar,28Karmakar M. Trauer J.M. Ascher D.B. Denholm J.T. Hyper transmission of Beijing lineage Mycobacterium tuberculosis: systematic review and meta-analysis.J Infect. 2019; 79: 572-581Google Scholar or have linked transmissibility to non-lineage dependent genetic markers.29Nebenzahl-Guimaraes H. van Laarhoven A. Farhat M.R. et al.Transmissible Mycobacterium tuberculosis strains share genetic markers and immune phenotypes.Am J Respir Crit Care Med. 2017; 195: 1519-1527Google Scholar A complex interplay between strain, host, and environment may explain some of the differences. However, we were able to study 511 patients in 143 clusters, sized 2 or more, and lineages 3 and 4 accounted for all six clusters with more than 10 patients ( supplementary Table S2). The unusual density and duration of longitudinal population sampling in this study should lend credence to the findings, at least in this setting.
The finding that some postcode districts suffer from more local transmission than others suggests where efforts should be prioritised. Although local public health teams will be familiar with the higher-incidence postcode districts in the city, the findings that transmission in some high-incidence postcodes is predominantly local whereas transmission from others extends to different postcode districts should help better risk stratify investment in contact tracing.
There are limitations to this study. We did not have postcode data for all patients whose isolate was sequenced at the reference laboratory, so it is possible that we excluded some Birmingham or Solihull residents from the study. Additional samples were missing for the retrospectively collected cases, but will have been missing at random. No WGS data were available for culture negative samples, although culture negative patients are less likely to transmit the infection onwards. We will not have identified genomic links to patients outside of the temporal and geographic boundaries of the study, thereby missing some clustered cases. Moreover, contact tracing efforts throughout the study may have had a disproportionate impact on smaller, more simple clusters such as household clusters. WGS based contact tracing started in December 2016 and may also had an impact. It is possible that any of these factors could have introduced bias, but the finding of seasonality among clustered but not non-clustered patients is unlikely to have emerged if large amounts of patients were missing. Other limitations include missing data on social risk factors, especially in 2009, and missing data on HIV infection, diabetes, dialysis and patient age.
We did not explore direct person-to-person transmission as we lacked detailed epidemiological data. Approaches to reconstructing person-to-person transmission events exist,30Xu Y. Cancino-Muñoz I. Torres-Puente M. et al.High-resolution mapping of tuberculosis transmission: whole genome sequencing and phylogenetic modelling of a cohort from Valencia Region, Spain.PLoS Med. 2019; 16e1002961Google Scholar but we risk drawing false conclusions where data are missing. Our approach worked well for predicting future clustered cases based on the characteristics of the cluster to date, and should be of use to public health teams. Finally, we chose not to include isolates from after 2019 as the intention here was not to assess the impact of the COVID-19 pandemic on tuberculosis control.
We have nevertheless managed to densely sample Birmingham and Solihull for over a decade, using WGS and epidemiological data to generate a detailed picture of the public health challenge. WGS has now become routine in Birmingham and the rest of England. Although it has generated new work it has also saved resources previously spent on investigating links based on less specific molecular typing results. Our observation that seasonality is restricted to the diagnosis of clustered cases is likely to be more widely relevant. Practical interventions might include winter-time tuberculosis awareness campaigns for both healthcare workers and the community. Our approach to identifying which clusters are likely to grow, by when that might happen, and where those future cases might emerge may also provide useful to other settings. These are key pieces of information that can help guide the energies and resources of public health teams.
TMW, DWC, TEAP, DW, MD, EGS, ER and ASW conceptualised the study. TMW, EGS, ER, DWC and DW contributed to data collected and curation. TMW, MC, ASW, PGD, FYT, and TEAP analysed the data. DWC, TEAP, ASW, EGS, MD and ER supervised the study. TMW wrote the first draft of the manuscript. All authors reviewed and edited the manuscript.
The research was supported by the National Institute for Health Research ( NIHR) Oxford Biomedical Research Centre ( BRC). The views expressed are those of the author ( s) and not necessarily those of the NHS, the NIHR or the Department of Health. We acknowledge the support of Wellcome Trust core funding ( grant 098051) at the Wellcome Trust Sanger Institute. We acknowledge the support of the UKHSA ( formally PHE). TMW is a Wellcome Trust Clinical Career Development Fellow ( 214560/Z/18/Z) but was an MRC research training fellow ( MR/J011398/1) when this work started. DWC is an NIHR Senior Investigator. ASW is an NIHR Senior Investigator. EGS, ERR and DW are employed by UKHSA.
No authors declare any conflict of interests.
We would like to acknowledge Hanna Kaur, lead TB nurse for the Birmingham and Solihull TB service, Zeitun Afzal, TB MDT co-ordinator / database manager, the TB nursing team and the patients themselves. We would like to acknowledge Julian Parkhill for his support whilst at the Wellcome Trust Sanger Institute, and Jeremy Westhead for his help preparing the WGS data for public release.
This research was funded in whole, or in part, by the Wellcome Trust [ 214560/Z/18/Z ] [ 098051 ]. For the purpose of open access, the author has applied a CC BY public copyright licence to any Author Accepted Manuscript version arising from this submission.
The funders had no role in the study design, data collection, analysis, interpretation of data, writing the report, or in the decision to submit for publication. No medical writer or editor was used.
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Moderna: Announces Clinical and Program Updates at 3rd Annual Vaccines Day | CAMBRIDGE, MA / ACCESSWIRE / March 24, 2022 / Moderna, Inc. ( NASDAQ: MRNA), a biotechnology company pioneering messengerRNA ( mRNA) therapeutics and vaccines, today announced clinical and program updates demonstrating expansion and advancement of its mRNA pipeline. This announcement reflects the Company's commitment to expanding its portfolio by building on Moderna's experience with Spikevax®, its COVID-19 vaccine. The updates include advancements in the Company's respiratory and latent virus portfolios, updates on its global health programs, and new partnerships formed in the recently launched mRNA Access program.
`` We believe our mRNA platform disrupts the traditional vaccines market and as indicated in our Vaccines Day announcements, we expect to bring many more safe and effective vaccines to market. There is an opportunity for Moderna to positively impact public and global health, and with 31 active development programs, 19 of which are in the clinic, we expect to address several critical unmet medical needs with the power of our mRNA platform, '' said Stéphane Bancel, Chief Executive Officer of Moderna.
`` We are pleased to announce advancements across our pipeline and the formation of significant research partnerships intended to accelerate development of vaccines to pathogens that pose the greatest threat to global health, '' said Stephen Hoge, M.D., President of Moderna. `` We are focused on unmet vaccine needs for respiratory viruses, latent viruses, and persistent global health threats. Importantly, we also continue to advance a range of COVID-19 vaccine options for adults, adolescents, and pediatric populations. ''
Updates on vaccines candidates against respiratory viruses
Moderna is implementing a multi-pronged approach to ease the substantial global burden of respiratory infections with vaccine candidates aimed at the major causative agents, including the SARS-CoV-2 virus, influenza virus, respiratory syncytial virus ( RSV), and the four endemic human coronaviruses ( HCoVs). Respiratory infections are a top cause of death globally and are particularly impactful to older adults who experience more severe illness and greater mortality than younger adults.
As COVID-19 transitions to an endemic phase, Moderna focuses on defending against SARS-CoV-2 variants, developing multi-valent boosters for the broadest immunity and protection for high-risk individuals, and advancing a next-generation refrigerator-stable vaccine.
COVID-19 Boosters
Moderna is advancing development of several boosters, including the prototype booster, an Omicron-specific booster and a bivalent booster. In the U.S., a Phase 2 study of the Omicron-specific booster candidate ( mRNA-1273.529) as a third or fourth dose is fully enrolled. Also in the U.S., enrollment is ongoing in a Phase 2 study of the bivalent booster candidate ( mRNA-1273.214), which combines the Omicron-specific booster candidate ( mRNA-1273.529) and the prototype vaccine ( mRNA-1273).
In the U.K., enrollment is ongoing in a Phase 3 to evaluate Omicron-containing candidates as a third or fourth dose in individuals who received any primary series.
Spikevax®/Moderna COVID-19 Vaccine in ages < 18
In adolescents aged 12-17 years, the primary series ( 2 dose, 100 µg) is authorized/approved in more than 40 countries. Moderna is preparing to submit data for 50 µg COVID-19 boosters in this age group.
In children aged 6-11 years, the primary series ( 2 dose series, 50 µg) is authorized/approved in Australia, Canada and the EU. Moderna is evaluating 25 µg dose as a primary series and a booster dose in this age group.
The Phase 2/3 KidCOVE study in children 6 months to under 6 years has successfully met its primary endpoint. The interim analysis showed a robust neutralizing antibody response after a 25 µg two-dose primary series of mRNA-1273 along with a favorable safety profile. Based on these data, Moderna will submit a request for authorization of a 25 μg two-dose primary series of mRNA-1273 for children 6 months to under 6 years of age to the U.S. Food and Drug Administration ( FDA), European Medicines Agency ( EMA) and other global regulators in the coming weeks.
Similar to adults, Moderna is preparing to evaluate the potential of a booster dose for all pediatric populations, including those age 6 months to under 6 years, 6 to under 12 years, and adolescents.
Next-Generation COVID-19 Vaccine Candidate
Development is underway for a next-generation refrigerator-stable mRNA COVID-19 vaccine ( mRNA-1283) that is expected to facilitate distribution and administration by healthcare providers.
In a Phase 1 study of mRNA-1283, preliminary results indicate that when administered as primary series at lower doses levels ( 10 µg, 30 µg), mRNA-1283 elicits a robust anti-SARS-CoV-2 neutralizing antibody response comparable to the 100 µg mRNA-1273 primary series. The frequency of local and systemic solicited adverse reactions of the mRNA-1283 primary series administered at lower dose levels ( 10 µg, 30 µg) was overall comparable to mRNA-1273.
Enrollment is complete in a Phase 2 study evaluating booster doses of mRNA-1283, mRNA-1283.211 ( SARS-CoV-2/Beta bivalent), and mRNA-1283.529 ( Omicron monovalent).
Influenza ( Flu)
Worldwide, influenza leads to 3-5M severe cases of flu and 290-650K flu-related respiratory deaths annually. Three main types of influenza viruses ( A, B, and C) infect humans. Although influenza A and B viruses cause seasonal flu epidemics, it is the influenza A viruses that lead to > 95% of flu-related hospitalization in adults. Influenza A viruses are divided into subtypes based on two surface proteins, hemagglutinin and neuraminidase, which are recognized by the immune system and are capable of triggering an immune response.
Moderna is advancing three influenza vaccine development strategies, each with increasing levels of enhancements aimed at improving immune responses. First, a seasonal quadrivalent vaccine ( mRNA-1010) using strains recommended by the World Health Organization ( WHO). Second, Moderna is adding more hemagglutinin antigens ( e.g. H3, H1) to expand strain matching ( mRNA-1011/1012). And third, Moderna is adding neuraminidase antigens to target more conserved surface protein regions and broaden immunologic breadth ( mRNA-1020/1030).
In an interim analysis of a Phase 2 study of mRNA-1010, no significant safety concerns were identified, and the immunogenicity data is consistent with a potential for superiority to standard dose vaccine for influenza A strains ( which drives the majority of disease in adults). The interim data is consistent with potential for non-inferiority to standard dose vaccine in influenza B strains ( primarily a concern in pediatrics).
Respiratory Syncytial Virus
Respiratory Syncytial Virus ( RSV) is the leading cause of respiratory illness in young children and older adults are at high risk for severe infections. In addition to acute mortality and morbidity, RSV infection is associated with long-term sequelae such as asthma and impaired lung function in pediatric populations, and exacerbation of chronic obstructive pulmonary disease in older adults. Each year in the U.S. there are approximately 177,000 hospitalizations in adults age 65 and older due to RSV, and approximately 14,000 deaths.
A Phase 1 RSV trial ( mRNA-1345) is ongoing evaluating tolerability, reactogenicity and immunogenicity in children, younger adults, older adults and women of child-bearing age. In an interim analysis, mRNA-1345 boosted RSV neutralizing antibodies and was well-tolerated at all dose levels in younger and older adults.
Also underway is ConquerRSV, a pivotal Phase 3 trial in adults ≥ 60 years of age; expected enrollment is ~34,000 participants in multiple countries.
COVID-19 + Flu
A Phase 1 COVID-19 + Flu vaccine trial ( mRNA-1073) in healthy adults aged 18 to 75 years old is expected to begin in 2022.
COVID-19 + Flu + RSV
Moderna launched a respiratory combination vaccine program to target three of the most significant viruses causing respiratory disease in older adults. The new combination respiratory vaccine candidate ( mRNA-1230) is envisioned as an annual booster targeting SARS-CoV-2 virus, influenza virus and RSV.
New Program against Endemic Human Coronaviruses
Moderna is introducing a program to develop a vaccine candidate ( mRNA-1287) against endemic human coronaviruses ( HCoVs). While less-well known than other coronaviruses, HCoVs are a significant cause of respiratory disease worldwide. Four HCoVs ( HCoV-229E, -NL63, -OC43, and -HKU1) are endemic globally, accounting for approximately 10% to 30% of upper respiratory tract infections in adults.
Updates on vaccines against latent viruses
Moderna is advancing vaccine candidates against five viruses that cause latent infections, three of which are in clinical trials. When latent, a virus is present in the body but exists in a resting state, typically without causing any noticeable symptoms. Latent viruses can reactivate and cause clinical symptoms during times of stress or when immunity is compromised. The capacity for latency is a defining feature of human immunodeficiency virus ( HIV) and members of the Herpesviridae family, including Cytomegalovirus ( CMV), Epstein-Barr virus ( EBV), Varicella-Zoster virus ( VZV), and herpes simplex virus ( HSV). Moderna is advancing candidates against each of these latent viruses, targeting both the potential short and long-term health impacts of infection.
Cytomegalovirus ( CMV)
CMV is the most common cause of congenital infection worldwide and responsible for more than $ 1B in annual healthcare costs. Possible short- and long-term sequelae of CMV infection include microcephaly, chorioretinitis, seizures, sensorineural hearing loss, cognitive impairment, cerebral palsy, and seizure disorder.
In a Phase 2 study ( mRNA-1647), the Company's CMV vaccine was observed to be generally well tolerated and seven-month interim data demonstrates strong immunogenicity in both CMV-seronegative and CMV-positive participants.
CMVictory is a pivotal Phase 3 trial evaluating mRNA-1647 against primary CMV infection in women ages 16-40 years and is expected to enroll up to 6,900 women from approximately 150 clinical sites.
Since birth defects are not the only impacts of CMV, Moderna also plans to evaluate mRNA-1647 against long-term impacts ( autoimmune disease, cancer, cardiovascular) in Phase III trials.
Epstein-Barr virus ( EBV)
EBV, a globally prevalent herpesvirus, is a major cause of infectious mononucleosis ( IM) and an associated risk for several long-term medical conditions. Long term, EBV is associated with certain lymphoproliferative disorders, a higher risk of developing cancers and autoimmune diseases, and an approximately 32-fold increased risk of developing multiple sclerosis ( MS).
Moderna is developing mRNA-1189 aimed at preventing IM and is currently conducting a Phase 1 trial that is in expansion phase following a favorable initial safety review. Additionally, a therapeutic vaccine ( mRNA-1195) against long-term EBV sequelae, such as MS and post-transplant lymphoproliferative disease ( PTLD), is in preclinical development.
Human immunodeficiency virus ( HIV)
Human immunodeficiency virus ( HIV), the cause of AIDS, continues to have devastating health effects globally, resulting in approximately 700,000 deathsworldwide annually. Moderna is advancing three clinical trials of HIV vaccines with partners. First, enrollment is underway in two Phase 1 trials of mRNA-1644 in collaboration with IAVI and the Bill & Melinda Gates Foundation. mRNA-1644 is designed to elicit broadly neutralizing HIV-1 antibodies ( bnAbs), a goal widely considered to be essential for prevention of HIV through vaccination. The immunogens being tested were developed by scientific teams at IAVI and Scripps Research and will be delivered via Moderna's mRNA technology.
Second, dosing is ongoing in a Phase 1 trial ( mRNA-1574) designed to evaluate the safety and immunogenicity of experimental HIV trimer mRNA vaccines. The primary hypothesis is that the soluble and membrane-bound HIV envelope trimer mRNA vaccines will be safe and well-tolerated by HIV-uninfected individuals and will elicit autologous neutralizing antibodies. The trial is expected to enroll approximately 100 HIV-negative adults, aged 18 to 55 years.
Varicella Zoster Virus ( VZV) and Herpes Simplex Virus Type 2 ( HSV-2)
Preclinical studies are underway for VZV ( mRNA-1468) and HSV ( mRNA-1608) vaccine candidates, both members of the Herpesviridae family that establish life-long latent infections.
Primary VZV infection leads to `` chickenpox '' and then establishes latency. Declining immunity in older adults can lead to reactivation of the virus as herpes zoster ( HZ) or `` shingles, '' causing painful and itchy lesions. Herpes zoster occurs in 1 out of 3 adults in their lifetime. Moderna's vaccine candidate against herpes zoster/shingles generated a similar anti-gE immune response compared to an adjuvanted subunit gE vaccine ( proxy for ShingrixTM) in mice and nonhuman primates.
HSV-2 establishes life-long latent infectionswithin sensory neurons from which it can reactivate, leading to genital herpes. Moderna's HSV-2 vaccine candidate induces strong immune responses in preclinical animal studies at levels comparable to, or higher than, those induced by natural infection in healthy adults.
Global health vaccines & mRNA Access
Moderna is advancing its global public health strategy with three new initiatives aimed at advancing mRNA vaccines. First, Moderna has announced a commitment to advance vaccines targeting 15 priority pathogens into clinical studies by 2025. Moderna will prioritize HIV, Tuberculosis ( TB), Malaria, neglected tropical diseases, and priority pathogens of the WHO and the Coalition for Epidemic Preparedness Innovations ( CEPI).
Second, Moderna launched mRNA Access, a program that offers researchers use of Moderna's mRNA technology to explore new vaccines against emerging or neglected infectious diseases. mRNA Access will also allow researchers to explore novel vaccine designs against prototype viral families in preparation for `` Disease X. '' Disease X was named by the WHO to represent the knowledge that a serious international epidemic could be caused by a pathogen currently unknown to cause human disease. mRNA Access research partners currently include The University of Queensland, The Peter Doherty Institute for Infection and Immunity, Institute Pasteur ( Paris and Tunisia) and McGill University.
Third, Moderna has expanded its pledge to never enforce its patents for COVID-19 vaccines against manufacturers in 92 low- and middle-income countries in the Gavi COVAX Advance Market Commitment ( AMC), provided that these vaccines are manufactured solely for use in these countries. Outside of the AMC-92, supply is no longer a barrier to access. Moderna remains willing to license its technology for COVID-19 vaccines to manufacturers in these countries on commercially reasonable terms.
Commercial updates
Spikevax® Commercial Outlook
Advance purchase agreements ( APAs) for 2022 are at ~ $ 21 billion and options ( probability weighted) are at ~ $ 0.5 billon. 2023 purchase agreements are in place with United Kingdom, Canada, Taiwan, Kuwait, and Switzerland. Discussions for additional 2022 and 2023 orders are ongoing with countries from around the world, including with the U.S. | business |
EU medicines regulator recommends AstraZeneca's drug for COVID prevention | The European Medicines Agency on Thursday recommended the use of AstraZeneca Plc's antibody drug for preventing COVID-19 infections at a time the region faces an increase in cases and stagnation in adult vaccinations.
The EMA said the drug, Evusheld, should be used in adults and adolescents above the age of 12 who were not exposed to the virus.
In comparison, other antibody drugs made by Regeneron Pharmaceuticals Inc, Eli Lilly and Co, and partners GlaxoSmithKline and Vir Biotechnology have already been approved to treat COVID-19 patients.
Regeneron's antibody drug has been approved in Europe to also prevent COVID-19 infections.
AstraZeneca's COVID drug could be used for preventing infections in people whose immune system is too weak to respond to vaccines, helping ease the pandemic burden on healthcare systems.
While vaccines rely on an intact immune system to develop targeted antibodies and infection-fighting cells, Evusheld contains lab-made antibodies designed to linger in the body for months to contain the virus in case of an infection.
Infections in Europe are on a sharp rise again this month, with the adult vaccination rate stagnating at a little over 83%.
AstraZeneca said on Monday that Evusheld retained neutralizing activity against Omicron coronavirus variants, including the highly contagious BA.2 sub-variant, in an independent lab study.
The therapy was found to cut the risk of developing symptomatic COVID-19 by 77% in trials, with protection lasting for at least six months. It has also been shown to prevent disease progression when given soon after infection.
Reuters reported on the EMA decision on Wednesday, which is expected to be swiftly followed by a confirmation by the European Commission. ( Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli) | business |
U.S. Treasury market pain amplifies worry about liquidity | By Davide Barbuscia and Ira Iosebashvili
NEW YORK ( Reuters) - A sharp sell-off in U.S. Treasuries has increased concerns about low levels of liquidity in the $ 23.5 trillion market, potentially amplifying losses for investors which already had a dire start to the year.
U.S. government bond yields have spiked this year as the Federal Reserve has sounded more hawkish about how aggressively it will hike interest rates to cool the economy, hitting bond returns. The ICE BofA Treasury Index has recorded its worst start to the year in history, down 6%. Graphic: Bonds bleed-
While liquidity in the U.S. Treasury market has been an ongoing issue, traders and investors said there had been particular concerns during this sell-off.
`` People who buy longer-dated Treasuries, such as pensions, central banks and insurance companies, tend to stay away when you have this type of volatility, '' said Ed Al-Hussainy, senior rates and currency analyst at Columbia Threadneedle, adding that liquidity `` is not good '' and that trading big blocks of Treasuries `` has become very difficult. ''
The market for Treasury securities is typically one of the most liquid in the world, and the global financial system uses the instruments as a benchmark for asset classes. But it has seen liquidity issues, such as in late February and early March 2020, when pandemic fears caused market ruptures and liquidity rapidly deteriorated to 2008 crisis levels, prompting the Fed to buy $ 1.6 trillion of Treasuries to increase stability.
Investors say liquidity concerns this year have not reached the point of threatening market functioning, but concerns have increased for several factors.
One is that the Fed has ceased buying U.S. Treasuries, after ending this month https: //www.federalreserve.gov/newsevents/pressreleases/monetary20220316a1.htm a bond-buying programme aimed at supporting the economy during the coronavirus crisis.
`` We are adjusting to that new world where the Fed is not a buyer, '' Al-Hussainy said.
Some investors are also concerned that wild price swings in the commodities markets due to the Ukraine crisis and sanctions on Russia, a commodities export giant, could create pockets of illiquidity in the financial system.
`` There's a lot of correlation risks that are out there that I think have reduced balance sheet availability for the system at large, so even Treasuries get impacted by that, '' said George Goncalves, head of U.S. Macro Strategy at MUFG.
`` There's a reduction in balance sheet capacity because people are de-risking, and when you start to really delve into it, you start to think that there's knock-on effects that reduce not only risk appetite but also the ability to trade, '' he said.
Some measures of liquidity have shown stress.
Bid-ask spreads -- a commonly used indicator of liquidity -- widened significantly in March on short-term Treasury notes, Refinitiv data showed.
Data from CME Group showed order book liquidity for Treasuries has declined since Feb. 24, when Russia began its invasion of Ukraine, and volatility has increased.
Cash contracts volume in terms of the daily average top of the book bid/ask quantity for five-year Treasuries declined to $ 10 million in March from about $ 25 million in February.
For the benchmark 10-year notes, order book liquidity went down to an average of $ 14 million in March from about $ 20 million in Feb.
Relative volumes, however, remained unchanged on a month-on-month basis.
Steven Schweitzer, senior fixed income portfolio manager with the Swarthmore Group, said he had seen a `` pretty big disconnect '' on the short end of the U.S. Treasury curve earlier this month - in a reminder of the lack of liquidity seen in the aftermath of the global financial crisis.
`` Bonds and credit are the lubricant for the economy, and when you get the short end drying up, that's a very big warning sign for us, '' he said.
The weakness in bonds this week came after Fed Chair Jerome Powell said on Monday the U.S. central bank must move quickly to counter too-high inflation and that it could use bigger-than-usual interest rate hikes if needed.
Benchmark 10-year Treasury yields jumped to 2.296% on Monday from 2.153% on Friday, and two-year notes spiked to 2.117% from 1.942%, compressing the gap between the yields of those two maturities - a sign that the market is anticipating a sharp economic slowdown.
With a Fed sounding increasingly determined to fight inflation despite the risk that tighter monetary policy may slow growth, there is less support for buying Treasuries, therefore sell-offs find little counteraction to offset them, some investors said.
Expecting higher yields had become a consensus trade, investors said.
`` People are probably on the right side of that trade now, '' said Matthew Nest, global head of active fixed income, State Street Global Advisors.
`` The next pain trade is when and if yields go back down, '' he added. ( This story corrects 10-year yield in paragraph 21 to 2.296%, not 2.969%)
( Reporting by Davide Barbuscia, additional reporting by Ira Iosebashvili and Saqib Iqbal Ahmed; editing by Megan Davies and Jonathan Oatis) | business |
'Indefensible ': UK's Sunak under fire over response to cost of living crisis | - British finance minister Rishi Sunak faced broad criticism on Thursday for not giving enough help to poorer households as the country heads for its biggest drop in living standards since at least the 1950s.
After earning plaudits for his response to the coronavirus crisis in 2020, Sunak was under fire for what fiscal analysts said looked like a plan to hold back money for giveaways to voters ahead of Britain's next national election.
Sunak announced reductions in fuel duty and taxes on wages including an income tax cut in 2024 in a budget update on Wednesday, telling parliament it represented the biggest net cut to personal taxes in over 25 years.
But the measures were met with howls of protest, and not only from opposition lawmakers and anti-poverty campaigners.
The Resolution Foundation, a think-tank which focuses on living standards, said only one in eight workers will see their tax bills fall over the next two years.
It also said absolute poverty was expected to rise by 1.3 million people next year, including half a million children, as inflation heads for around 9% later this year, outpacing pay and welfare benefits.
`` Rishi Sunak has prioritized rebuilding his tax-cutting credentials over supporting the low-to-middle income households who will be hardest hit from the surging cost of living, '' Resolution Foundation Chief Executive Torsten Bell said.
Britain's budget watchdog, the Office for Budget Responsibility, said Sunak undid only one-sixth of his previously announced tax rises aimed mainly at funding health and social care after the COVID-19 pandemic.
Newspapers, which have long cast Sunak as a future successor to Prime Minister Boris Johnson, criticized him for not doing enough to support people on the lowest incomes.
The Daily Express ran a headline: `` The Forgotten Millions Say: What About Us? ''
A survey published by polling firm Opinium after Sunak's announcement - but conducted earlier this month - showed opposition Labour Party leader Keir Starmer and his would-be finance minister Rachel Reeves had overtaken Sunak and Johnson when people were asked who they trusted most to run the economy.
In media interviews on Thursday, Sunak defended his plans, offering scenarios showing how many workers stood to be better off. He also said he could not completely offset the jump in inflation which has been aggravated by the conflict in Ukraine.
But the Institute for Fiscal Studies, another think tank, said his decision last year to raise social security rates from April - which was only partially softened on Wednesday by a higher payments threshold - combined with a lower income tax rate made the tax system less equitable and less efficient.
IFS director Paul Johnson said this would widen the gap between taxes on earnings and those on pensions and unearned income.
`` His choice to increase national insurance rates and reduce the basic rate of income tax looks, to me at least, indefensible from an economic point of view - though one can see the political attractions, '' Johnson said at a news conference.
Richard Hughes, chair of the OBR whose forecasts underpin the budget, said Sunak remained on course to push the government's tax take to the highest since the 1940s.
He also said the roughly 30 billion pounds of wiggle room that Sunak has kept for future spending or tax cuts could easily be wiped out if there were further rises in energy prices or higher-than-expected Bank of England interest rates. ( Additional reporting by Alistair Smout; Writing by William Schomberg; Editing by Hugh Lawson) | business |
U.S. labor market tightens as weekly jobless claims hit lowest level since 1969 | ( Adds details, business survey, updates markets)
* Weekly jobless claims fall 28,000 to 187,000
* Continuing claims decline 67,000 to 1.350 million
* Core capital goods orders fall 0.3% in February
WASHINGTON, March 24 ( Reuters) - The number of Americans filing new claims for jobless benefits dropped to a 52-1/2-year low last week, while unemployment rolls continued to shrink, pointing to rapidly diminishing labor market slack that will keep boosting wage inflation.
The strength in the job market reported by the Labor Department on Thursday may push the Federal Reserve to raise interest rates by half a percentage point at its next policy meeting in May. Fed Chair Jerome Powell on Monday said the U.S. central bank must move `` expeditiously '' to raise rates and possibly `` more aggressively '' to keep high inflation from becoming entrenched.
The Fed last week increased its policy interest rate by 25 basis points, the first hike in more than three years.
`` U.S. businesses are not laying off workers because they know the enormous challenges they're facing in filling open positions, '' said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania.
`` If initial claims remain below 200,000 for a period of time, it will raise a red flag with the Fed. ''
Initial claims for state unemployment benefits fell 28,000 to a seasonally adjusted 187,000 for the week ended March 19, the lowest level since September 1969. Economists polled by Reuters had forecast 212,000 applications for the latest week.
Last week's drop in claims was widespread, with large decreases in California, Michigan, Kentucky and Illinois.
Claims have been declining in part as COVID-19 restrictions across the country have been lifted amid a massive drop in coronavirus cases. They have plunged from a record high of 6.149 million in early April 2020.
There are no signs that Russia's war against Ukraine, which has sent U.S. gasoline prices to record highs and is expected to worsen the strain on global supply chains, has impacted the labor market and business activity.
A survey from S & P Global on Thursday showed its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to an eight-month high of 58.5 in March from 55.9 in February, fueled by strong demand for both goods and services. Businesses were upbeat about the outlook this year, but services firms worried about the fallout from the rising cost of living caused by the Russia-Ukraine war.
Stocks on Wall Street rebounded from a sharp drop on Wednesday. The dollar edged up against a basket of currencies. Prices of U.S. Treasuries fell.
STRONG BUSINESS INVESTMENT
A third report from the Commerce Department showed orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, fell 0.3% in February, the first decline in a year. But data for January was revised higher to show these so-called core capital goods orders accelerating 1.3% instead of 1.0% as previously reported.
Last month's drop reflected decreases in orders for machinery, primary metals, fabricated metals as well as computers and electronic products.
Shipments of core capital goods gained 0.5% last month. Data for January was also revised up to show shipments increasing 2.1% in January instead of the previously estimated 1.9%.
Core capital goods shipments are used to calculate equipment spending in the gross domestic product measurement. Given January's revision, economists expect strong business investment in equipment this quarter.
`` It is possible that the February declines represent a shift in businesses ' intentions for capex, but the February figures also may just reflect noise in the monthly data, '' said Daniel Silver, an economist at JPMorgan in New York. `` We think real equipment spending is on track for strong growth in the first quarter even with related price increases offsetting some of the nominal gains. ''
Layoffs are likely to remain low for some time amid an acute shortage of workers. There were 11.3 million job openings at the end of January, with a record 1.8 open positions per unemployed person. This misalignment between demand for labor and supply is boosting wage growth, which is providing some cushion to households against the soaring gasoline prices, as well as feeding into high inflation.
More people could rejoin the workforce this month as COVID-19 infections tumble, which would boost payrolls growth.
The claims report showed the number of people receiving benefits after an initial week of aid decreased 67,000 to 1.350 million during the week ended March 12, the lowest since January, 1970. The so-called continued claims data covered the period during which the government surveyed households for March's unemployment rate.
Continued claims declined sharply between the February and March survey periods. The unemployment rate fell to a two-year low of 3.8% in February.
`` These data suggest that the March employment situation report is likely to be similar to recent reports, which have shown strong job growth and continuing declines in the unemployment rate, '' said Conrad DeQuadros, senior economic advisor at Brean Capital in New York.
( Reporting by Lucia Mutikani Editing by Chizu Nomiyama and Paul Simao) | business |
Burden of non-communicable diseases among adolescents aged 10–24 years in the EU, 1990–2019: a systematic analysis of the Global Burden of Diseases Study 2019 - The Lancet Child & Adolescent Health | BackgroundDisability and mortality burden of non-communicable diseases ( NCDs) have risen worldwide; however, the NCD burden among adolescents remains poorly described in the EU.MethodsEstimates were retrieved from the Global Burden of Diseases, Injuries, and Risk Factors Study ( GBD) 2019. Causes of NCDs were analysed at three different levels of the GBD 2019 hierarchy, for which mortality, years of life lost ( YLLs), years lived with disability ( YLDs), and disability-adjusted life-years ( DALYs) were extracted. Estimates, with the 95% uncertainty intervals ( UI), were retrieved for EU Member States from 1990 to 2019, three age subgroups ( 10–14 years, 15–19 years, and 20–24 years), and by sex. Spearman's correlation was conducted between DALY rates for NCDs and the Socio-demographic Index ( SDI) of each EU Member State.FindingsIn 2019, NCDs accounted for 86·4% ( 95% uncertainty interval 83·5–88·8) of all YLDs and 38·8% ( 37·4–39·8) of total deaths in adolescents aged 10–24 years. For NCDs in this age group, neoplasms were the leading causes of both mortality ( 4·01 [ 95% uncertainty interval 3·62–4·25 ] per 100 000 population) and YLLs ( 281·78 [ 254·25–298·92 ] per 100 000 population), whereas mental disorders were the leading cause for YLDs ( 2039·36 [ 1432·56–2773·47 ] per 100 000 population) and DALYs ( 2040·59 [ 1433·96–2774·62 ] per 100 000 population) in all EU Member States, and in all studied age groups. In 2019, among adolescents aged 10–24 years, males had a higher mortality rate per 100 000 population due to NCDs than females ( 11·66 [ 11·04–12·28 ] vs 7·89 [ 7·53–8·23 ]), whereas females presented a higher DALY rate per 100 000 population due to NCDs ( 8003·25 [ 5812·78–10 701·59 ] vs 6083·91 [ 4576·63–7857·92 ]). From 1990 to 2019, mortality rate due to NCDs in adolescents aged 10–24 years substantially decreased ( –40·41% [ –43·00 to –37·61), and also the YLL rate considerably decreased ( –40·56% [ –43·16 to –37·74 ]), except for mental disorders ( which increased by 32·18% [ 1·67 to 66·49 ]), whereas the YLD rate increased slightly ( 1·44% [ 0·09 to 2·79 ]). Positive correlations were observed between DALY rates and SDIs for substance use disorders ( rs=0·58, p=0·0012) and skin and subcutaneous diseases ( rs=0·45, p=0·017), whereas negative correlations were found between DALY rates and SDIs for cardiovascular diseases ( rs=–0·46, p=0·015), neoplasms ( rs=–0·57, p=0·0015), and sense organ diseases ( rs=–0·61, p=0·0005).InterpretationNCD-related mortality has substantially declined among adolescents in the EU between 1990 and 2019, but the rising trend of YLL attributed to mental disorders and their YLD burden are concerning. Differences by sex, age group, and across EU Member States highlight the importance of preventive interventions and scaling up adolescent-responsive health-care systems, which should prioritise specific needs by sex, age, and location.FundingBill & Melinda Gates Foundation.
Disability and mortality burden of non-communicable diseases ( NCDs) have risen worldwide; however, the NCD burden among adolescents remains poorly described in the EU.
Estimates were retrieved from the Global Burden of Diseases, Injuries, and Risk Factors Study ( GBD) 2019. Causes of NCDs were analysed at three different levels of the GBD 2019 hierarchy, for which mortality, years of life lost ( YLLs), years lived with disability ( YLDs), and disability-adjusted life-years ( DALYs) were extracted. Estimates, with the 95% uncertainty intervals ( UI), were retrieved for EU Member States from 1990 to 2019, three age subgroups ( 10–14 years, 15–19 years, and 20–24 years), and by sex. Spearman's correlation was conducted between DALY rates for NCDs and the Socio-demographic Index ( SDI) of each EU Member State.
In 2019, NCDs accounted for 86·4% ( 95% uncertainty interval 83·5–88·8) of all YLDs and 38·8% ( 37·4–39·8) of total deaths in adolescents aged 10–24 years. For NCDs in this age group, neoplasms were the leading causes of both mortality ( 4·01 [ 95% uncertainty interval 3·62–4·25 ] per 100 000 population) and YLLs ( 281·78 [ 254·25–298·92 ] per 100 000 population), whereas mental disorders were the leading cause for YLDs ( 2039·36 [ 1432·56–2773·47 ] per 100 000 population) and DALYs ( 2040·59 [ 1433·96–2774·62 ] per 100 000 population) in all EU Member States, and in all studied age groups. In 2019, among adolescents aged 10–24 years, males had a higher mortality rate per 100 000 population due to NCDs than females ( 11·66 [ 11·04–12·28 ] vs 7·89 [ 7·53–8·23 ]), whereas females presented a higher DALY rate per 100 000 population due to NCDs ( 8003·25 [ 5812·78–10 701·59 ] vs 6083·91 [ 4576·63–7857·92 ]). From 1990 to 2019, mortality rate due to NCDs in adolescents aged 10–24 years substantially decreased ( –40·41% [ –43·00 to –37·61), and also the YLL rate considerably decreased ( –40·56% [ –43·16 to –37·74 ]), except for mental disorders ( which increased by 32·18% [ 1·67 to 66·49 ]), whereas the YLD rate increased slightly ( 1·44% [ 0·09 to 2·79 ]). Positive correlations were observed between DALY rates and SDIs for substance use disorders ( rs=0·58, p=0·0012) and skin and subcutaneous diseases ( rs=0·45, p=0·017), whereas negative correlations were found between DALY rates and SDIs for cardiovascular diseases ( rs=–0·46, p=0·015), neoplasms ( rs=–0·57, p=0·0015), and sense organ diseases ( rs=–0·61, p=0·0005).
NCD-related mortality has substantially declined among adolescents in the EU between 1990 and 2019, but the rising trend of YLL attributed to mental disorders and their YLD burden are concerning. Differences by sex, age group, and across EU Member States highlight the importance of preventive interventions and scaling up adolescent-responsive health-care systems, which should prioritise specific needs by sex, age, and location.
Bill & Melinda Gates Foundation.
Adolescence is a period of major physical growth, psychological development, and shifting social relationships, with major repercussions for health.1Sawyer SM Azzopardi PS Wickremarathne D Patton GC The age of adolescence.Lancet Child Adolesc Health. 2018; 2: 223-228Google Scholar The inclusion of adolescents within the Global Strategy for Women's, Children's, and Adolescents ' Health2Temmerman M Khosla R Bhutta ZA Bustreo F Towards a new Global Strategy for Women's, Children's and Adolescents ' Health.BMJ. 2015; 351h4414Google Scholar and the Countdown to 2030,3Boerma T Requejo J Victora C et al.Countdown to 2030: tracking progress towards universal coverage for reproductive, maternal, newborn, and child health.Lancet. 2018; 391: 1538-1548Google Scholar has reinforced the importance of tracking adolescent health. However, so far, global progress has been slow,4Ward J Azzopardi P Francis K et al.Global, regional, and national mortality among young people aged 10–24 years, 1950–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2021; 398: 1593-1618Google Scholar and adolescents remain a neglected age group in the quest for universal health coverage.5The Lancet Child & Adolescent HealthUniversal health coverage and the forgotten generation.Lancet Child Adolesc Health. 2019; 3: 749Google Scholar In this context, the scarcity of adolescent-specific country data, disaggregated by sex and age, is a major barrier.5The Lancet Child & Adolescent HealthUniversal health coverage and the forgotten generation.Lancet Child Adolesc Health. 2019; 3: 749Google Scholar The non-communicable disease ( NCD) agenda has so far predominantly focused on adults,6Sawyer SM Afifi RA Bearinger LH et al.Adolescence: a foundation for future health.Lancet. 2012; 379: 1630-1640Google Scholar, 7WHONoncommunicable diseases.https: //www.who.int/news-room/fact-sheets/detail/noncommunicable-diseasesDate: April 13, 2021Date accessed: January 18, 2022Google Scholar reflecting historical assumptions of adolescents as largely healthy. However, globally among adolescents, the burden of disability and mortality from NCDs has risen substantially,8Akseer N Mehta S Wigle J et al.Non-communicable diseases among adolescents: current status, determinants, interventions and policies.BMC Public Health. 2020; 201908Google Scholar with the leading causes being mental disorders, substance use disorders, and chronic physical illness.9Patton GC Sawyer SM Santelli JS et al.Our future: a Lancet commission on adolescent health and wellbeing.Lancet. 2016; 387: 2423-2478Google Scholar
EU Member States, although committed to addressing certain issues in adolescent health, particularly mental health and wellbeing,10Council of the European UnionRepresentatives of the Governments of the Member States ( The Member States) Resolution of the Council of the European Union and the Representatives of the Governments of the Member States meeting within the Council on a framework for European cooperation in the youth field: the European Union Youth Strategy 2019–2027.https: //eur-lex.europa.eu/legal-content/EN/TXT/? uri=CELEX:42018Y1218 ( 01) Date: Dec 18, 2018Date accessed: January 19, 2022Google Scholar are yet to conduct a broad assessment of the disability and mortality burden of NCDs among adolescents. Although most EU Member States have high economic development and relatively high-quality health services, and fall into the category of NCD-predominant countries,9Patton GC Sawyer SM Santelli JS et al.Our future: a Lancet commission on adolescent health and wellbeing.Lancet. 2016; 387: 2423-2478Google Scholar differences in culture, governance, and prioritisation of public health policies and investments mean it is a region where changing NCD profiles among adolescents can be explored. Moreover, despite prevention policies implemented in the EU leading to progress in the reduction of premature mortality from NCDs, such as control measures targeting tobacco products, alcoholic beverages, and unhealthy food for young people, about a third of the EU population aged 15 years or older still lives with an NCD, and €700 billion is spent on treating NCDs annually in the region.11European Chronic Disease AllianceTowards an EU Strategic Framework for the Prevention of Non-communicable Diseases ( NCDs).https: //easl.eu/wp-content/uploads/2019/05/Final-NCD-Paper-full-version.pdfDate: May, 2019Date accessed: January 18, 2022Google Scholar Given considerable heterogeneity and inconsistency in data collection systems and major data gaps, we used estimates from the Global Burden of Diseases, Injuries, and Risk Factors Study ( GBD) 2019 to: provide a comprehensive assessment of the burden of mortality and disability due to NCDs in adolescents aged 10–24 years in EU Member States by cause, sex, age, location, and trend over time for the 30-year period; and evaluate the association between the disability-adjusted life-year ( DALY) rates, which comprise both years lived with disability ( YLDs) and years of life lost ( YLLs), of the NCDs with the developmental stage of each EU Member State, using a composite measure of income per capita, average educational attainment, and fertility rate. Growing concerns about the effects of the COVID-19 pandemic and its containment measures on NCDs and their risk factors among adolescents12UNPolicy brief: the impact of COVID-19 on children.https: //unsdg.un.org/sites/default/files/2020-04/160420 Covid Children Policy Brief.pdfDate: April 15, 2020Date accessed: January 18, 2022Google Scholar, 13Palmer K Monaco A Kivipelto M et al.The potential long-term impact of the COVID-19 outbreak on patients with non-communicable diseases in Europe: consequences for healthy ageing.Aging Clin Exp Res. 2020; 32: 1189-1194Google Scholar suggest that this assessment can be considered a pre-pandemic baseline from which subsequent data can be compared at the regional and country level.
Research in contextEvidence before this studyWe searched Embase and PubMed for research articles published in English on Nov 22, 2021, using the following terms in titles or abstracts: ( “ adolescent ” OR “ young people ”) AND ( “ disability ” OR “ mortality ”) AND ( “ Europe ” OR “ European Union ”) AND ( “ non communicable disease ” OR “ NCD ”). Although we identified several studies, these primarily examined adolescent mortality, mainly at the global level, and did not specifically focus on non-communicable diseases ( NCDs). Moreover, studies either included smaller age groups ( 10–14 years, 10–19 years) or were country specific, disease specific, or part of a wider study on mortality or disability burden in other age groups. We only found one study, reporting analyses from 2015 on NCDs in adolescents that confirmed that NCDs are a major public health problem among adolescents globally, and that mental disorders were a large proportion of disability-adjusted life-years ( DALYs) in people aged 10–19 years. To our knowledge, a comprehensive and detailed assessment of the burden of both mortality and disability of NCDs and their trends across EU Member States in adolescents aged 10–24 years old has not previously been published.Added value of this studyThis study provides a comprehensive description of the mortality and disability burden of NCDs among adolescents aged 10–24 years in EU Member States from 1990 to 2019. We retrieved estimates from Global Burden of Diseases, Injuries, and Risk Factors Study ( GBD) 2019, the largest systematic, data-driven, and most recent peer-reviewed assessment of mortality and disability burden by age group, sex, cause, and location. GBD 2019 estimates replace those from previous GBD cycles, as in each iteration the GBD generates revised estimates for the whole time series based on the most updated data and modelling methodology. This study highlights that for the adolescent population mortality has substantially decreased in the past 30 years, and adds to previous studies the important aspect of the rising trend of years of life lost ( YLL) rate attributed to mental disorders in this population. It also describes the heavy disability burden attributed to NCDs at the regional and country level in the EU and the concerning increase of years lived with disability ( YLDs) due to mental disorders. We also report wide variation in both the mortality and disability burden of NCDs by age group, sex, and location, suggesting opportunities for improvements. We were also able to identify association between the EU Member State level of socioeconomic development and the DALY burden of specific NCDs.Implications of all the available evidenceThese findings provide data for evidence-based decision making and highlight priority areas for interventions and investments, such as the importance of promotion of mental wellbeing and prevention of mental disorders, improvements in access to quality mental health services, and investments in dedicated primary and specialist health-care services. The extent of current disability burden of NCDs in adolescents suggests there is a need to scale up high-quality health-care services; establish, develop, and strengthen public health prevention policies, school programmes, specialised training pathways; and ensure that investments address the specific needs of adolescent health. Leadership around these elements could be enhanced by greater access to primary data sources to increase the accuracy of future findings and facilitate timely response to rapid changes in adolescents ' health and wellbeing, such as those caused by the COVID-19 pandemic.
We searched Embase and PubMed for research articles published in English on Nov 22, 2021, using the following terms in titles or abstracts: ( “ adolescent ” OR “ young people ”) AND ( “ disability ” OR “ mortality ”) AND ( “ Europe ” OR “ European Union ”) AND ( “ non communicable disease ” OR “ NCD ”). Although we identified several studies, these primarily examined adolescent mortality, mainly at the global level, and did not specifically focus on non-communicable diseases ( NCDs). Moreover, studies either included smaller age groups ( 10–14 years, 10–19 years) or were country specific, disease specific, or part of a wider study on mortality or disability burden in other age groups. We only found one study, reporting analyses from 2015 on NCDs in adolescents that confirmed that NCDs are a major public health problem among adolescents globally, and that mental disorders were a large proportion of disability-adjusted life-years ( DALYs) in people aged 10–19 years. To our knowledge, a comprehensive and detailed assessment of the burden of both mortality and disability of NCDs and their trends across EU Member States in adolescents aged 10–24 years old has not previously been published.
This study provides a comprehensive description of the mortality and disability burden of NCDs among adolescents aged 10–24 years in EU Member States from 1990 to 2019. We retrieved estimates from Global Burden of Diseases, Injuries, and Risk Factors Study ( GBD) 2019, the largest systematic, data-driven, and most recent peer-reviewed assessment of mortality and disability burden by age group, sex, cause, and location. GBD 2019 estimates replace those from previous GBD cycles, as in each iteration the GBD generates revised estimates for the whole time series based on the most updated data and modelling methodology. This study highlights that for the adolescent population mortality has substantially decreased in the past 30 years, and adds to previous studies the important aspect of the rising trend of years of life lost ( YLL) rate attributed to mental disorders in this population. It also describes the heavy disability burden attributed to NCDs at the regional and country level in the EU and the concerning increase of years lived with disability ( YLDs) due to mental disorders. We also report wide variation in both the mortality and disability burden of NCDs by age group, sex, and location, suggesting opportunities for improvements. We were also able to identify association between the EU Member State level of socioeconomic development and the DALY burden of specific NCDs.
These findings provide data for evidence-based decision making and highlight priority areas for interventions and investments, such as the importance of promotion of mental wellbeing and prevention of mental disorders, improvements in access to quality mental health services, and investments in dedicated primary and specialist health-care services. The extent of current disability burden of NCDs in adolescents suggests there is a need to scale up high-quality health-care services; establish, develop, and strengthen public health prevention policies, school programmes, specialised training pathways; and ensure that investments address the specific needs of adolescent health. Leadership around these elements could be enhanced by greater access to primary data sources to increase the accuracy of future findings and facilitate timely response to rapid changes in adolescents ' health and wellbeing, such as those caused by the COVID-19 pandemic.
This study adopted the broad age definition for adolescence from 10 to 24 years because it accurately captures the biological, social, and neurocognitive development of this population.1Sawyer SM Azzopardi PS Wickremarathne D Patton GC The age of adolescence.Lancet Child Adolesc Health. 2018; 2: 223-228Google Scholar We included the UK in these analyses, as it was still an EU Member State in 2019.
Estimates were retrieved from GBD 2019, which provides a complete set of comparable health estimates for 204 countries, including the 28 EU Member States, for 286 causes of death, 369 causes of disease and injury, and 87 risk factors. GBD 2019 generated estimates using 86 249 sources, and produced estimates of incidence, prevalence, mortality, YLDs, YLLs, DALYs, life expectancy, and health-adjusted life expectancy. To estimate deaths due to different causes, GBD 2019 used vital registration and verbal autopsy data as sources, modelled using the Cause of Death Ensemble model, which used geospatial information from covariates to produce estimates of death for all locations across time ( 1990–2019). Deaths from vital registration systems coded as unspecified were reassigned using statistical methods.14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar For most diseases and injuries, data were also modelled using a spatiotemporal Gaussian process regression to allow for smoothing over age, time, and location, and a Bayesian meta-regression modelling tool ( DisMod-MR 2.1) that ensured internally consistent estimates among all epidemiological metrics for most causes, by age, sex, location, and year.14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar Methods for GBD 2019 estimates are described in detail in the capstone papers and appendices.14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar The GBD 2019 cause list is composed of a four-level hierarchy, with each level comprising mutually exclusive and collectively exhaustive causes. There are 22 level 2 causes, 174 level 3 causes, and 301 level 4 causes ( including 131 level 3 causes that are not further disaggregated at level 4). GBD 2019 estimates generated and reported here are in accordance with the Guidelines for Accurate and Transparent Health Estimates Reporting.15Stevens GA Alkema L Black RE et al.Guidelines for Accurate and Transparent Health Estimates Reporting: the GATHER statement.PLoS Med. 2016; 13e1002056Google Scholar
Causes are reported following the GBD hierarchy. To give a general insight of the predominant causes of burden, we analysed all three level 1 causes: communicable, maternal, neonatal, and nutritional conditions; NCDs; and injuries. At level 2 and 3, we exclusively focused on NCD causes ( appendix pp 31–33). We excluded self-harm and interpersonal violence from the analysis because the GBD hierarchy includes these in the injuries group ( level 1).
Estimates were retrieved for the 28 EU Member States. The analyses covered the period 1990 to 2019, and were stratified by sex and age groups as follows: 10–14 years ( younger adolescents), 15–19 years ( older adolescents), and 20–24 years ( young adults).6Sawyer SM Afifi RA Bearinger LH et al.Adolescence: a foundation for future health.Lancet. 2012; 379: 1630-1640Google Scholar Mortality, YLLs, YLDs, and DALYs were all reported as rates per 100 000 population. DALYs are the sum of YLLs and YLDs. YLLs are calculated by subtracting the age at death from the longest possible life expectancy for a person at that age. YLDs are estimated by multiplying the prevalence counts with the disability weight for a given disease or injury. As described in detail in the GBD 2019 capstone paper,14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar disability weights represent the magnitude of health loss associated with specific health outcomes, and are used to estimate YLDs through a series of severity splits. These metrics were subsequently subdivided by level of causes, specifically total all-cause, level 1, NCD level 2, and cause-specific NCD level 3 ( appendix pp 31–33); sex ( both sexes, female, and male), and age ( 10–24 years, 10–14 years, 15–19 years, and 20–24 years); country ( 28 EU Member States); and trend over time ( 1990–2019), for which we calculated the percentage change ( rate) between 1990 and 2019 in 10–24-year-olds. All estimates generated in GBD 2019 are accompanied by 95% uncertainty intervals ( UIs), which represent the 25th and 975th ordered estimates of 1000 draw estimates of the posterior distribution.14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar We considered estimates to be significantly different by determining whether the 95% UIs overlapped.
Spearman's correlation was used to analyse the social, economic, and demographic diversity of NCD burden between EU Member States by correlating the DALY rates of level 2 NCDs ( which comprise both YLDs and YLLs) with each country's score of the Socio-demographic Index ( SDI). The SDI is a composite measure of a country's lag-distributed income per capita, average years of schooling, and the fertility rate in females younger than 25 years.14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar, 16Wang H Abbas KM Abbasifard M et al.Global age-sex-specific fertility, mortality, healthy life expectancy ( HALE), and population estimates in 204 countries and territories, 1950–2019: a comprehensive demographic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1160-1203Google Scholar The metric is scaled from 0 to 1, where 0 represents the lowest combination of the three indicators and 1 represents the highest. p values of less than 0·05 were set as the threshold of significance. The analysis was done with IBM SPSS Statistics ( version 27.0).
The funder of the study had no role in study design, data collection, analysis, and interpretation, or writing of the report.
In 2019, total all-cause mortality for adolescents aged 10–24 years in the EU was 25·35 ( 95% UI 24·44–26·27) per 100 000 population ( appendix pp 3–4). NCDs accounted for 38·8% ( 37·4–39·8) of total deaths in this age group ( appendix pp 34–35). The leading level 2 cause of death for NCDs in adolescents aged 10–24 years was neoplasms ( 4·01 [ 3·62–4·25 ] per 100 000 population), which accounted for 40·8% ( 36·8–43·2) of all NCD mortality. The leading level 3 cause of death for NCDs was other malignant neoplasms ( 1·05 [ 0·88–1·14) per 100 000 population).
In 2019, NCDs were the leading level 1 cause of death in females of all age categories ( 52·1% [ 95% UI 50·3–53·3 ] for 10–24 years, 63·9% [ 61·1–65·6 ] for 10–14 years, 48·0% [ 45·8–49·5 ] for 15–19 years, and 50·6% [ 49·0–51·9 ] for 20–24 years) and in males aged 10–14 years ( 54·1% [ 52·0–56·0 ]; appendix pp 36–37). Additionally, for both sexes, mortality due to NCDs increased across the three age groups from 5·57 ( 5·31–5·84) per 100 000 population for 10–14 years to 9·47 ( 8·96–9·99) per 100 000 population for 15–19 years, and 14·30 ( 13·67–14·95) per 100 000 population for 20–24 years ( appendix pp 34–35). Differences by age and sex in NCD level 2 mortality rates are reported in the appendix ( pp 5–6).
In 2019, the highest mortality rate due to level 2 NCD causes ( Bulgaria and Estonia) was more than double the lowest rate ( France, Belgium, and Spain; figure 1). Significant differences in the excess mortality rate due to NCDs were observed between eight Member States and the EU overall ( compostie estimate): Bulgaria, Estonia, Latvia, Lithuania, Romania, Malta, the UK, and Finland. In all EU Member States, the leading level 2 cause of death was neoplasms, except in Estonia, where it was substance use disorders.Figure 1Mortality rate per 100 000 population due to level 2 non-communicable diseases in adolescents aged 10–24 years in both sexes, by country, 2019Show full caption * This aggregate cause contains the following level 3 causes: congenital birth defects; urinary diseases; gynaecological diseases; haemoglobinopathies and haemolytic anaemias; endocrine, metabolic, blood, and immune disorders; and oral disorders.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
* This aggregate cause contains the following level 3 causes: congenital birth defects; urinary diseases; gynaecological diseases; haemoglobinopathies and haemolytic anaemias; endocrine, metabolic, blood, and immune disorders; and oral disorders.
From 1990 to 2019, the mortality rate due to NCDs among adolescents aged 10–24 years significantly declined by 40·4% ( 95% UI –43·0 to –37·6; table; appendix p 7). For level 2 causes, the highest reduction in mortality rate from NCDs was observed in cardiovascular diseases ( –62·00% [ –64·37 to –59·63 ]) and chronic respiratory diseases ( –58·81% [ –62·27 to –50·24 ]), whereas the highest increase was in mental disorders ( 32·36% [ 2·25 to 66·96 ]), completely attributed to eating disorders ( table; appendix p 7).TableMortality and DALY rate per 100 000 population in adolescents aged 10–24 years in EU Member States in 1990 and 2019, and percentage change from 1990 to 2019Mortality rate per 100 000 populationDALY rate per 100 000 population19902019Percentage change, 1990 to 201919902019Percentage change, 1990 to 2019All non-communicable diseases16·50 ( 16·20 to 16·72) 9·83 ( 9·39 to 10·28) −40·41% ( −43·00 to −37·61) 7394·59 ( 5591·11 to 9580·25) 7015·44 ( 5181·20 to 9224·35) −5·13% ( −7·55 to −3·21) Neoplasms6·32 ( 6·12 to 6·47) 4·01 ( 3·62 to 4·25) −36·61% ( −42·27 to −32·78) 461·02 ( 445·96 to 472·95) 300·48 ( 271·26 to 321·31) −34·82% ( −40·62 to −30·47) Lip and oral cavity cancer0·04 ( 0·04 to 0·04) 0·02 ( 0·02 to 0·03) −33·96% ( −39·54 to −28·14) 2·66 ( 2·53 to 2·81) 1·78 ( 1·66 to 1·91) −33·06% ( −38·90 to −27·12) Nasopharynx cancer0·04 ( 0·04 to 0·04) 0·02 ( 0·02 to 0·03) −41·28% ( −48·05 to −32·99) 3·07 ( 2·89 to 3·26) 1·85 ( 1·65 to 2·06) −39·93% ( −46·80 to −31·53) Other pharynx cancer0·01 ( 0·01 to 0·01) 0·01 ( 0·01 to 0·01) −13·21% ( −25·89 to 3·02) 0·46 ( 0·42 to 0·51) 0·41 ( 0·36 to 0·47) −11·41% ( −24·25 to 5·13) Oesophageal cancer0·01 ( 0·01 to 0·01) 0·01 ( 0·01 to 0·01) −26·32% ( −34·25 to −14·02) 0·68 ( 0·63 to 0·73) 0·5 ( 0·46 to 0·56) −26·12% ( −34·05 to −13·75) Stomach cancer0·10 ( 0·09 to 0·10) 0·03 ( 0·03 to 0·04) −65·39% ( −68·63 to −62·07) 6·67 ( 6·35 to 6·99) 2·32 ( 2·14 to 2·51) −65·27% ( −68·54 to −61·93) Colon and rectum cancer0·13 ( 0·13 to 0·14) 0·09 ( 0·08 to 0·10) −32·71% ( −38·30 to −26·95) 9·61 ( 9·24 to 9·98) 6·57 ( 6·06 to 7·08) −31·58% ( −37·40 to −25·59) Liver cancer0·08 ( 0·08 to 0·08) 0·07 ( 0·06 to 0·07) −13·45% ( −20·87 to −4·91) 5·72 ( 5·46 to 6·00) 4·96 ( 4·58 to 5·37) −13·18% ( −20·43 to −4·74) Gallbladder and biliary tract cancer0·01 ( 0·01 to 0·01) 0·00 ( 0·00 to 0·00) −32·91% ( −39·98 to −23·07) 0·41 ( 0·34 to 0·44) 0·27 ( 0·25 to 0·3) −32·66% ( −39·71 to −22·71) Pancreatic cancer0·03 ( 0·03 to 0·03) 0·02 ( 0·02 to 0·03) −19·65% ( −28·73 to −9·72) 2·03 ( 1·91 to 2·15) 1·63 ( 1·47 to 1·81) −19·67% ( −28·65 to −9·85) Larynx cancer0·01 ( 0·01 to 0·01) 0·00 ( 0·00 to 0·00) −43·85% ( −48·99 to −38·68) 0·59 ( 0·54 to 0·65) 0·37 ( 0·32 to 0·41) −38·03% ( −43·52 to −32·58) Tracheal, bronchus, and lung cancer0·13 ( 0·12 to 0·13) 0·08 ( 0·07 to 0·09) −35·97% ( −42·35 to −28·10) 8·76 ( 8·37 to 9·15) 5·62 ( 5·12 to 6·17) −35·85% ( −42·23 to −27·99) Malignant skin melanoma0·10 ( 0·07 to 0·12) 0·08 ( 0·05 to 0·10) −11·37% ( −37·22 to 7·00) 7·07 ( 5·14 to 8·85) 6·88 ( 4·44 to 8·14) −2·71% ( −31·93 to 18·35) Non-melanoma skin cancer0·01 ( 0·01 to 0·01) 0·01 ( 0·01 to 0·01) −35·15% ( −42·61 to −24·91) 0·66 ( 0·60 to 0·71) 0·43 ( 0·39 to 0·47) −35·05% ( −42·48 to −24·87) Breast cancer0·05 ( 0·05 to 0·06) 0·03 ( 0·03 to 0·04) −34·91% ( −41·12 to −28·20) 3·90 ( 3·67 to 4·15) 2·68 ( 2·43 to 2·95) −31·32% ( −38·15 to −23·90) Cervical cancer0·04 ( 0·03 to 0·05) 0·02 ( 0·02 to 0·02) −53·01% ( −59·70 to −44·39) 3·09 ( 2·38 to 3·4) 1·49 ( 1·24 to 1·72) −51·75% ( −58·62 to −42·71) Uterine cancer0·00 ( 0·00 to 0·00) 0·00 ( 0·00 to 0·00) −28·44% ( −36·45 to −18·94) 0·32 ( 0·29 to 0·35) 0·24 ( 0·21 to 0·27) −24·07% ( −33·32 to −13·51) Ovarian cancer0·11 ( 0·09 to 0·11) 0·07 ( 0·06 to 0·08) −34·00% ( −45·95 to −8·11) 7·72 ( 6·57 to 8·28) 5·18 ( 4·48 to 6·18) −32·99% ( −45·09 to −6·30) Prostate cancer0·01 ( 0·00 to 0·01) 0·01 ( 0·00 to 0·01) −24·99% ( −43·26 to 8·07) 0·51 ( 0·35 to 0·6) 0·43 ( 0·33 to 0·67) −16·33% ( −37·24 to 21·13) Testicular cancer0·18 ( 0·17 to 0·20) 0·10 ( 0·09 to 0·11) −46·67% ( −53·97 to −37·89) 14·00 ( 13·03 to 15·2) 8·62 ( 7·48 to 10·13) −38·43% ( −46·69 to −26·98) Kidney cancer0·06 ( 0·05 to 0·06) 0·05 ( 0·05 to 0·06) −3·94% ( −13·76 to 7·43) 4·12 ( 3·89 to 4·35) 3·99 ( 3·65 to 4·37) −3·18% ( −13·14 to 8·91) Bladder cancer0·01 ( 0·01 to 0·01) 0·01 ( 0·01 to 0·01) −29·00% ( −35·00 to −22·42) 0·88 ( 0·83 to 0·95) 0·66 ( 0·6 to 0·71) −25·72% ( −31·91 to −18·13) Brain and CNS cancer1·01 ( 0·86 to 1·23) 0·80 ( 0·53 to 0·90) −20·92% ( −55·57 to −9·71) 73·56 ( 62·02 to 89·41) 58·46 ( 38·55 to 65·75) −20·53% ( −55·31 to −9·09) Thyroid cancer0·02 ( 0·02 to 0·02) 0·01 ( 0·01 to 0·01) −42·24% ( −47·52 to −32·32) 1·78 ( 1·63 to 1·93) 1·13 ( 1·02 to 1·29) −36·27% ( −42·70 to −25·51) Mesothelioma0·01 ( 0·00 to 0·01) 0·01 ( 0·00 to 0·01) −14·41% ( −41·60 to 6·91) 0·39 ( 0·31 to 0·57) 0·34 ( 0·28 to 0·38) −14·42% ( −41·55 to 6·88) Hodgkin lymphoma0·30 ( 0·24 to 0·33) 0·11 ( 0·10 to 0·15) −61·87% ( −67·17 to −50·97) 22·10 ( 17·75 to 24·29) 9·43 ( 8·07 to 12·45) −57·32% ( −63·71 to −44·81) Non-Hodgkin lymphoma0·53 ( 0·51 to 0·55) 0·33 ( 0·30 to 0·36) −38·46% ( −43·45 to −31·88) 38·55 ( 37·07 to 40·05) 23·93 ( 22·11 to 26·39) −37·93% ( −43·13 to −30·95) Multiple myeloma0·01 ( 0·00 to 0·01) 0·00 ( 0·00 to 0·01) −5·49% ( −22·86 to 15·11) 0·35 ( 0·28 to 0·39) 0·33 ( 0·27 to 0·38) −4·81% ( −22·21 to 16·04) Leukaemia1·75 ( 1·69 to 1·81) 0·91 ( 0·86 to 0·97) −47·81% ( −51·21 to −43·69) 127·46 ( 123·25 to 131·6) 68·64 ( 63·95 to 73·69) −46·14% ( −49·95 to −41·92) Other neoplasms0·03 ( 0·02 to 0·04) 0·03 ( 0·02 to 0·03) −3·37% ( −32·86 to 19·83) 2·37 ( 1·80 to 3·21) 2·17 ( 1·65 to 2·60) −8·33% ( −32·97 to 10·63) Other malignant neoplasms1·52 ( 1·38 to 1·59) 1·05 ( 0·88 to 1·14) −30·96% ( −40·75 to −25·24) 111·51 ( 101·05 to 116·76) 79·17 ( 66·46 to 86·48) −29·01% ( −38·83 to −22·78) Cardiovascular diseases2·96 ( 2·88 to 3·04) 1·13 ( 1·06 to 1·19) −62·00% ( −64·37 to −59·63) 249·35 ( 234·21 to 266·61) 119·45 ( 105·24 to 135·71) −52·10% ( −55·50 to −48·70) Rheumatic heart disease0·17 ( 0·16 to 0·17) 0·04 ( 0·03 to 0·04) −77·67% ( −80–38 to −74·85) 11·90 ( 11·17 to 12·58) 2·90 ( 2·57 to 3·24) −75·63% ( −78·69 to −72·57) Ischaemic heart disease0·64 ( 0·61 to 0·67) 0·20 ( 0·18 to 0·22) −69·05% ( −71·99 to −65·00) 43·78 ( 41·62 to 45·99) 13·68 ( 12·56 to 15·15) −68·75% ( −71·65 to −64·72) Stroke1·15 ( 1·09 to 1·21) 0·32 ( 0·29 to 0·35) −72·45% ( −75·16 to −69·34) 106·97 ( 97·41 to 117·94) 47·55 ( 39·23 to 56·93) −55·55% ( −60·74 to −50·71) Hypertensive heart disease0·03 ( 0·02 to 0·03) 0·02 ( 0·01 to 0·02) −30·41% ( −46·03 to −6·92) 1·86 ( 1·43 to 2·11) 1·30 ( 0·97 to 1·55) −30·14% ( −45·26 to −7·21) Non-rheumatic valvular heart disease0·08 ( 0·07 to 0·08) 0·05 ( 0·05 to 0·06) −33·99% ( −42·33 to −23·86) 5·4 ( 4·97 to 5·81) 3·57 ( 3·24 to 3·97) −33·95% ( −42·22 to −23·87) Cardiomyopathy and myocarditis0·49 ( 0·43 to 0·57) 0·26 ( 0·22 to 0·31) −48·12% ( −55·30 to −36·24) 36·54 ( 31·98 to 41·32) 19·5 ( 17·13 to 22·87) −46·62% ( −53·59 to −35·22) Endocarditis0·04 ( 0·04 to 0·07) 0·05 ( 0·02 to 0·06) 13·52% ( −55·14 to 62·70) 3·03 ( 2·51 to 4·62) 3·42 ( 1·75 to 4·26) 12·76% ( −54·50 to 60·20) Aortic aneurysm0·06 ( 0·06 to 0·07) 0·04 ( 0·04 to 0·05) −34·78% ( −42·20 to −25·29) 4·32 ( 3·96 to 4·66) 2·81 ( 2·54 to 3·10) −34·92% ( −42·30 to −25·43) Other cardiovascular and circulatory diseases0·30 ( 0·28 to 0·34) 0·16 ( 0·14 to 0·20) −47·64% ( −53·26 to −37·53) 35·56 ( 28·29 to 45·62) 24·72 ( 18·03 to 34·22) −30·48% ( −38·01 to −23·39) Chronic respiratory diseases0·62 ( 0·56 to 0·65) 0·26 ( 0·24 to 0·29) −58·81% ( −62·27 to −50·24) 315·34 ( 216·22 to 447·66) 286·65 ( 186·47 to 427·65) −9·10% ( −17·36 to 0·36) Chronic obstructive pulmonary disease0·13 ( 0·12 to 0·14) 0·07 ( 0·07 to 0·09) −43·65% ( −50·45 to −32·58) 30·64 ( 25·37 to 35·74) 25·70 ( 20·54 to 30·95) −16·13% ( −22·76 to −9·10) Pneumoconiosis0·00 ( 0·00 to 0·00) 0·00 ( 0·00 to 0·00) −51·97% ( −61·14 to −36·90) 0·20 ( 0·18 to 0·23) 0·10 ( 0·08 to 0·12) −51·16% ( −59·49 to −37·99) Asthma0·38 ( 0·33 to 0·41) 0·1 ( 0·09 to 0·12) −73·21% ( −75·86 to −66·90) 270·58 ( 174·63 to 400·11) 242·61 ( 147·7 to 383·76) −10·34% ( −20·31 to 0·46) Interstitial lung disease and pulmonary sarcoidosis0·04 ( 0·03 to 0·05) 0·04 ( 0·03 to 0·05) 5·96% ( −30·52 to 32·52) 3·26 ( 2·52 to 4·04) 3·38 ( 2·29 to 4·02) 3·59% ( −28·84 to 26·10) Other chronic respiratory diseases0·07 ( 0·04 to 0·07) 0·04 ( 0·03 to 0·05) −45·60% ( −56·53 to −8·81) 10·66 ( 8·85 to 12·33) 14·86 ( 11·67 to 18·08) 39·47% ( 21·16 to 68·42) Digestive diseases0·80 ( 0·78 to 0·83) 0·39 ( 0·37 to 0·42) −51·40% ( −54·62 to −48·09) 133·81 ( 108·81 to 169·8) 103·19 ( 78·74 to 137·38) −22·88% ( −27·90 to −18·26) Cirrhosis and other chronic liver diseases0·39 ( 0·37 to 0·41) 0·15 ( 0·14 to 0·17) −61·08% ( −64·62 to −56·85) 29·86 ( 28·14 to 31·92) 13·09 ( 11·57 to 14·94) −56·15% ( −60·29 to −52·20) Upper digestive system diseases0·08 ( 0·07 to 0·08) 0·02 ( 0·02 to 0·02) −73·23% ( −76·10 to −69·75) 42·47 ( 26·44 to 70·23) 36·19 ( 20·95 to 63·71) −14·80% ( −21·15 to −10·23) Appendicitis0·05 ( 0·03 to 0·06) 0·01 ( 0·01 to 0·02) −69·98% ( −74·37 to −52·73) 8·98 ( 6·47 to 12·55) 7·39 ( 4·80 to 11·1) −17·76% ( −32·31 to −1·46) Paralytic ileus and intestinal obstruction0·07 ( 0·06 to 0·08) 0·05 ( 0·05 to 0·07) −24·14% ( −32·57 to −12·44) 5·61 ( 4·65 to 6·23) 4·4 ( 3·72 to 5·18) −21·50% ( −29·31 to −10·85) Inguinal femoral and abdominal hernia0·01 ( 0·01 to 0·01) 0·00 ( 0·00 to 0·00) −69·74% ( −73·02 to −63·05) 8·17 ( 5·03 to 12·55) 6·2 ( 3·72 to 9·66) −24·06% ( −32·63 to −15·71) Inflammatory bowel disease0·05 ( 0·04 to 0·06) 0·04 ( 0·04 to 0·05) −7·94% ( −35·06–6·70) 12·18 ( 8·87 to 16·06) 13·38 ( 9·60 to 17·81) 9·84% ( −0·88 to 18·84) Vascular intestinal disorders0·02 ( 0·02 to 0·03) 0·02 ( 0·01 to 0·02) −33·51% ( −42·43 to −22·53) 1·8 ( 1·6 to 2·04) 1·26 ( 1·10 to 1·45) −29·99% ( −38·77 to −19·78) Gallbladder and biliary diseases0·02 ( 0·01 to 0·02) 0·01 ( 0·01 to 0·01) −47·21% ( −55·57 to −33·61) 14·57 ( 8·82 to 22·32) 13·9 ( 8·40 to 21·85) −4·63% ( −11·67 to 2·30) Pancreatitis0·09 ( 0·08 to 0·09) 0·05 ( 0·04 to 0·06) −42·43% ( −50·53 to −31·94) 6·62 ( 5·94 to 7·35) 4·09 ( 3·56 to 4·72) −38·20% ( −46·01 to −28·41) Other digestive diseases0·03 ( 0·02 to 0·04) 0·03 ( 0·02 to 0·04) −5·22% ( −51·06 to 15·59) 3·54 ( 2·85 to 4·48) 3·29 ( 2·36 to 4·06) −7·31% ( −36·65 to 5·40) Neurological disorders1·45 ( 1·41 to 1·50) 1·03 ( 0·97 to 1·09) −29·25% ( −34·04 to −24·15) 996·17 ( 321·61 to 2018·69) 985·14 ( 292·58 to 2019·32) −1·11% ( −10·77 to 5·54) Parkinson's disease0·00 ( 0·00 to 0·00) 0·00 ( 0·00 to 0·00) −31·45% ( −43·52 to −16·55) 0·11 ( 0·09 to 0·13) 0·08 ( 0·06 to 0·10) −25·92% ( −37·78 to −12·75) Idiopathic epilepsy0·69 ( 0·66 to 0·73) 0·53 ( 0·48 to 0·57) −23·74% ( −31·41 to −17·55) 152·76 ( 104·4 to 220·04) 140·18 ( 87·22 to 225·90) −8·23% ( −30·47 to 19·70) Multiple sclerosis0·02 ( 0·02 to 0·03) 0·02 ( 0·01 to 0·02) −26·81% ( −41·08 to 13·84) 5·61 ( 3·99 to 7·67) 5·93 ( 4·22 to 8·18) 5·72% ( −4·62 to 20·57) Motor neuron disease0·06 ( 0·06 to 0·07) 0·06 ( 0·05 to 0·06) −12·42% ( −19·69 to −5·21) 5·19 ( 4·89 to 5·55) 4·68 ( 4·27 to 5·10) −9·72% ( −15·94 to −3·27) Headache disorders...... 761·17 ( 79·43 to 1792·62) 769·30 ( 78·52 to 1814·32) 1·07% ( −3·41 to 3·70) Other neurological disorders0·67 ( 0·65 to 0·70) 0·43 ( 0·40 to 0·46) −36·56% ( −41·28 to −31·01) 71·33 ( 60·51 to 86·13) 64·96 ( 47·53 to 93·37) −8·94% ( −25·33 to 14·49) Mental disorders0·01 ( 0·01 to 0·02) 0·02 ( 0·01 to 0·02) 32·36% * Note that deaths were only attributed to eating disorders. ( 2·25 to 66·96) 2008·04 ( 1420·6 to 2729·61) 2040·59 ( 1433·96 to 2774·62) 1·62% ( −0·61 to 3·87) Schizophrenia...... 63·18 ( 40·35 to 96·96) 60·24 ( 38·50 to 92·15) −4·65% ( −11·64 to 1·59) Depressive disorders...... 587·35 ( 384·87 to 850·24) 569·42 ( 365·86 to 847·34) −3·05% ( −9·63 to 3·40) Bipolar disorder...... 184·63 ( 100·79 to 295·7) 187·81 ( 102·26 to 301·80) 1·72% ( −1·93 to 5·58) Anxiety disorders...... 612·59 ( 398·42 to 900·04) 641·37 ( 416·23 to 938·58) 4·70% ( 0·65 to 8·99) Eating disorders0·01 ( 0·01 to 0·02) 0·02 ( 0·01 to 0·02) 32·36% ( 2·25 to 66·96) 130·56 ( 79·11 to 199·61) 150·46 ( 90·24 to 230·68) 15·24% ( 9·65 to 20·43) Autism spectrum disorders...... 89·21 ( 57·78 to 127·52) 92·27 ( 60·45 to 132·16) 3·43% ( 0·55 to 6·17) Attention deficit hyperactivity disorder...... 30·39 ( 17·04 to 52·32) 32·22 ( 17·80 to 55·80) 6·03% ( 0·48 to 11·90) Conduct disorder...... 227·6 ( 128·22 to 360·70) 234·52 ( 132·20 to 374·35) 3·04% ( 0·84 to 5·27) Idiopathic developmental intellectual disability...... 33·67 ( 15·13 to 57·43) 24·14 ( 9·31 to 42·55) −28·29% ( −38·34 to −23·60) Other mental disorders...... 48·87 ( 26·04 to 79·52) 48·14 ( 25·31 to 77·72) −1·49% ( −6·71 to 3·85) Substance use disorders1·30 ( 1·24 to 1·37) 1·10 ( 1·01 to 1·21) −15·28% ( −23·50 to −4·57) 492·33 ( 358·21 to 650·25) 503·94 ( 361·14 to 665·94) 2·36% ( −2·42 to 7·78) Alcohol use disorders0·19 ( 0·18 to 0·20) 0·14 ( 0·12 to 0·15) −27·27% ( −37·58 to −17·87) 204·46 ( 125·09 to 318·64) 187·23 ( 112·67 to 299·64) −8·43% ( −14·78 to −3·61) Drug use disorders1·11 ( 1·05 to 1·17) 0·96 ( 0·88 to 1·07) −13·22% ( −22·66 to −0·90) 287·87 ( 218·6 to 368·70) 316·72 ( 234·37 to 412·93) 10·02% ( 3·03 to 17·91) Diabetes and kidney diseases0·46 ( 0·44 to 0·47) 0·22 ( 0·21 to 0·24) −51·23% ( −54·66 to −47·98) 69·75 ( 58·24 to 84·76) 67·92 ( 51·26 to 88·78) −2·62% ( −13·50 to 8·34) Diabetes0·18 ( 0·18 to 0·19) 0·10 ( 0·09 to 0·11) −46·34% ( −50·04 to −42·76) 32·56 ( 25·46 to 42·02) 42·59 ( 29·59 to 60·23) 30·83% ( 14·12 to 44·41) Chronic kidney disease0·27 ( 0·26 to 0·28) 0·12 ( 0·11 to 0·13) −54·13% ( −57·79 to −50·04) 36·78 ( 29·79 to 45·67) 25·21 ( 18·50 to 33·33) −31·45% ( −38·30 to −25·46) Acute glomerulonephritis0·01 ( 0·00 to 0·01) 0·00 ( 0·00 to 0·00) −74·99% ( −79·98 to −68·66) 0·41 ( 0·35 to 0·49) 0·12 ( 0·10 to 0·13) −71·73% ( −77·32 to −65·33) Skin and subcutaneous diseases0·02 ( 0·01 to 0·03) 0·02 ( 0·01 to 0·03) −7·51% ( −38·94 to 9·70) 731·21 ( 487·33 to 1051·3) 774·92 ( 512·68 to 1117·83) 5·98% ( 4·17 to 7·50) Dermatitis...... 171·24 ( 94·57 to 280·83) 180·58 ( 99·20 to 296·53) 5·45% ( 3·14 to 7·84) Psoriasis...... 100·98 ( 69·49 to 136·48) 93·69 ( 64·76 to 126·6) −7·22% ( −10·78 to −3·44) Bacterial skin diseases0·01 ( 0·01 to 0·02) 0·01 ( 0·01 to 0·02) 27·07% ( −26·87 to 54·15) 6·81 ( 3·63 to 12·3) 7·21 ( 3·92 to 12·73) 5·82% ( −2·50 to 12·14) Scabies...... 12 ( 6·39 to 19·95) 9·79 ( 5·21 to 16·32) −18·44% ( −20·76 to −16·15) Fungal skin diseases...... 26·05 ( 9·86 to 57·17) 26·39 ( 9·98 to 57·99) 1·32% ( −0·10 to 2·72) Viral skin diseases...... 82·32 ( 52·54 to 123·64) 85·86 ( 55·49 to 128·88) 4·31% ( 2·61 to 6·07) Acne vulgaris...... 253·02 ( 149·86 to 400·58) 293·19 ( 174·43 to 464·77) 15·88% ( 13·70 to 18·20) Alopecia areata...... 7·05 ( 4·44 to 10·68) 7·01 ( 4·39 to 10·61) −0·49% ( −5·86 to 5·53) Pruritus...... 5·16 ( 2·34 to 9·82) 5·27 ( 2·4 to 10·08) 2·21% ( −0·84 to 5·66) Urticaria...... 36·57 ( 22·68 to 55·92) 34·64 ( 21·53 to 53·01) −5·28% ( −8·54 to −1·74) Decubitus ulcer0·00 ( 0·00 to 0·00) 0·00 ( 0·00 to 0·00) −48·30% ( −67·63 to −29·59) 0·52 ( 0·36 to 0·73) 0·51 ( 0·34 to 0·71) −3·19% ( −11·98 to 5·52) Other skin and subcutaneous diseases0·01 ( 0·00 to 0·01) 0·00 ( 0·00 to 0·00) −57·16% ( −64·92 to −44·05) 29·49 ( 14·21 to 54·82) 30·78 ( 14·58 to 57·44) 4·36% ( 2·36 to 6·00) Sense organ diseases...... 161·30 ( 104·92 to 232·98) 150·24 ( 98·94 to 216·39) −6·86% ( −10·66 to −3·53) Blindness and vision loss...... 57·93 ( 35·68 to 88·02) 55·65 ( 33·94 to 85·36) −3·95% ( −7·47 to −1·02) Age-related and other hearing loss...... 89·07 ( 53·43 to 131·61) 79·48 ( 48·09 to 118·58) −10·77% ( −16·00 to −5·55) Other sense organ diseases...... 14·30 ( 7·93 to 23·33) 15·12 ( 8·43 to 24·67) 5·73% ( 0·53 to 11·81) Musculoskeletal disorders0·14 ( 0·09 to 0·19) 0·09 ( 0·07 to 0·14) −33·92% ( −42·01 to −11·15) 975·56 ( 670·99 to 1372·96) 974·22 ( 674 to 1377·19) −0·14% ( −2·31 to 2·10) Rheumatoid arthritis0·01 ( 0·01 to 0·02) 0·01 ( 0·01 to 0·01) −55·60% ( −63·33 to −38·51) 9·19 ( 5·98 to 13·52) 9·80 ( 6·18 to 14·89) 6·59% ( −3·50 to 15·33) Low back pain...... 678·57 ( 439·08 to 992·73) 634·68 ( 410·14 to 938·51) −6·47% ( −8·88 to −3·94) Neck pain...... 157·22 ( 89·41 to 267·77) 172·02 ( 97·60 to 290·28) 9·41% ( 6·44 to 12·68) Gout...... 0·35 ( 0·15 to 0·68) 0·38 ( 0·16 to 0·71) 6·34% ( 2·60 to 13·07) Other musculoskeletal disorders0·12 ( 0·08 to 0·17) 0·08 ( 0·07 to 0·13) −31·37% ( −39·81 to −7·66) 130·22 ( 76·37 to 204·72) 157·34 ( 91·23 to 246·73) 20·82% ( 14·31 to 29·20) Other non-communicable diseases2·41 ( 2·11 to 2·62) 1·57 ( 1·42 to 1·85) −34·70% ( −39·50 to −21·57) 800·72 ( 594·95 to 1076·26) 708·7 ( 515·60 to 964·73) −11·49% ( −14·60 to −8·10) Congenital birth defects1·53 ( 1·24 to 1·70) 0·87 ( 0·71 to 1·10) −42·91% ( −48·73 to −21·92) 191·85 ( 161·2 to 226·95) 143·82 ( 117·64 to 175·65) −25·03% ( −30·85 to −12·47) Urinary diseases and male infertility0·09 ( 0·08 to 0·10) 0·05 ( 0·05 to 0·06) −45·11% ( −49·24 to −35·04) 14·45 ( 11·1 to 19·37) 11·37 ( 7·99 to 16·99) −21·31% ( −29·82 to −9·92) Gynaecological diseases0·00 ( 0·00 to 0·01) 0·00 ( 0·00 to 0·00) −65·55% ( −71·31 to −43·29) 277·7 ( 180·92 to 410·57) 272·17 ( 176·44 to 402·67) −1·99% ( −4·86 to 1·22) Haemoglobinopathies and haemolytic anaemias0·22 ( 0·22 to 0·23) 0·08 ( 0·08 to 0·09) −63·33% ( −66·84 to −59·22) 34·79 ( 27·39 to 45·83) 13·88 ( 10·67 to 18·53) −60·11% ( −64·82 to −54·56) Endocrine, metabolic, blood, and immune disorders0·56 ( 0·44 to 0·66) 0·57 ( 0·49 to 0·77) 1·17% ( −7·60 to 24·29) 183·24 ( 124·57 to 260·31) 176·43 ( 122·63 to 245·60) −3·72% ( −8·14 to 2·88) Oral disorders...... 98·69 ( 53·76 to 163·39) 91·03 ( 50·27 to 150·71) −7·76% ( −10·76 to −4·85) Data in parentheses are 95% uncertainty intervals. * Note that deaths were only attributed to eating disorders. Open table in a new tab
Data in parentheses are 95% uncertainty intervals.
In 2019, all-cause YLL rates per 100 000 population in the EU were 1758·00 ( 95% UI 1694·58–1822·04) among adolescents aged 10–24 years ( appendix p 8). Among NCDs, the leading level 2 cause of YLLs was neoplasms ( 281·78 [ 254·25–298·92 ] per 100 000 population), whereas at level 3, the three leading causes were other malignant neoplasms ( 74·01 [ 62·15–80·22 ] per 100 000 population), drug use disorders ( 65·02 [ 59·34–72·26 ] per 100 000 population), and leukaemia ( 64·64 [ 60·62–69·01 ] per 100 000 population; appendix pp 38–39).
In 2019, all-cause YLL rates per 100 000 population were significantly higher in males ( 2415·92 [ 95% UI 2321·65–2509·04 ]) than in females ( 1060·34 [ 1024·01–1099·59 ]), with the largest differences in those aged 20–24 years, with a male-to-female ratio of 2·8:1 ( appendix p 8). NCDs were the leading cause of YLLs among females in all three age groups ( 63·9% [ 61·1–65·6 ] for 10–14 years, 48·0% [ 45·8–49·5 ] for 15–19 years, and 50·6% [ 49·0–51·9 ] for 20–24 years) and in the youngest males ( 54·1% [ 52·0–56·0 ] for 10–14 years; appendix pp 36–37). Sex and age-group differences for NCD level 2 causes of YLL are reported in figure 2A and the appendix ( pp 9–10). Significant sex differences in YLL rates per 100 000 population in adolescents aged 10–24 years were apparent for several NCD level 3 causes, most notably for drug use disorders ( 98·38 [ 88·76–111·23 ] for males vs 29·64 [ 27·09–32·33 ] for females), other neurological disorders ( 45·93 [ 42·44–49·72 ] vs 13·1 [ 12·0–14·4 ]), alcohol use disorders ( 15·25 [ 13·04–17·02 ] vs 3·16 [ 2·82–3·50 ]; appendix p 11).Figure 2YLL ( A) and YLD ( B) rates per 100 000 population due to level 2 non-communicable diseases in adolescents aged 10–24 years in EU Member States, by sex, 2019Show full captionYLDs=years lived with disability. YLLs=years of life lost. * This aggregate cause contains the following level 3 causes: congenital birth defects; urinary diseases; gynaecological diseases; haemoglobinopathies and haemolytic anaemias; endocrine, metabolic, blood, and immune disorders; and oral disorders.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
YLDs=years lived with disability. YLLs=years of life lost. * This aggregate cause contains the following level 3 causes: congenital birth defects; urinary diseases; gynaecological diseases; haemoglobinopathies and haemolytic anaemias; endocrine, metabolic, blood, and immune disorders; and oral disorders.
In 2019, the five countries with the largest burden of YLL rate per 100 000 population for NCDs in adolescents aged 10–24 years were Bulgaria ( 1381·32 [ 95% UI 1102·73–1714·70 ]), Estonia ( 1230·34 [ 1004·84–1511·39 ]), Latvia ( 1028·11 [ 870·39–1237·01 ]), Lithuania ( 1004·40 [ 842·92–1192·36 ]), and Romania ( 918·53 [ 779·76–1079·00 ]; appendix pp 12–13). The highest YLL rate ( in Bulgaria) was double the lowest ( in France). Neoplasms were the leading cause of YLL rate in all Member States in adolescents aged 10–24 years, except for Estonia, where it was substance use disorders ( appendix pp 12–13). In comparison to the EU overall, eight Member States had significantly higher YLL rates due to NCDs ( Bulgaria, Estonia, Latvia, Lithuania, Malta, Romania, the UK, and Finland), whereas five had lower rates ( Italy, the Netherlands, Spain, Belgium, and France).
Among adolescents aged 10–24 years, YLL rates due to NCDs decreased by 40·56% ( 95% UI –43·16 to –37·74) from 1990 to 2019 ( appendix pp 14, 38–39). The only NCD level 2 cause of YLLs that increased was mental disorders, albeit not significantly, from 0·93 ( 0·80–1·10) in 1990 to 1·23 ( 1·00–1·50) in 2019 ( change 32·18% [ 1·67–66·49 ]), and for which YLLs were only attributed to eating disorders ( appendix pp 38–39).
The all-cause YLD rate across the EU in 2019 was 7322·85 ( 95% UI 5268·10–9748·95) per 100 000 population among adolescents aged 10–24 years and increased by age group ( appendix p 15). The leading level 1 causes of YLDs in adolescents aged 10–24 years were NCDs ( 6328·51 [ 4489·66–8533·25 ] per 100 000 population), which overall constituted 86·4% ( 83·5–88·8) of all YLDs ( appendix p 34). The leading NCD level 2 causes of YLDs were mental disorders ( 2039·36 [ 1432·56–2773·47 ] per 100 000 population), and the top three level 3 causes of YLDs were headache disorders ( 769·30 [ 78·52–1814·32 ] per 100 000 population), anxiety disorders ( 641·37 [ 416·23–938·51 ] per 100 000 population), and low back pain ( 634·68 [ 410·14–938·51 ] per 100 000 population; appendix pp 40–42).
Among adolescents aged 10–24 years, all-cause YLD rates per 100 000 population in 2019 were higher in females ( 8383·40 [ 95% UI 6003·72–11 292·01 ]) than in males ( 6322·73 [ 4586·09–8354·55 ]; appendix p 15). NCDs were the leading level 1 cause of YLDs, with the greatest burden in individuals aged 20–24 years ( 7813·15 [ 5546·85–10 334·38 ] per 100 000 population) ( appendix pp 34–35). For all three age subgroups, mental disorders were the leading level 2 cause of YLDs in the EU overall ( appendix pp 16–17). Differences by age group and sex in level 2 causes are reported in figure 2B and the appendix ( pp 16–17). For level 3 causes, significant differences in YLD rates per 100 000 population between females and males aged 10–24 years were observed for eating disorders ( 236·68 [ 141·97–365·30 ] for females vs 66·76 [ 38·98–104·81 ] for males) and autism spectrum disorders ( 32·77 [ 21·26–47·87 ] vs 148·39 [ 97·20–211·37 ]; appendix p 18).
In 2019, among adolescents aged 10–24 years, country NCD YLD rates per 100 000 population ranged from 4593·38 ( 95% UI 3234·52–6166·79) in Romania to 7018·56 ( 4996·04–9428·21) in Portugal ( appendix pp 19–20). However, no significant differences were observed between individual Member States and the EU overall. Mental disorders were the leading cause of YLDs in all countries.
Among adolescents aged 10–24 years, there was no change in all-cause YLD rates from 1990 ( 7372·49 [ 95% UI 5298·54–9758·09 ] per 100 000 population) to 2019 ( 7322·85 [ 5268·10–9748·95 ] per 100 000 population; appendix p 15), although a slight increase in YLDs due to NCDs was observed ( 1·44% [ 0·09–2·79 ]; appendix pp 21, 40–42). Within NCD level 2 causes, from 1990 to 2019, the greatest increase in YLD rates was observed for diabetes and kidney diseases ( 37·8% ( 25·1–51·5), mainly due to an increase in level 3 cause diabetes ( 80·5% [ 69·5–90·4 ]; appendix pp 40–42).
In 2019, the all-cause rate of DALYs per 100 000 population was 9080·85 ( 95% UI 7024·87–11 479·33) among adolescents aged 10–24 years ( appendix p 22). NCDs accounted for 77·1% ( 73·5–80·5) of DALYs among adolescents aged 10–24 years in the EU ( appendix pp 34–35). Mental disorders ( 2040·59 [ 1433·96–2774·62 ] per 100 000 population) were the leading level 2 cause ( table), accounting for 29·1% ( 20·4 –39·6) of the overall NCD DALY rate. Headache disorders ( 769·30 [ 78·52–1814·32 ] per 100 000 population), anxiety disorders ( 641·37 [ 416·23–938·58 ] per 100 000 population), and low back pain ( 634·68 [ 410·14–938·51 ] per 100 000 population) were the top three level 3 causes.
The total all-cause DALY rate per 100 000 population in 2019 increased with age and was higher in females than males in all age groups ( appendix p 22). NCDs were the leading causes of DALYs in all age groups and in both sexes ( appendix pp 34–37). Differences between sexes were larger in the age groups of 15–19 years and 20–24 years. For adolescents aged 10–24 years, sex differences were significant for level 2 causes of substance use disorders, neurological disorders, and other NCDs ( appendix pp 23–24), and at level 3 they were significant for drug use disorders ( 221·64 [ 156·16–299·71 ] per 100 000 population for females vs 406·38 [ 304·06–522·44 ] per 100 000 population for males) and eating disorders ( 239·16 [ 143·64–367·68 ] per 100 000 population vs 66·82 [ 39·04–104·88 ] per 100 000 population; appendix p 25).
In 2019, DALY rates per 100 000 population due to NCDs in adolescents aged 10–24 years ranged from 5248·13 [ 95% UI 3890·06–6787·39 ]) in the Czech Republic to 7828·83 [ 5815·44–10 207·98 ]) in the UK ( figure 3). In all EU Member States, mental disorders were the leading level 2 cause of DALYs from NCDs ( figure 3), accounting for more than 22·5% ( 15·8–30·6) of the DALY burden. Significantly higher rate differences between Member States and the EU overall were observed at level 2 causes for the following diseases and countries: cardiovascular diseases ( Bulgaria, Romania, and Latvia), digestive diseases ( Bulgaria, Romania, and Lithuania), diabetes and kidney diseases ( Bulgaria), neoplasms ( Bulgaria, Romania, Latvia, and Malta), and substance use disorders ( Estonia; appendix pp 26–28).Figure 3DALY rate per 100 000 population due to level 2 non-communicable diseases in adolescents aged 10–24 years in both sexes, by country, 2019Show full captionDALY=disability-adjusted life-year. * This aggregate cause contains the following level 3 causes: congenital birth defects; urinary diseases; gynaecological diseases; haemoglobinopathies and haemolytic anaemias; endocrine, metabolic, blood, and immune disorders; oral disorders.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
DALY=disability-adjusted life-year. * This aggregate cause contains the following level 3 causes: congenital birth defects; urinary diseases; gynaecological diseases; haemoglobinopathies and haemolytic anaemias; endocrine, metabolic, blood, and immune disorders; oral disorders.
In the 30-year period, the DALY rate due to NCDs across the EU decreased by 5·1% ( 95% UI –7·6 to –3·2; table; appendix p 29). Among level 2 NCD causes, there was a significant change in the DALY rate from 1990 to 2019 for cardiovascular diseases, which decreased by 52·10% ( –55·50 to –48·70), and neoplasms, which decreased by 34·82% ( –40·62 to –30·47; table).
In 2019, the SDI ranged from 0·74 ( Portugal) to 0·90 ( Germany and Luxembourg; appendix p 43). Moderate rank correlations of higher developmental index and higher DALY rates of substance use disorders ( rs=0·58, p=0·0012) and skin and subcutaneous diseases ( rs=0·45, p=0·017) and of lower developmental index and higher DALY rates of cardiovascular diseases ( rs=–0·46, p=0·015), neoplasms ( rs=–0·57, p=0·0015), and sense organ diseases ( rs=–0·61, p=0·0005) were observed ( appendix pp 30, 44).
This study presents the first systematic analysis of the NCD burden among adolescents in the EU Member States using GBD 2019 estimates. It found that the burden of NCD mortality and disability increases between the age groups 10–14 and 20–24 years. Despite substantial decreases in mortality over the past three decades, disability has remained mostly unchanged over this time, and the rising trend of YLLs attributed to mental disorders and their YLD burden are concerning. In line with previous evidence reporting that sex differences tend to increase with age,4Ward J Azzopardi P Francis K et al.Global, regional, and national mortality among young people aged 10–24 years, 1950–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2021; 398: 1593-1618Google Scholar, 17WHORegional Office for Europe. Growing up unequal: gender and socioeconomic differences in young people's health and well-being.https: //apps.who.int/iris/handle/10665/326320Date: 2016Date accessed: January 18, 2022Google Scholar our findings show that sex differences are wider in young adults. Furthermore, although males have a higher mortality and a major burden attributed to substance use disorders, females present a higher disability burden, particularly attributable to mental disorders, with an emerging mortality burden of eating disorders. Substantial variations of the NCD burden by country were also found. Mortality and YLLs from NCDs predominated in eastern European countries ( Bulgaria, Estonia, Latvia, Lithuania, and Romania), in comparison to greater prominence from disability in western European countries ( the UK, Portugal, Ireland, Germany, and Luxembourg).
This study highlights the need to scale up wide-ranging interventions to address the challenge of NCDs in adolescents in EU Member States, particularly aiming in reducing the disability burden of these diseases. These interventions comprise holistic multilevel public health approaches,9Patton GC Sawyer SM Santelli JS et al.Our future: a Lancet commission on adolescent health and wellbeing.Lancet. 2016; 387: 2423-2478Google Scholar including evidence-based preventive interventions, investments in dedicated primary and specialist health-care services including specialist training in adolescent medicine,18Michaud PA Weber MW Namazova-Baranova L Ambresin AE Improving the quality of care delivered to adolescents in Europe: a time to invest.Arch Dis Child. 2019; 104: 214-216Google Scholar and health-promoting school programmes.19Making every school a health-promoting school: implementation guidance.https: //www.who.int/publications/i/item/9789240025073Date: June 22, 2021Date accessed: January 19, 2022Google Scholar Effective interventions should also consider structural and proximal social and environmental determinants of health, such as improving access to education and employment, as well as commercial determinants that shape ill health.20Viner RM Ozer EM Denny S et al.Adolescence and the social determinants of health.Lancet. 2012; 379: 1641-1652Google Scholar, 21Kickbusch I Allen L Franz C The commercial determinants of health.Lancet Glob Health. 2016; 4: e895-e896Google Scholar
Within the EU, despite the fifth European Youth Goal10Council of the European UnionRepresentatives of the Governments of the Member States ( The Member States) Resolution of the Council of the European Union and the Representatives of the Governments of the Member States meeting within the Council on a framework for European cooperation in the youth field: the European Union Youth Strategy 2019–2027.https: //eur-lex.europa.eu/legal-content/EN/TXT/? uri=CELEX:42018Y1218 ( 01) Date: Dec 18, 2018Date accessed: January 19, 2022Google Scholar to promote social inclusion of all young people, to achieve better mental health and wellbeing and end stigmatisation of mental health issues, mental disorders were the major contributors of the NCD burden in all EU Member States and in adolescents. Previous studies have reported mental disorders as leading causes of disability among adolescents,8Akseer N Mehta S Wigle J et al.Non-communicable diseases among adolescents: current status, determinants, interventions and policies.BMC Public Health. 2020; 201908Google Scholar and that the onset of the first mental disorder emerges in a third of individuals before the age of 14 years, in almost half by 18 years, and nearly two-thirds before 25 years.22Solmi M Radua J Olivola M et al.Age at onset of mental disorders worldwide: large-scale meta-analysis of 192 epidemiological studies.Mol Psychiatry. 2021; ( published online June 2.) https: //doi.org/10.1038/s41380-021-01161-7Google Scholar Yet only 20–40% of adolescents with mental health problems are diagnosed by health services and only 25% receive appropriate treatment.23Sanci L Lewis D Patton G Detecting emotional disorder in young people in primary care.Curr Opin Psychiatry. 2010; 23: 318-323Google Scholar This problem is compounded by low help-seeking behaviour24Kaess M Brunner R Parzer P et al.Risk-behaviour screening for identifying adolescents with mental health problems in Europe.Eur Child Adolesc Psychiatry. 2014; 23: 611-620Google Scholar and is probably exacerbated by barriers to accessing mental health services,25Tylee A Haller DM Graham T Churchill R Sanci LA Youth-friendly primary-care services: how are we doing and what more needs to be done?.Lancet. 2007; 369: 1565-1573Google Scholar such as stigma, service cost, the absence of health services, or the requirement for parental consent. Gender inequalities in health primarily emerge during adolescence,26Kennedy E Binder G Humphries-Waa K et al.Gender inequalities in health and wellbeing across the first two decades of life: an analysis of 40 low-income and middle-income countries in the Asia-Pacific region.Lancet Glob Health. 2020; 8: e1473-e1488Google Scholar and this difference reinforces the importance of prioritising adolescents of all genders as an age group for targeted gender-sensitive health policies, indicators, and programmes. Examples include mainstreaming gender in health service delivery and access, in medical research, in health planning processes, and in the training of health-care professionals, which would be expected to enhance the effectiveness of actions to address the burden of NCDs. Moreover, the correlation between DALY rates and SDI of each EU Member State also confirms the need to address underlying determinants of health and suggests that country-specific approaches are needed.27Azzopardi PS Hearps SJC Francis KL et al.Progress in adolescent health and wellbeing: tracking 12 headline indicators for 195 countries and territories, 1990–2016.Lancet. 2019; 393: 1101-1118Google Scholar For example, Bulgaria and Romania, which have the lowest expenditure on health in the EU,28OECD/European Observatory on Health Systems and PoliciesState of Health in the EU. Belgium: country health profile 2021.https: //doi.org/10.1787/57e3abb5-enDate: Dec 13, 2021Date accessed: January 18, 2022Google Scholar would benefit from greater investments to improve access to and quality of health services, including for adolescents,29Saloustros E Stark DP Michailidou K et al.The care of adolescents and young adults with cancer: results of the ESMO/SIOPE survey.ESMO Open. 2017; 2e000252Google Scholar national health system monitoring or quality assurance systems, and prevention,28OECD/European Observatory on Health Systems and PoliciesState of Health in the EU. Belgium: country health profile 2021.https: //doi.org/10.1787/57e3abb5-enDate: Dec 13, 2021Date accessed: January 18, 2022Google Scholar whereas Estonia, with the highest burden of substance use disorder in adolescents, would benefit from increased drug-related expenditure, including for tackling gaps in data collection, which accounted for only 0·02% of gross domestic product in 2011, well below the EU average.30European Monitoring Centre for Drugs and Drug AddictionEstonia, country drug report 2019.https: //www.emcdda.europa.eu/system/files/publications/11337/estonia-cdr-2019 0.pdfDate: 2019Date accessed: January 18, 2022Google Scholar
Understanding and responding to these barriers is particularly urgent given the impact of the COVID-19 pandemic on adolescent health and health-related quality of life.12UNPolicy brief: the impact of COVID-19 on children.https: //unsdg.un.org/sites/default/files/2020-04/160420 Covid Children Policy Brief.pdfDate: April 15, 2020Date accessed: January 18, 2022Google Scholar In this context, besides mental disorders,31Racine N McArthur BA Cooke JE Eirich R Zhu J Madigan S Global prevalence of depressive and anxiety symptoms in children and adolescents during COVID-19: a meta-analysis.JAMA Pediatr. 2021; 175: 1142-1150Google Scholar there are also concerns about the impact of the COVID-19 pandemic on reducing access to health services for other NCDs, such as cancer. Despite significant improvements in mortality reduction due to neoplasms in EU Member States, these gains might be jeopardised by the disruptions to cancer care services faced during COVID-19 pandemic.32Graetz D Agulnik A Ranadive R et al.Global effect of the COVID-19 pandemic on paediatric cancer care: a cross-sectional study.Lancet Child Adolesc Health. 2021; 5: 332-340Google Scholar Additionally, considering the rising trend of disability due to diabetes, the alarming increase of type 2 diabetes in adolescents,33Liu J Ren ZH Qiang H et al.Trends in the incidence of diabetes mellitus: results from the Global Burden of Disease Study 2017 and implications for diabetes mellitus prevention.BMC Public Health. 2020; 201415Google Scholar, 34Lascar N Brown J Pattison H Barnett AH Bailey CJ Bellary S Type 2 diabetes in adolescents and young adults.Lancet Diabetes Endocrinol. 2018; 6: 69-80Google Scholar and long-term effects of COVID-19 on obesity and type 1 diabetes, reasonable prevention strategies and health system responses should be prioritised.
GBD 2019 has some key limitations, such as availability of primary data, the uncertainty for some estimates represented by a wide 95% UIs, as well as in the determination and classification of some non-fatal disorders. Further details in GBD 2019 limits are described elsewhere.14Vos T Lim SS Abbafati C et al.Global burden of 369 diseases and injuries in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019.Lancet. 2020; 396: 1204-1222Google Scholar Our analysis has several limitations related to variation in the availability and quality of primary data for adolescent health, including paucity of data for some age groups ( especially 10–14 years), for many health outcomes during adolescence,35Patton G Azzopardi P Kennedy E Coffey C Mokdad A Global measures of health risks and disease burden in adolescents. Disease control priorities, vol 8, 3rd edn. Child and adolescent health and development. The International Bank for Reconstruction and Development/The World Bank, Washington, DC2017: 57-72Google Scholar and some EU Member States, particularly in central and eastern Europe. These estimates of disease burden are surrounded by considerable uncertainties and different data availability between countries can generate difficulties in the interpretation of comparisons. Additionally, not all sources of uncertainty could be routinely captured in either the epidemiological or cause-of-death modelling processes. It is important to note that both disability and mortality rates of mental disorders will have been underestimated as self-harm and interpersonal and sexual violence were excluded from the analysis ( due to GBD 2019 grouping these within injures group). In addition, mental disorders and self-harm are often underdiagnosed or misdiagnosed, among other reasons, due to implicit stigma affecting both patients and clinicians. Reporting bias might be relevant as well in stigmatised disorders such as mental disorders and substance use disorders. Finally, although we used SDI to describe socioeconomic differences among countries, other indicators might be more relevant for adolescents, and further disaggregation, such as ethnicity, could provide additional information.
Despite two decades of attention to adolescent-friendly health services that consider the context of adolescent's biological and social development,36Ambresin AE Bennett K Patton GC Sanci LA Sawyer SM Assessment of youth-friendly health care: a systematic review of indicators drawn from young people's perspectives.J Adolesc Health. 2013; 52: 670-681Google Scholar these data on NCDs are consistent with concerns that the quality of health care currently provided to adolescents in the EU is less than optimal.18Michaud PA Weber MW Namazova-Baranova L Ambresin AE Improving the quality of care delivered to adolescents in Europe: a time to invest.Arch Dis Child. 2019; 104: 214-216Google Scholar Addressing NCDs in adolescents is complex, as adolescence is a period in which both NCDs begin and many NCD risk behaviours start, with the related burden of diseases becoming visible only in adulthood, as it is estimated that about 70% of premature deaths occurring during adulthood result from health-related behaviours initiated in childhood and adolescence.6Sawyer SM Afifi RA Bearinger LH et al.Adolescence: a foundation for future health.Lancet. 2012; 379: 1630-1640Google Scholar Although various plans and strategies are in place at the regional level ( ie, the EU level), with some evidence of national plans, the high disability burden due to adolescent NCDs indicates inadequate implementation of key policies and severe underfunding in many countries. NCDs in adolescents have been largely ignored in global targets for the UN Sustainable Development Goals ( SDGs).37UNTransforming our world: the 2030 Agenda for Sustainable Development.https: //sdgs.un.org/2030agendaDate: 2015Date accessed: January 18, 2022Google Scholar Yet responses are urgently needed as these data on adolescents in 2019 will be reflected in national adult targets for NCDs within the 2030 UN SDGs.
BA, DB, LM, and SS conceptualised the study. BA drafted the manuscript. BA and LM had access to and verified the data. BA provided the analysis, DB, LM, and SS helped in the interpretation of results. MP and SH contributed to the overall generation of GBD estimates. SS, FB, GS, GC, LR, MP, SH, and PP contributed to reviewing and finalising the manuscript. BA, DB, and LM had final responsibility for the decision to submit for publication. All other authors provided data, developed models, reviewed results, provided guidance on methods, or reviewed and contributed to the manuscript. All authors approved the final version of the manuscript ( appendix pp 45–46).
Benedetta Armocida, Lorenzo Monasta, Susan M Sawyer, Flavia Bustreo, Giulia Segafredo, Giulio Castelpietra, Luca Ronfani, Maja Pasovic, Simon I Hay, Derrick Bary Abila, Hassan Abolhassani, Manfred Mario Kokou Accrombessi, Victor Adekanmbi, Keivan Ahmadi, Hanadi Al Hamad, Mamoon A Aldeyab, Adel Al-Jumaily, Robert Ancuceanu, Catalina Liliana Andrei, Tudorel Andrei, Ashokan Arumugam, Sameh Attia, Avinash Aujayeb, Marcel Ausloos, Jennifer L Baker, Francesco Barone-Adesi, Fabio Barra, Sandra Barteit, Sanjay Basu, Bernhard T Baune, Yannick Béjot, Luis Belo, Derrick A Bennett, Boris Bikbov, Andras Bikov, Oleg Blyuss, Susanne Breitner, Hermann Brenner, Giulia Carreras, Márcia Carvalho, Alberico L Catapano, Joht Singh Chandan, Periklis Charalampous, Simiao Chen, Joao Conde, Natália Cruz-Martins, Giovanni Damiani, Anna Dastiridou, Alejandro de la Torre-Luque, Mostafa Dianatinasab, Diana Dias da Silva, Abdel Douiri, Elena Dragioti, Luchuo Engelbert Bain, Adeniyi Francis Fagbamigbe, Seyed-Mohammad Fereshtehnejad, Pietro Ferrara, José Miguel P Ferreira de Oliveira, Simone Ferrero, Lorenzo Ferro Desideri, Florian Fischer, Diogo A Fonseca, Piyada Gaewkhiew, Santosh Gaihre, Silvano Gallus, Mariana Gaspar Fonseca, Paramjit Singh Gill, James C Glasbey, Giuseppe Gorini, Vijai Kumar Gupta, Mekdes Kondale Gurara, Josep Maria Haro, M Tasdik Hasan, Rasmus J Havmoeller, Behzad Heibati, Merel E Hellemons, Claudiu Herteliu, Salman Hussain, Gaetano Isola, Olatunji Johnson, Jost B Jonas, Jacek Jerzy Jozwiak, Mikk Jürisson, Zubair Kabir, André Karch, Joonas H Kauppila, Gbenga A Kayode, Moien AB Khan, Khaled Khatab, Mika Kivimäki, Miloslav Klugar, Jitka Klugarová, Kamrun Nahar Koly, Ai Koyanagi, Om P Kurmi, Dian Kusuma, Carlo La Vecchia, Ben Lacey, Tea Lallukka, Demetris Lamnisos, Berthold Langguth, Anders O Larsson, Paolo Lauriola, Paul H Lee, Matilde Leonardi, An Li, Christine Linehan, Rubén López-Bueno, Stefan Lorkowski, Joana A Loureiro, Raimundas Lunevicius, Laura A Magee, Francesca Giulia Magnani, Azeem Majeed, Konstantinos Christos Makris, Alexander G Mathioudakis, Manu Raj Mathur, John J McGrath, Ritesh G Menezes, Alexios-Fotios A Mentis, Atte Meretoja, Tomislav Mestrovic, Junmei Miao Jonasson, Tomasz Miazgowski, Andreea Mirica, Marcello Moccia, Shafiu Mohammed, Mariam Molokhia, Stefania Mondello, Ulrich Otto Mueller, Francesk Mulita, Daniel Munblit, Ionut Negoi, Ruxandra Irina Negoi, Evangelia Nena, Nurulamin M Noor, Christoph Nowak, George Ntaios, Vincent Ebuka Nwatah, Bogdan Oancea, Ayodipupo Sikiru Oguntade, Alberto Ortiz, Adrian Otoiu, Alicia Padron-Monedero, Raffaele Palladino, Adrian Pana, Demosthenes Panagiotakos, Songhomitra Panda-Jonas, Shahina Pardhan, Jay Patel, Paolo Pedersini, José L Peñalvo, Umberto Pensato, Renato B Pereira, Norberto Perico, Ionela-Roxana Petcu, Suzanne Polinder, Maarten J Postma, Mohammad Rabiee, Navid Rabiee, Alberto Raggi, Shadi Rahimzadeh, David Laith Rawaf, Salman Rawaf, Faizan Ur Rehman, Giuseppe Remuzzi, Abanoub Riad, Alina Rodriguez, Simona Sacco, Mohammad Reza Saeb, Mahdi Safdarian, Brijesh Sathian, Davide Sattin, Sonia Saxena, Nikolaos Scarmeas, Winfried Schlee, Falk Schwendicke, Morteza Shamsizadeh, Nigussie Tadesse Sharew, Rahman Shiri, Siddharudha Shivalli, Velizar Shivarov, João Pedro Silva, Colin R Simpson, Søren T Skou, Bogdan Socea, Ireneous N Soyiri, Paschalis Steiropoulos, Kurt Straif, Xiaohui Sun, Rafael Tabarés-Seisdedos, Arulmani Thiyagarajan, Fotis Topouzis, Marcos Roberto Tovani-Palone, Thomas Clement Truelsen, Brigid Unim, Jef Van den Eynde, Tommi Juhani Vasankari, Massimiliano Veroux, Santos Villafaina, Matej Vinko, Francesco S Violante, Victor Volovici, Yanzhong Wang, Ronny Westerman, Mohammad Esmaeil Yadegarfar, Sanni Yaya, Vesna Zadnik, Alimuddin Zumla, Pablo Perel, and David Beran.
Division of Tropical and Humanitarian Medicine ( B Armocida MD), University of Geneva, Geneva, Switzerland; Clinical Epidemiology and Public Health Research Unit ( B Armocida MD, L Monasta DSc, L Ronfani PhD), Burlo Garofolo Institute for Maternal and Child Health, Trieste, Italy; Department of Paediatrics ( Prof S M Sawyer MD), University of Melbourne, Parkville, VIC, Australia; Centre for Adolescent Health ( Prof S M Sawyer MD), Murdoch Children's Research Institute, Parkville, VIC, Australia; Fondation Botnar, Basel, Switzerland ( F Bustreo MD); Governance and Ethics Committee ( F Bustreo MD), Partnership for Maternal Newborn and Child Health ( PMNCH), Geneva, Switzerland; Policy Department ( G Segafredo PhD), Medicines Patent Pool, Geneva, Switzerland; Outpatient and Inpatient Care Service, ( G Castelpietra PhD), Central Health Directorate, Friuli Venezia Giulia Region, Trieste, Italy; Institute for Health Metrics and Evaluation ( M Pasovic MEd, Prof S I Hay FMedSci), Department of Health Metrics Sciences, School of Medicine ( Prof S I Hay FMedSci), University of Washington, Seattle, WA, USA; Division of Tropical and Humanitarian Medicine ( D Beran PhD), University of Geneva and Geneva University Hospitals, Geneva, Switzerland; Department of Pathology ( D B Abila BSc), Makerere University, Kampala, Uganda; Faculty of Biology, Medicine, and Health ( D B Abila BSc), Division of Infection, Immunity and Respiratory Medicine ( A Bikov PhD, A G Mathioudakis MD), Department of Mathematics ( O Johnson PhD), University of Manchester, Manchester, UK; Research Center for Immunodeficiencies ( H Abolhassani PhD), Tehran University of Medical Sciences, Tehran, Iran; Department of Biosciences and Nutrition ( H Abolhassani PhD), Karolinska University Hospital, Huddinge, Sweden; Department of Disease Control ( M M K Accrombessi PhD), Center for Global Mental Health ( K N Koly MSc), Medical Statistics Department ( S Shivalli MD), Department of Non-communicable Disease Epidemiology ( Prof P Perel PhD), London School of Hygiene & Tropical Medicine, London, UK; Department of Clinical Research ( M M K Accrombessi PhD), Clinical Research Institute of Benin, Abomey-Calavi, Benin; Department of Population Medicine ( V Adekanmbi PhD), Cardiff University, Cardiff, UK; Lincoln Medical School ( K Ahmadi PhD), Universities of Nottingham & Lincoln, Lincoln, UK; Geriatric and Long Term Care Department ( H Al Hamad MD, B Sathian PhD), Rumailah Hospital ( H Al Hamad MD), Hamad Medical Corporation, Doha, Qatar; Department of Pharmacy ( M A Aldeyab PhD), University of Huddersfield, Huddersfield, UK; School of Computing, Mathematics and Engineering ( Prof A Al-Jumaily PhD), Charles Sturt University, Waga Waga, NSW, Australia; Information and Communication Sciences and Technologies Pole, Mathematics, Algorithms and Decision Team ( Prof A Al-Jumaily PhD), ENSTA Bretagne, Brest, France; Pharmacy Department ( Prof R Ancuceanu PhD), Cardiology Department ( C Andrei PhD), Department of General Surgery ( I Negoi PhD, B Socea PhD), Department of Anatomy and Embryology ( R I Negoi PhD), Carol Davila University of Medicine and Pharmacy, Bucharest, Romania; Department of Statistics and Econometrics ( Prof T Andrei PhD, Prof M Ausloos PhD, Prof C Herteliu PhD, A Mirica PhD, A Otoiu PhD, A Pana MD, I Petcu PhD), Bucharest University of Economic Studies, Bucharest, Romania; Department of Physiotherapy ( A Arumugam PhD), University of Sharjah, Sharjah, United Arab Emirates; Department of Community Medicine and Rehabilitation ( A Arumugam PhD), Umeå University, Umea, Sweden; Oral and Maxillofacial Surgery ( S Attia MSc), Justus Liebig University of Giessen, Giessen, Germany; Northumbria HealthCare NHS Foundation Trust ( A Aujayeb MBBS), National Health Service ( NHS) Scotland, Newcastle upon Tyne, UK; School of Business ( Prof M Ausloos PhD), Department of Health Sciences ( P H Lee PhD), University of Leicester, Leicester, UK; Center for Clinical Research and Prevention ( J L Baker PhD), Bispebjerg University Hospital, Frederiksberg, Denmark; Department of Translational Medicine ( F Barone-Adesi PhD), University of Eastern Piedmont, Novara, Italy; Academic Unit of Obstetrics and Gynecology ( F Barra MD), Department of Neurosciences, Rehabilitation, Ophthalmology, Genetics, Maternal and Child Health ( DINOGMI) ( Prof S Ferrero PhD), University Eye Clinic ( L Ferro Desideri MD), University of Genoa, Genoa, Italy; Heidelberg Institute of Global Health ( S Barteit PhD), Heidelberg University Hospital, Heidelberg, Germany; Center for Primary Care ( S Basu PhD), Harvard University, Boston, MA, USA; School of Public Health ( S Basu PhD, Prof S Saxena MD), Imperial College Business School ( D Kusuma DSc), Department of Primary Care and Public Health ( Prof A Majeed MD, R Palladino MD, Prof S Rawaf MD), National Heart & Lung Institute ( Prof D Munblit PhD), WHO Collaborating Centre for Public Health Education and Training ( D L Rawaf MD), Department of Epidemiology and Biostatistics ( Prof A Rodriguez PhD), Imperial College London, London, UK; Department of Psychiatry ( Prof B T Baune PhD), Institute for Epidemiology and Social Medicine ( A Karch MD), University of Münster, Münster, Germany; Department of Psychiatry ( Prof B T Baune PhD), Melbourne Medical School, Melbourne, VIC, Australia; Department of Neurology ( Prof Y Béjot PhD), University Hospital of Dijon, Dijon, France; Dijon Stroke Registry - UFR Sciences Santé ( Prof Y Béjot PhD), University of Burgundy, Dijon, France; Biological Sciences Department ( L Belo PhD), Research Unit on Applied Molecular Biosciences ( UCIBIO) ( L Belo PhD, M Carvalho PhD, J P Silva PhD), Department of Medicine ( Prof N Cruz-Martins PhD), Laboratory of Toxicology ( Prof D Dias da Silva PhD), Associated Laboratory for Green Chemistry ( LAQV) ( J P Ferreira de Oliveira PhD), Laboratory for Process Engineering, Environment, Biotechnology and Energy ( LEPABE) ( J Loureiro PhD), Department of Chemistry ( R B Pereira PhD), University of Porto, Porto, Portugal; Nuffield Department of Population Health ( D A Bennett PhD, B Lacey PhD), The George Institute for Global Health ( Prof S Yaya PhD), University of Oxford, Oxford, UK; Mario Negri Institute for Pharmacological Research, Ranica, Italy ( B Bikbov MD); Department of Pulmonology ( A Bikov PhD), Semmelweis University, Budapest, Hungary; Wolfson Institute of Population Health ( O Blyuss PhD, Prof A Rodriguez PhD), Queen Mary University of London, London, UK; Department of Pediatrics and Pediatric Infectious Diseases ( O Blyuss PhD), Department of Paediatrics and Paediatric Infectious Diseases ( Prof D Munblit PhD), I.M. Sechenov First Moscow State Medical University, Moscow, Russia; Institute for Medical Information Processing, Biometry, and Epidemiology ( S Breitner DSc), Ludwig Maximilian University of Munich, Munich, Germany; Institute of Epidemiology ( S Breitner DSc), German Research Center for Environmental Health, Neuherberg, Germany; Division of Clinical Epidemiology and Aging Research ( Prof H Brenner MD), German Cancer Research Center, Heidelberg, Germany; Oncological Network, Prevention and Research Institute ( G Gorini MD), Institute for Cancer Research, Prevention and Clinical Network, Florence, Italy ( G Carreras PhD); Faculty of Health Sciences ( M Carvalho PhD), University Fernando Pessoa, Porto, Portugal; Department of Pharmacological and Biomolecular Sciences ( Prof A L Catapano PhD), IRCCS Istituto Ortopedico Galeazzi ( Galeazzi Orthopedic Institute IRCCS) ( G Damiani MD), Department of Clinical Sciences and Community Health ( Prof C La Vecchia MD), University of Milan, Milan, Italy; MultiMedica ( Prof A L Catapano PhD), IRCCS, Sesto San Giovanni, Italy; Institute of Applied Health Research ( J S Chandan MFPH), NIHR Global Health Research Unit on Global Surgery ( J C Glasbey MSc), University of Birmingham, Birmingham, UK; Public Health Epidemiology ( P Charalampous MSc), Department of Pulmonary Medicine ( M E Hellemons PhD), Department of Public Health ( S Polinder PhD), Department of Neurosurgery ( V Volovici PhD), Erasmus University Medical Center, Rotterdam, Netherlands; Heidelberg Institute of Global Health ( HIGH) ( S Chen DSc), Heidelberg University, Heidelberg, Germany; Nova Medical School ( J Conde PhD), Nova University of Lisbon, Lisbon, Portugal; Department of Health Sciences ( Prof N Cruz-Martins PhD), Institute of Research and Advanced Training in Health Sciences and Technologies ( CESPU), Famalicão, Portugal; Department of Dermatology ( G Damiani MD), Case Western Reserve University, Cleveland, OH, USA; 2nd University Ophthalmology Department ( A Dastiridou MD), 1st Department of Ophthalmology ( Prof F Topouzis PhD), Aristotle University of Thessaloniki, Thessaloniki, Greece; Ophthalmology Department ( A Dastiridou MD), Medical School ( F Mulita MD), Department of Internal Medicine ( G Ntaios PhD), University of Thessaly, Larissa, Greece; Department of Legal Medicine, Psychiatry and Pathology ( A de la Torre-Luque PhD), Complutense University of Madrid ( Universidad Complutense de Madrid), Madrid, Spain; Department of Epidemiology ( M Dianatinasab MSc), Maastricht University, Maastricht, Netherlands; Department of Epidemiology ( M Dianatinasab MSc), Shiraz University of Medical Sciences, Shiraz, Iran; School of Population Health and Environmental Sciences ( A Douiri PhD, X Sun MPH, Y Wang PhD), Population and Patient Health Group ( P Gaewkhiew PhD), Department of Women and Children's Health ( Prof L A Magee MD), Faculty of Life Sciences and Medicine ( M Molokhia PhD), School of Population Health & Environmental Sciences ( M E Yadegarfar PhD), King's College London, London, UK; Pain and Rehabilitation Centre ( E Dragioti PhD), Department of Health, Medicine and Caring Sciences ( E Dragioti PhD), Linkoping University, Linkoping, Sweden; Lincoln International Institute for Rural Health ( L Engelbert Bain PhD), University of Lincoln, Lincoln, UK; Epidemiology and Medical Statistics ( A F Fagbamigbe PhD), University of Ibadan, Ibadan, Nigeria; Population and Behavioural Sciences ( A F Fagbamigbe PhD), University of St Andrews, St Andrews, UK; Department of Neurobiology ( S Fereshtehnejad PhD), Department of Molecular Medicine and Surgery ( J H Kauppila MD), Karolinska Institute, Stockholm, Sweden; Division of Neurology ( S Fereshtehnejad PhD), School of International Development and Global Studies ( Prof S Yaya PhD), University of Ottawa, Ottawa, ON, Canada; Research Center on Public Health ( P Ferrara MD), University of Milan Bicocca, Monza, Italy; Institute of Public Health ( F Fischer PhD), Charité Medical University Berlin ( Charité Universitätsmedizin Berlin), Berlin, Germany; Faculty of Pharmacy ( D A Fonseca PhD), Centre for Innovative Biomedicine and Biotechnology ( CIBB) ( D A Fonseca PhD), University of Coimbra, Coimbra, Portugal; Department of Community Dentistry ( P Gaewkhiew PhD), Mahidol University, Ratchathewi, Thailand; Nutrition Innovation Centre for Food and Health ( NICHE) ( S Gaihre PhD), Ulster University, Coleraine, UK; Department of Environmental Health Sciences ( S Gallus DSc), Mario Negri Institute for Pharmacological Research, Milan, Italy; National Health Service, London, UK ( M Gaspar Fonseca PhD); Warwick Medical School ( Prof P S Gill DM), University of Warwick, Coventry, UK; Center for Safe and Improved Food ( V Gupta PhD), Biorefining and Advanced Materials Research Center ( V Gupta PhD), Scotland's Rural College, Edinburgh, UK; School of Public Health ( M K Gurara MPH), Arba Minch University, Arba Minch, Ethiopia; Faculty of Social Sciences ( M K Gurara MPH), Department of Cardiovascular Sciences ( J Van den Eynde BSc), Katholieke Universiteit Leuven, Leuven, Belgium; Research Unit ( J M Haro MD), University of Barcelona, Barcelona, Spain; Biomedical Research Networking Center for Mental Health Network ( CiberSAM), Barcelona, Spain ( J M Haro MD); Department of Primary Care and Mental Health ( M Hasan MSc), Department of Surgery ( Prof R Lunevicius DSc), Institute of Population Health Sciences ( M R Mathur PhD), Department of International Public Health ( V E Nwatah MD), University of Liverpool, Liverpool, UK; Skaane University Hospital ( R J Havmoeller PhD), Skaane County Council, Malmoe, Sweden; Center for Environmental and Respiratory Health Research ( B Heibati PhD), Surgery Research Unit ( J H Kauppila MD), University of Oulu, Oulu, Finland; School of Business ( Prof C Herteliu PhD), London South Bank University, London, UK; Czech National Centre for Evidence-Based Healthcare and Knowledge Translation ( S Hussain PhD, M Klugar PhD, J Klugarová PhD, A Riad DDS), Department of Public Health ( A Riad DDS), Masaryk University, Brno, Czech Republic; Department of General Surgery and Surgical-Medical Specialties ( Prof G Isola PhD), Department of Medical and Surgical Sciences and Advanced Technologies ( Prof M Veroux PhD), University of Catania, Catania, Italy; Institute of Molecular and Clinical Ophthalmology Basel, Switzerland, Basel, Switzerland ( Prof J B Jonas MD); Department of Ophthalmology ( Prof J B Jonas MD), Heidelberg University, Mannheim, Germany; Department of Family Medicine and Public Health ( J J Jozwiak PhD), University of Opole, Opole, Poland; Institute of Family Medicine and Public Health ( M Jürisson PhD), University of Tartu, Tartu, Estonia; School of Public Health ( Z Kabir PhD), University College Cork, Cork, Ireland; International Research Center of Excellence ( G A Kayode PhD), Institute of Human Virology Nigeria, Abuja, Nigeria; Julius Centre for Health Sciences and Primary Care ( G A Kayode PhD), Utrecht University, Utrecht, Netherlands; Family Medicine Department ( M A Khan MSc), United Arab Emirates University, Al Ain, United Arab Emirates; Primary Care Department ( M A Khan MSc), NHS North West London, London, UK; Faculty of Health and Wellbeing ( K Khatab PhD), Sheffield Hallam University, Sheffield, UK; College of Arts and Sciences ( K Khatab PhD), Ohio University, Zanesville, OH, USA; Department of Epidemiology and Public Health ( Prof M Kivimäki PhD), Medical Research Council Clinical Trials Unit ( N M Noor MRCP), Institute of Cardiovascular Science ( A S Oguntade MSc), Department of Infection ( Prof A Zumla PhD), University College London, London, UK; Department of Public Health ( Prof M Kivimäki PhD, Prof T Lallukka PhD), University of Helsinki, Helsinki, Finland; Institute for Health Information and Statistics of the Czech Republic, Prague, Czech Republic ( M Klugar PhD); Faculty of Health and Medical Sciences ( J Klugarová PhD), University of Adelaide, Adelaide, SA, Australia; Health System and Population Studies Divisions ( K N Koly MSc), International Centre for Diarrhoeal Disease Research, Bangladesh, Dhaka, Bangladesh; Biomedical Research Networking Center for Mental Health Network ( CIBERSAM) ( A Koyanagi MD), San Juan de Dios Sanitary Park, Sant Boi de Llobregat, Spain; Catalan Institution for Research and Advanced Studies ( ICREA), Barcelona, Spain ( A Koyanagi MD); Faculty of Health and Life Sciences ( O P Kurmi PhD), Coventry University, Coventry, UK; Department of Medicine ( O P Kurmi PhD), McMaster University, Hamilton, ON, Canada; Faculty of Public Health ( D Kusuma DSc), University of Indonesia, Depok, Indonesia; National Institute for Health Research ( NIHR) Oxford Biomedical Research Centre, Oxford, UK ( B Lacey PhD); Department of Health Sciences ( D Lamnisos PhD), European University Cyprus, Nicosia, Cyprus; Department of Psychiatry and Psychotherapy ( B Langguth PhD), Psychiatry and Psychotherapy ( W Schlee PhD), University of Regensburg, Regensburg, Germany; Department of Medical Sciences ( Prof A O Larsson PhD), Uppsala University, Uppsala, Sweden; Department of Clinical Chemistry and Pharmacology ( Prof A O Larsson PhD), Uppsala University Hospital, Uppsala, Sweden; International Society Doctors for the Environment, Arezzo, Italy ( P Lauriola MD); UO Neurologia, Salute Pubblica e Disabilità ( M Leonardi MD, F G Magnani PhD, A Raggi PhD), Fondazione IRCCS Istituto Neurologico Carlo Besta ( Neurology, Public Health and Disability Unit, Carlo Besta Neurological Institute), Milan, Italy; Center for Dentistry and Oral Hygiene ( A Li PhD), University Medical Center Groningen ( Prof M J Postma PhD), School of Economics and Business ( Prof M J Postma PhD), Interdisciplinary Centre Psychopathology and Emotion regulation ( ICPE) ( N T Sharew MSc), University of Groningen, Groningen, Netherlands; Stomatological Hospital ( A Li PhD), Southern Medical University, Guangzhou, China; UCD Centre for Disability Studies ( C Linehan PhD), University College Dublin, Dublin, Ireland; Department of Physical Medicine and Nursing ( R López-Bueno PhD), University of Zaragoza, Zaragoza, Spain; Department of Musculoskeletal Disorders ( R López-Bueno PhD), National Research Centre for the Working Environment, Copenhagen, Denmark; Institute of Nutritional Sciences ( Prof S Lorkowski PhD), Friedrich Schiller University Jena, Jena, Germany; Competence Cluster for Nutrition and Cardiovascular Health ( nutriCARD), Jena, Germany ( Prof S Lorkowski PhD); School of Health ( J Loureiro PhD), Polytechnic Institute of Porto, Portugal; Department of General Surgery ( Prof R Lunevicius DSc), Liverpool University Hospitals NHS Foundation Trust, Liverpool, UK; Department of Obstetrics and Gynaecology ( Prof L A Magee MD), University of British Columbia, Vancouver, BC, Canada; Cyprus International Institute for Environmental and Public Health ( K C Makris PhD), Cyprus University of Technology, Limassol, Cyprus; North West Lung Centre ( A G Mathioudakis MD), Manchester University NHS Foundation Trust, Manchester, UK; Health Policy Research ( M R Mathur PhD), Public Health Foundation of India, Gurugram, India; Queensland Brain Institute ( Prof J J McGrath MD), The University of Queensland, Brisbane, QLD, Australia; National Centre for Register-based Research ( Prof J J McGrath MD), Aarhus University, Aarhus, Denmark; Forensic Medicine Division ( Prof R G Menezes MD), Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia; University Research Institute ( A A Mentis MD), Department of Neurology ( Prof N Scarmeas PhD), National and Kapodistrian University of Athens, Athens, Greece; Neurology Unit ( A Meretoja MD), Helsinki University Hospital, Helsinki, Finland; School of Health Sciences ( A Meretoja MD), University of Melbourne, Melbourne, VIC, Australia; Clinical Microbiology and Parasitology Unit ( T Mestrovic PhD), Dr. Zora Profozic Polyclinic, Zagreb, Croatia; University Centre Varazdin ( T Mestrovic PhD), University North, Varazdin, Croatia; School of Public Health and Community Medicine ( J Miao Jonasson PhD), University of Gothenburg, Gothenburg, Sweden; Department of Propedeutics of Internal Diseases & Arterial Hypertension ( Prof T Miazgowski MD), Pomeranian Medical University, Szczecin, Poland; Department of Neurosciences ( M Moccia PhD), Federico II University, Naples, Italy; Health Systems and Policy Research Unit ( S Mohammed PhD), Ahmadu Bello University, Zaria, Nigeria; Department of Health Care Management ( S Mohammed PhD), Technical University of Berlin, Berlin, Germany; Department of Biomedical and Dental Sciences and Morphofunctional Imaging ( Prof S Mondello MD), Messina University, Messina, Italy; Competence Center of Mortality-Follow-Up of the German National Cohort ( R Westerman DSc), Federal Institute for Population Research, Wiesbaden, Germany ( Prof U O Mueller MD); Center for Population and Health, Wiesbaden, Germany ( Prof U O Mueller MD); Department of Surgery ( F Mulita MD), General University Hospital of Patras, Patras, Greece; Department of General Surgery ( I Negoi PhD), Emergency Hospital of Bucharest, Bucharest, Romania; Cardio-Aid, Bucharest, Romania ( R I Negoi PhD); Department of Medicine ( E Nena MD, P Steiropoulos MD), Democritus University of Thrace, Alexandroupolis, Greece; Department of Gastroenterology ( N M Noor MRCP), Cambridge University Hospitals, Cambridge, UK; Department of Neurobiology, Care Sciences and Society ( C Nowak PhD), Karolinska Institute, Huddinge, Sweden; Department of Pediatrics ( V E Nwatah MD), National Hospital, Abuja, Nigeria; Administrative and Economic Sciences Department ( Prof B Oancea PhD), University of Bucharest, Bucharest, Romania; Department of Medicine ( A S Oguntade MSc), University College Hospital, Ibadan, Ibadan, Nigeria; Department of Medicine ( Prof A Ortiz MD), Autonomous University of Madrid, Madrid, Spain; Department of Nephrology and Hypertension ( Prof A Ortiz MD), The Institute for Health Research Foundation Jiménez Díaz University Hospital, Madrid, Spain; National School of Public Health ( A Padron-Monedero PhD), Institute of Health Carlos III, Madrid, Spain; Department of Public Health ( R Palladino MD), University of Naples Federico II, Naples, Italy; Department of Health Metrics ( A Pana MD), Center for Health Outcomes & Evaluation, Bucharest, Romania; Nutrition - Dietetics ( Prof D Panagiotakos PhD), Athens, Greece; Board of Directors ( Prof D Panagiotakos PhD), National Public Health Organization, Athens, Greece; Privatpraxis, Heidelberg, Germany ( S Panda-Jonas MD); Vision and Eye Research Institute ( Prof S Pardhan PhD), Anglia Ruskin University, Cambridge, UK; Global Health Governance Programme ( J Patel), Usher Institute ( Prof C R Simpson PhD), University of Edinburgh, Edinburgh, UK; School of Dentistry ( J Patel), University of Leeds, Leeds, UK; Clinical Research Department ( P Pedersini MSc), IRCCS Fondazione Don Carlo Gnocchi, Milan, Italy; Department of Public Health ( Prof J L Peñalvo PhD), Institute of Tropical Medicine, Antwerp, Belgium; Friedman School of Nutrition Science and Policy ( Prof J L Peñalvo PhD), Tufts University, Boston, MA, USA; Department of Biomedical and Neuromotor sciences ( U Pensato MD), Department of Medical and Surgical Sciences ( Prof F S Violante MD), University of Bologna, Bologna, Italy; Mario Negri Institute for Pharmacological Research, Bergamo, Italy ( N Perico MD, Prof G Remuzzi MD); Biomedical Engineering Department ( Prof M Rabiee PhD), Amirkabir University of Technology, Tehran, Iran; Department of Physics ( N Rabiee PhD), Sharif University of Technology, Tehran, Iran; Department of Natural Science ( S Rahimzadeh MSc), Middlesex University, London, UK; NIHR-Biomedical Research Centre ( NIHR-BRC) ( Prof A Zumla PhD), University College London Hospitals, London, UK ( D L Rawaf MD); Academic Public Health England ( Prof S Rawaf MD), Public Health England, London, UK; Grenoble Computer Science Laboratory ( LIG) ( F Rehman PhD), University of Grenoble Alpes, Grenoble, France; Institute of Center and Research Studies ( F Rehman PhD), Umm Al-Qura University, Makkah, Saudi Arabia; Department of Neurology ( Prof S Sacco MD), University of L'Aquila, L'Aquila, Italy; Department of Polymer Technology ( Prof M R Saeb PhD), Independent Consultant, Gdansk, Poland; Department of Neurology ( M Safdarian MD), Christian-Doppler University Hospital, Salzburg, Austria; Spinal Cord Injury and Tissue Regeneration Center Salzburg ( SCI-TReCS) ( M Safdarian MD), Paracelsus Medical University, Salzburg, Austria; Faculty of Health & Social Sciences ( B Sathian PhD), Bournemouth University, Bournemouth, UK; IRCCS Istituti Clinici Scientifici Maugeri ( IRCCS Maugeri Scientific Clinical Institute), Milan, Italy ( D Sattin PsyD); Department of Neurology ( Prof N Scarmeas PhD), Columbia University, New York, NY, USA; Oral Diagnosis, Digital Health and Health Services Research ( Prof F Schwendicke PhD), Charité University Medical Center Berlin, Berlin, Germany; Faculty of Caring Science, Work Life, and Social Welfare ( M Shamsizadeh MSc), University of Borås, Borås, Sweden; Department of Nursing ( N T Sharew MSc), Debre Berhan University, Debre Berhan, Ethiopia; Finnish Institute of Occupational Health, Helsinki, Finland ( R Shiri PhD); Clinical Immunology and Hematology ( V Shivarov PhD), Sofiamed University Hospital, Sofia, Bulgaria; Department of Genetics ( V Shivarov PhD), Sofia University “ St. Kliment Ohridiski ”, Sofia, Bulgaria; School of Health ( Prof C R Simpson PhD), Victoria University of Wellington, Wellington, New Zealand; Department of Sports Science and Clinical Biomechanics ( Prof S T Skou PhD), University of Southern Denmark, Odense, Denmark; Department of Physiotherapy and Occupational Therapy ( Prof S T Skou PhD), Næstved-Slagelse-Ringsted Hospitals, Slagelse, Denmark; Department of Surgery ( B Socea PhD), Sf Pantelimon Emergency Clinical Hospital Bucharest, Bucharest, Romania; Hull York Medical School ( I N Soyiri PhD), University of Hull, Hull City, UK; Schiller Institute ( Prof K Straif PhD), Boston College, Boston, MA, USA; Barcelona Institute for Global Health, Barcelona, Spain ( Prof K Straif PhD); Department of Medicine ( Prof R Tabarés-Seisdedos PhD), University of Valencia, Valencia, Spain; Carlos III Health Institute ( Prof R Tabarés-Seisdedos PhD), Biomedical Research Networking Center for Mental Health Network ( CiberSAM), Madrid, Spain; Clinical Epidemiology ( A Thiyagarajan MPH), Leibniz Institute for Prevention Research and Epidemiology, Bremen, Germany; Department of Pathology and Legal Medicine ( M R Tovani-Palone PhD), University of São Paulo, Ribeirão Preto, Brazil; Modestum LTD, London, UK ( M R Tovani-Palone PhD); Rigshospitalet ( T C Truelsen PhD), University of Copenhagen, Copenhagen, Denmark; Department of Cardiovascular, Endocrine-metabolic Diseases and Aging ( B Unim PhD), National Institute of Health, Rome, Italy; UKK Institute, Tampere, Finland ( Prof T J Vasankari MD); Faculty of Medicine and Health Technology ( Prof T J Vasankari MD), Tampere University, Tampere, Finland; Sport Science Department ( S Villafaina MSc), University of Extremadura, Cáceres, Spain; Center for Analysis and Development of Health ( M Vinko MD), National Institute of Public Health of Slovenia, Ljubljana, Slovenia; Occupational Health Unit ( Prof F S Violante MD), Sant'Orsola Malpighi Hospital, Bologna, Italy; Center for Experimental Microsurgery ( V Volovici PhD), Iuliu Hațieganu University of Medicine and Pharmacy, Cluj-Napoca, Romania; Epidemiology and Cancer Registry Sector ( Prof V Zadnik PhD), Institute of Oncology Ljubljana, Ljubljana, Slovenia.
To download the data used in these analyses, please visit the Global Health Data Exchange at http: //ghdx.healthdata.org/gbd-results-tool.
We declare no competing interests.
This study was funded by the Bill & Melinda Gates Foundation.
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30-year NCD burden data for EU adolescents merit close attentionIn The Lancet Child & Adolescent Health, a new study by Benedetta Armocida and colleagues offers a timely analysis to improve our understanding of the impact of non-communicable diseases ( NCDs) among adolescents aged 10–24 years in the EU.1 Through its use of the Global Burden of Diseases, Injuries, and Risk Factors Study ( GBD) 2019,2 the study is based on well founded estimates of NCD-related morbidity and mortality created by complex modelling. However, the paucity of data—particularly for certain age groups ( eg, 10–14 years) —and a lack of disaggregation3 are known limitations to such an approach. Full-Text PDF | tech |
Mining whole-lung information by artificial intelligence for predicting EGFR genotype and targeted therapy response in lung cancer: a multicohort study - The Lancet Digital Health | BackgroundEpidermal growth factor receptor ( EGFR) genotype is crucial for treatment decision making in lung cancer, but it can be affected by tumour heterogeneity and invasive biopsy during gene sequencing. Importantly, not all patients with an EGFR mutation have good prognosis with EGFR-tyrosine kinase inhibitors ( TKIs), indicating the necessity of stratifying for EGFR-mutant genotype. In this study, we proposed a fully automated artificial intelligence system ( FAIS) that mines whole-lung information from CT images to predict EGFR genotype and prognosis with EGFR-TKI treatment.MethodsWe included 18 232 patients with lung cancer with CT imaging and EGFR gene sequencing from nine cohorts in China and the USA, including a prospective cohort in an Asian population ( n=891) and The Cancer Imaging Archive cohort in a White population. These cohorts were divided into thick CT group and thin CT group. The FAIS was built for predicting EGFR genotype and progression-free survival of patients receiving EGFR-TKIs, and it was evaluated by area under the curve ( AUC) and Kaplan-Meier analysis. We further built two tumour-based deep learning models as comparison with the FAIS, and we explored the value of combining FAIS and clinical factors ( the FAIS-C model). Additionally, we included 891 patients with 56-panel next-generation sequencing and 87 patients with RNA sequencing data to explore the biological mechanisms of FAIS.FindingsFAIS achieved AUCs ranging from 0·748 to 0·813 in the six retrospective and prospective testing cohorts, outperforming the commonly used tumour-based deep learning model. Genotype predicted by the FAIS-C model was significantly associated with prognosis to EGFR-TKIs treatment ( log-rank p < 0·05), an important complement to gene sequencing. Moreover, we found 29 prognostic deep learning features in FAIS that were able to identify patients with an EGFR mutation at high risk of TKI resistance. These features showed strong associations with multiple genotypes ( p < 0·05, t test or Wilcoxon test) and gene pathways linked to drug resistance and cancer progression mechanisms.InterpretationFAIS provides a non-invasive method to detect EGFR genotype and identify patients with an EGFR mutation at high risk of TKI resistance. The superior performance of FAIS over tumour-based deep learning methods suggests that genotype and prognostic information could be obtained from the whole lung instead of only tumour tissues.FundingNational Natural Science Foundation of China.
Epidermal growth factor receptor ( EGFR) genotype is crucial for treatment decision making in lung cancer, but it can be affected by tumour heterogeneity and invasive biopsy during gene sequencing. Importantly, not all patients with an EGFR mutation have good prognosis with EGFR-tyrosine kinase inhibitors ( TKIs), indicating the necessity of stratifying for EGFR-mutant genotype. In this study, we proposed a fully automated artificial intelligence system ( FAIS) that mines whole-lung information from CT images to predict EGFR genotype and prognosis with EGFR-TKI treatment.
We included 18 232 patients with lung cancer with CT imaging and EGFR gene sequencing from nine cohorts in China and the USA, including a prospective cohort in an Asian population ( n=891) and The Cancer Imaging Archive cohort in a White population. These cohorts were divided into thick CT group and thin CT group. The FAIS was built for predicting EGFR genotype and progression-free survival of patients receiving EGFR-TKIs, and it was evaluated by area under the curve ( AUC) and Kaplan-Meier analysis. We further built two tumour-based deep learning models as comparison with the FAIS, and we explored the value of combining FAIS and clinical factors ( the FAIS-C model). Additionally, we included 891 patients with 56-panel next-generation sequencing and 87 patients with RNA sequencing data to explore the biological mechanisms of FAIS.
FAIS achieved AUCs ranging from 0·748 to 0·813 in the six retrospective and prospective testing cohorts, outperforming the commonly used tumour-based deep learning model. Genotype predicted by the FAIS-C model was significantly associated with prognosis to EGFR-TKIs treatment ( log-rank p < 0·05), an important complement to gene sequencing. Moreover, we found 29 prognostic deep learning features in FAIS that were able to identify patients with an EGFR mutation at high risk of TKI resistance. These features showed strong associations with multiple genotypes ( p < 0·05, t test or Wilcoxon test) and gene pathways linked to drug resistance and cancer progression mechanisms.
FAIS provides a non-invasive method to detect EGFR genotype and identify patients with an EGFR mutation at high risk of TKI resistance. The superior performance of FAIS over tumour-based deep learning methods suggests that genotype and prognostic information could be obtained from the whole lung instead of only tumour tissues.
National Natural Science Foundation of China.
Targeted therapy to epidermal growth factor receptor ( EGFR) has revolutionised the treatment of lung cancer.1Akamatsu H Toi Y Hayashi H et al.Efficacy of osimertinib plus bevacizumab vs osimertinib in patients with EGFR T790M-mutated non-small cell lung cancer previously treated with epidermal growth factor receptor-tyrosine kinase inhibitor: West Japan Oncology Group 8715L phase 2 randomized clinical trial.JAMA Oncol. 2021; 7: 386-394Google Scholar, 2Soria J-C Ohe Y Vansteenkiste J et al.Osimertinib in untreated EGFR-mutated advanced non-small-cell lung cancer.N Engl J Med. 2018; 378: 113-125Google Scholar Presently, the administration of EGFR-targeted therapy is determined by EGFR genotype, assessed through the gene sequencing of biopsied tumour tissues, which faces the difficulties of locating suitable tumour tissues because of the high genetic heterogeneity of lung cancer,3Bi WL Hosny A Schabath MB et al.Artificial intelligence in cancer imaging: clinical challenges and applications.CA Cancer J Clin. 2019; 69: 127-157Google Scholar, 4Lambin P Leijenaar RTH Deist TM et al.Radiomics: the bridge between medical imaging and personalized medicine.Nat Rev Clin Oncol. 2017; 14: 749-762Google Scholar the changeable mutation status over time,5Bai H Wang Z Chen K et al.Influence of chemotherapy on EGFR mutation status among patients with non-small-cell lung cancer.J Clin Oncol. 2012; 30: 3077-3083Google Scholar, 6Mu W Jiang L Zhang J et al.Non-invasive decision support for NSCLC treatment using PET/CT radiomics.Nat Commun. 2020; 115228Google Scholar and poor DNA quality.7Rios Velazquez E Parmar C Liu Y et al.Somatic mutations drive distinct imaging phenotypes in lung cancer.Cancer Res. 2017; 77: 3922-3930Google Scholar, 8Girard N Sima CS Jackman DM et al.Nomogram to predict the presence of EGFR activating mutation in lung adenocarcinoma.Eur Respir J. 2012; 39: 366-372Google Scholar Most importantly, many patients with an EGFR mutation develop disease progression within 9–15 months after receiving EGFR-tyrosine kinase inhibitors ( TKIs).9Recondo G Facchinetti F Olaussen KA Besse B Friboulet L Making the first move in EGFR-driven or ALK-driven NSCLC: first-generation or next-generation TKI?.Nat Rev Clin Oncol. 2018; 15: 694-708Google Scholar This suggests the need for stratifying EGFR-mutant genotypes according to their prognosis to targeted therapy, which can not be assessed through gene sequencing. Consequently, a non-invasive method that can detect EGFR genotype and stratify patients with an EGFR mutation according to their therapeutic response to EGFR-TKIs is needed to assist decision making in targeted therapy, which is a great supplement to gene sequencing.
Artificial intelligence combined with CT imaging has shown promising results for non-invasively analysing lung cancer,3Bi WL Hosny A Schabath MB et al.Artificial intelligence in cancer imaging: clinical challenges and applications.CA Cancer J Clin. 2019; 69: 127-157Google Scholar, 10Sun R Limkin EJ Vakalopoulou M et al.A radiomics approach to assess tumour-infiltrating CD8 cells and response to anti-PD-1 or anti-PD-L1 immunotherapy: an imaging biomarker, retrospective multicohort study.Lancet Oncol. 2018; 19: 1180-1191Google Scholar, 11Ardila D Kiraly AP Bharadwaj S et al.End-to-end lung cancer screening with three-dimensional deep learning on low-dose chest computed tomography.Nat Med. 2019; 25: 954-961Google Scholar providing an alternative to analysing the whole tumour and its microenvironment with no additional cost.
Previous studies adopted tumour-based methods to extract tumour features in CT imaging for predicting EGFR mutation status, using either the quantitative radiomic method or a deep learning model. Radiomic methods first extract hand-crafted image features of the tumour and then select some important features to train a machine learning model to predict EGFR genotype.7Rios Velazquez E Parmar C Liu Y et al.Somatic mutations drive distinct imaging phenotypes in lung cancer.Cancer Res. 2017; 77: 3922-3930Google Scholar, 12Rossi G Barabino E Fedeli A et al.Radiomic detection of EGFR mutations in NSCLC.Cancer Res. 2021; 81: 724-731Google Scholar Deep learning methods integrate feature extraction and model building processes into a unified convolutional neural network13Wang S Shi J Ye Z et al.Predicting EGFR mutation status in lung adenocarcinoma on computed tomography image using deep learning.Eur Respir J. 2019; 531800986Google Scholar, 14Mu W Jiang L Zhang J et al.Non-invasive decision support for NSCLC treatment using PET/CT radiomics.Nat Commun. 2020; 115228Google Scholar and can learn more effective features from tumour image automatically by changing the convolutional neural network architecture.15Dong Y Hou L Yang W et al.Multi-channel multi-task deep learning for predicting EGFR and KRAS mutations of non-small cell lung cancer on CT images.Quant Imaging Med Surg. 2021; 11: 2354-2375Google Scholar Most existing methods have only focused on analysing tumour tissues in CT imaging; however, many tissues and the environment outside the tumour can also reflect genotype information and might affect therapeutic efficacy. For instance, previous studies have shown that the characteristics of lungs ( eg, pleural retraction and convergence of surrounding vessels) are associated with EGFR genotype.16Hasegawa M Sakai F Ishikawa R Kimura F Ishida H Kobayashi K CT features of epidermal growth factor receptor–mutated adenocarcinoma of the lung: comparison with nonmutated adenocarcinoma.J Thorac Oncol. 2016; 11: 819-826Google Scholar, 17Liu Y Kim J Qu F et al.CT features associated with epidermal growth factor receptor mutation status in patients with lung adenocarcinoma.Radiology. 2016; 280: 271-280Google Scholar, 18Rizzo S Petrella F Buscarino V et al.CT radiogenomic characterization of EGFR, K-RAS, and ALK mutations in non-small cell lung cancer.Eur Radiol. 2016; 26: 32-42Google Scholar, 19Liu Y Kim J Balagurunathan Y et al.Radiomic features are associated with EGFR mutation status in lung adenocarcinomas.Clin Lung Cancer. 2016; 17 ( 48.e6): 441Google Scholar Additionally, lung functional changes or abnormalities might also affect treatment efficacy, which are ignored in tumour-based methods. Most importantly, previous studies only predicted EGFR mutation status, but they had weak ability to stratify EGFR-mutant genotype according to their prognosis for targeted therapy. Moreover, previous tumour-based methods relied on time-consuming image annotation and were validated in small retrospective datasets ( fewer than 1000 patients); a fully automated method that is validated in large, prospective datasets including different ethnicities is more desired for clinical practice. Lastly, the associations between high-dimensional CT features and genetic-level mechanisms remain unclear to clinicians.
Research in contextEvidence before this studyWe searched PubMed on Aug 9, 2021, for research articles that contained the terms “ EGFR mutation ” AND “ whole-lung analysis ” AND ( “ artificial intelligence ” OR “ deep learning ”) AND “ lung cancer ”, without date or language restrictions. We found no studies using a whole-lung analysis method to predict epidermal growth factor receptor ( EGFR) genotype in lung cancer. We further searched the terms “ EGFR mutation ” AND ( “ artificial intelligence ” OR “ deep learning ”) AND “ lung cancer ” AND “ CT ”. We found 14 studies that used deep learning and CT imaging to predict EGFR mutation status in patients with lung cancer. The largest dataset obtained so far included 914 patients in a retrospective cohort from an Asian population, without a large-scale, prospective, and global dataset for a thorough validation. Moreover, the published studies used tumour-based methods, which require manual tumour annotation in CT images, making the methods inconvenient to use in clinical practice. Some global lung characteristics have been reported to be associated with EGFR genotype and can affect treatment response; however, this information is ignored in tumour-based analyses. Additionally, these studies predicted EGFR mutation status alone, and did not identify patients with an EGFR mutation who are at high risk of having resistance to tyrosine kinase inhibitors ( TKIs). The biological mechanisms behind the prognostic value of CT features also needs further exploration and explanation.Added value of this studyWe proposed a novel fully automated artificial intelligence system ( FAIS) to mine whole-lung information for genotype analysis, which outperformed commonly used tumour-based deep learning methods. This system was trained and validated in large-scale datasets, which are nearly 20-times larger than previous studies. Moreover, FAIS learned to identify patients with an EGFR mutation who are at high risk of having TKI resistance, which is a good supplement to gene sequencing. Furthermore, we assessed global lung features using gene pathway analysis in RNA-sequencing data, and we observed associations between the CT imaging phenotype mined in the whole lung and drug resistance or cancer progression mechanisms.Implications of all the available evidenceFAIS provides a very convenient method to non-invasively detect EGFR genotype and identify patients with an EGFR mutation who are at high risk of having TKI resistance. The superior performance of the whole-lung analysis over the commonly used tumour-based methods suggests that genotype and prognostic information correlates with macro-level changes in the whole lung instead of only in tumour tissues. Further gene pathway analysis identified several biological mechanisms involved in the association between global lung characteristics and genetic activities.
We searched PubMed on Aug 9, 2021, for research articles that contained the terms “ EGFR mutation ” AND “ whole-lung analysis ” AND ( “ artificial intelligence ” OR “ deep learning ”) AND “ lung cancer ”, without date or language restrictions. We found no studies using a whole-lung analysis method to predict epidermal growth factor receptor ( EGFR) genotype in lung cancer. We further searched the terms “ EGFR mutation ” AND ( “ artificial intelligence ” OR “ deep learning ”) AND “ lung cancer ” AND “ CT ”. We found 14 studies that used deep learning and CT imaging to predict EGFR mutation status in patients with lung cancer. The largest dataset obtained so far included 914 patients in a retrospective cohort from an Asian population, without a large-scale, prospective, and global dataset for a thorough validation. Moreover, the published studies used tumour-based methods, which require manual tumour annotation in CT images, making the methods inconvenient to use in clinical practice. Some global lung characteristics have been reported to be associated with EGFR genotype and can affect treatment response; however, this information is ignored in tumour-based analyses. Additionally, these studies predicted EGFR mutation status alone, and did not identify patients with an EGFR mutation who are at high risk of having resistance to tyrosine kinase inhibitors ( TKIs). The biological mechanisms behind the prognostic value of CT features also needs further exploration and explanation.
We proposed a novel fully automated artificial intelligence system ( FAIS) to mine whole-lung information for genotype analysis, which outperformed commonly used tumour-based deep learning methods. This system was trained and validated in large-scale datasets, which are nearly 20-times larger than previous studies. Moreover, FAIS learned to identify patients with an EGFR mutation who are at high risk of having TKI resistance, which is a good supplement to gene sequencing. Furthermore, we assessed global lung features using gene pathway analysis in RNA-sequencing data, and we observed associations between the CT imaging phenotype mined in the whole lung and drug resistance or cancer progression mechanisms.
FAIS provides a very convenient method to non-invasively detect EGFR genotype and identify patients with an EGFR mutation who are at high risk of having TKI resistance. The superior performance of the whole-lung analysis over the commonly used tumour-based methods suggests that genotype and prognostic information correlates with macro-level changes in the whole lung instead of only in tumour tissues. Further gene pathway analysis identified several biological mechanisms involved in the association between global lung characteristics and genetic activities.
In this study, we propose that genotype and prognostic information can be mined from the whole lung and thus, we aimed to build a novel, fully automated artificial intelligence system ( FAIS) that mines whole-lung information to predict EGFR genotype and progression-free survival ( PFS) of patients after receiving EGFR-TKIs, focused on providing a non-invasive and convenient method that is validated in a large cohort to assist targeted therapy planning. We also aimed to explore biological mechanisms of artificial intelligence methods in inferencing genetic activities.
The overall study design is captured in figure 1. With approval of the ethics committee of the hospitals, we included 18 232 patients with lung cancer from nine cohorts ( table 1), including seven retrospective cohorts collected from eight provinces in China, the public The Cancer Imaging Archive ( TCIA) cohort comprising a White population in the USA, and a prospective cohort from China. EGFR gene sequencing results and CT images at diagnosis time ( 20 319 CT sequences) were obtained for all patients. Each cohort was collected from a different centre. The primary cohort A, prospective testing cohort, testing cohort A, and TCIA cohort included only thick CT images. The primary cohort B, validation cohort B, and testing cohorts B to D included only thin CT images. Detailed inclusion criteria and data sources are presented in the appendix ( p 2).Figure 1Workflow of the proposed FAIS and study designShow full caption ( A) Inference process of FAIS in predicting EGFR genotype and PFS in patients after receiving EGFR-TKIs. ( B) Mining associations between genetic activities and whole-lung features extracted by FAIS. ( C) Cohorts used in this study. 2087 patients were included in both the primary cohort A and primary cohort B since they had both thick CT and thin CT. PFS cohort is a subset of primary cohort A. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system. PFS=progression-free survival. TKIs=tyrosine kinase inhibitors.View Large Image Figure ViewerDownload Hi-res image Download ( PPT) Table 1Characteristics of patients in the ten cohortsPrimary A ( n=7055) Testing A ( n=909) Prospective testing ( n=891) TCIA ( n=154) Primary B ( n=4782) Validation B ( n=107) Testing B ( n=4557) Testing C ( n=1113) Testing D ( n=751) PFS cohort ( n=600) CT thicknessThick CTThick CTThick CTThick CTThin CTThin CTThin CTThin CTThin CTThick CTData sourceSichuanLiaoningSichuanUSASichuan, GuangdongAnhuiShanghaiBeijing, ShandongYunnanSichuanAge, years59·00 ( 51·00–66·00) 63·00 ( 55·00–69·00) 59·00 ( 51·50–67·00) 68·00 ( 64·00–74·75) 60·00 ( 52·00–67·00) 62·00 ( 54·50–66·00) 63·00 ( 55·00–68·00) 61·00 ( 53·00–67·00) 56·00 ( 49·00–63·00) 59·00 ( 50·00–67·00) SexFemale3250 ( 46·1%) 560 ( 61·6%) 428 ( 48·0%) 52 ( 33·8%) 2231 ( 46·7%) 49 ( 45·8%) 2319 ( 50·9%) 595 ( 53·5%) 375 ( 49·9%) 349 ( 58·2%) Male3805 ( 53·9%) 349 ( 38·4%) 463 ( 52·0%) 102 ( 66·2%) 2551 ( 53·3%) 58 ( 54·2%) 2238 ( 49·1%) 518 ( 46·5%) 376 ( 50·1%) 251 ( 41·8%) StageI–III3988 ( 56·5%) 570 ( 62·7%) 579 ( 65·0%) 104 ( 67·5%) 3725 ( 77·9%) 70 ( 65·4%) 4315 ( 94·7%) 772 ( 69·4%) 453 ( 60·3%) 57 ( 9·5%) IV3027 ( 42·9%) 313 ( 34·4%) 312 ( 35·0%) 4 ( 2·6%) 1000 ( 20·9%) 36 ( 33·6%) 1 ( < 0·1%) 237 ( 21·3%) 293 ( 39·0%) 540 ( 90·0%) NA40 ( 0·6%) 26 ( 2·9%) 046 ( 29·9%) 57 ( 1·2%) 1 ( 0·9%) 241 ( 5·3%) 104 ( 9·3%) 5 ( 0·7%) 3 ( 0·5%) Smoking statusFormer2758 ( 39·1%) 155 ( 17·1%) 203 ( 22·8%) 115 ( 74·7%) 1525 ( 31·9%) 25 ( 23·4%) 798 ( 17·5%) 331 ( 29·7%) 279 ( 37·2%) 150 ( 25·0%) Never3834 ( 54·3%) 738 ( 81·2%) 688 ( 77·2%) 39 ( 25·3%) 3004 ( 62·8%) 81 ( 75·7%) 3591 ( 78·8%) 687 ( 61·7%) 472 ( 62·8%) 407 ( 67·8%) NA463 ( 6·6%) 16 ( 1·8%) 00253 ( 5·3%) 1 ( 0·9%) 168 ( 3·7%) 95 ( 8·5%) 043 ( 7·2%) HistologyAdenocarcinoma5979 ( 84·7%) 885 ( 97·4%) 756 ( 84·8%) 135 ( 87·7%) 3632 ( 76·0%) 80 ( 74·8%) 3709 ( 81·4%) 1038 ( 93·3%) 671 ( 89·3%) 574 ( 95·7%) SCC723 ( 10·2%) 9 ( 1·0%) 97 ( 10·9%) 16 ( 10·4%) 293 ( 6·1%) 12 ( 11·2%) 558 ( 12·2%) 51 ( 4·6%) 50 ( 6·7%) 16 ( 2·7%) Others353 ( 5·0%) 15 ( 1·7%) 38 ( 4·3%) 3 ( 1·9%) 857 ( 17·9%) 15 ( 14·0%) 290 ( 6·4%) 24 ( 2·2%) 30 ( 4·0%) 10 ( 1·7%) Tumour locationLeft2920 ( 41·4%) 350 ( 38·5%) 377 ( 42·3%) NA1952 ( 40·8%) 38 ( 35·5%) 1868 ( 41·0%) 496 ( 44·6%) 296 ( 39·4%) 246 ( 41·0%) Right4088 ( 57·9%) 541 ( 59·5%) 511 ( 57·4%) NA2812 ( 58·8%) 61 ( 57·0%) 2625 ( 57·6%) 611 ( 54·9%) 451 ( 60·1%) 350 ( 58·3%) Bilateral47 ( 0·7%) 18 ( 2·0%) 3 ( 0·3%) NA18 ( 0·4%) 8 ( 7·5%) 64 ( 1·4%) 6 ( 0·5%) 4 ( 0·5%) 4 ( 0·7%) Tumour family historyYes1138 ( 16·1%) 98 ( 10·8%) 116 ( 13·0%) NA550 ( 11·5%) 4 ( 3·7%) 21 ( 0·5%) 129 ( 11·6%) 46 ( 6·1%) 119 ( 19·8%) No5457 ( 77·3%) 795 ( 87·5%) 775 ( 87·0%) NA3981 ( 83·2%) 102 ( 95·3%) 4361 ( 95·7%) 890 ( 80·0%) 701 ( 93·3%) 438 ( 73·0%) NA460 ( 6·5%) 16 ( 1·8%) 0NA251 ( 5·2%) 1 ( 0·9%) 175 ( 3·8%) 94 ( 8·4%) 4 ( 0·5%) 43 ( 7·2%) EGFR genotypeMutant3481 ( 49·3%) 367 ( 40·4%) 439 ( 49·3%) 39 ( 25·3%) 2917 ( 61·0%) 55 ( 51·4%) 2650 ( 58·2%) 741 ( 66·6%) 364 ( 48·5%) 600 ( 100%) Wild type3574 ( 50·7%) 542 ( 59·6%) 452 ( 50·7%) 115 ( 74·7%) 1865 ( 39·0%) 52 ( 48·6%) 1907 ( 41·8%) 372 ( 33·4%) 387 ( 51·5%) 0Data are n (%) or mean ( SD). EGFR=epidermal growth factor receptor. NA=not applicable. PFS=progression-free survival. SCC=squamous cell carcinoma. TCIA=The Cancer Imaging Archive. Open table in a new tab
( A) Inference process of FAIS in predicting EGFR genotype and PFS in patients after receiving EGFR-TKIs. ( B) Mining associations between genetic activities and whole-lung features extracted by FAIS. ( C) Cohorts used in this study. 2087 patients were included in both the primary cohort A and primary cohort B since they had both thick CT and thin CT. PFS cohort is a subset of primary cohort A. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system. PFS=progression-free survival. TKIs=tyrosine kinase inhibitors.
Data are n (%) or mean ( SD). EGFR=epidermal growth factor receptor. NA=not applicable. PFS=progression-free survival. SCC=squamous cell carcinoma. TCIA=The Cancer Imaging Archive.
In clinical practice, CT scanning protocols are highly variable in different hospitals, and CT slice thickness has the largest effect on artificial intelligence-based methods.20Meyer M Ronald J Vernuccio F et al.Reproducibility of CT radiomic features within the same patient: influence of radiation dose and CT reconstruction settings.Radiology. 2019; 293: 583-591Google Scholar Consequently, we divided CT images into two categories, thick CT ( ≥3·75 mm) and thin CT ( < 3·75 mm), and we trained and tested the proposed model using both thick CT and thin CT. In thick CT images, primary cohort A was randomly split into training, internal validation, and internal testing sets at a ratio of 8:1:1 for model training, hyper-parameter tuning, and internal testing. We used the testing cohort A and the TCIA cohort for independent testing in both Asian and White populations; the prospective testing cohort was used for prospective testing ( figure 1). In thin CT images, we used primary cohort B for model training and validation cohort B for model hyper-parameter tuning; testing cohorts B to D were used for multicentre independent testing. We used the PFS cohort to assess performance of the proposed model in predicting personalised PFS in patients receiving EGFR-TKIs; this cohort is a subset of the primary cohort A and also includes training, validation, and testing sets ( appendix p 2).
The FAIS included two main components: automated lung segmentation and EGFR genotype prediction ( appendix p 10). Without manual annotation, FAIS imported original chest CT images of a patient, and directly predicted the corresponding EGFR-mutant probability; for a patient with an EGFR mutation, FAIS also predicted their PFS after receiving EGFR-TKIs.
We first used the DenseNet121-FPN model21Huang G, Liu Z, Van Der Maaten L, Weinberger KQ. Densely connected convolutional networks. IEEE Conference on Computer Vision and Pattern Recognition; July 21–26, 2017.Google Scholar, 22Lin T-Y, Dollár P, Girshick R, He K, Hariharan B, Belongie S. Feature pyramid networks for object detection. IEEE Conference on Computer Vision and Pattern Recognition; July 21–26, 2017.Google Scholar, 23Wang S Zha Y Li W et al.A fully automatic deep learning system for COVID-19 diagnostic and prognostic analysis.Eur Respir J. 2020; 562000775Google Scholar to segment lung areas in chest CT images automatically ( appendix pp 3–4). To guarantee the acquisition of the complete lung field, we used a three-dimensional bounding box of the segmented lung mask to crop the whole lung area within the CT image, which was defined as a lung region of interest. Afterward, this region of interest was standardised with Z scores and resized to 48 × 240 × 360 voxels for further analysis by our proposed EGFRNet. EGFRNet consists of four dense blocks, where each block is a stack of convolution, batch normalisation, and activation layer. After the last convolutional layer, we used average pooling to generate 768-dimensional deep learning features ( appendix pp 10, 13), which were fully connected to the output neuron for predicting the probability ( FAIS score) of a given patient having an EGFR mutation.
Notably, in the lung region of interest, some other organs ( eg, spine) were included. To enable EGFRNet to focus on lung areas, we proposed a lung mask-guided attention mechanism, which enhanced the response of the lung area and suppressed the non-lung areas ( appendix p 5). During model training, we proposed an area under the curve ( AUC) loss function that calculated the approximated AUC error in a training batch for auxiliary training ( appendix pp 6–7).24Yuan Z, Yan Y, Sonka M, Yang T. Large-scale robust deep AUC maximization: a new surrogate loss and empirical studies on medical image classification. IEEE/CVF International Conference on Computer Vision; Oct 11–17, 2021 ( abst 2911).Google Scholar After model training, we used the Grad-CAM25Selvaraju RR Cogswell M Das A Vedantam R Parikh D Batra D Grad-cam: visual explanations from deep networks via gradient-based localization.Proc IEEE Int Conf Comput Vis. 2017; 2017: 618-626Google Scholar algorithm to visualise the EGFR mutation-relevant lung characteristics discovered by FAIS.
To compare the advantage of FAIS over the commonly used tumour-based methods, we built two tumour-based deep learning models as comparisons ( appendix p 8), and we compared their performance in the primary cohort A and the TCIA cohort.
Some clinical factors have been reported to be associated with EGFR mutations; 7Rios Velazquez E Parmar C Liu Y et al.Somatic mutations drive distinct imaging phenotypes in lung cancer.Cancer Res. 2017; 77: 3922-3930Google Scholar, 8Girard N Sima CS Jackman DM et al.Nomogram to predict the presence of EGFR activating mutation in lung adenocarcinoma.Eur Respir J. 2012; 39: 366-372Google Scholar consequently, we incorporated clinical factors and the FAIS score to build the FAIS-C model. First, we used multivariate least absolute shrinkage and selection operator ( LASSO) to select diagnostic clinical factors from a list of clinical factors collected including age, sex, tumour stage, smoking status, histology, tumour location, and tumour family history ( table 1). Second, the selected clinical factors and the FAIS score were sent into a support vector machine to build the FAIS-C model for EGFR genotype prediction. All these procedures were done in the training set in primary cohort A. For some patients with missing clinical values, we used the mean value or the categorical value with the highest frequency in the training set for imputation.
Among the 768-dimensional deep learning features extracted by FAIS, we used LASSO-Cox regression to select prognostic features for predicting personalised PFS in patients after receiving EGFR-TKIs, using the training set in the PFS cohort. Finally, the LASSO-Cox model generated a risk score for each patient by use of the selected prognostic features. A larger risk score indicates increased risk of disease progression and corresponds to a shorter PFS. To stratify patients into high-risk and low-risk groups, we used the X-tile software ( version 3.6.1) to select the optimal cutoff risk score using the training set data; this cutoff value was subsequently used in the validation and testing sets for model performance evaluation.
We included 891 patients who underwent eight-panel or 56-panel next generation sequencing in the primary cohort A to explore the associations between the 768-dimensional deep learning features and 56 common genotypes. For each genotype, we used independent sample t tests or Wilcoxon tests to examine whether a deep learning feature had significant difference between the mutant and wild-type groups. This process was repeated for each deep learning feature and each of the 56 genes.
To explore the biological mechanisms of the prognostic value of FAIS, we included 87 patients in the TCIA cohort that had both RNA-sequencing data and CT imaging for analysis. We first used FAIS to extract the prognostic deep learning features of the patients from the whole lung, and then we did gene pathway analysis to examine the associations between the prognostic deep learning features and important gene pathways ( appendix p 9).
Statistical analysis was done with Python, version 3.7. To evaluate performance of FAIS, the FAIS-C model, and tumour-based deep learning models, we used AUC, accuracy, F1 score, precision, and recall as measures. When evaluating prognostic performance of FAIS, we used Kaplan-Meier analysis and log-rank test to assess whether PFS of the high-risk and low-risk groups identified by FAIS had significant differences. All statistical results were considered significant at p < 0·05.
The funder of the study had no role in study design, data collection, data analysis, data interpretation, or writing of the report.
In thick CT images, FAIS achieved AUC values of 0·779 ( 95% CI 0·761–0·795) in the internal validation set, 0·759 ( 0·742–0·777) in the internal testing set, 0·770 ( 0·753–0·786) in the testing cohort A, 0·756 ( 0·742–0·772) in the prospective testing cohort, and 0·755 ( 0·709–0·798) in the TCIA cohort ( table 2). Notably, FAIS with the proposed lung mask-guided attention mechanism and AUC loss function showed improved performance in the TCIA cohort ( appendix p 11). As adenocarcinoma accounts for 80% of lung cancer cases and responds well to EGFR-targeted therapy, we did a stratified analysis to examine performance of FAIS in lung adenocarcinoma and achieved similar results ( appendix p 14).Table 2The performance of different models in predicting EGFR genotypeAUC ( 95% CI) Accuracy ( 95% CI) F1 score ( 95% CI) Precision ( 95% CI) Recall ( 95% CI) FAISPrimary A—validation0·779 ( 0·761–0·795) 0·711 ( 0·693–0·727) 0·711 ( 0·693–0·727) 0·712 ( 0·696–0·729) 0·711 ( 0·693–0·727) Primary A—testing0·759 ( 0·742–0·777) 0·685 ( 0·668–0·703) 0·685 ( 0·668–0·703) 0·687 ( 0·671–0·706) 0·685 ( 0·668–0·703) Testing A0·770 ( 0·753–0·786) 0·723 ( 0·709–0·737) 0·724 ( 0·710–0·739) 0·728 ( 0·714–0·743) 0·723 ( 0·709–0·737) Prospective testing0·756 ( 0·742–0·772) 0·697 ( 0·683–0·711) 0·697 ( 0·682–0·711) 0·697 ( 0·683–0·712) 0·697 ( 0·683–0·711) TCIA0·755 ( 0·709–0·798) 0·688 ( 0·650–0·725) 0·708 ( 0·673–0·742) 0·778 ( 0·744–0·813) 0·688 ( 0·650–0·725) Validation B0·813 ( 0·773–0·853) 0·729 ( 0·685–0·770) 0·725 ( 0·680–0·767) 0·738 ( 0·699–0·782) 0·729 ( 0·685–0·770) Testing B0·761 ( 0·755–0·768) 0·704 ( 0·698–0·711) 0·702 ( 0·696–0·709) 0·702 ( 0·696–0·709) 0·704 ( 0·698–0·711) Testing C0·797 ( 0·784–0·812) 0·731 ( 0·719–0·745) 0·735 ( 0·723–0·748) 0·743 ( 0·731–0·756) 0·731 ( 0·719–0·745) Testing D0·748 ( 0·732–0·765) 0·674 ( 0·658–0·690) 0·673 ( 0·656–0·689) 0·679 ( 0·663–0·696) 0·674 ( 0·658–0·690) FAIS-C modelPrimary A—validation0·803 ( 0·787–0·819) 0·708 ( 0·690–0·724) 0·707 ( 0·690–0·724) 0·712 ( 0·695–0·729) 0·708 ( 0·690–0·724) Primary A—testing0·797 ( 0·780–0·814) 0·725 ( 0·708–0·742) 0·725 ( 0·708–0·742) 0·730 ( 0·715–0·748) 0·725 ( 0·708–0·742) Testing A0·764 ( 0·747–0·780) 0·729 ( 0·714–0·743) 0·732 ( 0·716–0·745) 0·741 ( 0·727–0·756) 0·729 ( 0·714–0·743) Prospective testing0·788 ( 0·773–0·802) 0·709 ( 0·694–0·724) 0·709 ( 0·694–0·724) 0·711 ( 0·697–0·727) 0·709 ( 0·694–0·724) TCIA0·776 ( 0·738–0·816) 0·669 ( 0·632–0·706) 0·690 ( 0·657–0·725) 0·770 ( 0·740–0·806) 0·669 ( 0·632–0·706) Validation B0·834 ( 0·795–0·872) 0·757 ( 0·717–0·797) 0·756 ( 0·717–0·797) 0·758 ( 0·722–0·802) 0·757 ( 0·717–0·797) Testing B0·800 ( 0·793–0·807) 0·747 ( 0·740–0·753) 0·744 ( 0·737–0·750) 0·745 ( 0·738–0·751) 0·747 ( 0·740–0·753) Testing C0·812 ( 0·799–0·827) 0·763 ( 0·751–0·776) 0·764 ( 0·752–0·777) 0·765 ( 0·754–0·779) 0·763 ( 0·751–0·776) Testing D0·763 ( 0·746–0·779) 0·676 ( 0·660–0·694) 0·674 ( 0·658–0·692) 0·685 ( 0·669–0·703) 0·676 ( 0·660–0·694) Tumour-based deep learning model ( 2D) Primary A—validation0·708 ( 0·689–0·728) 0·652 ( 0·634–0·671) 0·652 ( 0·634–0·670) 0·657 ( 0·639–0·676) 0·652 ( 0·634–0·671) Primary A—testing0·758 ( 0·740–0·775) 0·697 ( 0·680–0·715) 0·696 ( 0·679–0·714) 0·707 ( 0·690–0·725) 0·697 ( 0·680–0·715) TCIA0·637 ( 0·589–0·686) 0·608 ( 0·569–0·647) 0·633 ( 0·597–0·669) 0·738 ( 0·703–0·778) 0·608 ( 0·569–0·647) Tumour-based deep learning model ( 3D) Primary A—validation0·712 ( 0·693–0·729) 0·662 ( 0·645–0·678) 0·662 ( 0·644–0·678) 0·667 ( 0·649–0·683) 0·662 ( 0·645–0·678) Primary A—testing0·728 ( 0·710–0·748) 0·678 ( 0·661–0·696) 0·678 ( 0·661–0·695) 0·683 ( 0·667–0·702) 0·678 ( 0·661–0·696) TCIA0·653 ( 0·607–0·698) 0·581 ( 0·542–0·622) 0·599 ( 0·560–0·637) 0·709 ( 0·670–0·748) 0·581 ( 0·542–0·622) 2D=two-dimensional. 3D=three-dimensional. AUC=area under the curve. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system. TCIA=The Cancer Imaging Archive. Open table in a new tab
2D=two-dimensional. 3D=three-dimensional. AUC=area under the curve. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system. TCIA=The Cancer Imaging Archive.
In thin CT images, FAIS achieved AUC values of 0·813 ( 0·773–0·853) in the validation cohort B, 0·761 ( 0·755–0·768) in the testing cohort B, 0·797 ( 0·784–0·812) in the testing cohort C, and 0·748 ( 0·732–0·765) in the testing cohort D ( table 2). In all the centres including thick and thin CT images, FAIS achieved stable performance, indicating the robustness of FAIS regarding various CT scanning protocols.
In the FAIS-C model, three clinical factors ( smoking status, sex, and histological subtype) were ultimately selected as important diagnostic factors. By combining the FAIS score and the three clinical factors, the FAIS-C model achieved AUC values of 0·834 ( 0·795–0·872) in the validation cohort B, 0·788 ( 0·773–0·802) in the prospective testing cohort, 0·776 ( 0·738–0·816) in the TCIA cohort, 0·764 ( 0·747–0·780) in the testing cohort A, 0·800 ( 0·793–0·807) in the testing cohort B, 0·812 ( 0·799–0·827) in the testing cohort C, and 0·763 ( 0·746–0·779) in the testing cohort D ( table 2).
As a comparison, the commonly used tumour-based deep learning models ( two-dimensional or three-dimensional) showed a somewhat poorer performance ( table 2). We further compared performance of FAIS with that of the tumour-based deep learning model ( three-dimensional) regarding different training data amounts. Both models performed better as the training set size increased ( appendix p 11). However, regardless of the training set size, FAIS always outperformed the tumour-based deep learning model, indicating that the presence of an EGFR mutation was correlated with macro-level changes in the whole lung instead of in tumour tissues alone.
Consistent with our hypothesis, in many patients, regions identified as EGFR mutation-relevant by FAIS were within the tumour area ( figure 2A, B) because gene mutation occurs mainly in tumour cells. However, our results suggest that some functional or structural changes in non-tumour tissues of the lungs might be correlated with EGFR mutation. In some cases, FAIS discovered that the interaction between a tumour and its surrounding tissues was important for inferencing EGFR genotype. For instance, vascular convergence around the tumour ( figure 2C, D), pleural retraction ( figure 2E, F), and invasion ( figure 2G, H) were associated with EGFR genotype inferenced by FAIS.Figure 2EGFR mutation-relevant lung characteristics discovered by FAISShow full captionThe figure presents CT images from eight patients. Bright red colour represents high association with EGFR genotype, and dark blue colour represents weak association. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
The figure presents CT images from eight patients. Bright red colour represents high association with EGFR genotype, and dark blue colour represents weak association. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system.
To better understand the advantages of whole-lung analysis over the commonly used tumour-based analysis, we visualised the response of several neuron layers ( structures comprising small computational nodes to extract features) in FAIS ( defined as deep learning features) to CT images of different patients ( appendix p 12). On the one hand, in each neuron layer, some deep learning features automatically focused on the tumour area to mine high-dimensional information from the tumour and its microenvironment. On the other hand, other features extracted complementary information focusing on global lung appearance and functional change. In the last FAIS layer, the deep learning features showed strong associations with EGFR genotype, in which patients in the same class remained clustered and clearly separated from those in the other class ( appendix p 12).
Although all patients in the PFS cohort were confirmed to have an EGFR mutation, they had a large variance in PFS after receiving EGFR-TKIs ( median 11·42 months, IQR 6·16–18·20), indicating the necessity of stratifying EGFR-mutant genotype according to patients ' therapeutic response to targeted therapy. Among patients with an EGFR mutation confirmed by gene sequencing, we found that patients predicted to have wild-type EGFR by the FAIS-C model had a shorter PFS than those predicted to have an EGFR mutation ( median 8·40 months, 4·63–15·87, vs 12·03 months, 7·03–18·9, log-rank p=0·0019, figure 3A). Consequently, the FAIS-C model learned to stratify the EGFR-mutant genotype according to their prognosis to targeted therapy, which is a valuable supplement to gene sequencing.Figure 3Kaplan-Meier analysis in the PFS cohortShow full captionThe figure presents Kaplan-Meier curves of the EGFR-mutant and EGFR-wild type groups predicted by the FAIS-C model ( A); of the high-risk and low-risk groups in the training set ( B), validation set ( C), and testing set ( D); of EGFR19del, EGFRL858R, and EGFRuncommon subtypes ( E); and of the high-risk and low-risk groups stratified by FAIS in each EGFR mutation subtype ( F). Vertical lines represent censored data. Log-rank test was used to assess the difference of PFS between different groups. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system. HR=hazard ratio. PFS=progression-free survival.View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
The figure presents Kaplan-Meier curves of the EGFR-mutant and EGFR-wild type groups predicted by the FAIS-C model ( A); of the high-risk and low-risk groups in the training set ( B), validation set ( C), and testing set ( D); of EGFR19del, EGFRL858R, and EGFRuncommon subtypes ( E); and of the high-risk and low-risk groups stratified by FAIS in each EGFR mutation subtype ( F). Vertical lines represent censored data. Log-rank test was used to assess the difference of PFS between different groups. EGFR=epidermal growth factor receptor. FAIS=fully automated artificial intelligence system. HR=hazard ratio. PFS=progression-free survival.
The prognostic value of the FAIS-C model indicates that some of the 768-dimensional deep learning features in FAIS are able to convey prognostic information about EGFR-targeted therapy. We found 29 prognostic features that showed strong associations with the PFS of patients receiving EGFR-TKIs ( appendix p 15). Relying only on the 29 prognostic deep learning features, the model was able to stratify patients with an EGFR mutation into high-risk and low-risk groups indicating their risk of disease progression after treatment ( log-rank p < 0·0001, p=0·035, and p=0·023; figure 3B–D).
Previous studies suggested the use of EGFR mutation subtypes to stratify EGFR-mutant genotype. For example, patients with exon 19 deletions ( EGFR19del) have the best prognosis with EGFR-TKI treatment, followed by L858R point mutation in exon 21 ( EGFRL858R), whereas other uncommon subtypes ( eg, EGFRG719X, EGFRL861Q, and EGFRS768I) were associated with a poorer prognosis.26Takamochi K Oh S Matsunaga T Suzuki K Prognostic impacts of EGFR mutation status and subtype in patients with surgically resected lung adenocarcinoma.J Thorac Cardiovasc Surg. 2017; 154: 1768-1774.e1Google Scholar, 27Sutiman N Tan SW Tan EH et al.EGFR mutation subtypes influence survival outcomes following first-line gefitinib therapy in advanced Asian NSCLC patients.J Thorac Oncol. 2017; 12: 529-538Google Scholar However, we found no significant difference in patients ' PFS between these three mutation subtypes ( figure 3E). Moreover, we found that each mutation subtype contained patients with poor prognosis and good prognosis, and FAIS was able to stratify patients with different prognosis in each mutation subtype. For instance, although patients with EGFR19del or EGFRL858R showed good prognosis to EGFR-TKI treatment in previous studies, FAIS identified high-risk groups with poor PFS in these two subtypes ( median 8·50 months, 5·07–12·53, with EGFR19del and 8·43 months, 4·35–11·92, with EGFRL858R, figure 3F). In uncommon EGFR subtypes ( denoted as EGFRuncommon), FAIS stratified patients into two groups, with the high-risk group showing a short PFS ( 5·87 months, 3·85–8·50) whereas the low-risk group showed a better prognosis ( 21·20 months, 13·30–33·08) than that with the EGFR19del and EGFRL858R subtypes.
In the 891 patients in primary cohort A who underwent eight-panel or 56-panel next generation sequencing, we found that many deep learning features extracted from the whole lung were associated with multiple genes ( figure 4A). Moreover, 75 deep learning features were significantly associated with more than one gene, suggesting that interactions between genes might exist and can be captured by FAIS.Figure 4Association between genetic activities and deep learning features extracted from the whole lungShow full captionThe figure presents the association between each deep learning feature and the mutation status of 56 genes ( A) and the association between the 29 prognostic deep learning features and the five genes linked to the prognosis with epidermal growth factor receptor-tyrosine kinase inhibitors ( B). Lines between circles and blue boxes indicate significant association ( p < 0·05).View Large Image Figure ViewerDownload Hi-res image Download ( PPT)
The figure presents the association between each deep learning feature and the mutation status of 56 genes ( A) and the association between the 29 prognostic deep learning features and the five genes linked to the prognosis with epidermal growth factor receptor-tyrosine kinase inhibitors ( B). Lines between circles and blue boxes indicate significant association ( p < 0·05).
Notably, we found that the 29 prognostic deep learning features in FAIS were associated with multiple genes that can affect the prognosis of patients receiving EGFR-TKIs ( EGFR, KRAS, ALK, BRAF, and ROS1; figure 4B). Moreover, gene pathway analysis in the TCIA cohort revealed that four prognostic deep learning features were strongly associated with gene pathways linked to drug resistance or cancer progression. This finding might explain why deep learning features were able to predict a personalised prognosis to EGFR-TKI treatment. For example, the 341 deep learning feature corresponded to the upregulated P53 pathway, and the 716 deep learning feature corresponded to the upregulated ERBB pathway. These pathways were associated with a resistance mechanism to targeted therapy, suggesting that the 341 and 716 deep learning features might convey information about the risk of drug resistance. Similarly, the 118 deep learning feature was associated with the cell adhesion molecular pathway, which is a sign of cancer metastasis. The 113 deep learning feature was associated with the ECM receptor interaction pathway, which is part of the epithelial mesenchymal transition mechanism, previously linked to cancer progression.
Except for mining genotype and prognostic information, whole-lung analysis has good potential for analysing other clinical outcomes in lung cancer. For instance, we used FAIS to predict lung cancer metastasis and achieved AUC values of 0·826 in the internal validation set and 0·787 in the testing set in primary cohort A ( appendix p 16), which outperformed the tumour-based deep learning model ( 0·765, 95% CI 0·748–0·781, in the internal validation set and 0·746, 0·727–0·765 in the testing set).
EGFR genotype and individualised prognosis to EGFR-TKI treatment are crucial for targeted therapy planning in patients with lung cancer. Our findings suggest that routine CT imaging combined with a fully automated whole-lung analysis artificial intelligence system can non-invasively predict EGFR genotype and identify patients with an EGFR mutation and with a poor prognosis to EGFR-TKI treatment. The performance improvement of FAIS-C model over FAIS suggests that CT imaging provides information that complements clinical factors.
Although gene sequencing is the gold standard for detecting genotypes, it faces the difficulties brought by tumour heterogeneity and invasive biopsy. Most importantly, gene sequencing can not identify patients with poor prognosis to targeted therapy. In these situations, FAIS could be a good supplement to biopsy sequencing because EGFR genotype predicted by FAIS was significantly associated with patients ' prognosis with EGFR-TKI treatment. Patients confirmed to have an EGFR mutation by both gene sequencing and FAIS showed good prognosis to EGFR-targeted therapy ( figure 3A). However, those with a confirmed EGFR mutation by gene sequencing, but who were predicted to have wild-type EGFR by FAIS showed a poor prognosis ( figure 3A). Moreover, FAIS was able to predict personalised PFS for patients receiving EGFR-TKIs, providing a method to stratify EGFR-mutant genotype according to patients ' therapeutic response, which is a great supplement to gene sequencing.
By contrast with previous artificial intelligence-based studies, FAIS predicts EGFR genotype and personalised prognosis simultaneously, and it showed better performance than the commonly used tumour-based methods7Rios Velazquez E Parmar C Liu Y et al.Somatic mutations drive distinct imaging phenotypes in lung cancer.Cancer Res. 2017; 77: 3922-3930Google Scholar, 13Wang S Shi J Ye Z et al.Predicting EGFR mutation status in lung adenocarcinoma on computed tomography image using deep learning.Eur Respir J. 2019; 531800986Google Scholar in a large-scale cohort ( 18 232 patients, over 20-times larger than those of previous studies). Unlike the commonly used tumour-based deep learning model that only extracts tumour information, FAIS mines both tumour information and global lung information, thus achieving better performance. For instance, FAIS mines pleural characteristics for inferencing EGFR genotype in some patients ( figure 2E–H). These findings are consistent with previous studies,16Hasegawa M Sakai F Ishikawa R Kimura F Ishida H Kobayashi K CT features of epidermal growth factor receptor–mutated adenocarcinoma of the lung: comparison with nonmutated adenocarcinoma.J Thorac Oncol. 2016; 11: 819-826Google Scholar, 17Liu Y Kim J Qu F et al.CT features associated with epidermal growth factor receptor mutation status in patients with lung adenocarcinoma.Radiology. 2016; 280: 271-280Google Scholar where the rate of pleural retraction and invasion differed between patients with an EGFR mutation and those with wild-type EGFR. Notably, the EGFR mutation rate differs between ethnicities ( about 15% in a White population and 50% in an Asian population).9Recondo G Facchinetti F Olaussen KA Besse B Friboulet L Making the first move in EGFR-driven or ALK-driven NSCLC: first-generation or next-generation TKI?.Nat Rev Clin Oncol. 2018; 15: 694-708Google Scholar, 28Wu Y-L Cheng Y Zhou J et al.Tepotinib plus gefitinib in patients with EGFR-mutant non-small-cell lung cancer with MET overexpression or MET amplification and acquired resistance to previous EGFR inhibitor ( INSIGHT study): an open-label, phase 1b/2, multicentre, randomised trial.Lancet Respir Med. 2020; 8: 1132-1143Google Scholar, 29Leonetti A Sharma S Minari R Perego P Giovannetti E Tiseo M Resistance mechanisms to osimertinib in EGFR-mutated non-small cell lung cancer.Br J Cancer. 2019; 121: 725-737Google Scholar To assess the generalisability of the proposed model, we trained the model using data from an Asian population and tested it using data from a White population; FAIS performed well in these different populations. Moreover, this study included all types of lung cancer instead of only adenocarcinoma cases,7Rios Velazquez E Parmar C Liu Y et al.Somatic mutations drive distinct imaging phenotypes in lung cancer.Cancer Res. 2017; 77: 3922-3930Google Scholar, 13Wang S Shi J Ye Z et al.Predicting EGFR mutation status in lung adenocarcinoma on computed tomography image using deep learning.Eur Respir J. 2019; 531800986Google Scholar eliminating the need to identify adenocarcinoma when using this system. FAIS is fully automated and does not require any time-consuming CT imaging annotation, which is more convenient for use in clinical practice. Most importantly, we found that genotype and prognostic information can be obtained from the whole lung instead of only from tumour tissues. The effectiveness of FAIS in predicting lung cancer metastasis further showed that many clinical outcomes of lung cancer are probably associated with the macro-level changes in the whole lung instead of only tumour tissues. Consequently, mining whole-lung information should have great potential in analysing lung cancer.
Figure 4A showed that much genotype information can be captured by analysing the whole lung in CT imaging. Although FAIS was trained to predict EGFR genotype, the strong associations between the deep learning features and many other genes showed the potentiality of FAIS in predicting multiple gene markers in lung cancer. Further gene pathway analysis revealed that image features mined from the whole lung were associated with multiple important gene pathways linked to drug resistance or cancer progression mechanisms, which explains why the CT features mined from the whole lung conveyed prognostic information that complemented gene sequencing. The associations between CT-derived whole-lung features and gene pathways could help clinicians to better understand the inference process and biological mechanisms of FAIS.
Our study has several limitations. First, in addition to the EGFR genotype, other important genes are also relevant to targeted therapy, such as ALK and KRAS. A method of concurrently predicting several target genes would be valuable. Second, although whole-lung analysis performed better than the tumour-based method, a combination of these methods might achieve optimum performance and requires future research.
In conclusion, FAIS provides a non-invasive method to predict EGFR genotype and targeted therapy response through a whole-lung analysis method using CT images, which shows that genotype information can be obtained from the whole lung instead of only tumor tissues.
SW and HY designed this study and wrote the paper. SW, ZW, YZ, and LW built the deep learning models. KW, ZaL, and WW processed and analysed the data. YG, EL, XL, JC, HD, MX, YW, XM, DL, BC, PT, ZQ, JX, JR, FX, ZhL, QW, XX, and JS collected the clinical dataset and performed data preprocessing. JT and WL conceived the project and edited the paper. All authors reviewed and approved the final manuscript for submission. We ensured that all authors had access to all the raw datasets. SW and HY have verified the data and are independent of any company or investor. JT had full access to all the data in the study and had final responsibility for the decision to submit for publication.
Data in the TCIA cohort is publicly available at https: //wiki.cancerimagingarchive.net/display/Public/NSCLC+Radiogenomics. Other datasets used in this study belong to the involved hospitals. For researchers who want to access these datasets for academic research purposes, please direct your request to the corresponding author or the first author ( [ email protected ]). The code used in this study including the FAIS, the tumour-based deep learning models, the DenseNet121-FPN lung segmentation model, and the trained weights of these models is available at https: //github.com/wangshuocas and can be accessed by contacting the first author.
We declare no competing interests.
This work was supported by the Ministry of Science and Technology of China ( 2017YFA0205200), National Natural Science Foundation of China ( 62027901, 81227901, 81930053, 82001913, 91859203, 82072598, 82027805, 81972916, 62176166, 61976223, and 82001986), National Key Development Plan for Precision Medicine Research ( 2017YFC0910004), Key R & D Program of Guangdong Province ( 2021B0101420006), National Science Fund for Distinguished Young Scholars ( 81925023), the National Key R & D Program of China ( 2021YFF1201003), High-level Hospital Construction Project ( DFJHBF202105), Key R & D project of Sichuan Provincial Department of science and Technology ( 2021YFS0072), Clinical Research Foundation of Shanghai Pulmonary Hospital ( FK1944), China Postdoctoral Science Foundation ( 2019TQ0019, 2020M670101), Interdisciplinary Innovation Project of 135 Project of West China Hospital of Sichuan University ( ZYJC21028), Central Guide Place-Free Exploration Project, Sichuan Provincial Department of Science and Technology ( 2020ZYD005), project of High-Level Talents Team Introduction in Zhuhai City ( Zhuhai HLHPTP201703), Applied Basic Research Projects of Yunnan Province, Outstanding Youth Foundation ( 202101AW070001), and Yunnan Digitalization, Development and Application of Biotic Resource ( 202002AA100007). We acknowledge the instrumental and technical support of the Multimodal Biomedical Imaging Experimental Platform, Institute of Automation, Chinese Academy of Sciences.
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United States Drug Eluting Sinus Stent ( DESS) Market Research Report 2022: Analysis by Procedures - Functional Endoscopic Sinus Surgery ( FESS) and Balloon Sinus Dilation ( BSD) - Forecast to 2025 - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` The US Drug Eluting Sinus Stent ( DESS) Market: Analysis By Procedures ( Functional Endoscopic Sinus Surgery ( FESS) and Balloon Sinus Dilation ( BSD)) Size & Trends with Impact of Covid-19 and Forecast up to 2025 '' report has been added to ResearchAndMarkets.com's offering.
The report provides an in depth analysis of the US drug eluting sinus stent ( DESS) market by value. The report also provides a detailed analysis of the US sinus surgery market by sinusitis patients, chronic sinusitis patients, number of ENT eligible patients, number of procedures, etc.
The report also provides an analysis of the US Functional Endoscopic Sinus Surgery ( FESS) and Balloon Sinus Dilation ( BSD) market by Value and by number of procedures.
Sinusitis can be divided into Acute Sinusitis, Recurrent Acute Rhinosinusitis ( RARS) and chronic Rhinosinusitis ( CRS), on the basis of the duration of the episode of sinusitis and its severity. The treatment options for the sinusitis can be over-the-counter treatment, medical management and surgery.
The OTC treatment includes decongestants, antihistamines, pain relievers and nasal irrigation. Medical management includes antibiotics and oral and nasal steroids. The sinus surgeries are mainly of two types: Functional Endoscopic Sinus Surgery ( FESS) and Balloon Sinus Dilation ( BSD).
The US drug eluting sinus stent ( DESS) market has increased significantly during the recent years, and projections are made that the market would rise in the next few years. The drug eluting sinus stent ( DESS) market is expected to increase due to surging healthcare expenditure, increasing prevalence of sinus related disorders, growing treatment in physician's office, limitations of FESS, favorable government initiatives for promoting the use of sinus stents, etc. Yet the market faces some challenges such as economic slowdown, high cost involved, use of oral steroids and packing material, etc.
The report also assesses the key opportunities in the market and outlines the factors that are and will be driving the growth of the industry. Growth of the US drug eluting sinus stent ( DESS) market has also been forecasted till the period 2025, taking into consideration the previous growth patterns, the growth drivers and the current and future trends.
The US drug eluting sinus stent ( DESS) market is concentrated with few major market players operating in the region.
The key players of the drug eluting sinus stent ( DESS) market are Intersect ENT, Inc., Medtronic plc, Stryker Corporation ( Entellus Medical, Inc.), and Johnson & Johnson ( Acclarent, Inc.) are also profiled with their financial information and respective business strategies.
Key Topics Covered:
1. Executive Summary
2. Introduction
2.1 Sinus: An Overview
2.1.1 Types of Sinus
2.2 Sinusitis: An Overview
2.2.1 Types of Sinusitis
2.2.2 Treatment Options for Sinusitis
2.3 Drug Eluting Sinus Stent ( DESS): An Overview
3. The US Market Analysis
3.1 The US Sinus Surgery Market: An Analysis
3.1.1 The US Sinus Surgery Market by Sinusitis Patients
3.1.2 The US Sinus Surgery Market by Chronic Sinusitis Patients
3.1.3 The US Sinus Surgery Market by Number of ENT Eligible Patients
3.1.4 The US Sinus Surgery Market by Surgical and Non Surgical ENT Eligible Patients
3.1.5 The US Sinus Surgery Market by Number of Procedures
3.1.6 The US Sinus Surgery Market Number of Procedures by Segments ( Functional Endoscopic Sinus Surgery ( FESS) and Balloon Sinus Dilation ( BSD)
3.2 The US Functional Endoscopic Sinus Surgery ( FESS) Market: An Analysis
3.2.1 The US Functional Endoscopic Sinus Surgery ( FESS) Market by Value
3.2.2 The US Functional Endoscopic Sinus Surgery ( FESS) Market by Number of Procedures
3.3 The US Balloon Sinus Dilation ( BSD) Market: An Analysis
3.3.1 The US Balloon Sinus Dilation ( BSD) Market by Value
3.3.2 The US Balloon Sinus Dilation ( BSD) Market by Number of Procedures
3.3.3 The US Balloon Sinus Dilation ( BSD) Market by Segments ( operating room ( OR) and Office)
3.3.4 The US Operating Room ( OR) Balloon Sinus Dilation ( BSD) Market by Value and by Number of Procedures
3.3.5 The US Office Balloon Sinus Dilation ( BSD) Market by Value and by Number of Procedures
3.4 The US Drug Eluting Sinus Stent ( DESS) Market: An Analysis
3.4.1 The US Drug Eluting Sinus Stent ( DESS) Market by Value
4. Market Dynamics
4.1 Growth Driver
4.1.1 Surging Healthcare Expenditure
4.1.2 Increasing Prevalence of Sinus Related Disorders
4.1.3 Growing Treatment in Physician's Office
4.1.4 Limitations of FESS
4.1.5 Favorable Government Initiatives for Promoting the Use of Sinus Stents
4.2 Challenges
4.2.1 Economic Slowdown
4.2.2 High Cost Involved
4.2.3 Use of Oral Steroids and Packing Material
4.3 Market Trends
4.3.1 Introduction of Innovative Techniques in Sinus Surgery
4.3.2 Increasing Awareness among Patients towards the Chronic Sinusitis and Sinus Surgery
4.3.3 Rising Popularity of Minimally Invasive Surgeries
4.3.4 Shift from FESS to BSD
5. Competitive Landscape
5.1 The US Drug Eluting Sinus Stent ( DESS) Market Players: A Financial Comparison
5.2 The US Drug Eluting Sinus Stent ( DESS) Market Players by Products and Services
6. Company Profiles | general |
Alcon Publishes Agenda for 2022 Annual General Meeting | Alcon ( SIX/NYSE: ALC), the global leader in eye care, will hold its Annual General Meeting ( AGM) on April 27, 2022.
Due to the continuing tense situation due to the COVID-19 pandemic, and as a precautionary and prudent measure, Alcon’ s Board of Directors decided to hold the AGM in a closed format without the personal attendance of shareholders as permitted by Swiss ordinance and for the safety of Alcon’ s shareholders and associates. Alcon asks its shareholders to exercise their rights at the AGM exclusively by sending in voting instructions to the independent representative identified in the voting materials.
Alcon’ s Board of Directors proposes to the AGM to elect Raquel C. Bono, M.D. as a new Board member. A board-certified trauma surgeon and retired Vice Admiral, US Navy Medical Corps, Dr. Bono was the first female three-star admiral in the medical field in the history of the US Navy, as well as the first Asian-American woman promoted to Vice Admiral. Dr. Bono has been Chief Health Officer at Viking, Inc. since November 2020 and a Principal at RCB Consulting since October 2019. She brings to the Alcon Board more than 25 years of experience in healthcare leadership roles and an extensive track record in the healthcare industry and the areas of government relations and regulatory/public policy.
The invitation to the AGM, including explanatory information on individual agenda items, has been published in the Swiss Gazette of Commerce on March 24, 2022 and is available online at https: //investor.alcon.com/news-and-events/events-and-presentations/event-details/2022/2022-Annual-General-Meeting/default.aspx.
Agenda for Alcon’ s 2022 AGM
1.
Approval of the operating and financial review of Alcon Inc., the annual financial statements of Alcon Inc. and the consolidated financial statements for 2021
2.
Discharge of the members of the Board of Directors and the members of the Executive Committee
3.
Appropriation of earnings and declaration of dividend as per the balance sheet of Alcon Inc. of December 31, 2021
▪ If approved by the shareholders, a dividend of CHF 0.20 in cash per share will be payable with the record date expected to be May 2, 2022 and the payout date in Switzerland expected to be on or around May 5, 2022. The Swiss withholding tax of 35% will be deducted from the gross dividend amount.
4.
Votes on the compensation of the Board of Directors and of the Executive Committee
4.1
Consultative vote on the 2021 Compensation Report
4.2
Binding vote on the maximum aggregate amount of compensation of the Board of Directors for the next term of office, i.e., from the 2022 Annual General Meeting to the 2023 Annual General Meeting
4.3
Binding vote on the maximum aggregate amount of compensation of the Executive Committee for the following financial year, i.e., 2023
5.
Re-election and election of the Chair and the Members of the Board of Directors
5.1
Re-election of F. Michael Ball ( as Member and Chair)
5.2
Re-election of Lynn D. Bleil ( as Member)
5.3
Re-election of Arthur Cummings ( as Member)
5.4
Re-election of David J. Endicott ( as Member)
5.5
Re-election of Thomas Glanzmann ( as Member)
5.6
Re-election of D. Keith Grossman ( as Member)
5.7
Re-election of Scott Maw ( as Member)
5.8
Re-election of Karen May ( as Member)
5.9
Re-election of Ines Pöschel ( as Member)
5.10
Re-election of Dieter Spälti ( as Member)
5.11
Election of Raquel C. Bono ( as Member)
6.
Re-election and election of the members of the Compensation Committee
6.1
Re-election of Thomas Glanzmann
6.2
Re-election of Karen May
6.3
Re-election of Ines Pöschel
6.4
Election of Scott Maw
7.
Re-election of the independent representative
8.
Re-election of the statutory auditors
Cautionary Note Regarding Forward-Looking Statements
This press release contains “ forward-looking statements ” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “ anticipate, ” “ intend, ” “ commitment, ” “ look forward, ” “ maintain, ” “ plan, ” “ goal, ” “ seek, ” “ target, ” “ assume, ” “ believe, ” “ project, ” “ estimate, ” “ expect, ” “ strategy, ” “ future, ” “ likely, ” “ may, ” “ should, ” “ will ” and similar references to future periods. An example of a forward-looking statement includes, among others, statements Alcon makes regarding the payment of a dividend.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict. Some of these factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements.
Forward-looking statements in this press release speak only as of the date they are made, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise. | business |
HUDSON TECHNOLOGIES INC /NY Management's Discussion and Analysis of Financial Condition and Results of Operations ( form 10-K) | Certain statements, contained in this section and elsewhere in this Form 10-K, constitute `` forward-looking statements '' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants ( including unfavorable market conditions adversely affecting the demand for, and the price of refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under our financing facilities, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, and integration of any other assets it acquires from third parties into its operations, the impact of the COVID-19 pandemic, and other risks detailed in this report and in the Company's other subsequent filings with the Securities and Exchange Commission ( `` SEC ''). The words `` believe '', `` expect '', '' anticipate '', `` may '', `` plan '', `` should '' and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Impact of COVID-19 Pandemic
During the years ended December 31, 2021 and 2020, the effects of a novel strain of coronavirus ( `` COVID-19 '') pandemic and the related actions by governments around the world to attempt to contain the spread of the virus have materially impacted the global economy.
In response to the COVID-19 outbreak and business disruption, we have four primary priorities:
? To ensure the health and safety of Hudson employees
? To keep our products in supply and to maintain the quality and safety of our
products
? To best serve our customers across all channels as they adapt to the shifting
demands of consumers during the crisis
? To best position ourselves to emerge strong when this crisis ends
We operate in a `` critical infrastructure industry '' and are an essential business as defined by the United States government as we procure, process, service and deliver refrigerants to the government and wholesale and retail organizations, which also service both residential
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homes and commercial institutions throughout the United States. While the conditions in the United States and the economy have been impacted by the pandemic, we have been effectively running our operations, including the following:
-Keeping all plants open, while maintaining proper safety standards
-Directing certain office personnel to work remotely, efficiently and safely
-Maintaining ongoing relationships and business with existing customers and vendors in the supply chain
As of the date of this filing, we have activated our contingency plans. We have deployed national and regional teams to monitor the rapidly evolving situation and recommend risk mitigation actions; we have implemented travel restrictions; and we are following social distancing practices. We are endeavoring to follow guidance from authorities and health officials including, but not limited to, requiring associates to wear masks and other protective clothing as appropriate, and implementing additional cleaning and sanitization routines at system facilities.
During times of crisis, business continuity and adapting to the needs of our customers is critical. We have developed systemwide knowledge-sharing routines and processes which include the management of any supply chain challenges. As of the date of this filing, there has been no material impact on our ability to procure or distribute our products and services. We are moving with speed to best serve our customers impacted by COVID-19 and to ensure adequate inventory levels in key channels. We have shifted to more remote and paperless options for customer payments and receipts, including ACH payments.
Critical Accounting Estimates
The Company's discussion and analysis of its financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Several of the Company's accounting policies involve significant judgments, uncertainties and estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. To the extent that actual results differ from management's judgments and estimates, there could be a material adverse effect on the Company. On a continuous basis, the Company evaluates its estimates, including, but not limited to, those estimates related to its inventory reserves, valuation allowance for the deferred tax assets relating to its net operating loss carry forwards ( `` NOLs '') and goodwill and intangible assets.
Inventory
For inventory, the Company evaluates both current and anticipated sales prices of its products to determine if a write down of inventory to net realizable value is necessary. Net realizable value represents the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion and disposal. The determination if a write-down to net realizable value is necessary is primarily affected by the market prices for the refrigerant gases we sell. Commodity prices generally are affected by a wide range of factors beyond our control, including weather, seasonality, the availability and adequacy of supply, government regulation and policies and general political and economic conditions. At any time, our inventory levels may be substantial.
Goodwill
The Company has made acquisitions that included a significant amount of goodwill and other intangible assets. The Company applies the purchase method of accounting for acquisitions, which among other things, requires the recognition of goodwill ( which represents the excess of the purchase price of the acquisition over the fair value of the net assets acquired and identified intangible assets). We test our goodwill for impairment on an annual basis ( the first day of the fourth quarter) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of an asset below its carrying value. Other intangible assets that meet certain criteria are amortized over their estimated useful lives.
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An impairment charge is recorded based on the excess of a reporting unit's carrying amount over its fair value. An impairment charge would be recognized when the carrying amount exceeds the estimated fair value of a reporting unit. These impairment evaluations use many assumptions and estimates in determining an impairment loss, including certain assumptions and estimates related to future earnings. If the Company does not achieve its earnings objectives, the assumptions and estimates underlying these impairment evaluations could be adversely affected, which could result in an asset impairment charge that would negatively impact operating results. During the fourth quarter of 2021, we completed our annual impairment test as of October 1 and determined in our qualitative assessment that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, resulting in no goodwill impairment. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods.
There were no goodwill impairment losses recognized in any of the two years ended December 31, 2021 and 2020.
Other Intangibles
Intangibles with determinable lives are amortized over the estimated useful lives of the assets currently ranging from 6 to 13 years. The Company reviews these useful lives annually to determine that they reflect future realizable value.
Income Taxes
The Company is taxed at statutory corporate income tax rates after adjusting income reported for financial statement purposes for certain items. Current income tax expense ( benefit) reflects the tax results of revenues and expenses currently taxable or deductible. The Company utilizes the asset and liability method of accounting for deferred income taxes, which provides for the recognition of deferred tax assets or liabilities, based on enacted tax rates and laws, for the differences between the financial and income tax reporting bases of assets and liabilities.
The tax benefit associated with the Company's net operating loss carry forwards ( `` NOLs '') is recognized to the extent that the Company expects to realize future taxable income. As a result of a prior `` change in control '', as defined by the Internal Revenue Service, the Company's ability to utilize its existing NOLs is subject to certain annual limitations. To the extent that the Company utilizes its NOLs, it will not pay tax on such income. However, to the extent that the Company's net income, if any, exceeds the annual NOL limitation, it will pay income taxes based on the then existing statutory rates. In addition, certain states either do not allow or limit NOLs and as such the Company will be liable for certain state income taxes.
As of December 31, 2021, the Company had NOLs of approximately $ 29.3 million, none of which have an expiration date and which are subject to annual limitations of 80% of tax earnings. As of December 31, 2021, the Company had state tax NOLs of approximately $ 21.0 million expiring in various years. We review the likelihood that we will realize the benefit of our deferred tax assets, and therefore the need for valuation allowances, on an annual basis in the fourth quarter of the year, and more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results are considered, along with all other available positive and negative evidence.
Concluding that a valuation allowance is not required is difficult when there is significant negative evidence that is objective and verifiable, such as cumulative losses in recent years. We utilize a rolling twelve quarters of pre-tax income or loss adjusted for significant permanent book to tax differences, as well as non-recurring items, as a measure of our cumulative results in recent years. Based on our assessment as of December 31, 2019, 2020 and 2021, we concluded that due to the uncertainty that the deferred tax assets will not be fully realized in the future, we recorded a valuation allowance of approximately $ 11.3 million during 2018, and due to additional losses, increased the valuation allowance through 2019 and 2020 to $ 19.0 million. For the year ended December 31, 2021, and due to additional income that resulted in the utilization of net operating losses of $ 16.8 million, we reduced the valuation allowance by $ 3.9 million resulting in an ending balance of $ 15.1 million as of December 31, 2021.
The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2021 and December 31, 2020, the Company believes it had no uncertain tax positions and there are no open federal or state examinations.
The Company is a leading provider of sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration ( `` HVACR '') industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the United States ' largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute ( `` AHRI '') standard for reuse as certified EMERALD Refrigerants™.
The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants.
Sales of refrigerants continue to represent a significant majority of the Company's revenues.
The Company also sells industrial gases to a variety of industry customers, predominantly to users in, or involved with, the US Military. In July 2016, the Company was awarded, as prime contractor, a five-year fixed price contract, including a five-year renewal option which has been exercised, awarded to it by the United States Defense Logistics Agency ( `` DLA '') for the management and supply of refrigerants, compressed gases, cylinders and related items to US Military commands and installations, Federal civilian agencies and foreign militaries. Primary users include the US Army, Navy, Air Force, Marine Corps and Coast Guard. Our contract with DLA expires in July 2026.
Results of Operations
Year ended December 31, 2021 as compared to the year ended December 31, 2020
Revenues for the year ended December 31, 2021 were $ 192.7 million, an increase of $ 45.1 million or 30.6% from the $ 147.6 million reported during the comparable 2020 period. The increase was mainly attributable to higher selling prices of certain refrigerants sold, partially offset by reduced volume as the Company was more selective in its sales of refrigerants. Starting in late March 2020, the COVID-19 virus pandemic negatively impacted our economy, including the closures to public venues, such as office buildings, gyms, schools and universities across the U.S., which negatively impacted our end markets and overall demand for refrigerants.
Cost of sales for the year ended December 31, 2021 was $ 121.1 million or 63% of sales. Cost of sales for the year ended December 31, 2020 was $ 112.2 million or 76% of sales. The reduction in the cost of sales percentage from 76% to 63% is primarily due to higher selling prices and lower costs of certain refrigerants sold during the year 2021 when compared to the year 2020.
Selling, general and administrative ( `` SG & A '') expenses for the year ended December 31, 2021 were $ 26.6 million, representing a negligible variance when compared to $ 26.6 million reported during the comparable 2020 period. SG & A mainly consists of professional fees, payroll costs and other selling, general and administrative expense.
Amortization expense was $ 2.8 million and 2.9 million during 2021 and 2020, respectively.
Other expense for 2021 was $ 8.9 million, compared to the $ 11.3 million of other expense reported during the comparable 2020 period. Interest expense was lower due to reduced debt resulting from the Company paying down principal of its term loan debt. Other income for the year ended December 31, 2021 was $ 2.5 million related to the forgiveness of the Company's PPP Loan. Other income for the year ended December 31, 2020 was $ 1.0 million relating to the receipt of key man life insurance proceeds from the unexpected passing of Kevin J. Zugibe, Chairman of the Board and Chief Executive Officer of the Company at that time.
Income tax expense for 2021 was $ 1.1 million compared to income tax benefit of $ 0.2 million for 2020. For 2021 and 2020, income tax expense for federal and state income tax purposes was determined by applying statutory income tax rates to pre-tax income after adjusting for certain items. As discussed previously, we concluded that due to the uncertainty that the deferred tax assets will not be fully realized in the future, we have recorded a full valuation allowance as of December 31, 2021.
The net income for the year ended December 31, 2021 was $ 32.3 million, an increase of $ 37.5 million from the $ 5.2 million of net loss reported during the comparable 2020 period, primarily due to higher revenues and reduced interest expense, as described above.
Liquidity and Capital Resources
At December 31, 2021, the Company had working capital, which represents current assets less current liabilities, of $ 55.5 million, an increase of $ 31.1 million from the working capital of $ 24.4 million at December 31, 2020. The increase in working capital is primarily attributable to timing of borrowings, accounts receivable and inventory.
Inventory and trade receivables are principal components of current assets. At December 31, 2021, the Company had inventory of $ 94.1 million, an increase of $ 49.6 million from $ 44.5 million at December 31, 2020. The increase in the inventory balance is primarily due to increases in inventory cost in 2021, consistent with the increase in selling price of certain refrigerants. The Company's ability to sell and replace its inventory on a timely basis and the prices at which it can be sold are subject, among other things, to current market conditions and the nature of supplier or customer arrangements and the Company's ability to source CFC and HCFC based refrigerants ( which are no longer being produced) and HFC refrigerants ( which are currently in the process of being phased down).
At December 31, 2021, the Company had trade receivables, net of allowance for doubtful accounts, of $ 14.2 million, an increase of $ 4.4 million from $ 9.8 million at December 31, 2020. The Company's trade receivables are concentrated with various wholesalers, brokers, contractors and end-users within the refrigeration industry that are primarily located in the continental United States. The Company has historically financed its working capital requirements through cash flows from operations, the issuance of debt and equity securities, and bank borrowings.
Net cash used in operating activities for the year ended December 31, 2021 was $ 1.2 million, a reduction of $ 12.9 million compared to the net cash provided by operating activities of $ 11.7 million for the comparable 2020 period. The variance is primarily due to increased inventory cost, as previously mentioned, offset by increased net income in 2021, primarily as a result of increased selling price of certain refrigerants sold.
Net cash used in investing activities for 2021 and 2020 was $ 1.9 million and $ 0.5 million, respectively. As described above, key man life insurance proceeds of $ 1.0 million during 2020 were offset by capital expenditures incurred in the ordinary course of business, mainly in our plant facilities.
Net cash provided by financing activities for 2021 was $ 5.3 million, compared to net cash used in financing activities of $ 12.5 million for 2020. The variance is mainly due to borrowings under the revolving credit facility to purchase inventory during 2021. In 2020, the Company received $ 2.5 million under the PPP loan, which was forgiven in 2021.
At December 31, 2021, cash and cash equivalents were $ 3.5 million, or approximately $ 2.2 million higher than the $ 1.3 million of cash and cash equivalents at December 31, 2020, mainly due to timing and as a result of the transactions mentioned above.
Revolving Credit Facility ( prior to refinancing on March 2, 2022)
On December 19, 2019, Hudson Technologies Company ( `` HTC ''), Hudson Holdings, Inc. ( `` Holdings '') and Aspen Refrigerants, Inc. ( `` ARI ''), as borrowers ( collectively, the `` Borrowers ''), and Hudson Technologies, Inc. ( the `` Company '') as a guarantor, became obligated under a Credit Agreement ( the `` Wells Fargo Facility '') with Wells Fargo Bank, as administrative agent and lender ( `` Agent '' or `` Wells Fargo '') and such other lenders as may thereafter become a party to the Wells Fargo Facility. The Wells Fargo Facility was amended and restated on March 2, 2022 ( see `` -Revolving Credit Facility Amendment '' below).
Under the terms of the Wells Fargo Facility, the Borrowers could borrow, from time to time, up to $ 60 million at any time consisting of revolving loans in a maximum amount up to the lesser of $ 60 million and a borrowing base that was calculated based on the outstanding amount of the Borrowers ' eligible receivables and eligible inventory, as described in the Wells Fargo Facility. The Wells Fargo Facility also contained a sublimit of $ 5 million for swing line loans and $ 2 million for letters of credit.
Amounts borrowed under the Wells Fargo Facility were used by the Borrowers to repay existing revolving indebtedness under its prior revolving credit facility, repay certain principal amounts under the Term Loan Facility ( as defined below), and for working capital needs, certain permitted acquisitions, and to reimburse drawings under letters of credit.
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Interest on loans under the Wells Fargo Facility was payable in arrears on the first day of each month. Interest charges with respect to loans were computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to ( A) with respect to Base Rate loans, the sum of ( i) a rate per annum equal to the higher of ( 1) the federal funds rate plus 0.5%, ( 2) one month LIBOR plus 1.0%, and ( 3) the prime commercial lending rate of Wells Fargo, plus ( ii) between 1.25% and 1.75% depending on average monthly undrawn availability and ( B) with respect to LIBOR rate loans, the sum of the LIBOR rate plus between 2.25% and 2.75% depending on average monthly undrawn availability.
In connection with the closing of the Wells Fargo Facility, the Company also entered into a Guaranty and Security Agreement, dated as of December 19, 2019 ( the `` Revolver Guaranty and Security Agreement ''), pursuant to which the Company and certain subsidiaries unconditionally guaranteed the payment and performance of all obligations owing by Borrowers to Wells Fargo, as Agent for the benefit of the revolving lenders. Pursuant to the Revolver Guaranty and Security Agreement, Borrowers, the Company and certain other subsidiaries granted to the Agent, for the benefit of the Wells Fargo Facility lenders, a security interest in substantially all of their respective assets, including receivables, equipment, general intangibles ( including intellectual property), inventory, subsidiary stock, real property, and certain other assets. The Revolver Guaranty and Security Agreement also provided that the Agent shall receive the right to dominion over certain of the Borrowers ' bank accounts in the event of an Event of Default under the Wells Fargo Facility, or if undrawn availability under the Wells Fargo Facility falls below $ 9 million at any time.
The Wells Fargo Facility contained a financial covenant requiring the Company to maintain at all times minimum liquidity ( defined as availability under the Wells Fargo Facility plus unrestricted cash) of at least $ 5 million, of which at least $ 3 million must be derived from availability. The Wells Fargo Facility also contained a springing covenant, which took effect only upon a failure to maintain undrawn availability of at least $ 7.5 million, requiring the Company to maintain a Fixed Charge Coverage Ratio ( FCCR) of not less than 1.00 to 1.00, as of the end of each trailing period of twelve consecutive fiscal months commencing with the month prior to the triggering of the covenant. The FCCR ( as defined in the Wells Fargo Facility) is the ratio of ( a) EBITDA for such period, minus unfinanced capital expenditures made during such period, to ( b) the aggregate amount of ( i) interest expense required to be paid ( other than interest paid-in-kind, amortization of financing fees, and other non-cash interest expense) during such period, ( ii) scheduled principal payments ( but excluding principal payments relating to outstanding revolving loans under the Wells Fargo Facility), ( iii) all net federal, state, and local income taxes required to be paid during such period ( provided, that any tax refunds received shall be applied to the period in which the cash outlay for such taxes was made), ( iv) all restricted payments paid ( as defined in the Wells Fargo Facility) during such period, and ( v) to the extent not otherwise deducted from EBITDA for such period, all payments required to be made during such period in respect of any funding deficiency or funding shortfall with respect to any pension plan. The FCCR covenant ceases after the Borrowers have been in compliance therewith for two consecutive months.
The Wells Fargo Facility also contained customary non-financial covenants relating to the Company and the Borrowers, including limitations on Borrowers' ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control. The Wells Fargo Facility also contained certain covenants contained in the Fourth Amendment to the Prior Term Loan Facility described below.
On April 23, 2020, the Borrowers, the Company and its subsidiaries entered into a First Amendment to Credit Agreement with Wells Fargo ( the `` First Amendment ''). The First Amendment authorized the Company and its subsidiaries to incur up to $ 2.5 million of indebtedness under the Coronavirus Aid, Relief, and Economic Security Act ( the `` CARES Act '') and contained other provisions relating to the treatment of such proceeds and any potential debt forgiveness, under the Wells Fargo Facility.
The commitments under the Wells Fargo Facility were to expire and the full outstanding principal amount of the loans, together with accrued and unpaid interest, would have been due and payable in full on December 19, 2022, unless the commitments were terminated and the outstanding principal amount of the loans were accelerated sooner following an event of default.
Prior Term Loan Facility ( prior to refinancing on March 2, 2022)
On October 10, 2017, HTC, Holdings, and ARI, as borrowers, and the Company, as guarantor, became obligated under a Term Loan Credit and Security Agreement ( as amended, the `` Prior Term Loan Facility '') with U.S. Bank National Association, as administrative agent and collateral agent ( `` Prior Term Loan Agent '') and funds advised by FS Investments and such other lenders as may thereafter
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become a party to the Term Loan Facility ( the `` Prior Term Loan Lenders ''). The Prior Term Loan Facility was repaid in full and terminated on March 2, 2022 ( see '' -Termination of Prior Term Loan Facility '' below).
Under the terms of the Prior Term Loan Facility, the Borrowers immediately borrowed $ 105 million pursuant to a term loan ( the `` Prior Term Loan '').
The Prior Term Loan was to mature on October 10, 2023. Interest on the Prior Term Loan was generally payable on the earlier of the last day of the interest period applicable to such Eurodollar rate loan and the last day of the Term Loan Facility, as applicable. Interest is payable at the rate per annum of the Eurodollar Rate ( as defined in the Term Loan Facility) plus 10.25%. The Borrowers had the option of paying 3.00% interest per annum in kind by adding such amount to the principal of the Prior Term Loans during no more than five fiscal quarters during the term of the Prior Term Loan Facility.
Borrowers and the Company granted to the Prior Term Loan Agent, for the benefit of the Prior Term Loan Lenders, a security interest in substantially all of their respective assets, including receivables, equipment, general intangibles ( including intellectual property), inventory, subsidiary stock, real property, and certain other assets.
The Prior Term Loan Facility contained a financial covenant requiring the Company to maintain a specified total leverage ratio ( `` TLR ''), tested as of the last day of the fiscal quarter. The TLR ( as defined in the Prior Term Loan Facility) is the ratio of ( a) funded debt as of such day to ( b) EBITDA for the four consecutive fiscal quarters ending on the last day of such fiscal quarter. Funded debt ( as defined in the Prior Term Loan Facility) includes amounts borrowed under the Wells Fargo Facility and the Term Loan Facility as well as capitalized lease obligations and other indebtedness for borrowed money maturing more than one year from the date of creation thereof. As of December 31, 2021 and 2020, the TLR was approximately 1.93 to 1 and 5.84 to 1, respectively.
The Prior Term Loan Facility also contained customary non-financial covenants relating to the Company and the Borrowers, including limitations on their ability to pay dividends on common stock or preferred stock, and also included certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control.
In connection with the closing of the Prior Term Loan Facility, the Company also entered into a Guaranty and Suretyship Agreement, dated as of October 10, 2017 ( the `` Prior Term Loan Guarantee ''), pursuant to which the Company affirmed its unconditional guarantee of the payment and performance of all obligations owing by Borrowers to Prior Term Loan Agent, as agent for the benefit of the Prior Term Loan Lenders.
The Prior Term Loan Agent and the Agent entered into an intercreditor agreement governing the relative priority of their security interests granted by the Borrowers and the Guarantor in the collateral, providing that the Agent would have a first priority security interest in the accounts receivable, inventory, deposit accounts and certain other assets ( the `` Revolving Credit Priority Collateral '') and the Term Loan Agent would have a first priority security interest in the equipment, real property, capital stock of subsidiaries and certain other assets ( the `` Prior Term Loan Priority Collateral '').
On December 19, 2019, HTC, Holdings and ARI as borrowers and the Company as a guarantor, entered into a Waiver and Fourth Amendment to Term Loan Credit and Security Agreement ( the `` Fourth Amendment '') with U.S. Bank National Association, as collateral agent and administrative agent, and the various lenders thereunder.
The Fourth Amendment waived financial covenant defaults at June 30, 2019 and September 30, 2019 and amended the Term Loan Credit and Security Agreement dated October 10, 2017 ( as previously amended, the `` Prior Term Loan Facility '') to reset the maximum Total Leverage Ratio covenant contained in the Prior Term Loan Facility at the indicated dates as follows: ( i) September 30, 2019 - 15.67:1.00; ( ii) December 31, 2019 - 14.54:1.00; ( iii) March 31, 2020 - 16.57:1.00; ( iv) June 30, 2020 - 10.87:1.00; ( v) September 30, 2020 - 8.89:1.00; ( vi) December 31, 2020 - 8.89:1.00; ( vii) March 31, 2021 - 7.75:1.00; ( viii) June 30, 2021 - 7.03:1.00; ( ix) September 30, 2021 - 6.08:1.00; and ( x) December 31, 2021 - 5.36:1.00. The Fourth Amendment also reset the minimum liquidity requirement ( consisting of cash plus undrawn availability on the Borrowers ' revolving loan facility) of $ 5 million, measured monthly. Furthermore, the Fourth Amendment added a minimum LTM Adjusted EBITDA covenant as of the indicated dates as follows: ( i) September 30, 2019 - $ 7.887 million; ( ii) December 31, 2019 - $ 7.954 million; ( iii) March 31, 2020 - $ 7.359 million; ( iv) June 30, 2020 - $ 11.745 million; ( v) September 30, 2020 - $ 12.021 million; ( vi) December 31, 2020 - $ 12.300 million; ( vii) March 31, 2021 -
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$ 14.295 million; ( viii) June 30, 2021 - $ 14.566 million; ( ix) September 30, 2021 - $ 15.431 million; and ( x) December 31, 2021 - $ 16.267 million.
The Fourth Amendment also ( i) continued the limitation on acquisitions and dividends, ( ii) required a principal repayment of $ 14,000,000 upon execution of the Fourth Amendment and ( iii) increased the scheduled quarterly principal repayments to $ 562,000 effective March 31, 2020 and $ 1,312,000 effective December 31, 2020.
The Fourth Amendment also terminated the exit fee payable to the term loan lenders, which would have been payable in full in cash upon the earlier to occur of ( x) repayment in full of the term loans, or ( y) any acceleration of the term loans. In lieu of the exit fee, the Fourth Amendment reinstated a prepayment premium equal to the following percentages of the principal amount prepaid, depending upon the date of prepayment: ( i) through March 31, 2020 - 0.50%; ( ii) from April 1, 2020 through March 31, 2021 - 2.50%; and ( iii) from April 1, 2021 and thereafter - 5.00%.
The Fourth Amendment also added a new covenant providing that in the event of a breach of a financial covenant contained in the Term Loan Facility or any failure to make a required principal repayment ( a `` Trigger Event ''), then on or prior to six months after a Trigger Event, the Company shall commence a process to ( x) sell its businesses and/or assets, and/or ( y) consummate a refinancing transaction with respect to the Term Loan Facility ( a `` Transaction ''), in each case, subject to enumerated time milestones contained in the Fourth Amendment, and which requires that Transaction shall, in any event, be consummated on or prior to the eighteen ( 18) month anniversary of the Trigger Event.
As closing conditions to the execution and delivery of the Fourth Amendment, the Company was required to: ( i) amend its Bylaws in a manner acceptable to the Term Loan Facility lenders; ( ii) appoint two new independent directors to the board of directors ( the `` Special Directors ''); and ( iii) pay an amendment fee of 0.50% of the amount of the outstanding loans under the Term Loan Facility.
On April 23, 2020, HTC, Holdings and ARI as borrowers and the Company as a guarantor, entered into a Fifth Amendment to Term Loan Credit and Security Agreement ( the `` Fifth Amendment '') with U.S. Bank National Association, as collateral agent and administrative agent, and the various lenders thereunder. The Fifth Amendment authorized the Company and its subsidiaries to incur up to $ 2.5 million of indebtedness under the CARES Act and contained other provisions relating to the treatment of such proceeds and any potential debt forgiveness, under the Prior Term Loan Facility.
The Company evaluated the Fourth and Fifth Amendments in accordance with the provisions of Accounting Standards Codification ( `` ASC '') 470, Debt, to determine if the Amendments were ( 1) a troubled debt restructuring, and if not, ( 2) a modification or an extinguishment of debt. The Company concluded that the Fourth Amendment was a troubled debt restructuring for accounting purposes due to the removal of the exit fee; as such, the Company capitalized an additional $ 0.5 million of deferred financing costs, which are being amortized over the remaining term. The future undiscounted cash flows of the term loan, as amended, exceeded the carrying value, and accordingly, no gain was recognized and no adjustment was made to the carrying value of the debt.
The Company was in compliance with all covenants, under the Wells Fargo Facility and the Prior Term Loan Facility, as amended, as of December 31, 2021.
New Term Loan Facility ( Effective March 2, 2022)
On March 2, 2022, Hudson Technologies Company ( `` HTC ''), an indirect subsidiary of Hudson Technologies, Inc. ( the `` Company ''), and the Company's subsidiary Hudson Holdings, Inc., as borrowers ( collectively, the `` Borrowers ''), and the Company, as guarantor, became obligated under a Credit Agreement ( the `` Term Loan Facility '') with TCW Asset Management Company LLC, as administrative agent ( `` Term Loan Agent '') and the lender parties thereto ( the `` Term Loan Lenders '').
Under the terms of the Term Loan Facility, the Borrowers have immediately borrowed $ 85 million pursuant to a term loan ( the `` Term Loan ''). Amounts borrowed under the Term Loan Facility were used by the Borrowers to repay the outstanding principal amount and related fees and expenses under the Prior Term Loan Facility ( as defined below) and for other corporate purposes.
The Term Loan matures on March 2, 2027, or earlier upon certain acceleration or cross default events. Principal payments on the Term Loan are required on a quarterly basis, commencing with the quarter ending March 31, 2022, in the amount of 5% of the original principal amount of the outstanding Term Loan per annum. The Term Loan Facility also requires annual payments of 50% of Excess
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Cash Flow ( as defined in the Term Loan Facility); provided that commencing with the year ending December 31, 2023 such payments may be reduced depending upon the Company's leverage ratio ( as defined in the Term Loan Facility) for the applicable year. The Term Loan Facility also requires mandatory prepayments of the Term Loans in the event of certain asset dispositions, debt issuances, and other events. The Term Loan may be prepaid at the option of the Borrowers subject to a prepayment premium of 3% in year one, 2% in year two, 1% in year three, and zero in year four and thereafter.
Interest on the Term Loan is generally payable monthly, in arrears. Interest charges with respect to the Term Loan are computed on the actual principal amount of the Term Loan outstanding at a rate per annum equal to ( A) with respect to Base Rate loans, the sum of ( i) a rate per annum equal to the higher of ( 1) 2.0%, ( 2) the federal funds rate plus 0.5%, ( 3) one month term SOFR plus 1.0%, and ( 4) the prime commercial lending rate quoted by The Wall Street Journal, plus ( ii) between 6.0% and 7.0% depending on the applicable leverage ratio and ( B) with respect to SOFR loans, the sum of the applicable SOFR rate plus between 7.0% and 8.0% depending on the applicable leverage ratio.
Borrowers and the Company granted to the Term Loan Agent, for the benefit of the Term Loan Lenders, a security interest in substantially all of their respective assets, including receivables, equipment, general intangibles ( including intellectual property), inventory, subsidiary stock, real property, and certain other assets.
The Term Loan Facility contains a fixed charge coverage ratio covenant and a leverage ratio covenant, each tested quarterly. The Term Loan Facility also contains customary non-financial covenants relating to the Company and the Borrowers, including limitations on Borrowers ' ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control.
In connection with the closing of the Term Loan Facility, the Company also entered into a Guaranty and Security Agreement, dated as of March 2, 2022 ( the '' Term Loan Guarantee ''), pursuant to which the Company affirmed its unconditional guarantee of the payment and performance of all obligations owing by Borrowers to Term Loan Agent, as agent for the benefit of the Term Loan Lenders.
The Term Loan Agent and the Agent ( as defined below) have entered into an intercreditor agreement governing the relative priority of their security interests granted by the Borrowers and the Guarantor in the collateral, providing that the Agent shall have a first priority security interest in the accounts receivable, inventory, deposit accounts and certain other assets ( the '' Revolving Credit Priority Collateral '') and the Term Loan Agent shall have a first priority security interest in the equipment, real property, capital stock of subsidiaries and certain other assets ( the `` Term Loan Priority Collateral '').
Termination of Prior Term Loan Facility
In conjunction with entry into the new Term Loan Facility as described above, on March 2, 2022 the Company's existing term loans set forth in the Term Loan Credit and Security Agreement with U.S. Bank National Association, as collateral agent and administrative agent, and the various lenders thereunder, as amended ( the `` Prior Term Loan Facility ''), which had a principal balance of approximately $ 63.9 million after payment of a $ 16.0 million excess cash flow amount thereunder, was repaid in full, together with associated required lender fees and expenses of $ 3.3 million, and the Prior Term Loan Facility was terminated.
Revolving Credit Facility Amendment ( Effective March 2, 2022)
On March 2, 2022, Hudson Technologies Company ( `` HTC '') and Hudson Holdings, Inc. ( `` Holdings ''), as borrowers ( collectively, the `` Borrowers ''), and Hudson Technologies, Inc ( the `` Company '') as a guarantor, entered into an Amended and Restated Credit Agreement ( the `` Amended Wells Fargo Facility '') with Wells Fargo Bank, National Association, as administrative agent and lender ( `` Agent '' or '' Wells Fargo '') and such other lenders as have or may thereafter become a party to the Wells Fargo Facility. The Amended Wells Fargo facility amended and restated the prior Wells Fargo Facility.
Under the terms of the Amended Wells Fargo Facility, the Borrowers may borrow up to $ 90 million consisting of: ( i) $ 15 million immediately borrowed in the form of a `` first in last out '' term loan ( the `` FILO Tranche '') and ( ii) from time to time, up to $ 75 million at any time consisting of revolving loans ( the '' Revolving Loans '') in a maximum amount up to the lesser of $ 75 million and a borrowing base that is calculated based on the outstanding amount of the Borrowers ' eligible receivables and eligible inventory, as described in the
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Amended Wells Fargo Facility. The Amended Wells Fargo Facility also contains a sublimit of $ 9 million for swing line loans and $ 2 million for letters of credit.
Amounts borrowed under the Amended Wells Fargo Facility may be used for working capital needs, certain permitted acquisitions, and to reimburse drawings under letters of credit.
Interest under the Amended Wells Fargo Facility is payable in arrears on the first day of each month. Interest charges with respect to Revolving Loans are computed on the actual principal amount of Revolving Loans outstanding at a rate per annum equal to ( A) with respect to Base Rate loans, the sum of ( i) a rate per annum equal to the higher of ( 1) 1.0%, ( 2) the federal funds rate plus 0.5%, ( 3) one month term SOFR plus 1.0%, and ( 4) the prime commercial lending rate of Wells Fargo, plus ( ii) between 1.25% and 1.75% depending on average monthly undrawn availability and ( B) with respect to SOFR loans, the sum of the applicable SOFR rate plus between 2.36% and 2.86% depending on average quarterly undrawn availability. Interest charges with respect to the FILO Tranche are computed on the actual principal amount of FILO Tranche loans outstanding at a rate per annum equal to ( A) with respect to Base Rate FILO Tranche loans, the sum of ( i) a rate per annum equal to the higher of ( 1) 1.0%, ( 2) the federal funds rate plus 0.5%, ( 3) one month term SOFR plus 1.0%, and ( 4) the prime commercial lending rate of Wells Fargo, plus ( ii) 6.5% and ( B) with respect to SOFR FILO Tranche loans, the sum of the applicable SOFR rate plus 7.50%.
In connection with the closing of the Amended Wells Fargo Facility, the Company also entered into a First Amendment to Guaranty and Security Agreement, dated as of March 2, 2022 ( the `` Amended Revolver Guaranty and Security Agreement ''), pursuant to which the Company and certain subsidiaries are continuing to unconditionally guarantee the payment and performance of all obligations owing by Borrowers to Wells Fargo, as Agent for the benefit of the revolving lenders. Pursuant to the Revolver Guaranty and Security Agreement, as amended, Borrowers, the Company and certain other subsidiaries are continuing to grant to the Agent, for the benefit of the Wells Fargo Facility lenders, a security interest in substantially all of their respective assets, including receivables, equipment, general intangibles ( including intellectual property), inventory, subsidiary stock, real property, and certain other assets.
The Amended Wells Fargo Facility contains a financial covenant requiring the Company to maintain at all times minimum liquidity ( defined as availability under the Amended Wells Fargo Facility plus unrestricted cash) of at least $ 5 million, of which at least $ 3 million must be derived from availability. The Amended Wells Fargo Facility also contains a springing covenant, which takes effect only upon a failure to maintain undrawn availability of at least $ 11.25 million or upon an election by the Borrowers to increase the inventory component of the borrowing base, requiring the Company to maintain a Fixed Charge Coverage Ratio ( FCCR) of not less than 1.00 to 1.00, as of the end of each trailing period of twelve consecutive months commencing with the month prior to the triggering of the covenant. The FCCR ( as defined in the Wells Fargo Facility) is the ratio of ( a) EBITDA for such period, minus unfinanced capital expenditures made during such period, to ( b) the aggregate amount of ( i) interest expense required to be paid ( other than interest paid-in-kind, amortization of financing fees, and other non-cash interest expense) during such period, ( ii) scheduled principal payments ( but excluding principal payments relating to outstanding Revolving Loans under the Amended Wells Fargo Facility), ( iii) all net federal, state, and local income taxes required to be paid during such period ( provided, that any tax refunds received shall be applied to the period in which the cash outlay for such taxes was made), ( iv) all restricted payments paid ( as defined in the Amended Wells Fargo Facility) during such period, and ( v) to the extent not otherwise deducted from EBITDA for such period, all payments required to be made during such period in respect of any funding deficiency or funding shortfall with respect to any pension plan. The FCCR covenant ceases after the Borrowers have been in compliance therewith for two consecutive months.
The Amended Wells Fargo Facility also contains customary non-financial covenants relating to the Company and the Borrowers, including limitations on Borrowers' ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control.
The commitments under the Wells Fargo Facility will expire and the full outstanding principal amount of the loans, together with accrued and unpaid interest, are due and payable in full on March 2, 2027, unless the commitments are terminated and the outstanding principal amount of the loans are accelerated sooner following an event of default or in the event of certain other cross-defaults.
The Company's ability to comply with these covenants in future quarters may be affected by events beyond the Company's control, including general economic conditions, weather conditions, regulations and refrigerant pricing. Therefore, we can not make any assurance that we will continue to be in compliance during future periods.
The Company believes that it will be able to satisfy its working capital requirements for the foreseeable future from anticipated cash flows from operations and available funds under the Wells Fargo Facility. Any unanticipated expenses, including, but not limited to, an increase in the cost of refrigerants purchased by the Company, an increase in operating expenses or failure to achieve expected revenues from the Company's RefrigerantSide® Services and/or refrigerant sales or additional expansion or acquisition costs that may arise in the future would adversely affect the Company's future capital needs. There can be no assurance that the Company's proposed or future plans will be successful, and as such, the Company may require additional capital sooner than anticipated, which capital may not be available on acceptable terms, or at all.
CARES Act Loan
On April 23, 2020 the Company received a loan in the amount of $ 2.475 million from Meridian Bank under the Paycheck Protection Program ( `` PPP '') pursuant to the CARES Act. The loan had a term of two years, was unsecured, and bore interest at a fixed rate of one percent per annum, with the first nine months of principal and interest deferred. As a result of the COVID-19 pandemic, in applying for the loan the Company made a good faith assertion based upon the degree of uncertainty introduced to the capital markets and the industries affecting the Company's customers and the Company's dependency to curtail expenses to fund ongoing operations. The PPP loan proceeds have been used in part to help offset payroll costs as stipulated in the legislation. All or a portion of the PPP loan may be forgiven by the U.S. Small Business Administration ( `` SBA '') upon application by the Company and upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs and other covered areas, such as rent payments, mortgage interest and utilities, as applicable. During the third quarter of 2021, the Company received forgiveness of the loan from the SBA, resulting in $ 2.475 million of Other Income recorded in the Company's Consolidated Statements of Operations.
Off-Balance Sheet Arrangements
None.
Inflation
Inflation, historically or the current rise, has not had a material impact on the Company's operations.
Reliance on Suppliers and Customers
The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results. Currently the Company purchases virgin HCFC and HFC refrigerants and reclaimable, primarily HCFC and CFC, refrigerants from suppliers and its customers. Under the Act the phase-down of future production of certain virgin HCFC refrigerants commenced in 2010 and has been fully phased out by the year 2020, and production of all virgin HCFC refrigerants is scheduled to be phased out by the year 2030. To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms or experiences a decline in demand and/or price for refrigerants sold by it, the Company could realize reductions in revenue from refrigerant sales, which could have a material adverse effect on the Company's operating results and financial position.
For the year ended December 31, 2021, one customer accounted for 10% of the Company's revenues; no other customer accounted for more than 10% of the Company's revenues. At December 31, 2021, there were $ 3.1 million of outstanding receivables from this customer. For the year ended December 31, 2020, one customer accounted for 14% of the Company's revenues; no other customer accounted for more than 10% of the Company's revenues. At December 31, 2020, there were $ 2.9 million of outstanding receivables from this customer.
The loss of a principal customer or a decline in the economic prospects of and/or a reduction in purchases of the Company's products or services by any such customer could have a material adverse effect on the Company's operating results and financial position.
Seasonality and Weather Conditions and Fluctuations in Operating Results
The Company's operating results vary from period to period as a result of weather conditions, requirements of potential customers, non-recurring refrigerant and service sales, availability and price of refrigerant products ( virgin or reclaimable), changes in reclamation
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technology and regulations, timing in introduction and/or retrofit or replacement of refrigeration equipment, the rate of expansion of the Company's operations, and by other factors. The Company's business is seasonal in nature with peak sales of refrigerants occurring in the first nine months of each year. During past years, the seasonal decrease in sales of refrigerants has resulted in losses particularly in the fourth quarter of the year. In addition, to the extent that there is unseasonably cool weather throughout the spring and summer months, which would adversely affect the demand for refrigerants, there would be a corresponding negative impact on the Company. Delays or inability in securing adequate supplies of refrigerants at peak demand periods, lack of refrigerant demand, increased expenses, declining refrigerant prices and a loss of a principal customer could result in significant losses. There can be no assurance that the foregoing factors will not occur and result in a material adverse effect on the Company's financial position and significant losses. The Company believes that to a lesser extent there is a similar seasonal element to RefrigerantSide® Service revenues as refrigerant sales.
Recent Accounting Pronouncements
In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which revises guidance for the accounting for credit losses on financial instruments within its scope, and in November 2018, issued ASU No. 2018-19 and in April 2019, issued ASU No. 2019-04 and in May 2019, issued ASU No. 2019-05, and in November 2019, issued ASU No. 2019-11, which each amended the standard. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses ( referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. Entities are required to apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is still evaluating the impact of this ASU.
In March 2020, the FASB issued ASU 2020-04, which provides relief from accounting analysis and impacts that may otherwise be required for modifications to agreements necessitated by reference rate reform. It also provides optional expedients to enable the continuance of hedge accounting where certain hedging relationships are impacted by reference rate reform. This optional guidance is effective immediately, and available to be used through December 31, 2022. We are assessing the impact that reference rate reform and the related adoption of this guidance will have on our financial statements.
In August 2020, the FASB issued ASU 2020-06, `` Debt-Debt with Conversion and Other Options ( Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity ( Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity '', which is intended to simplify the accounting for convertible instruments by removing certain separation models in Subtopic 470-20, Debt-Debt with Conversion and Other Options, for convertible instruments. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. ASU 2020-06 is not expected to have a material impact on our financial statements.
© Edgar Online, source Glimpses | business |
U.S. housing costs should play role in guiding Fed policy, Waller says | The state of the U.S. housing market should help guide the Federal Reserve as it sets monetary policy and there appears no let-up in sight for higher home costs, Fed Governor Christopher Waller said on Thursday.
`` With housing costs gaining an ever-larger weight in the inflation Americans experience, I will be looking even more closely at real estate to judge the appropriate stance of monetary policy, '' Waller said in prepared remarks for a webinar on housing organized by Tel Aviv University and Rutgers University.
He noted that real estate comprises a big share of key inflation gauges as well as making a sizeable contribution to gross domestic product. Measures of market rent have risen more than 6.5% over the past two years while house prices are up a cumulative 35% since the beginning of the COVID-19 pandemic, according to the Zillow Home Value Index.
Waller also said he hoped some pandemic-specific factors pushing up home prices and rents would ease in the next year or so, but cautioned that overall rising costs in the `` red-hot '' housing market are due to demand far exceeding supply and are not fueled by excessive leverage or easy lending.
The Fed's more aggressive posture towards inflation is already having a substantial effect on consumer borrowing costs, which could help to rein in some of the homebuying frenzy.
`` We're just trying to eliminate some of the excess demand in housing, '' Waller said about the Fed's plans to raise its benchmark short-term interest rate to almost 2% this year.
Interest rates on the most popular U.S. home loan - the 30-year fixed-rate mortgage - shooting to a three-year high of 4.5% last week, according to Mortgage Bankers Association data.
Mortgage rates have climbed by 1.17 percentage points since the start of the year, their fastest increase since the summer of 2003.
Waller did not specifically address the general U.S. economic outlook or monetary policy in his speech. In an interview last week, Waller said economic data suggests the central bank should do a bigger interest rate hike in the next two policy meetings to begin to tame inflation, which at above 6% is more than three times the Fed's target.
Only economic uncertainty caused by Russia's invasion of Ukraine prevented Waller from supporting the larger half-percentage-point increase he had been advocating for ahead of the Fed's last policy meeting.
Fed policymakers raised the benchmark overnight interest rate by a quarter of a percentage point from the near-zero level on March 16 as they began to close the chapter on loose monetary policy measures put in place to bolster the economy through the pandemic.
But since then, Fed Chair Jerome Powell and several other central bank policymakers have indicated an increasing willingness to raise rates by 50 basis points when they gather again on May 3-4, at which time they may also begin to reduce the Fed's nearly $ 9 trillion balance sheet. ( Reporting by Lindsay Dunsmuir; Additional reporting by Dan Burns; Editing by Paul Simao and David Gregorio) | business |
Global Travel Technologies Market Analysis Report 2022: Hotel Industry to Embrace Next Generation Technologies to Function Amidst the Changing Working Environment - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Travel Technologies - Global Market Trajectory & Analytics '' report has been added to ResearchAndMarkets.com's offering.
Global Travel Technologies Market to Reach $ 12.5 Billion by 2026
Amid the COVID-19 crisis, the global market for Travel Technologies estimated at US $ 8.6 Billion in the year 2020, is projected to reach a revised size of US $ 12.5 Billion by 2026, growing at a CAGR of 6.8% over the analysis period.
Global Distribution System ( GDS), one of the segments analyzed in the report, is projected to record 6.1% CAGR and reach US $ 9.1 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Airline & Hospitality IT Solutions segment is readjusted to a revised 8.4% CAGR for the next 7-year period.
The U.S. Market is Estimated at $ 1.7 Billion in 2021, While China is Forecast to Reach $ 1.9 Billion by 2026
The Travel Technologies market in the U.S. is estimated at US $ 1.7 Billion in the year 2021. China, the world's second largest economy, is forecast to reach a projected market size of US $ 1.9 Billion by the year 2026 trailing a CAGR of 8.2% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.8% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.5% CAGR.
The COVID-19 outbreak has hit the travel and tourism industry, due to the restrictions on travel, lockdowns and restrictions placed in various countries affected by the pandemic. The post COVID-19 period will witness significant changes in the way people or seek holidays.
The disruption to the travel industry is having significant impact on players operating in the travel technology market with revenues reaching new lows in recent months. Though the travel and tourism industry faces risks in the form of cancellations and business disruptions amidst the ongoing pandemic, the industry is likely to regain some momentum in the coming times thus providing potential growth opportunities for the travel technology market.
Recovery will be mainly driven by essential travel needs specifically those related to business travel and personal emergencies. Domestic travel is likely to recover faster than international travel, as already being witnessed in China. This will ensure that funds designated for outbound travel will be now directed at local consumption, thus driving local economies.
The market will also benefit from the rising use of technologies such as artificial intelligence ( AI) and robotic process automation ( RPA). RPA facilitates the automation of certain repetitive processes, which enables in offering improved customer service. Through the automation of the booking process, the technology offers time savings.
RPA leverages software bots to function across systems and applications, to carry out repetitive manual and administrative functions and perform decision making. The use of RPS enhances the booking process, as the bots are scalable, flexible, affordable, and reliable. Also, RPA ` s reporting capabilities facilitate accurate tracking, detection and resolution of errors, which lead to considerable improvement in processes.
Key Topics Covered:
I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
2. FOCUS ON SELECT PLAYERS ( Total 35 Featured)
3. MARKET TRENDS & DRIVERS | general |
China Live Streaming E-Commerce Market Report 2022: Breakdown by Online Marketplace, Live Auctions, Influencer Streaming and Live Events - Forecasts to 2025 - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` China Live Streaming E-Commerce Market: Analysis By Product Size & Trends with Impact of Covid-19 and Forecast up to 2025 '' report has been added to ResearchAndMarkets.com's offering.
The report provides an in-depth analysis of China live streaming e-commerce market with description of market sizing and growth. Furthermore, the report also provides detailed analysis of market by value, by type, by penetration, by volume and by products.
Live streaming can be defined as the streaming video over the internet in real time, without being recorded and stored. At present, video game, social media video, TV broadcasts, etc. all can be live-streamed. Live streams can be broadcasted one-to-many connections that go out to multiple users at once. Live stream applications have limited protocols in comparison to videoconferencing technologies like Skype, FaceTime, and Google Hangouts Meet work on real-time communication ( RTC) protocols.
Live streaming e-commerce would transform e-commerce drastically. Dubbed live commerce is the convergence of video and shopping, which helps in improving customer engagement, close the gap between customer and product, drive sales, and at place where bidding is involved increase the average sales price.
Furthermore, based on the types, live commerce can be segmented into online marketplace, live auctions, influencer streaming and live events.
China live streaming e-commerce market has progressed promptly over the years and the market is further anticipated to augment during the forecasted years. The market would increase owing to different growth drivers such as, growing number of internet users, rising adoption of online shopping, surging urban population, escalating mobile cellular subscription, augmenting social media users, increasing cross border shoppers, etc.
However, the market faces some challenges which are hindering the growth of the market. Some of the major challenges faced by the industry are dependency on third-party logistics service and fail to anticipate buyer needs. Moreover, the market growth would succeed by various market trends like increasing adoption of artificial intelligence, growth in cloud computing technology, influencer marketing, etc.
Moreover, the report also assesses the key opportunities in the market and outlines the factors that are and would be driving the growth of the industry. Growth of the overall China live streaming e-commerce market has also been forecasted till the year 2025, taking into consideration the previous growth patterns, the growth drivers and the current and future trends.
Some of the major players operating in the China live streaming e-commerce market are Alibaba Group ( Taobao), Kuaishou, Pinduoduo Inc., and Douyin ( TikTok), whose company profiling has been done in the report.
Furthermore, in this segment of the report, business overview, financial overview and business strategies of the respective companies are also provided.
Key Topics Covered:
1. Executive Summary
2. Introduction
2.1 Live Streaming: An Overview
2.2 Functioning of Live Streaming
2.3 Types of Live Commerce
2.4 Industrial Chain of Live Streaming E-Commerce
2.5 Difference between Traditional E-Commerce and Live Streaming E-Commerce
3. China Market Analysis
3.1 China E-Commerce Market: An Analysis
3.1.1 China E-Commerce Market by Value
3.1.2 China E-Commerce Market by Type ( e-Commerce Platforms, WeChat E-Commerce, Livestream and Cross Border E-Commerce)
3.2 China Live Streaming E-Commerce Market: An Analysis
3.2.1 China Live Streaming E-Commerce Market by Value
3.2.2 China Live Streaming E-Commerce Market by Penetration
3.2.3 China Live Streaming E-Commerce Market by Volume
3.2.4 China Live Streaming E-Commerce Market Value by Products ( Clothing, Accessories, Cosmetics and Other)
3.3 China Live Streaming E-Commerce Market: Product Analysis
3.3.1 China Live Streaming E-Commerce Cosmetics Market by Value
3.3.2 China Live Streaming E-Commerce Clothing Market by Value
3.3.3 China Live Streaming E-Commerce Accessories Market by Value
4. COVID-19
4.1 Impact of Covid-19
4.2 Impact of COVID-19 on Online Sales
4.3 Impact of COVID-19 on Ecommerce
4.4 Response of Industry
5. Market Dynamics
5.1 Growth Drivers
5.1.1 Growing Number of Internet Users
5.1.2 Rising Adoption of Online Shopping
5.1.3 Surging Urban Population
5.1.4 Escalating Mobile Cellular Subscription
5.1.5 Augmenting Social Media Users
5.1.6 Increasing Cross Border Shoppers
5.2 Challenges
5.2.1 Dependency on Third-Party Logistics Service
5.2.2 Fail to Anticipate Buyer Needs
5.3 Market Trends
5.3.1 Increasing Adoption of Artificial Intelligence
5.3.2 Growth in Cloud Computing Technology
5.3.3 Influencer Marketing
6. Competitive Landscape
6.1 China Live Streaming E-Commerce Market Players: A Financial Comparison
6.2 China Live Streaming E-Commerce Market Players by Share
6.3 China Monthly Time Spent per User by Market Players
6.4 China Daily Active Users by Market Players
7. Company Profiles | general |
Insights on the Hydrogen Cyanide Global Market to 2027 - Key Drivers and Restraints - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Global Hydrogen Cyanide Market Outlook to 2027 '' report has been added to ResearchAndMarkets.com's offering.
This report provides deep insight into the Industrial market's current and future state across various regions. The study comprehensively analyses the Hydrogen Cyanide market by segmenting based on the By Type ( Hydrogen Cyanide Liquid, Hydrogen Cyanide Gas), By Application ( Adiponitrile, Acetone Cyanohydrin, Cyanuric Chloride, Others), By End User ( Automotive, Agriculture, Mining, Others) and Geography ( Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).
Companies Mentioned
The report examines the market drivers and restraints and the impact of Covid-19 on the market growth in detail. The study covers and includes emerging market trends, developments, opportunities, and challenges in the industry. This report also covers extensively researched competitive landscape sections with prominent companies and profiles, including their market shares and projects.
Hydrogen Cyanide is used in the automotive industry to manufacture nylon 6,6, which substitutes metals. It is used commercially for fumigation, electroplating, mining, chemical synthesis, and the production of synthetic fibers, plastics, dyes, and pesticides. It is also used in the pharmaceutical industry.
The automotive industry is the most primary and vital consumer of Hydrogen Cyanide and is estimated to drive the global demand. Adiponitrile is used almost exclusively in the manufacturing process of hexamethylenediamine, of which over 92% is used to make versatile nylon 6,6 fibers and resins, driving the Global Hydrogen Cyanide market.
In 2021, the global auto market will boom ahead by 9% to 83.4 million units and advance by another 5% in 2022 to 86.9 million units. All growth followed by another solid 4% in 2023 to 89.7 million units. Western and Central Europe sales will revive by 11.1% in 2021 to 15.25 million units and move up to 16.58 million units in 2023.
North America is on its way to becoming the global leader in the production and consumption of Hydrogen Cyanide, with most of the consumption in countries like the US and Canada. With a growing population and increasing income across countries, there has been an increased demand for the Automotive Industry, which is expected to drive the global Hydrogen Cyanide market. The demand for Hydrogen Cyanide is growing in the agriculture sector as consumers ' needs evolve.
Hydrogen Cyanide-based fertilizers improve crop yields, which helps the farmers generate more revenue through producing more crops, which is expected to drive the global Hydrogen Cyanide market. Due to increasing industrialization, cyanide leaching is used as dominant gold extraction selectively used to dissolve gold, increasing the demand for Hydrogen Cyanide. Hydrogen Cyanide is widely used for anti-hypertensive drugs in the pharmaceutical industry, driving the Global Hydrogen Cyanide Industry market. Therefore, the mentioned factors have made the Asia Pacific region vital for developing Hydrogen Cyanide.
Key Topics Covered:
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
3.1 Introduction
3.2 Market Dynamics
3.2.1 Drivers
3.2.2 Restraints
3.3 Market Trends & Developments
3.4 Market Opportunities
3.5 Feedstock Analysis
3.6 Trade Analysis
3.7 Price Trend Analysis
3.8 Supply Analysis
3.9 Regulatory Policies
3.10 Analysis of Covid-19 Impact
4. Industry Analysis
4.1 Supply Chain Analysis
4.2 Porter's Five Forces Analysis
4.2.1 Competition in the Industry
4.2.2 Potential of New Entrants into the Industry
4.2.3 Bargaining Power of Suppliers
4.2.4 Bargaining Power of Consumers
4.2.5 Threat of substitute products
5. Market Segmentation & Forecast
5.1 By Type
5.1.1 Hydrogen Cyanide Liquid
5.1.2 Hydrogen Cyanide Gas
5.2 By Application
5.2.1 Adiponitrile
5.2.2 Acetone Cyanohydrin
5.2.3 Cyanuric Chloride
5.2.4 Others
5.3 By End User
5.3.1 Automotive
5.3.2 Agriculture
5.3.3 Mining
5.3.4 Pharmaceutical
5.3.5 Others
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
8.1 List of Notable Players in the Market
8.2 M & A, JV, and Agreements | general |
Renewable energy shouldn’ t be blamed for spiking energy prices — it's the solution | This story was originally published on World Resources Institute. Read it here.
Electricity, natural gas and oil prices have risen globally in recent months, causing hardship for many people around the world. Europe is at the center of the crisis, with natural gas prices increasing 400 percent last year, raising household bills and putting multiple energy companies out of business.
Other countries such as China, Brazil and the United States have also experienced higher-than-normal energy prices. Global oil prices are at the highest level in seven years. Here, we unpack the causes and the effects of the energy crisis and what that means for the future of clean energy.
The energy crisis has been caused by multiple overlapping factors on both the supply and demand sides, driven by the pandemic. The pandemic caused a market disruption larger than the world has seen before.
Energy demand dropped sharply in 2020 during various lockdowns around the world. Prices fell, so fossil fuel production and investment in fossil fuels decreased. In China and elsewhere in the Northern Hemisphere last winter was especially cold, depleting coal and gas stockpiles. The pandemic also caused energy producers to postpone maintenance and repair work, slowing everything down.
Then, in 2021, as demand rebounded strongly, energy supply was unable to ramp up fast enough, causing the price increases. In normal times, these market forces would have re-balanced themselves toward a price equilibrium, but with COVID supply chain disruptions, shipping delays and protectionism, global trade was inadequate to balance the supply and demand fluctuations and shortages.
On top of all this, and perhaps most crucially, oil and gas producers such as Russia and Saudi Arabia reportedly restricted gas and oil production for export to keep prices high and maximize their profits and strategic position.
Some commentators have claimed that renewables are the cause of the energy crisis Europe is experiencing. They point out that the biggest spike in European electricity prices coincided with lower-than-average wind generation, but in reality this only temporarily added some pressure on electricity markets. Wind generation in Europe has resumed adequate production; in fact there were record amounts of wind power at the end of the year while energy prices continue to be high.
Based on our analysis, the amount that electricity prices have spiked in a given country does not seem to have a strong correlation to its level of wind and solar energy production.
China, which has about 10 percent wind and solar electricity, experienced a major electricity crisis. The U.S., at 12 percent wind and solar, has largely avoided it. Less than 1 percent of Singapore’ s electricity comes from wind and solar, yet Singapore’ s wholesale electricity prices spiked by six times in November.
As International Energy Agency ( IEA) Director Fatih Birol puts it, the problem is not that there is too much clean energy — it’ s that there is too little. The world has been chronically underinvesting in energy supply and transmission infrastructure. Global energy demand has been increasing over the past five years but total spending on energy has been > flat.
The mismatch between energy supply and demand is not a sign to slow down the low-carbon transition. In fact, it is a call to ramp up clean energy, energy efficiency and infrastructure investments to ensure continued reliable and resilient supplies. This would make countries in Europe and elsewhere less vulnerable to geopolitical or economic choices by suppliers.
One advantage of renewable energy is that the power prices are generally stable. Once the solar and wind farms are built, all they need is the sun or the wind. In contrast, electricity from gas or coal requires continuous fuel supply, which is vulnerable to disruptions in production and transport.
Fossil fuel price spikes like this have happened before and will happen again. Meanwhile, the costs of solar have dropped 85 percent since 2010 and the costs of both onshore and offshore wind have dropped about 50 percent.
For residential or commercial energy users, investing in renewable energy, energy efficiency or other climate-friendly technologies can be a buffer against the market forces that affect fossil fuels. European households equipped with solar panels are saving an average of 60 percent on their monthly electricity bills during this crisis.
Meanwhile, in the U.S., households heated with electricity will be largely unaffected by the crisis, only expected to see a 6 percent increase in their bills compared to last year, while households heated with natural gas are expected to spend 30 percent more.
Increased investment in renewable energy will increase supply and reduce prices. According to the IEA, if the world invests enough in clean energy to reach net-zero emissions, average household energy bills in advanced economies will be lower in 2030 and 2050 than they are today. This is not to mention that renewable energy creates more jobs than fossil fuels.
None of this is to say that the transition to clean energy will always be smooth and easy. As renewable penetration grows, it will be important to invest in solutions that can address weather-related variability, such as long-duration energy storage solutions.
Governments also need to expand and modernize transmission and distribution grids to increase reliability, efficiency and accessibility. It will be essential to bolster energy systems with protections against severe weather-related events, such as fires, hurricanes and heat and cold waves.
In the short term, governments of countries affected by the energy price hikes will need to take measures to assist vulnerable households. This can be done by directly providing money to these households to help with their bills and investing in energy efficiency to reduce the energy burden that consumers shoulder. | esg |
Q1 roundup of major food players: Alt protein takes off; deforestation moves don’ t | This article originally appeared as part of our Food Weekly newsletter. Subscribe to get sustainability food news in your inbox every Thursday.
The quarterly startup roundups in Food Weekly have been some of the most loved editions by our readers. With climate tech speeding up, it’ s becoming harder to stay on top of trends and many new fascinating products. But startups aren’ t the only innovators.
Larger companies are also pushing for food systems transformation ( often in partnership with startups). But just as keeping track of all the startup funding can get daunting, updates from new pilots and programs bigger companies are working on can get lost in the deluge of sustainability announcements. That’ s why I’ m introducing a second quarterly roundup focused on sustainability news from large food and agriculture companies.
In this inaugural edition, we’ ll touch on progress in food waste, alternative proteins, regenerative agriculture and deforestation.
March came about with three big food waste reduction announcements. Google gave its food waste goal a refresh, aiming to cut waste in half for each employee and eliminate sending food waste to landfills by 2025. The tech company will engage in projects across the food value chain to approach this goal. It will partner with companies providing imperfect and upcycled products, invest in supply chain traceability, transparency and tracking, rework the operations and menus of its kitchens and double down on composting. Google also donated $ 1 million to the food waste non-profit ReFED for its new Catalytic Grant Fund.
Walmart and Sodexo are also making headway. The companies signed on to the Pacific Coast Food Waste Commitment, a public-private partnership that aims to halve food waste by 2030 in West Coast states. The retailer and foodservice provider will double down on efforts to reduce waste in their own operations and bring along suppliers and other value chain partners.
These are three relatively ambitious goals for a complex issue. The confidence of these players reflects a growing ecosystem of service providers focused on food loss and waste reduction. They will hopefully also promote a virtuous innovation cycle, catalyzing further R & D and helping startups mature.
Starbucks also deserves an honorary mention for a tangential waste effort. The company announced new targets to reduce the use of disposable cups that make up 20 percent of its global waste. By the end of 2023, Starbucks aims to put systems in place that will allow all customers in the U.S. and Canada to bring in their own reusable cups. The company is also experimenting with a range of fee and discount programs to incentivize the adoption of reusable cups. This is encouraging news after COVID-19 brought many reusability programs to a halt and increased waste from takeout meals.
This quarter, alternative protein investments and partnerships have been the most dynamic theme for companies. From Amazon to KFC and Delta, providers are looking for ways to meet rising consumer demand for plant-based foods.
KFC and McDonald’ s made moves in pilot restaurants in the U.S., introducing vegan nuggets and a vegan burger patty. Burger King has gone a step further in the U.K. It’ s experimenting with a trial at its biggest branch in London that will offer a 100 percent vegan menu for a month. If the test run goes well, the fast-food chain will consider converting more of its branches to vegan outlets. Alternative protein is also making its way into in-flight menus after Delta introduced plant-based burgers and meatless lamb on select flights.
Retailers and manufacturing brands are following the same trend. Amazon Fresh rolled out 15 plant-based products as part of its private label brand. Kroger entered into a strategic partnership with Impossible Foods to bring plant-based innovation to its Home Chef business. Kraft Heinz entered into a joint venture with the Chilean startup NotCo to co-brand plant-based products, using AI technology. In a similar effort, PepsiCo joined efforts with Beyond Meat to develop vegan jerky.
To top things off, Nestlé went a step ahead of its competitors. The company started construction of a $ 73 million manufacturing plant in Serbia, where it plans to produce 12,000 tons of plant-based meat per year, supplying its Garden Gourmet brand. Alternative protein is big business now, not just a do-good side project.
Danone has been an early adopter in regenerative agriculture. It published results from the fourth year of its soil health program that focuses on sustainability in the dairy industry. The initiative works on over 140,000 acres across the U.S. and Canada where it aims to enhance soil organic matter for improved environmental and economic farm outcomes.
Since its inception, Danone’ s program claims to have reduced 119,000 metric tons of carbon dioxide equivalent, sequestered 31,000 tons of carbon, prevented 337,000 tons of soil from erosion and conserved 1,700 acres of biodiverse ecosystems. In collaboration with Sustainable Environmental Consultants, the company also launched a new data tool that farmers can use to forecast the return on investment of regenerative practices to boost their adoption.
Evermore companies are kicking off their own regenerative farming programs. Kellogg announced a $ 2 million investment in a five-year program that aims to reduce methane emissions from rice farming in the Lower Mississippi River Basin. It will partner with the software platform Regrow to measure, report and verify the program’ s outcomes. Beverage giant Diageo also announced a new three-year pilot that aims to improve barley production in Ireland.
Finally, the Farmers Business Network, an online ag marketplace, birthed a $ 25 million pilot fund in collaboration with the Environmental Defense Fund. It will offer discounted operating loans to corn, soybean and wheat growers who achieve soil health or nitrogen use improvements.
I’ m encouraged by this focus on data and financial tools for farmers. If companies want to reach their ambitious regenerative goals, easy farmer engagement tools will be key in addition to ensuring that these practices make financial sense on the ground.
Let’ s start with the good news. Nestlé announced plans to triple its cocoa sustainability funding to $ 1.4 billion by 2030, investing in social and environmental supply chain improvements such as preventing child labor, promoting gender equality and introducing climate-resilient farming practices. The focus will be on Ghana and Côte d’ Ivoire, the world’ s top two cocoa producers.
The second optimistic data point comes from Indonesia, Malaysia and Papua New Guinea. In 2021, palm-oil-linked deforestation in the region fell to its lowest level since 2017. But it seems to be caused mostly by COVID-19 restrictions and economic decline, rather than company action. That’ s still good news but offers little takeaways for sustainability practitioners.
Over in the Amazon, companies kicked off 2022 with problematic deforestation headlines. An incredible Bloomberg investigation into JBS’ cattle supply chain in Brazil threw a damning shadow on the company’ s sustainability efforts.
Soy commodity traders such as Bunge, Cargill and ADM have come under criticism for lobbying against the EU’ s new legislation that proposes to ban imports from deforestation-fueling products, shortly after making new deforestation commitments at COP 26. Traders think the bill is too harsh, but environmental groups such as WWF, the Climate Observatory and the Nature Conservancy say it doesn’ t go far enough.
If companies really want to make good on their anti-deforestation promises, they would fare better working with the legislators of European and Amazonian countries rather than opposing policy efforts that establish a fair and sustainable playing field. | esg |
Peru Construction Market Trends and Opportunities Report 2021: Historical ( 2016-2020) and Forecast ( 2021-2025) Valuations - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Construction in Peru - Key Trends and Opportunities to 2025 ( H1 2021) '' report has been added to ResearchAndMarkets.com's offering.
Peru's construction industry is now expected to grow by 16.9% in 2021 ( a significant adjustment to the publisher's previous 10.9% growth projection), although most of the growth in the industry for the year is explained by base effects.
The latest data from the National Institute of Statistics and Informatics ( INEI) showed that Peru's construction output rose at a sharper rate in Q1 2021 despite the ongoing pandemic and political uncertainty. According to the INEI, the higher execution of public works helped construction activity to rise at a year-on-year ( Y-o-Y) rate of 40.6% in the first quarter, up from a Y-o-Y increase of 19% in Q4 2020.
This brought output closer to its pre-pandemic ( Q4 2019) levels and is expected to provide a strong carryover into the Q2 2021 figure. Most construction works in the country were suspended from March 2020 until the end of June, except for essential activities, which would help explain the jump in activity in the first half of 2021.
The construction industry in Peru has been recovering since early July 2020, when restrictions on works were lifted and public and private works were reactivated.
Growth over the forecast period is anticipated to be supported by ongoing improvement in the housing market and the continued construction of large infrastructure and mining projects such as the Lima and Callao Metro Line 2, the Jorge Chavez Airport Expansion, the Chancay Port Terminal, the Mina Justa copper project, and the expansion of Toromocho.
Public investment is expected to be boosted by the greater execution of reconstruction works in the north of the country, as well as projects under the National Plan of Infrastructure for Competitiveness ( PNIC), which started in July 2019, and Special Public Investment Projects.
This report provides detailed market analysis, information and insights into Peru's construction industry, including:
Scope
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors | general |
Japan to start preparations for administering 4th COVID vaccine shots | Japan will start preparations for the administration of fourth shots of coronavirus vaccines, a health ministry subcommittee agreed Thursday, after the government said it would procure additional doses from two U.S. pharmaceutical companies.
The details, including whether to actually administer the additional booster shots and who would be eligible, will be determined later.
The agreement of the subcommittee members came after the government said it had agreed to procure a total of 145 million vaccine doses from Pfizer Inc. and Moderna Inc. to prepare for the rollout of fourth shots.
The subcommittee also approved the administration of third shots of Pfizer's COVID-19 vaccine to children aged between 12 and 17, with vaccinations expected to begin as early as next month.
Fourth doses of COVID-19 vaccines are recommended in Israel and Britain, with recipients limited to medical staff and individuals at high risk of developing severe symptoms.
The effectiveness of third shots against the highly contagious Omicron variant of the coronavirus has been found to wane over time.
In the meeting, the subcommittee members agreed to the health ministry's proposal to prepare for the administration of fourth shots, aimed at preventing development of the disease or severe symptoms, based on overseas data on their effectiveness and safety.
Under the proposal, the Pfizer and Moderna vaccines are expected to be used for the fourth shots. All those who received third shots are likely to be eligible, but the ministry will continue studying the matter.
The interval between third shots and the additional boosters will be a minimum of six months in principle, but the ministry will re-examine the matter after taking into account the situation overseas.
Regarding the administration of the fourth shots, Chief Cabinet Secretary Hirokazu Matsuno said, `` We need to study recipients ( of the shots) and the timing for starting them based on the duration of third vaccinations and the effectiveness of fourth shots. ''
Matsuno added that the government will make a decision after hearing the views of experts.
==Kyodo
© Kyodo News International, Inc., source Newswire | business |
Zultys Receives 2022 Product of the Year Award and Remote Work Pioneer Award | Zultys Advanced Communicator 2022 CUSTOMER Product of the Year Award ( Graphic: Business Wire)
Zultys Advanced Communicator 2022 CUSTOMER Product of the Year Award ( Graphic: Business Wire)
2022 TMCnet Remote Work Pioneer Award ( Graphic: Business Wire)
SUNNYVALE, Calif. -- ( BUSINESS WIRE) -- Zultys announced today that TMC, a global, integrated media company, has named Zultys Advanced Communicator ( ZAC) as a 2022 CUSTOMER Product of the Year Award winner and a 2022 TMCnet Remote Work Pioneer Award winner.
Businesses today need their employees to stay productive and connected as the workplace evolves, whether they are in the office, working from home, or mobile and on the go. ZAC lets teams collaborate from anywhere, on any device, with tools like call center integration, SMS texting, group chat, web conferencing, screen sharing, file sharing, video calling, integrated fax, and more, all from a single intuitive interface.
“ Zultys is thrilled to be receiving the CUSTOMER Magazine Product of the Year Award and the TMCnet Remote Work Pioneer Award, ” said John Osgood, Executive Vice President of Sales and Marketing. “ We are all very proud of our engineering team. They are always listening to Partner and customer feedback and using it to improve ZAC’ s desktop application and browser-based WebZAC version while keeping functionality inside it as a single pane of glass. Awards like these help keep us focused on delivering the best product in the marketplace for improving business communications between employees and customers. Thank you for recognizing Zultys! ”
The CUSTOMER Product of the Year Award recognizes vendors that are advancing the call center, CRM, and teleservices industries one solution at a time. The award highlights products which enable their clients to meet and exceed the expectations of their customers.
The TMCnet Remote Work Pioneer Award honors companies whose software and other solutions support the massive increase in remote working brought on by the Coronavirus pandemic.
“ On behalf of both TMC and CUSTOMER magazine, it is my pleasure to honor Zultys with a Product of the Year Award and a Remote Work Pioneer Award, ” said Rich Tehrani, CEO, TMC. “ Zultys is being honored for their achievement in bringing innovation and excellence to the market while leveraging the latest technology trends. Its ZAC solution has proven deserving of this elite status, and I look forward to continued innovation from Zultys in 2023 and beyond. ”
About Zultys
Zultys delivers an easy-to-use, secure, and reliable platform designed to streamline all forms of communications and increase productivity for any size business. Please visit www.zultys.com for more information.
About TMC’ s CUSTOMER Magazine | general |
Accenture Acquires Alfa Consulting, Expands Supply Chain Capabilities in Capital Intensive Industries | Accenture has acquired Alfa Consulting ( Photo: Business Wire)
BARCELONA, Spain -- ( BUSINESS WIRE) -- Accenture ( NYSE: ACN) has acquired Alfa Consulting, a consultancy that specializes in operations strategy in capital intensive industries. The acquisition reinforces Accenture’ s capabilities for helping clients in Spain, Portugal and México transform their supply chains to be more resilient, responsive and sustainable. Terms of the transaction were not disclosed.
Headquartered in Barcelona with offices in Madrid and México, Alfa Consulting has extensive expertise in leveraging analytics to design and implement new operational models for clients across industries such as utilities, high tech, energy and industrial goods, among others. The company’ s 52 highly specialized consultants will join Accenture’ s Supply Chain & Operations function, which helps clients with end-to-end supply network visibility, customer-centered supply chain segmentation, sourcing and procurement transformation, operational agility, resilience stress testing and sustainable and responsible supply chain strategies.
“ Supply chains, especially in capital intensive industries, need to be flexible and responsive, while also maintaining the transparency that makes them trustworthy, ” said Kris Timmermans, head of Accenture's Supply Chain & Operations function. “ Alfa Beyond Consulting's deep experience and proprietary tools complement our vision for helping clients build resilient and sustainable supply chains that can meet today’ s demands and tomorrow’ s opportunities. ”
Alfa Consulting has deep knowledge and market-recognized assets in analytical methodologies, workforce planning, value-based maintenance and contractor management practices. The company also has experience in renewable energies and helping clients with energy transition plans.
Joaquín Escoda, Alfa Consulting Chairman said “ We are excited with all the possibilities that joining Accenture will offer to our clients and employees. On one hand, the capability to offer a complete range of services and products, complementing our competencies with best-in-class solutions and technological platforms and on the other, the great variety of opportunities and resources for our employees’ and partners’ professional careers. ”
“ Alfa Consulting brings differentiated expertise in sectors with extensive industrial footprints and distributed assets. With Alfa Consulting as part of Accenture, we will further enhance our ability to help clients in these industries build future-ready intelligent supply chains that create change and drive value, ” added Domingo Mirón, Accenture’ s Iberia Market Unit lead.
About Accenture
Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’ s largest network of Advanced Technology and Intelligent Operations centers. Our 699,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “ may, ” “ will, ” “ should, ” “ likely, ” “ anticipates, ” “ expects, ” “ intends, ” “ plans, ” “ projects, ” “ believes, ” “ estimates, ” “ positioned, ” “ outlook ” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Many of the following risks, uncertainties and other factors identified below may be amplified by the invasion of Ukraine by Russia, the sanctions ( including their duration), and other measures being imposed in response to this conflict, as well as any escalation or expansion of economic disruption or the conflict’ s current scope. These risks include, without limitation, risks that: the transaction might not achieve the anticipated benefits for Accenture; Accenture’ s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’ s clients’ businesses and levels of business activity; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; Accenture’ s business depends on generating and maintaining ongoing, profitable client demand for the company’ s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’ s results of operations; if Accenture is unable to match people and skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’ s business, the utilization rate of the company’ s professionals and the company’ s results of operations may be materially adversely affected; the COVID-19 pandemic has impacted Accenture’ s business and operations, and the extent to which it will continue to do so and its impact on the company’ s future financial results are uncertain; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’ s ability to attract and retain business and employees may depend on its reputation in the marketplace; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’ s results of operations could be adversely affected; Accenture’ s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’ s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’ s effective tax rate, results of operations, cash flows and financial condition; Accenture’ s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; as a result of Accenture’ s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’ s business could be materially adversely affected if the company incurs legal liability; Accenture’ s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’ s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’ s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture’ s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “ Risk Factors ” heading in Accenture plc’ s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’ s expectations. | general |
Exor Swung to Profit in 2021 | By Kim Richters
Exor N.V. on Thursday reported a profit for 2021 and proposed to pay an unchanged dividend.
The investment company, which holds stakes in a number of companies such as car makers Ferrari N.V. and Stellantis N.V., said full-year net profit came in at 1.72 billion euros ( $ 1.89 billion). In 2020, Exor posted a loss of EUR30 million mainly because its subsidiaries were hit by the coronavirus pandemic.
Net asset value was EUR31.07 billion at Dec. 31, 2021, compared with EUR24.04 billion a year earlier.
Exor proposed a dividend of EUR0.43 a share, unchanged from the previous one.
Write to Kim Richters at kim.richters @ wsj.com
( END) Dow Jones Newswires
03-24-22 1347ET | business |
China Struggles to Keep Growth Momentum Strong as Risks Escalate | The information you requested is not available at this time, please check back again soon.
( Bloomberg) -- China struggled to boost economic momentum in March, as slumping car and home sales, stock market turmoil and higher inflation weighed on growth and a fresh round of Covid outbreaks swept across the country.
That’ s the outlook from Bloomberg’ s aggregate index of eight early indicators for this month. The overall indicator for the economy was unchanged from last month, but sub-indexes weakened almost across the board.
China is battling its worst wave of outbreaks since the initial flareup two years ago and the nation’ s stringent Covid Zero approach has proven increasingly costly. Factories in manufacturing hubs including Shenzhen were forced to temporarily halt production, and consumers were told to stay home as authorities try to contain the highly contagious omicron variant.
Places designated middle and high-risk virus areas now exceed 30% of China’ s gross domestic product, according to Goldman Sachs Group Inc. estimates. If a four-week lockdown was imposed in these areas, annual GDP would be reduced by 1 percentage point, the bank’ s economists said. That would make it even harder for Beijing to achieve its ambitious growth target of around 5.5% set for the year.
Business sentiment among smaller firms improved further this month, largely due to a seasonal rebound from the week-long Lunar New Year holidays in February, according to Standard Chartered Plc’ s survey of more than 500 smaller firms. However, the improvement paled in comparison to the historical average, the bank’ s economists Hunter Chan and Ding Shuang wrote in a report. And a drop in the average reading of the performance sub-index in the first quarter suggests economic activity slowed from the fourth quarter, they said.
Global demand remained resilient, although the pace of expansion continued to weaken from the previous month. South Korea’ s exports, a leading indicator of global trade, advanced 10.1% in the first 20 days of March from a year earlier. The double-digit gain was the slowest since December 2020, likely due to geopolitical and virus risks weighing on global demand.
The Standard Chartered survey also pointed to a normalization of external demand, with new export orders contracting and performance of export-oriented small and mid-sized firms softening in the first quarter.
The property market continued to weaken, with home sales slumping in March despite the fact that more Chinese cities have recently eased restrictions in order stimulate demand, such as by cutting mortgage rates and down payments on loans. Car sales also dropped, indicating that consumer sentiment was weak amid the repeated outbreaks.
The stock market fell in March, as heightened geopolitical tensions linked to Russia’ s military attack on Ukraine sent global markets plunging. The benchmark index is down about 14% this year. China’ s top financial policy body last week made a strong vow to ensure stability in capital markets, providing some respite to investors.
Bloomberg Economics generates the overall activity reading by aggregating a three-month weighted average of the monthly changes of eight indicators, which are based on business surveys or market prices.
Rogers Communications ' takeover of Shaw cleared one of three crucial hurdles Thursday.
A new report from CIBC’ s fixed-income team says that if the Bank of Canada decides to deliver a double-dose of monetary tightening with a 50 basis point rate hike, it would be best served by waiting for the central bank’ s June meeting.
Canada will increase oil and gas exports by the equivalent of 300,000 barrels a day to help nations that are trying to shift away from Russian supplies, the country’ s resources minister said.
A group of Bridging Finance investors plan to make a last-ditch effort in an Ontario court Friday to allow them to have a greater say in the future of the troubled private debt lender rather than have its court-appointed receiver wind down the firm. | general |
AstraZeneca: Evusheld long-acting antibody combination recommended for approval in the EU for the pre-exposure prophylaxis ( prevention) of COVID-19 | Attachments
Disclaimer
AstraZeneca plc published this content on 24 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2022 18:11:05 UTC. | business |
Journal of Risk Volume 24, Number 3 ( February 2022) | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
Modeling comovements while avoiding the use of copulas and scrutinizing the plausibility of stress test scenarios carried out by the US Federal Reserve are among the topics discussed in this issue of The Journal of Risk. They are complemented by a paper on the calibration of stochastic volatility models and one on the estimation of future values-at-risk and initial margins.
“ How to build a risk factor model for non-life insurance risk ”, our first paper, is by Alessandro Ferriero, who introduces an alternative to copulas as a way to capture loss dependencies in non-life insurance portfolio lines affected by common factors. He relies on the theory of infinitely divisible distributions to support this approach and shows numerically how it can capture nonsymmetric dependencies and multidimensional structures where standard copulas – such as the Clayton, Gumbel and Gaussian – could not.
In the issue’ s second paper, “ Regularization effect on model calibration ”, Mesias Alfeus, Xin-Jiang He and Song-Ping Zhu compare two calibration methods for two stochastic volatility models ( the stochastic alpha beta rho ( SABR) model and the Heston model) by assessing the regularization effect on out-of-sample pricing accuracy. On the basis of Nasdaq 100 index data, their study shows that regularized calibration is effective only for long-term horizon pricing.
In “ Estimating future value-at-risk from value samples, and applications to future initial margin ”, the third paper in the issue, Narayan Ganesan and Bernhard Hientzsch compare a variety of methods for estimating future values-at-risk and dynamic initial margins. They highlight in particular the effects of violations of moment constraints and those of additional inner samples, which they address, and they suggest approaches for improvement. They also propose the use of pseudo-inner samples instead of actual inner samples in order to enhance the accuracy and speed of methods such as nested Monte Carlo and Johnson percentile matching.
Our last paper, “ Severe but plausible – or not? ”, is by Stefan Gavell, Mark Kritzman and Cel Kulasekaran, who rely on the Mahalanobis distance, used to measure statistical unusualness, to determine the plausibility of stress test scenarios devised by the US Federal Reserve in light of the Covid-19 pandemic. Based on standard statistical assumptions, the authors show that these scenarios are practically implausible but offer suggestions for their slight modification to remedy their shortcomings. They further propose an approach to make the distribution of the Mahalanobis distance consistent with empirical evidence, thus avoiding the assumption of normality.
In this paper the authors present a dependence model for non-life insurance risk based on risk factors, analogous to those generally used for life insurance or asset risk.
This paper discusses several methods to estimate fVaR or margin requirements and their expected time evolution, from simple options to more complex interest swaps.
In this paper, the authors apply a measure of statistical unusualness, called the Mahalanobis distance, to assess the plausibility of the scenarios used in the Federal Reserve's stress tests.
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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To use this feature you will need an individual account. If you have one already please sign in. | general |
COVID booster provides protection for over-65s after 15 weeks -UK data | Vaccine effectiveness against hospitalisation for people aged over 65, 15 weeks after a booster, was 85%, down from 91% two weeks after getting the third dose, the latest vaccine surveillance report from the agency estimated.
The data is the first released by the UK on the longer term durability of boosters. The UK is administering fourth doses to vulnerable age groups, joining a number of other countries including Israel as the world fights the more infectious Omicron variant of the coronavirus.
Fourth doses will be given six months after the third dose and a wider campaign is being considered for the autumn.
The report attempts to distinguish between people who were hospitalised because of COVID and those who were in hospital with an illness and test positive as part of routine checks.
The figures come from its calculations regarding people who are in hospital primarily because of respiratory problems, which suggests their admission is more likely to be COVID-related.
For people aged 18-64, vaccine effectiveness against hospitalisation appears to show a steeper drop - to 67% after 15 weeks, compared with 88% two weeks after the dose.
But UKHSA said this was likely to be because younger people were more likely to be in hospital for another reason and also have COVID, skewing the numbers to make the vaccines seem less effective.
However, the report reiterated that protection against symptomatic disease falls much more dramatically for all groups: from around 60 to 75% effectiveness two to four weeks after a booster, to between 25-40% after 15 weeks.
The UK has mainly administered vaccines developed by BioNTech-Pfizer, Moderna and AstraZeneca. The booster programme, which started in September, has used Pfizer and Moderna's shots.
( Reporting by Jennifer Rigby; Editing by Josephine Mason and Grant McCool)
By Jennifer Rigby | business |
Healthcare stocks boost FTSE 100, economy worries weigh on midcap stocks | ( For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)
* Next slides after trimming sales forecast
* AstraZeneca jumps on EU approval for its COVID drug
* FTSE 100 up 0.1%, FTSE 250 off 0.5%
March 24 ( Reuters) - London's FTSE 100 ended higher on Thursday, aided by healthcare and consumer staple stocks, although concerns about surging inflation and the fallout from the Ukraine crisis weighed on overall sentiment and dragged down the midcap index.
The blue-chip FTSE index edged 0.1% higher, with AstraZeneca and GlaxoSmithKline among the top gainers. While the domestically focused midcap index slipped 0.5%.
Data on Wednesday showed inflation hit a new 30-year high, while measures unveiled by Finance Minister Rishi Sunak to ease the worst cost-of-living squeeze in decades did little to ease the worries.
`` The outlook for the UK economy is weak at the moment because of the triple whammy of higher taxes, interest rates and energy prices. That is going to squeeze consumer spending in the next couple of quarters or so, '' said Dhaval Joshi, chief strategist at BCA Research.
A survey earlier in the day showed that Britain's private sector reported the steepest rise in prices charged by companies since at least 1999 and optimism is at its lowest ebb in almost a year and a half.
Investors were closely watching a special NATO summit where U.S. President Joe Biden took part in a closed-door session with European allies, amid a dispute over whether to impose further energy sanctions on Russia over its invasion of Ukraine.
A further boost to the export-oriented FTSE came from large dollar earning companies, including spirits maker Diageo and British American Tobacco, as they benefited from a dip in pound.
AstraZeneca jumped 1.1% after European drug regulator authorised the use of company's antibody drug for preventing COVID-19 infections in adults and adolescents over 12 years of age.
Clothing retailer Next slipped 3.3% after it trimmed its sales and profit guidance for 2022-23, reflecting the closure of its websites in Ukraine and Russia.
Fantasy miniatures maker Games Workshop Group jumped 3.3% after announcing a dividend and saying that trading in the three months to February had been in line with expectations. ( Reporting by Sruthi Shankar and Amal S in Bengaluru; Editing by Sriraj Kalluvila, Aditya Soni and Jane Merriman) | business |
Piedmont Announces Closing of Public Offering of Common Stock | NEW YORK -- ( BUSINESS WIRE) -- Piedmont Lithium Inc. ( “ Piedmont ” or the “ Company ”) ( Nasdaq: PLL; ASX: PLL) today announced the closing of its previously announced underwritten public offering of 2.01 million shares ( “ shares ”) of its common stock, which includes the full exercise of the underwriters’ option to purchase 262,500 shares ( “ Public Offering ”). The aggregate gross proceeds of the Public Offering, before underwriting discounts and commissions, totaled $ 130.8 million.
Piedmont intends to use the net proceeds from the offering to fund the Company’ s share of the capital required to restart the operations at North American Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’ s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition. Additionally, the net proceeds may be used to fund possible strategic initiatives and for general corporate purposes.
J.P. Morgan and Evercore ISI acted as joint book-runners for the Public Offering. Canaccord Genuity, B. Riley Securities, BTIG, LLC, Clarksons Platou Securities, Inc., D.A. Davidson & Co., Jett Capital Advisors LLC, Loop Capital Markets, Roth Capital Partners, ThinkEquity and Tuohy Brothers acted as co-managers for the Public Offering.
The Public Offering was made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission ( the “ SEC ”). A final prospectus supplement related to the Public Offering has been filed with the SEC and is available on the SEC’ s website at http: //www.sec.gov and on the ASX website. Copies of the final prospectus supplement and the accompanying prospectus relating to the Public Offering may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at ( 866) 803-9204 or by e-mail at prospectus-eq fi @ jpmchase.com; and Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at ( 888) 474-0200 or by e-mail at ecm.prospectus @ evercore.com.
This press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains “ forward-looking statements ” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “ anticipate, ” “ believe, ” “ expect, ” “ estimate, ” “ may, ” “ might, ” “ will, ” “ could, ” “ can, ” “ shall, ” “ should, ” “ would, ” “ leading, ” “ objective, ” “ intend, ” “ contemplate, ” “ design, ” “ predict, ” “ potential, ” “ plan, ” “ target ” and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to: the anticipated use of the net proceeds of the Public Offering; the fact that the Company’ s management will have broad discretion in the use of the proceeds from the sale of the shares; the risk that anticipated plans, development, production, revenues or costs are not attained; the Company’ s operations being further disrupted and the Company’ s financial results being adversely affected by public health threats, including the novel coronavirus pandemic; the Company’ s limited operating history in the lithium industry; the Company’ s status as a development stage company, including the Company’ s ability to identify lithium mineralization and achieve commercial lithium mining; mining, exploration and mine construction, if warranted, on the Company’ s properties, including timing and uncertainties related to acquiring and maintaining mining, exploration, environmental and other licenses, permits, access rights or approvals in Gaston County, North Carolina, the Province of Quebec, Canada and Cape Coast, Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future; completing required permitting activities required to commence processing operations for the LHP-2 Project; the Company’ s ability to achieve and maintain profitability and to develop positive cash flows from the Company’ s processing activities; the Company’ s estimates of mineral reserves and resources and whether mineral resources will ever be developed into mineral reserves; investment risk and operational costs associated with the Company’ s exploration activities; the Company’ s ability to develop and achieve production on the Company’ s properties; the Company’ s ability to enter into and deliver products under supply agreements; the pace of adoption and cost of developing electric transportation and storage technologies dependent upon lithium batteries; the Company’ s ability to access capital and the financial markets; recruiting, training and developing employees; possible defects in title of the Company’ s properties; compliance with government regulations; environmental liabilities and reclamation costs; estimates of and volatility in lithium prices or demand for lithium; the Company’ s common stock price and trading volume volatility; the development of an active trading market for the Company’ s common stock; the Company’ s failure to successfully execute its growth strategy, including any delays in the Company’ s planned future growth; and other factors set forth in the Company’ s most recent Transition Report on Form 10-KT and subsequent reports, as filed with the SEC.
All forward-looking statements reflect Piedmont’ s beliefs and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on historical facts but rather on management’ s expectations regarding future activities, results of operations, performance, future capital and other expenditures, including the amount, nature and sources of funding thereof, competitive advantages, business prospects and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking statements will not occur. Although Piedmont has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. Piedmont cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the securities laws of the United States, Piedmont disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Piedmont qualifies all the forward-looking statements contained in this release by the foregoing cautionary statements. | general |
Oshkosh Defense Receives First Order for Next Generation Delivery Vehicle Fleet | ( Photo: Business Wire)
( Photo: Business Wire)
OSHKOSH, Wis. -- ( BUSINESS WIRE) -- The U.S. Postal Service ( USPS) announced today that it has placed its first order of Next Generation Delivery Vehicles ( NGDV) with Oshkosh Defense, a wholly owned subsidiary of Oshkosh Corporation ( NYSE: OSK). The initial order is for 50,000 NGDVs and is valued at $ 2.98 Billion.
“ Oshkosh is committed to making a difference in the lives of those who depend on our products and services to build, protect and serve communities around the world, ” said John Pfeifer, President & Chief Executive Officer, Oshkosh Corporation. “ Every day we strive to meet or exceed our customers’ needs with next-generation technologies and advanced systems. ”
Oshkosh Defense will manufacture both zero emission battery electric vehicles ( BEV) and fuel-efficient low-emission internal combustion engine vehicles ( ICE) for the USPS in their Spartanburg, South Carolina factory. The first order will include a minimum of 10,019 BEVs. The NGDV contract allows the flexibility, when funding is provided, to increase the percentage of BEVs to be produced even after an order is placed.
“ We’ re incredibly proud to build the USPS NGDV. It is designed to be the modern, safe, dependable vehicle the carriers have been waiting for, ” said John Bryant, Executive Vice President, Oshkosh Corporation, and President, Oshkosh Defense. “ Facility preparations in South Carolina are well underway and hiring of team members has already begun. ”
Oshkosh won the competitively awarded NGDV contract in February 2021. Production of the NGDVs is expected to begin in 2023.
About Oshkosh Defense
Oshkosh Defense is a global leader in the design, production and sustainment of best-in-class military vehicles, technology solutions and mobility systems. Oshkosh develops and applies emerging technologies that advance safety and mission success. Setting the industry standard for sustaining fleet readiness, Oshkosh ensures every solution is supported worldwide throughout its entire life cycle.
Oshkosh Defense, LLC is an Oshkosh Corporation company [ NYSE: OSK ].
Learn more about Oshkosh Defense at www.oshkoshdefense.com.
About Oshkosh Corporation
At Oshkosh ( NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs more than 14,000 team members worldwide, all united behind a common cause: to make a difference in people’ s lives. Oshkosh products can be found in more than 150 countries under the brands of JLG®, Pierce®, Oshkosh® Defense, McNeilus®, IMT®, Jerr-Dan®, Frontline™, Oshkosh® Airport Products, London™ and Pratt Miller. For more information, visit oshkoshcorp.com.
®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.
Forward Looking Statements
This news release contains statements that the Company believes to be “ forward-looking statements ” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’ s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “ may, ” “ will, ” “ expect, ” “ intend, ” “ estimate, ” “ anticipate, ” “ believe, ” “ should, ” “ project ” or “ plan ” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’ s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the extent of supply chain and logistics disruptions, particularly as demand rebounds from the COVID-19 pandemic; the Company’ s ability to increase prices or impose surcharges to raise margins or to offset higher input costs, including increased raw material, labor and freight costs, the Company’ s ability to attract production labor in a timely manner; the Company’ s ability to predict the level and timing of orders for indefinite delivery/indefinite quantity contracts with the U.S. federal government; the impacts of budget constraints facing the U.S. Postal Service ( USPS) and continuously changing demands for postal services; the cost of any warranty campaigns related to the Company’ s products; the Company’ s ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to data security threats and breaches impacting the Company; the Company’ s ability to successfully identify, complete and integrate acquisitions and to realize the anticipated benefits associated with the same; and risks related to the Company’ s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’ s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release. Investors should be aware that the Company may not update such information until the Company’ s next quarterly earnings conference call, if at all. | general |
EUROPEAN MIDDAY BRIEFING - Stocks Fall as Markets -3- | Since Russia invaded Ukraine, shipping companies have avoided docking at St. Petersburg, Russia, to collect goods, Mr. Niang said. That, together with the impact of the West's financial sanctions against Moscow, means fertilizer exports from Russia-the world's largest producer-have fallen sharply. Mr. Niang contacted sellers elsewhere, such as in Senegal and Morocco, but was told their order books are full until the end of the year.
U.S. Renews Tariff Exemptions for Some Chinese Imports
WASHINGTON-The Biden administration said Wednesday that it will renew tariff waivers for 352 categories of goods from China after previously granted exemptions expired.
The items that will be exempted include certain kinds of bicycle parts, electric motors, machinery, chemicals, seafood and duffel bags.
North Korea Test-Fires Intercontinental Ballistic Missile
North Korea launched an intercontinental ballistic missile on Thursday, Seoul's military said, its most significant weapons test in more than four years.
Initial flight data suggested the missile had soared higher and longer than North Korea's intercontinental ballistic missile test in November 2017-a launch that demonstrated that Kim Jong Un's regime, for the first time, had the capability to strike the U.S. mainland.
China Eastern Plane Crash: Rescuers Find Suspected Engine, Hunt for Second Black Box
HONG KONG-Search and rescue teams on Thursday discovered what they suspect is an engine from the plane carrying 132 people that rammed into the mountains of southern China, as the hunt continued for the second black box.
With no signs of survivors three days after the crash, all aboard the Boeing 737 operated by China Eastern Airlines-nine aircrew and 123 passengers-are feared dead in what would be China's worst air disaster in nearly three decades.
Airline CEOs Ask Biden to Drop Mask Requirement for Planes and Airports
Chief executives of major passenger and cargo airlines pressed President Biden on Wednesday to do away with the requirement that passengers wear masks on planes and in airports.
Top executives at airlines including American Airlines Group Inc., United Airlines Holdings Inc. and Delta Air Lines Inc. wrote in a letter to Mr. Biden that mandatory masking and another requirement that passengers test negative for Covid-19 before flying to the U.S. from abroad are no longer necessary now that cases and hospitalizations are on the decline.
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03-24-22 0655ET | business |
Global Psychedelic Drugs Market Report 2022-2025: Ketamine, Psilocybin, Ibogaine, LSD, Dimethyltryptamine ( DMT), or MDMA - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Global Psychedelic Drugs Market: Analysis By Indication ( ADHD, MDD, Bipolar, Migraine, Anxiety, Parkinson's Disease, OUD, Alzheimer's Disease, AUD, TUD, Eating Disorder, and Narcolepsy) Size & Trends with Impact of Covid-19 and Forecast up to 2025 '' report has been added to ResearchAndMarkets.com's offering.
The report provides an in depth analysis of the global psychedelic drugs market by value, by indication, etc. The report also provides a detailed analysis of the COVID-19 impact on the psychedelic drugs market.
Psychedelic drugs are a group of substances that are able to induce and enhance sensory perceptions, thoughts, and energy levels. Psychedelic drugs were used excessively in the 1960s, but the use was halted for mainly political reasons. However, recently, the use of psychedelics is evolving for the treatment of a variety of mental illnesses, including anxiety, depression, post-traumatic stress disorder, etc.
Some psychedelic drugs are extracted from plants or mushrooms, and some are synthetic ( human-made). These drugs are now considered effective for patients with treatment-resistant depression, as they are fast-acting and long-lasting.
The most common psychedelic substances include: Ketamine, Psilocybin, Ibogaine, LSD, Dimethyltryptamine ( DMT), or MDMA. The majority of psychedelic drugs under development are targeting mental and/or behavioral health indications. This is an area with significant unmet need.
The psychedelic drugs market can be segmented on the basis of indication ( ADHD, MDD, Bipolar, Migraine, Anxiety, Parkinson's Disease, OUD, Alzheimer's Disease, AUD, TUD, Eating Disorder, and Narcolepsy); and drug type ( Lysergic Acid Diethylamide ( LSD), Ketamine, Psilocybin, 3,4-MethylEnedioxyMethamphetamine ( MDMA), Ibogaine, and Others).
The global psychedelic drugs market has increased significantly during the past years and projections are made that the market would rise in the coming years. The psychedelic drugs market is expected to increase due to rising prevalence of depression and mental disorders, regulatory reforms, developments relating to psychedelics, changing perceptions, little severe side effects and cost effective, etc. Yet the market faces some challenges such as uncertainty around getting the FDA approval, early stage in lifecycle of the psychedelics industry, stigma associated with psychedelic drugs use, etc.
The report also assesses the key opportunities in the market and outlines the factors that are and will be driving the growth of the industry. Growth of the overall global psychedelic drugs market has also been forecasted till the period 2025, taking into consideration the previous growth patterns, the growth drivers and the current and future trends.
The global psychedelic drugs market remains at a early stage in its life cycle, with most companies currently developing their go-to-market strategy. The market players of psychedelics are involved in the clinical trials of several psychedelic drugs to address mental health, which continues to present significant unmet need.
The key players of the psychedelic drugs market are COMPASS Pathways Plc, Mind Medicine ( MindMed) Inc., Numinus Wellness Inc., and Johnson & Johnson are also profiled with their financial information and respective business strategies.
Key Topics Covered:
1. Executive Summary
2. Introduction
2.1 Psychedelic Drugs: An Overview
2.1.1 History of Psychedelic Drugs
2.1.2 Pros and Cons of Psychedelic Drugs
2.1.3 Major Types of Psychedelic Drugs
2.1.4 Potential Treatment Indications for Psychedelic Molecules
2.1.5 Psychedelic Classification
2.2 Psychedelic Drugs Segmentation: An Overview
2.2.1 Psychedelic Drugs Segmentation by Indication
2.2.2 Psychedelic Drugs Segmentation by Drug Type
3. Global Market Analysis
3.1 Global Psychedelic Drugs Market: An Analysis
3.1.1 Global Psychedelic Drugs Market by Value
3.1.2 Global Psychedelic Drugs Market by Indication ( ADHD, MDD, Bipolar, Migraine, Anxiety, Parkinson's Disease, OUD, Alzheimer's Disease, AUD, TUD, Eating Disorder and Narcolepsy)
3.2 Global Psychedelic Drugs Market: Indication Analysis
3.2.1 Global Attention Deficit Hyperactivity Disorder ( ADHD) Psychedelic Drugs Market by Value
3.2.2 Global Major Depressive Disorder ( MDD) Psychedelic Drugs Market by Value
3.2.3 Global Bipolar Disorder Psychedelic Drugs Market by Value
3.2.4 Global Migraine Psychedelic Drugs Market by Value
3.2.5 Global Anxiety Psychedelic Drugs Market by Value
3.2.6 Global Parkinson's Disease Psychedelic Drugs Market by Value
3.2.7 Global Opioid Use Disorder ( OUD) Psychedelic Drugs Market by Value
3.2.8 Global Alzheimer's Disease Psychedelic Drugs Market by Value
3.2.9 Global Alcohol Use Disorder ( AUD) Psychedelic Drugs Market by Value
3.2.10 Global Tobacco Use Disorder ( TUD) Psychedelic Drugs Market by Value
3.2.11 Global Eating Disorder Psychedelic Drugs Market by Value
3.2.12 Global Narcolepsy Psychedelic Drugs Market by Value
4. Impact of COVID-19
4.1 Impact of COVID-19
4.1.1 Impact of COVID-19 on Healthcare Sector
4.1.2 Impact of COVID-19 on Psychedelic Drugs Industry
5. Market Dynamics
5.1 Growth Driver
5.1.1 Rising Prevalence of Depression and Mental Disorders
5.1.2 Regulatory Reforms
5.1.3 Developments Relating to Psychedelics
5.1.4 Changing Perceptions
5.1.5 Little Severe Side Effects and Cost effective
5.2 Challenges
5.2.1 Uncertainty around Getting the FDA Approval
5.2.2 Early Stage in Lifecycle of the Psychedelics Industry
5.2.3 Stigma Associated with Psychedelic Drugs Use
5.3 Market Trends
5.3.1 Rising Approval for Additional Psychedelic Drugs
5.3.2 Growing Popularity of Psilocybin
5.3.3 Rising Number of Potential Candidates for Breakthrough Therapy Designation ( BTD)
5.3.4 Surging popularity of Micro-dosing in Psychedelics
5.3.5 Emergence of Psychedelic-assisted Psychotherapy ( PAP)
5.3.6 Increasing Potential Treatment Indications for Psychedelic Drugs
6. Competitive Landscape
6.1 Global Psychedelic Drugs Market Players by Drug TAM
6.2 Global Psychedelic Drugs Market Players by Psychedelic Related Businesses
6.3 Global Psychedelic Drugs Market Players by Psychedelic-related Clinical Trials
6.4 Global Psychedelic Drugs Market Players by Breakthrough Therapy Designations ( BTD) for Psychedelic Substances | general |
Farmers National Banc Corp. and Emclaire Financial Corp. Announce Merger | CANFIELD, Ohio & EMLENTON, Pa. -- ( BUSINESS WIRE) -- Farmers National Banc Corp. ( “ Farmers ”) ( NASDAQ: FMNB), the holding company for The Farmers National Bank of Canfield ( “ Farmers Bank ”), and Emclaire Financial Corp. ( “ Emclaire ”) ( NASDAQ: EMCF), the holding company for The Farmers National Bank of Emlenton ( “ Emlenton Bank ”), jointly announced today that they have entered into an agreement and plan of merger ( the “ Agreement ”).
Pursuant to the Agreement, each shareholder of Emclaire may elect to receive either $ 40.00 per share in cash or 2.15 shares of Farmers’ common stock, subject to an overall limitation of 70% of the shares being exchanged for Farmers’ shares and 30% for cash. Based on Farmers’ closing share price of $ 17.02 on March 23, 2022, the transaction is valued at approximately $ 105 million, or $ 37.62 per share. The merger is expected to qualify as a tax-free reorganization for those shareholders electing to receive Farmers’ shares. The transaction is subject to receipt of Emclaire shareholder approval and customary regulatory approvals and is expected to close in the second half of 2022.
William C. Marsh, the current President and Chief Executive Officer and Chairman of the Board of Emclaire and Emlenton Bank, will join Farmers as Senior Vice President and as Market President, Pennsylvania, after the merger. Furthermore, Farmers intends to name one director from Emclaire’ s board to join its Board of Directors immediately after the merger and appoint the remaining non-employee directors of Emclaire to a newly formed advisory board for the Pennsylvania Region.
Kevin J. Helmick, President and CEO of Farmers, stated, “ As we continue to demonstrate Farmers successful track record for executing on M & A, I am pleased to announce our largest acquisition to date. This latest transaction will mark a significant extension into the Pennsylvania markets, which has been a long-time strategy for Farmers. The contiguous expansion will also serve as Farmers’ entrance into the attractive Pittsburgh market and allow us to deliver our robust wealth management and mortgage services to the Emlenton footprint. This latest acquisition will continue to integrate Farmers’ culture into new communities and drive value for our stakeholders. ”
Mr. Marsh stated, “ We are excited to be joining with The Farmers National Bank of Canfield and believe that the combination will benefit our shareholders, customers and the communities we serve. We are thrilled to be joining such a premier regional banking franchise. We are excited about the new products and services that will be available to our customers and the communities we serve. I believe that this partnership will provide great value for the entire Emclaire family. ”
Upon consummation of the transaction, Emlenton Bank will be merged with and into Farmers Bank, with Farmers Bank as the surviving bank, and Emlenton Bank’ s branches will become branches of Farmers Bank. Upon closing, Farmers estimates it will have approximately $ 5.2 billion in assets and 66 locations throughout Ohio and western Pennsylvania.
As of December 31, 2021, Emclaire had $ 1.1 billion in total assets, $ 72.4 million in tangible common equity, $ 790.9 million in gross loans and $ 918.5 million in total deposits.
Serving Farmers in the transaction are Janney Montgomery Scott LLC as financial advisor and Vorys, Sater, Seymour and Pease LLP as legal counsel. Serving Emclaire in the transaction are Raymond James & Associates, Inc. as financial advisor and Silver, Freedman, Taff & Tiernan LLP as legal counsel.
CONFERENCE CALL INFORMATION
Farmers will host a conference call on March 24, 2022, at 11:00 AM ET, to discuss the acquisition of Emclaire. Participants can join the call by dialing 877-407-4018, Conference ID: 13728180. The conference call will also be broadcast simultaneously via webcast on a listen-only basis. A link to today’ s press release, presentation, and webcast will be available at ir.farmersbankgroup.com.
Replay of the conference call can be accessed through March 31, 2022 by dialing 844-512-2921 and Replay Pin Number: 13728180.
ABOUT FARMERS NATIONAL BANC CORP.
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $ 4.1 billion in banking assets. Farmers National Banc Corp.’ s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 47 locations in Mahoning, Trumbull, Columbiana, Stark, Summit, Portage, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania; Farmers Trust Company, which operates five trust offices and offers services in the same geographic markets and Farmers National Insurance, LLC. Total wealth management assets under care at December 31, 2021 were $ 3.1 billion.
ABOUT EMCLAIRE FINANCIAL CORP.
Emclaire Financial Corp. is the parent company of the Farmers National Bank of Emlenton, a nationally chartered, FDIC-insured community commercial bank headquartered in Emlenton, Pennsylvania, operating 19 full service offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson and Mercer Counties, Pennsylvania. Emclaire’ s common stock is quoted on and traded through NASDAQ under the symbol “ EMCF ”. For more information visit Emclaire’ s web site at www.emclairefinancial.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts, but rather statements based on Farmers’ and Emclaire’ s current expectations regarding its business strategies and its intended results and future performance. Forward-looking statements are preceded by terms such as “ expects, ” “ believes, ” “ anticipates, ” “ intends ” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “ will, ” “ would, ” “ should, ” “ could ” or “ may. ”
Forward-looking statements are not a guarantee of future performance and actual future results could differ materially from those contained in forward-looking information. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Farmers’ and Emclaire’ s control. Numerous uncertainties, risks, and changes could cause or contribute to Farmers’ or Emclaire’ s actual results, performance, and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, the possibility that the closing of the proposed transaction is delayed or does not occur at all because required regulatory approvals, shareholder approval or other conditions to the transaction are not obtained or satisfied on a timely basis or at all; the possibility that the anticipated benefits of the transaction are not realized when expected or at all; Farmers’ and Emclaire’ s failure to integrate Emclaire and Emlenton Bank with Farmers and Farmers Bank in accordance with expectations; deviations from performance expectations related to Emclaire and Emlenton Bank; diversion of management’ s attention on the proposed transaction; general economic conditions in markets where Farmers and Emclaire conduct business, which could materially impact credit quality trends; effects of the COVID-19 pandemic on the local, national, and international economy, Farmers’ or Emclaire’ s organization and employees, and Farmers’ and Emclaire’ s customers and suppliers and their business operations and financial condition; disruptions in the mortgage and lending markets and significant or unexpected fluctuations in interest rates related to COVID-19 and governmental responses, including financial stimulus packages; general business conditions in the banking industry; the regulatory environment; general fluctuations in interest rates; demand for loans in the market areas where Farmers and Emclaire conduct business; rapidly changing technology and evolving banking industry standards; competitive factors, including increased competition with regional and national financial institutions; and new service and product offerings by competitors and price pressures; and other factors disclosed periodically in Farmers’ and Emclaire’ s filings with the Securities and Exchange Commission ( the “ SEC ”).
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by Farmers, Emclaire or on Farmers’ or Emclaire’ s behalf, respectively. Forward-looking statements speak only as of the date made, and neither Farmers nor Emclaire assumes any duty and does not undertake to update forward-looking statements.
Farmers and Emclaire provide further detail regarding these risks and uncertainties in their respective latest Annual Reports on Form 10-K, including in the risk factors section of Farmers’ latest Annual Report on Form 10-K, as well as in subsequent SEC filings, available on the SEC’ s website at www.sec.gov.
OTHER INFORMATION | general |
ViiV Healthcare Announces Label Update for Its Long-Acting HIV Treatment, Cabenuva ( cabotegravir, rilpivirine), to Be Initiated With or Without an Oral Lead-in Period | US FDA approval of updated label streamlines the initiation process for the first and only complete long-acting HIV treatment by allowing people to start directly with injections
LONDON -- ( BUSINESS WIRE) -- ViiV Healthcare, the global specialist HIV company majority owned by GlaxoSmithKline plc ( “ GSK ”), with Pfizer Inc. and Shionogi Limited as shareholders, today announced that the US Food and Drug Administration ( FDA) approved a label update for Cabenuva ( cabotegravir, rilpivirine) making the oral lead-in with cabotegravir and rilpivirine tablets optional. Oral cabotegravir and rilpivirine can be taken for a month to assess tolerability to the medicines prior to initiating cabotegravir and rilpivirine injections, a regimen co-developed as part of a collaboration with the Janssen Pharmaceutical Companies of Johnson & Johnson, but this oral lead-in is now optional after clinical trial data demonstrated similar safety and efficacy profiles for both initiation methods ( with or without the oral lead-in).1, 2
Cabenuva is the first and only complete long-acting HIV treatment regimen and is approved in the US as a once-monthly or every-two-month treatment for HIV-1 in virologically suppressed adults.1 It contains ViiV Healthcare’ s cabotegravir extended-release injectable suspension in a single-dose vial and rilpivirine extended-release injectable suspension in a single-dose vial, a product of Janssen Sciences Ireland Unlimited Company, one of the Janssen Pharmaceutical Companies of Johnson & Johnson.
Lynn Baxter, Head of North America at ViiV Healthcare, said: “ Since launching Cabenuva, we have been keenly focused on optimising the user experience for both people living with HIV and healthcare providers. Today’ s label update for the optional oral lead-in provides a streamlined initiation process for the regimen by allowing people to start directly on long-acting injections and underscores ViiV Healthcare’ s ongoing commitment to providing innovative treatment options that address the evolving needs of the HIV community. ”
This US FDA approval is based on the FLAIR phase III trial Week-124 results, which showed there were similar outcomes regarding maintenance of virologic suppression, safety, tolerability and pharmacokinetics in people starting cabotegravir and rilpivirine injections with or without the oral lead-in. 2
About Cabenuva ( cabotegravir, rilpivirine)
Cabenuva is indicated as a complete regimen for the treatment of HIV-1 infection in adults to replace the current antiretroviral regimen in those who are virologically suppressed ( HIV-1 RNA < 50 c/ml) on a stable antiretroviral regimen with no history of treatment failure and with no known or suspected resistance to either cabotegravir or rilpivirine.
The complete regimen combines the integrase strand transfer inhibitor ( INSTI) cabotegravir, developed by ViiV Healthcare, with rilpivirine, a non-nucleoside reverse transcriptase inhibitor ( NNRTI) developed by Janssen Sciences Ireland Unlimited Company. Rilpivirine is approved in the US as a 25mg tablet taken once a day to treat HIV-1 in combination with other antiretroviral agents in antiretroviral treatment-naïve patients 12 years of age and older and weighing at least 35kg with a viral load ≤100,000 HIV RNA c/ml.
INSTIs inhibit HIV replication by preventing the viral DNA from integrating into the genetic material of human immune cells ( T-cells). This step is essential in the HIV replication cycle and is also responsible for establishing chronic disease. Rilpivirine is an NNRTI that works by interfering with an enzyme called reverse transcriptase, which stops the virus from multiplying.
Trademarks are owned by or licensed to the ViiV Healthcare group of companies.
Important Safety Information for Cabenuva ( cabotegravir 200mg/mL; rilpivirine 300mg/mL) extended-release injectable suspensions
Cabenuva is indicated as a complete regimen for the treatment of human immunodeficiency virus type 1 ( HIV-1) infection in adults to replace the current antiretroviral regimen in those who are virologically suppressed ( HIV-1 RNA less than 50 copies per ml) on a stable antiretroviral regimen with no history of treatment failure and with no known or suspected resistance to either cabotegravir or rilpivirine.
CONTRAINDICATIONS
WARNINGS AND PRECAUTIONS
Hypersensitivity Reactions:
Post-Injection Reactions:
Hepatotoxicity:
Depressive Disorders:
Risk of Adverse Reactions or Loss of Virologic Response Due to Drug Interactions:
Long-Acting Properties and Potential Associated Risks with Cabenuva:
ADVERSE REACTIONS
DRUG INTERACTIONS
USE IN SPECIFIC POPULATIONS
Please see full Prescribing Information.
About ViiV Healthcare
ViiV Healthcare is a global specialist HIV company established in November 2009 by GlaxoSmithKline ( LSE: GSK) and Pfizer ( NYSE: PFE) dedicated to delivering advances in treatment and care for people living with HIV and for people who are at risk of becoming infected with HIV. Shionogi joined in October 2012. The company’ s aims are to take a deeper and broader interest in HIV and AIDS than any company has done before and take a new approach to deliver effective and innovative medicines for HIV treatment and prevention, as well as support communities affected by HIV.
For more information on the company, its management, portfolio, pipeline, and commitment, please visit www.viivhealthcare.com.
About GSK
GSK is a science-led global healthcare company. For further information please visit https: //www.gsk.com/en-gb/about-us.
Cautionary statement regarding forward-looking statements
GlaxoSmithKline plc cautions investors that any forward-looking statements or projections made by GlaxoSmithKline plc, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described in the Company's Annual Report on Form 20-F for 2021 and any impacts of the COVID-19 pandemic.
GlaxoSmithKline plc
ViiV Healthcare Limited
No. 3888792
No. 06876960
Registered Office: 980 Great West Road Brentford, Middlesex TW8 9GS
References
ViiV Healthcare enquiries:
Media enquiries:
Catherine Hartley +44 7909 002 403 ( London)
Audrey Abernathy +1 919 605 4521 ( North Carolina)
GSK enquiries:
Media enquiries:
Tim Foley +44 ( 0) 20 8047 5502 ( London)
Dan Smith +44 ( 0) 20 8047 5502 ( London)
Kathleen Quinn +1 202 603 5003 ( Washington DC)
Analyst/Investor enquiries:
Nick Stone +44 ( 0) 7717 618834 ( London)
Sonya Ghobrial +44 ( 0) 7392 784784 ( Consumer)
James Dodwell +44 ( 0) 20 8047 2406 ( London)
Mick Readey +44 ( 0) 7990 339653 ( London)
Josh Williams +44 ( 0) 7385 415719 ( London)
Jeff McLaughlin +1 215 751 7002 ( Philadelphia)
ViiV Healthcare enquiries:
Media enquiries:
Catherine Hartley +44 7909 002 403 ( London)
Audrey Abernathy +1 919 605 4521 ( North Carolina)
GSK enquiries:
Media enquiries:
Tim Foley +44 ( 0) 20 8047 5502 ( London)
Dan Smith +44 ( 0) 20 8047 5502 ( London)
Kathleen Quinn +1 202 603 5003 ( Washington DC)
Analyst/Investor enquiries: | general |
Sallie Mae Names William Wolf Chief People Officer | Wolf Brings More than 20 Years of Extensive Experience in Leading and Developing Human Resources Strategies, Practices, and Analytics
NEWARK, Del. -- ( BUSINESS WIRE) -- Sallie Mae® ( Nasdaq: SLM), formally SLM Corporation, has named William Wolf, Chief People Officer. Wolf will oversee all facets of Sallie Mae’ s Human Resources function. He will succeed Bonnie Rumbold who has served as Sallie Mae’ s Chief People Officer since 2014. Wolf’ s first day at the company will be March 28.
“ Just as Sallie Mae’ s mission is to power confidence in students as they begin their unique journeys, we will strive to power that same confidence and support in our own people as they grow and develop their careers at Sallie Mae, ” said Wolf. “ I’ m looking forward to building on the work already underway to establish Sallie Mae as a great place to work and as one of the most just and inclusive companies in America. ”
Wolf brings more than 20 years of HR leadership experience to Sallie Mae, most recently serving as Chief Human Resources Officer at Santander U.S. While at Santander, he led all aspects of Human Resources for its U.S. businesses and 17,000 employees. Wolf also led Santander’ s response to the COVID-19 pandemic and pioneered its diversity, equity, and inclusion initiatives. Prior to Santander, Wolf served as the Global Head of Talent Acquisition and Development at Credit Suisse and was a partner at McKinsey & Company.
“ Fostering and advancing a culture that drives our mission is a top strategic priority and further helps us deliver for our customers, ” said Jon Witter, CEO, Sallie Mae. “ Will joins us at an important inflection point for Sallie Mae, as we chart our course as an education solutions provider assisting families to, through, and immediately after college. His vision and strong track record of success in supporting and developing the most valuable asset – our people – will be integral to this next chapter. ” | general |
Amneal to Present Results From the Pivotal Phase 3 RISE-PD Clinical Trial of IPX-203 at the 2022 American Academy of Neurology Annual Meeting | - First presentation at a medical meeting of topline results and post hoc analysis
- Positive topline results were previously announced in August 2021
BRIDGEWATER, N.J. -- ( BUSINESS WIRE) -- Amneal Pharmaceuticals, Inc. ( NYSE: AMRX) today announced that results from the pivotal Phase 3 RISE-PD clinical trial evaluating the novel investigational extended-release CD/LD formulation, IPX-203, in Parkinson’ s disease patients with motor fluctuations, will be presented at the 2022 American Academy of Neurology ( AAN) Annual Meeting, April 2-7, in Seattle, WA.
The data are being presented for the first time at AAN and are consistent with the positive topline results announced last year. Amneal plans to submit a New Drug Application for IPX-203 in the second quarter of 2022. Amneal’ s abstracts at AAN will include:
A Phase 3 Trial of IPX-203 vs. Immediate Release CD/LD in Parkinson’ s Disease Patients with Motor Fluctuations ( RISE-PD); Hauser, R. et al.
Session S16: Movement Disorders: PD Biomarkers and Clinical Trials; Monday, April 4; 5:18 PM PT
Duration of Benefit Per Dose: Post Hoc Analysis of “ Good On ” Time Per Dose for IPX-203 vs. Immediate Release CD/LD in the RISE-PD Phase 3 Trial; Hauser, R. et al.
Session P10: Movement Disorders: Trials 2; Tuesday, April 5; 8:00 – 9:00 AM PT
“ The findings from a post hoc analysis of the RISE-PD trial indicated that IPX-203 may offer patients more ‘ Good On’ time per dose, compared to immediate-release CD/LD. Increasing the amount of ‘ Good On’ time, if confirmed, can reduce disruptions caused by troublesome dyskinesia and provide more consistent symptom control throughout the day, ” said Robert A. Hauser, M.D., Professor of Neurology at the University of South Florida and Director of the Parkinson's Disease and Movement Disorders Center.
“ We are so pleased to be back in-person at the 2022 AAN Annual Meeting where we will be presenting data from the Phase 3 clinical trial on IPX-203, ” said Richard D’ Souza, PhD, Senior Vice President, R & D for Amneal Specialty. “ Amneal’ s presentations at AAN underscore our commitment to advancing research and treatment for patients living with Parkinson’ s disease and the communities that support them. We are encouraged by the trial findings, as they indicate that IPX-203 could offer patients and the physicians that treat them another safe and effective treatment option with reduced dose frequency. ”
The 2022 AAN abstracts are available here.
About the Pivotal Phase 3 RISE-PD Trial
The multicenter, randomized, double-blind, double-dummy, active-controlled, parallel-group RISE-PD trial evaluated the efficacy and safety of IPX-203 CD/LD extended-release capsules compared with immediate-release CD/LD in the treatment of patients with PD who have motor fluctuations.
The trial consisted of a 3-week, open-label immediate-release CD/LD dose adjustment period and a 4-week, open-label period for conversion to IPX-203. This was followed by a 13-week double-blind treatment period in which patients were randomized 1:1 to receive either IPX-203 ( with matching immediate-release CD/LD placebo) or immediate-release CD/LD ( with matching IPX-203 placebo). Baseline for all endpoints was Week 7 ( Visit 4), which occurred pre-randomization.
The primary endpoint of the trial assessed the change from baseline in “ Good On ” time in hours per day at the end of the double-blind treatment period ( Week 20 or early termination). “ Good On ” time is defined as the sum of “ On ” time without dyskinesia and “ On ” time with non-troublesome dyskinesia. Secondary endpoints assessed the change from baseline in “ Off ” time in hours per day, proportion of patients who were either “ much improved ” or “ very much improved ” in Patients ' Global Impression of Change ( PGI-C) scores, change from baseline in the Movement Disorder Society - Unified Parkinson's Disease Rating Scale ( MDS-UPDRS) Part III score, and the change from baseline in sum of MDS-UPDRS Parts II and III scores.
The trial was conducted at 105 clinical sites in the U.S. and European countries, including Czechia, France, Germany, Italy, Poland, Spain and the United Kingdom. The study randomized 506 patients who had received a PD diagnosis at age 40 or older. The study design was reviewed by the FDA and conducted pursuant to a Special Protocol Assessment. A nine-month safety extension study is ongoing.
About IPX-203
IPX-203 is a novel, oral formulation of CD/LD extended-release capsules designed for patients with Parkinson’ s disease who have motor fluctuations. IPX-203 contains immediate-release granules and extended-release coated beads. The IR granules consist of CD and LD, with a disintegrant polymer to allow for rapid dissolution. The ER beads consist of LD, coated with a controlled-release ( CR) polymer to allow for slow release of the drug, a mucoadhesive polymer to keep the granules anchored to the area of absorption longer, and an enteric coating to prevent the granules from disintegrating prematurely in the stomach. This formulation is distinct from RYTARY® ( carbidopa/levodopa) extended-release capsules, Amneal’ s extended-release CD/LD treatment for PD approved by the U.S. FDA in 2015.
About Amneal
Amneal Pharmaceuticals, Inc. ( NYSE: AMRX), headquartered in Bridgewater, NJ, is a fully integrated essential medicines company. We make healthy possible through the development, manufacturing, and distribution of generic and specialty pharmaceuticals, primarily within the United States. The Company has a diverse portfolio of approximately 250 products in its Generics segment and is expanding across a broad range of complex products and therapeutic areas, including injectables and biosimilars. In its Specialty segment, Amneal has a growing portfolio of branded pharmaceutical products focused primarily on central nervous system and endocrine disorders, with a pipeline focused on unmet needs. Through its AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more, please visit www.amneal.com.
Cautionary Statement on Forward-Looking Statements
Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements ( as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’ s intentions, plans, beliefs, expectations or forecasts for the future, including among other things: product research and development; discussions of future operations; expected operating results and financial performance; the Company’ s strategy for growth; regulatory approvals; market position and expenditures. Words such as “ plans, ” “ expects, ” “ will, ” “ anticipates, ” “ estimates ” and similar words are intended to identify estimates and forward-looking statements.
The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company.
Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies; the impact of global economic conditions; direct or indirect impacts of the ongoing COVID-19 pandemic; our ability to obtain exclusive marketing rights for our products; the impact of competition on our ability to set prices; our ability to manage our growth through acquisitions and otherwise; our dependence on the sales of a limited number of products for a substantial portion of our total revenues; the risk of product liability and other claims against us by consumers and other third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws; changes to FDA product approval requirements; risks related to federal regulation of arrangements between manufacturers of branded and generic products; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; the continuing trend of consolidation of certain customer groups; our reliance on certain licenses to proprietary technologies from time to time; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; our dependence on third-party agreements for a portion of our product offerings; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; the significant amount of resources we expend on research and development; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; and the impact of severe weather. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’ s filings with the Securities and Exchange Commission, including under Item 1A, “ Risk Factors ” in the Company’ s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof. | general |
InstaMed’ s 12th Annual Trends in Healthcare Payments Report Reveals 87% of Consumers Were Surprised by a Medical Bill in 2021 | Findings examine how changes brought on by the pandemic, increased conversations about social determinants of health ( SDOH) and a demand for price transparency are driving the demand for digital in healthcare payments
Trends in Healthcare Payments Twelfth Annual Report 2021 ( Photo: Business Wire)
Trends in Healthcare Payments Twelfth Annual Report 2021 ( Photo: Business Wire)
Trends in Healthcare Payments Twelfth Annual Report 2021 ( Photo: Business Wire)
PHILADELPHIA -- ( BUSINESS WIRE) -- InstaMed, a J.P. Morgan company, today released the Trends in Healthcare Payments Twelfth Annual Report – highlighting trends from the major industry stakeholders: consumers, providers and payers. The report delves into the financial toll that the COVID-19 pandemic has had on the healthcare ecosystem. Those realities have shed light on the need for providers and payers to prioritize and accelerate improvements to their payment processes.
Survey results in the report reflect a growing disconnect between perception and reality for consumers in healthcare payments.
The ongoing pandemic and the steep growth in digital experiences and payments across industries has influenced perceptions within the healthcare industry.
`` The last two years of the COVID-19 pandemic have presented many challenges to the healthcare industry, ” said Bill Marvin, Managing Director and Head of J.P. Morgan Healthcare Payments and CEO of InstaMed. “ The trends and stakeholder sentiments that we are seeing are unlike anything we have seen throughout the history of this report. Most importantly, these trends and sentiments offer hope and progress for the healthcare payments experience, yet we continue to maintain our view that the healthcare payments industry is ripe with opportunities for innovation, digitization and scale. ” | general |
Zoned Properties Reports Fourth Quarter and Full-Year 2021 Financial Results | 50% Revenue Growth Year-over-Year and 188% Increase in Cash Provided by Operations in 2021
National Advisory & Brokerage Clients in New State Markets Set the Stage for Company Expansion
SCOTTSDALE, Ariz. -- ( BUSINESS WIRE) -- Zoned Properties®, Inc. ( the “ Company ”) ( OTCQB: ZDPY), a leading real estate development firm for emerging and highly regulated industries including legalized cannabis, today announced its financial results for the fourth quarter and year ended December 31, 2021.
Full-Year 2021 Financial Results
Fourth Quarter 2021 Financial Results
Management Discussion and Company Highlights
“ The Zoned Properties mission and value proposition has never been stronger than it is today, empowering regulated industry stakeholders with commercial real estate solutions. We are helping cannabis operators and entrepreneurs enter the regulated marketplace with legitimacy. During 2021, we successfully recruited a sophisticated team of experts onto our team and formalized service partnerships across the nation, ” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “ With stabilized, passive revenue from our portfolio and a clear pathway to expand into state-cannabis markets nationally, we believe that Zoned Properties is positioned for tremendous growth and scalability. These growth opportunities are the result of our team’ s direct involvement in hundreds of regulated projects across the nation, leveraging our full-spectrum of commercial real estate services. We thank our shareholders, stakeholders, clients and partners for their trust in Zoned Properties and will continue working hard to bring them value. ”
About Zoned Properties, Inc. ( OTCQB: ZDPY):
Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.
Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development and investment model; Advisory Services, Brokerage Services, Franchise Services, and PropTech Data Services each cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.
Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended ( the “ CSA ”). Zoned Properties corporate headquarters are located at 8360 E. Raintree Dr., Suite 230, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.
Twitter: @ ZonedProperties LinkedIn: @ ZonedProperties
Safe Harbor Statement
This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as `` believe, '' `` expect, '' `` anticipate, '' `` plan, '' `` potential, '' `` continue '' or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
COVID-19 Statement | general |
Alcon Publishes Agenda for 2022 Annual General Meeting | GENEVA -- ( BUSINESS WIRE) -- Regulatory News:
Alcon ( SIX/NYSE: ALC), the global leader in eye care, will hold its Annual General Meeting ( AGM) on April 27, 2022.
Due to the continuing tense situation due to the COVID-19 pandemic, and as a precautionary and prudent measure, Alcon’ s Board of Directors decided to hold the AGM in a closed format without the personal attendance of shareholders as permitted by Swiss ordinance and for the safety of Alcon’ s shareholders and associates. Alcon asks its shareholders to exercise their rights at the AGM exclusively by sending in voting instructions to the independent representative identified in the voting materials.
Alcon’ s Board of Directors proposes to the AGM to elect Raquel C. Bono, M.D. as a new Board member. A board-certified trauma surgeon and retired Vice Admiral, US Navy Medical Corps, Dr. Bono was the first female three-star admiral in the medical field in the history of the US Navy, as well as the first Asian-American woman promoted to Vice Admiral. Dr. Bono has been Chief Health Officer at Viking, Inc. since November 2020 and a Principal at RCB Consulting since October 2019. She brings to the Alcon Board more than 25 years of experience in healthcare leadership roles and an extensive track record in the healthcare industry and the areas of government relations and regulatory/public policy.
The invitation to the AGM, including explanatory information on individual agenda items, has been published in the Swiss Gazette of Commerce on March 24, 2022 and is available online at https: //investor.alcon.com/news-and-events/events-and-presentations/event-details/2022/2022-Annual-General-Meeting/default.aspx.
Agenda for Alcon’ s 2022 AGM
1.
Approval of the operating and financial review of Alcon Inc., the annual financial statements of Alcon Inc. and the consolidated financial statements for 2021
2.
Discharge of the members of the Board of Directors and the members of the Executive Committee
3.
Appropriation of earnings and declaration of dividend as per the balance sheet of Alcon Inc. of December 31, 2021
▪ If approved by the shareholders, a dividend of CHF 0.20 in cash per share will be payable with the record date expected to be May 2, 2022 and the payout date in Switzerland expected to be on or around May 5, 2022. The Swiss withholding tax of 35% will be deducted from the gross dividend amount.
4.
Votes on the compensation of the Board of Directors and of the Executive Committee
4.1
Consultative vote on the 2021 Compensation Report
4.2
Binding vote on the maximum aggregate amount of compensation of the Board of Directors for the next term of office, i.e., from the 2022 Annual General Meeting to the 2023 Annual General Meeting
4.3
Binding vote on the maximum aggregate amount of compensation of the Executive Committee for the following financial year, i.e., 2023
5.
Re-election and election of the Chair and the Members of the Board of Directors
5.1
Re-election of F. Michael Ball ( as Member and Chair)
5.2
Re-election of Lynn D. Bleil ( as Member)
5.3
Re-election of Arthur Cummings ( as Member)
5.4
Re-election of David J. Endicott ( as Member)
5.5
Re-election of Thomas Glanzmann ( as Member)
5.6
Re-election of D. Keith Grossman ( as Member)
5.7
Re-election of Scott Maw ( as Member)
5.8
Re-election of Karen May ( as Member)
5.9
Re-election of Ines Pöschel ( as Member)
5.10
Re-election of Dieter Spälti ( as Member)
5.11
Election of Raquel C. Bono ( as Member)
6.
Re-election and election of the members of the Compensation Committee
6.1
Re-election of Thomas Glanzmann
6.2
Re-election of Karen May
6.3
Re-election of Ines Pöschel
6.4
Election of Scott Maw
7.
Re-election of the independent representative
8.
Re-election of the statutory auditors
Cautionary Note Regarding Forward-Looking Statements
This press release contains “ forward-looking statements ” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “ anticipate, ” “ intend, ” “ commitment, ” “ look forward, ” “ maintain, ” “ plan, ” “ goal, ” “ seek, ” “ target, ” “ assume, ” “ believe, ” “ project, ” “ estimate, ” “ expect, ” “ strategy, ” “ future, ” “ likely, ” “ may, ” “ should, ” “ will ” and similar references to future periods. An example of a forward-looking statement includes, among others, statements Alcon makes regarding the payment of a dividend.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict. Some of these factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements.
Forward-looking statements in this press release speak only as of the date they are made, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise.
About Alcon
Alcon helps people see brilliantly. As the global leader in eye care with a heritage spanning over 75 years, we offer the broadest portfolio of products to enhance sight and improve people’ s lives. Our Surgical and Vision Care products touch the lives of more than 260 million people in over 140 countries each year living with conditions like cataracts, glaucoma, retinal diseases and refractive errors. Our more than 24,000 associates are enhancing the quality of life through innovative products, partnerships with Eye Care Professionals and programs that advance access to quality eye care. Learn more at www.alcon.com. | general |
Global Prepared Flour Mixes Market Report 2021-2028: Analysis by Category ( Gluten Free and Conventional), & Application ( Breads, Cakes, and Others) - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Prepared Flour Mixes Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Category ( Gluten Free and Conventional), Application ( Breads, Cakes, and Others) and Geography '' report has been added to ResearchAndMarkets.com's offering.
The global prepared flour mixes market was valued at US $ 23,192.15 million in 2021 and is projected to reach US $ 33,370.85 million by 2028; it is expected to grow at a CAGR of 5.3% from 2021 to 2028.
Prepared flour mixes are the mixture of various ingredients, such as different flours, starches, flavors, and functional ingredients. Such mixes contain most of the ingredients used in baking, such as fat, sugar, milk, and salt. Prepared mixes require less preparation time, provide flavor and texture to the final product, and augment its shelf life. Thus, they are extensively used in the baking & confectionery industry. These premixes are easily available through various distribution channels, such as specialty stores, supermarkets, and departmental stores.
Moreover, due to the COVID-19 outbreak pandemic, people increasingly bought products through e-commerce platforms as they got convenient product delivery at their doorsteps. Many e-commerce platforms adopted the no-touch policy that ensured the safety of consumers. Such factors are expected to bolster the growth of the prepared flour mixes market in the coming years.
Based on category, the prepared flour mixes market is bifurcated into gluten free and conventional. The conventional segment accounted for a larger market share in 2020. The market growth for this segment is attributed to the easy availability of conventional prepared flour mixes at low prices. However, the gluten-free segment is expected to register a higher CAGR in the market during the forecast period.
In 2020, Asia-Pacific accounted for the largest share in the market. The prepared flour mixes market in Asia-Pacific is driven by the growing population in the region and rising consumer inclination toward bakery products.
In addition, the rising trend of baking at home in Asia-Pacific drive the prepared flour mixes market across the region. However, North America is projected to register the highest CAGR during the forecast period. The US is experiencing a tremendous demand for gluten-free products, followed by Canada and Mexico, due to changing food consumption trends and consumers ' inclination toward a healthy lifestyle.
Moreover, manufacturers in the region are launching custom-formulated flour solutions for premium-category consumers. All these factors are expected to propel the growth of the prepared flour mixes market in the region in the coming few years.
AB Mauri; PURATOS; Lesaffre; Archer Daniels Midland Company; General Mills, Inc.; Kerry Group; Swiss Bake Ingredients Pvt. Ltd; G.R Wright & Sons; Nitto-Fuji International Vietnam Co., Ltd; and Allied Pinnacle are among the players operating in the prepared flour mixes market.
Key Topics Covered:
1. Introduction
1.1 Study Scope
1.2 Research Report Guidance
1.3 Market Segmentation
2. Key Takeaways
3. Research Methodology
3.1 Scope of the Study
3.2 Research Methodology
4. Global Prepared Flour Mixes Market Landscape
4.1 Market Overview
4.2 Porter's Five Forces Analysis
4.3 Value Chain Analysis
4.3.1 Raw Material
4.3.2 Manufacturing/Processing
4.3.3 Packaging
4.4 Expert Opinion
5. Prepared Flour Mixes Market - Key Market Dynamics
5.1 Market Drivers
5.1.1 Widening Application Scope
5.1.2 Growth of Bakery Industry
5.2 Market Restraints
5.2.1 Fluctuations in Raw Material Prices
5.3 Market Opportunities
5.3.1 Fortification of Prepared Flour Mixes
5.4 Future Trends
5.4.1 Upsurge in Demand for Gluten-free Products
5.5 Impact Analysis
6. Prepared Flour Mixes Market- Global Analysis
6.1 Prepared Flour Mixes Market Overview
6.2 Prepared Flour Mixes Market -Revenue and Forecast To 2028 ( US $ Million)
6.3 Competitive Positioning - Key Market Players
7. Prepared Flour Mixes Market Analysis - By Category
7.1 Overview
7.2 Prepared Flour Mixes Market, By Category ( 2020 and 2028)
7.3 Gluten Free
7.4 Conventional
8. Prepared Flour Mixes Market Analysis - By Application
8.1 Overview
8.2 Prepared Flour Mixes Market, By Application ( 2020 and 2028)
8.3 Breads
8.4 Cakes
8.5 Others
8.5.1 Overview
9. Prepared Flour Mixes Market - Geographic Analysis
10. Overview- Impact of Coronavirus Outbreak
10.1 Overview
11. Industry Landscape
11.1 Product launch | general |
Asia Pacific Digital Health Market Size, Share & Trends Analysis Report 2022: Tele-healthcare, mHealth, Healthcare Analytics - Forecast to 2030 - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Asia Pacific Digital Health Market Size, Share & Trends Analysis Report by Technology ( Tele-healthcare, mHealth, Healthcare Analytics), by Component ( Hardware, Services), by Region ( China, Australia), and Segment Forecasts, 2022-2030 '' report has been added to ResearchAndMarkets.com's offering.
The Asia Pacific digital health market size is expected to reach USD 326.7 billion by 2030 and is expected to expand at a CAGR of 26.5%
Growing chronic disease patient population, and favorable government initiatives to develop digital healthcare platforms are some of the major factors anticipated to drive the market growth over the forecast years. In addition, rapidly growing healthcare IT infrastructure and increasing demand for remote patient monitoring services are also expected to boost the market growth in the region. Moreover, the growing penetration of smartphones and the internet is supporting the market growth.
For instance, according to GSMA's, The Mobile Economy Asia Pacific report, in 2021, 1.8 billion people will subscribe to mobile services by 2025, which is 62% of the total population of the region. The telehealthcare segment dominated the market in terms of revenue share in 2021 due to the increasing consumer-centric digital health ecosystems and rapid change towards the implementation of telehealthcare platforms for remote patient monitoring.
The government-imposed lockdowns and restrictions on social movement have risen the adoption of telehealthcare services during the COVID-19 period in the region. The main services provided by telehealth includes specialist consultant services, prescribing drugs/pharmacy, and mental health.
Moreover, due to the lockdown and travel ban, many patients turned to remote treatment and diagnosis using telehealth platforms, which, in turn, is anticipated to drive the segment over the forecast periods.
Based on components, the hardware segment dominated the market in 2021 owing to the rapid digitalization of healthcare institutions and the high adoption of hardware platforms, such as mobiles, tablets, computers, and wearables by patients. In addition, the increasing focus of hospitals on investing in digitalization to increase patient satisfaction and minimize error further supports the segment growth.
However, the highest growth rate is anticipated from the software segment during forecast years owing to the rapid digitalization of healthcare facilities and increasing adoption of healthcare software & applications to improve patient engagement for health management.
Asia Pacific Digital Health Market Report Highlights
Market Segmentation and Scope
Market Dynamics
Market Driver Analysis
Market Restraint Analysis
Market Challenges
Asia Pacific Digital Health Market Analysis Tools
Industry Analysis - Porter's
PEST Analysis
Regulatory Landscape | general |
World Automotive Composite Leaf Springs Market Forecast Report 2021-2028: Strong Penetration of Steel Leaf Springs in the Automotive Industry Restraining Growth - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Automotive Composite Leaf Springs Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Installation Type ( Transversal and Longitudinal), Location Type, Process Type ( High-Pressure Resin Transfer Molding Process, Prepreg Layup Process, and Others), and Vehicle Type '' report has been added to ResearchAndMarkets.com's offering.
The global automotive composite leaf springs market is expected to grow from US $ 71.56 million in 2021 to US $ 115.24 million by 2028; it is estimated to grow at a CAGR of 7.0% during 2021-2028.
Leaf springs, a vital component of the suspension system of a vehicle, consists of several layers of leaves with graded sizes, the bigger layer being on the top of inter-joined leaves. These layers are attached directly to the frame, either at both ends or one end.
Notably, composites are ideal for leaf spring applications owing to the high strength-to-weight ratio, natural frequency, and fatigue resistance. The composite material has the advantage of internal damping, leading to better vibration energy absorption, thereby reducing the transmission of vibration noise to adjoining structures.
Additionally, the drastic reduction in mass offers a considerable advantage in designing and developing automobiles. The material is more durable than conventional steel spring, which provides strength to the suspension system. Implementation of flexible composite materials and high fatigue tolerance considerably enhance the life of lead spring.
For instance, the collaboration of Henkel with Benteler-SGL to commercialize mass production of a lightweight, fiber-reinforced leaf spring using polyurethane-based HP-RTM process has reduced the weight of leaf spring by 65% compared to the conventional steel option. These lead springs also offer enhanced resistance to crack propagation which improves the toughness of the suspension.
Currently, vehicle manufacturers are highly focusing on the use of lightweight components to reduce the vehicle's weight for improved performance and fuel efficiency. The considerable reduction in weight by replacing conventional steel springs with thinner and compact composite springs has led to a substantial rise in the demand for composite materials.
Furthermore, the ongoing boom in SUVs and trucks sales worldwide has created an unprecedented need for composite spring leaves to improve vehicles ' performance. For instance, China registered a 27% increase in year-on-year sales of SUVs.
Impact of COVID-19 Pandemic on Automotive Composite Leaf Springs Market
The automotive industry requires a significant number of human laborers. However, with the ongoing successful implementation of vaccination programs, the global automotive industry has started reopening its operations and the demand for automotive composite leaf springs is gradually rising. Thus, the overall declining trajectory in the automotive sector due to the COVID-19 pandemic is restraining the growth of the automotive composite leaf spring market.
On the other hand, in current scenario, composite leaf springs are getting deployed in the premium vehicles for better performance. The development of the composite leaf spring for medium and heavy-duty vehicles is also increasing, which would create a positive outlook for the automotive composite leaf springs market in the coming years.
Key Topics Covered:
1. Introduction
2. Key Takeaways
3. Research Methodology
4. Automotive Composite Leaf Springs Market Landscape
4.1 Market Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.4 Expert Opinions
5. Automotive Composite Leaf Springs Market - Key Market Dynamics
5.1 Market Drivers
5.1.1 Growing Demand for Composite Materials in Automotive Industry
5.1.2 Ever-Increasing Sales of SUVs and Trucks Worldwide
5.2 Market Restraints
5.2.1 Strong Penetration of Steel Leaf Springs in Automotive Industry
5.3 Market Opportunities
5.3.1 Continuous Improvements in Composite Materials
5.4 Future Trends
5.4.1 Integration of Composite Materials in Electric Vehicles
5.5 Impact Analysis Of Drivers And Restraints
6. Automotive Composite Leaf Springs Market - Global Analysis
6.1 Automotive Composite Leaf Springs Market Global Overview
6.2 Automotive Composite Leaf Springs Market - Global Revenue And Forecast To 2028 ( Us $ Million)
6.3 Market Share Analysis- Five Key Players ( 2020)
7. Automotive Composite Leaf Springs Market - By Installation Type
7.1 Overview
7.2 Automotive Composite Leaf Springs Market, By Installation Type ( 2020 And 2028)
7.3 Transversal
7.3.1 Overview
7.3.2 Transversal: Automotive Composite Leaf Springs Market - Revenue and Forecast to 2028 ( US $ Million)
7.4 Longitudinal
7.4.1 Overview
7.4.2 Longitudinal: Automotive Composite Leaf Springs Market - Revenue and Forecast to 2028 ( US $ Million)
8. Automotive Composite Leaf Springs Market - By Process Type
8.1 Overview
8.2 Automotive Composite Leaf Springs Market, By Process Type ( 2020 And 2028)
8.3 High-Pressure Resin Transfer Molding Process
8.3.1 Overview
8.3.2 High-Pressure Resin Transfer Molding Process: Automotive Composite Leaf Springs Market - Revenue and Forecast to 2028 ( US $ Million)
8.4 Prepreg Layup Process
8.4.1 Overview
8.4.2 Prepreg Layup Process: Automotive Composite Leaf Springs Market - Revenue and Forecast to 2028 ( US $ Million)
8.5 Others
8.5.1 Overview
8.5.2 Others: Automotive Composite Leaf Springs Market - Revenue and Forecast to 2028 ( US $ Million)
9. Automotive Composite Leaf Springs Market - By Location Type
9.1 Overview
9.2 Automotive Composite Leaf Springs Market, By Location Type ( 2020 And 2028)
9.3 Front Leaf Spring
9.3.1 Overview
9.3.2 Front Leaf Spring: Automotive Composite Leaf Springs Market - Revenue and Forecast to 2028 ( US $ Million)
9.4 Rear Leaf Spring
10. Automotive Composite Leaf Springs Market Analysis - By Vehicle Type
10.1 Overview
10.2 Automotive Composite Leaf Springs, By Vehicle Type ( 2020 And 2028)
10.3 Passenger Car
10.3.1 Overview
10.3.2 Passenger Car: Automotive Composite Leaf Springs Market- Revenue and Forecast to 2028 ( US $ Million)
10.4 Light Commercial Vehicle
10.5 Medium And Heavy Duty Vehicles
11. Automotive Composite Leaf Springs Market - Geographic Analysis
11.1 Overview
12. Impact Of COVID-19 Pandemic
13. Automotive Composite Leaf Springs Market-Industry Landscape | general |
Eat Well Group Announces New Distribution of Amara Organic Foods to Sobeys and IGA Stores Across Canada | Amara’ s organic plant-based baby food is now available in select Sobeys and IGA locations across Canada, adding to an already robust eCommerce and brick and mortar distribution network
VANCOUVER, British Columbia -- ( BUSINESS WIRE) -- Eat Well Investment Group Inc. ( the “ Company ” or “ Eat Well Group ” or “ EWG ”) ( CN: EWG) ( US: EWGFF) ( FRA:6BC0) is pleased to announce that its majority-owned portfolio company, Amara Organic Foods ( “ Amara ”), one of the fastest-growing baby food brands in America, is now available in select Sobeys Inc. ( “ Sobeys ”) and IGA stores in Canada.
Sobeys has more than 111 years of experience in the food retail business. As one of only two national grocery retailers in Canada, Sobeys serves the food shopping needs of Canadians with approximately 1,500 stores in all 10 provinces under retail banners that include Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and Lawtons Drugs, as well as more than 350 retail fuel locations.
“ Amara adds premier distribution points in both Sobeys and IGA stores, some of North America’ s most well-known and established grocery retailers, ” stated Marc Aneed, Director and CEO of Eat Well Group. “ The demand for plant-based infant nutrition continues to be strong as we accelerate growth across Eat Well Group’ s CPG sector. We congratulate the Amara team for ongoing success, ” continued Aneed.
Distribution to both Sobeys and IGA locations across Canada adds to Amara’ s strong retail footprint with distribution to many of North America’ s leading big-box retailers, including; Walmart Canada, Whole Foods, Sprouts Farmer’ s Market, HEB, Loblaws and more. Amara is focused on accelerating its omnichannel sales distribution strategy and continued growth across natural health food stores and traditional big-box retailers, in addition to ecommerce.
Eat Well Group’ s management believes Amara’ s growth can be attributed to the global trend of consumers seeking nutritious plant-based foods to add into their everyday lifestyles, and Amara’ s delicious toddler snacks and baby foods being 100% organic with excellent taste. The infant nutrition market is estimated to reach over $ 109 billion globally by 20271, and Amara is poised to be a leader in the plant-based segment.
For 15% off and free shipping on Amara products valid until April 30, 2022 visit www.amaraorganicfoods.com and enter the code: TASTETHEDIFFERENCE15
To learn more, join Eat Well Group’ s mailing list for important updates.
ABOUT EAT WELL GROUP
Eat Well Group is a publicly-traded investment Company primarily focused on high-growth companies in the agribusiness, food tech, plant-based and ESG ( environmental, social and governance) sectors. Eat Well Group’ s management team has an extensive record of sourcing, financing and building successful companies across a broad range of industries and maintains a current investment mandate on the health/wellness industry. The team has financed and invested in early-stage venture companies for greater than 25 years, resulting in unparalleled access to deal flow and the ability to construct a portfolio of opportunistic investments intended to generate superior risk-adjusted returns.
Disclaimer for Forward Looking Statements
This news release contains “ forward-looking information ” and “ forward-looking statements ” within the meaning of applicable Canadian and United States securities laws ( collectively, “ forward-looking information ”). Forward-looking information are often, but not always, identified by the use of words such as “ seek, ” “ anticipate, ” “ believe, ” “ plan, ” “ estimate, ” “ expect, ” “ likely ” and “ intend ” and statements that an event or result “ may, ” “ will, ” “ should, ” “ could ” or “ might ” occur or be achieved and other similar expressions. Forward-looking information in this news release includes future anticipated business developments for the companies in which Eat Well Group invests. Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to a continued increase in demand within the infant nutrition market and the ability of the Company or its portfolio companies to execute their business plans. The Company considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied in the forward-looking information. Such risks include, without limitation: the failure to negotiate and execute additional investments in target industries, the ability of the Company to complete investments in a timely manner or at all; the receipt of requisite approvals to complete the additional investments; the ability of the Company to realize the expected benefits and synergies of investments; unexpected disruptions to the operations and businesses of the Company and investee entities as a result of the COVID-19 global pandemic or other disease outbreaks including a resurgence in the cases of COVID-19; the ability of the Company to comply with applicable government regulations in a regulated industry; any change in accounting practices or treatment affecting the consolidation of financial results adverse market conditions; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; costs of inputs; crop failures; litigation; currency fluctuations; competition; availability of capital and financing on acceptable terms; industry consolidation; loss of key management and/or employees; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. For more information on the Company and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com. | general |
Global Medical Lasers Systems Market Forecast to 2028: Focus on Dermatology, Ophthalmology, Gynecology, Dentistry, Cardiology, Urology - ResearchAndMarkets.com | DUBLIN -- ( BUSINESS WIRE) -- The `` Medical Lasers Systems Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type ( Diode Lasers, Solid-State Lasers, and Dye Lasers), Application ( Dermatology, Ophthalmology, Gynecology, Dentistry, Cardiology, Urology, Others), and End-User, and Geography '' report has been added to ResearchAndMarkets.com's offering.
The medical lasers systems market is projected to reach US $ 5,834.02 million by 2028 from US $ 2,398.60 million in 2021; it is expected to grow at a CAGR of 13.5% from 2021 to 2028.
The increasing prevalence of eye disorders is one of the key factors driving the growth of the market. Corneal diseases are the second-leading cause of blindness globally, after cataracts. According to the report released by the American Academy of Ophthalmology, cataracts affect more than 24.4 million Americans aged 40 and older. Also, diabetic retinopathy affects nearly 7.7 million Americans aged 40 and older.
To avoid this, laser vision correction through medical lasers systems is the most common surgical procedure. Additionally, advances in laser ablation profiles have resulted in a better quality of vision, including better night vision. Thus, the rising prevalence of eye disorders globally raises the demand for medical lasers.
The solid-state lasers segment would account for the largest market share during 2021-2028. Solid-state lasers have gained attention in the global market owing to their significant improvement in the performance of such specialized lasers. This is evaluated as output power levels, wall-plug efficiency, reliability, and range of available wavelengths from the pump diodes and diode arrays.
Also, modular and multiwavelength solid-state lasers provide therapeutic radiation proving effective for laser-lithotripsy, laser-angioplasty, neurosurgery, general surgery, and dentistry. Furthermore, solid-state lasers have had successful medical applications for many years due to their quick use and low absorption power in the water, which penetrated deeply into the skin and is mostly used in dermatology for hair removal and tissue rejuvenation.
By application, the medical lasers systems market is segmented into dermatology, ophthalmology, gynecology, dentistry, cardiology, urology, and others. The ophthalmology segment would dominate the market in the coming years. Advances in medical laser systems have enabled successful surgeries for multiple eye diseases, such as diabetic retinopathy, retinal tears, detachment, and macular degeneration. These medical lasers systems help prevent vision loss by improving sight.
Additionally, the manufacturers are bringing innovative products to the market. For example, Nidek, in May 2019, announced the launching of a new product by introducing the `` YC-200 S plus ophthalmic YAG and SLT laser system/YC-200 ophthalmic YAG laser system '', ensuring efficacious treatments for the patients.
By end-user, the medical lasers systems market is segmented into hospitals, specialty clinics, ambulatory surgery centers, and others. Specialty clinics are centers of excellence assuring to deliver high standards of clinical outcomes. Specialty clinics focus on any one organ, a system of the body, or a particular disease.
Therefore, these clinics are staffed with para-medical and nursing personnel with specialized skills that have been perfected over time. The role of specialty clinics in detecting, diagnosing, and managing eye disease, cardiac diseases, and others has gained huge attention. Such aforementioned factors have raised the demand for medical lasers systems.
Key Topics Covered:
1. Introduction
1.1 Scope of the Study
1.2 Research Report Guidance
1.3 Market Segmentation
2. Medical Lasers Systems Market - Key Takeaways
3. Research Methodology
4. Medical Lasers Systems Market - Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Expert Opinion
5. Medical Laser Systems Market - Key Market Dynamics
5.1 Market Drivers
5.1.1 Increase in Prevalence of Eye Diseases
5.1.2 Significant Rise in Elderly Population
5.2 Market Restraints
5.2.1 Stringent Safety Regulations
5.3 Market Opportunities
5.3.1 Untapped Potential of Emerging Economies
5.4 Future Trends
5.4.1 Large Number of Product Approvals and Launches
5.5 Impact Analysis
6. Medical Laser Systems Market- Global Analysis
6.1 Global Medical Lasers Systems Market Revenue Forecast and Analysis
6.2 Global Medical Lasers Systems Market, By Geography - Forecast and Analysis
6.3 Market Positioning of Key Players
7. Global Medical Lasers Market Revenue and Forecasts To 2028- By Product Type
7.1 Overview
7.2 Global Medical Laser Systems Market, By Product Type, 2021 & 2028 (%)
7.3 Diode Laser
7.3.1 Overview
7.3.2 Diode Laser: Medical Laser Market Revenue and Forecasts to 2028 ( US $ Million)
7.4 Solid-State Laser
7.4.1 Overview
7.4.2 Solid-State Laser: Medical Laser Market Revenue and Forecasts to 2028 ( US $ Million)
7.4.2.1 Holmium Yttrium Aluminium Garnet ( Ho: YAG) Lasers
7.4.2.2 Erbium Yttrium Aluminium Garnet ( Er: YAG) lasers
7.4.2.3 Neodynium Yttrium Aluminium Garnet ( ND: YAG) Lasers Million)
7.4.2.4 Potassium Titanyl Phosphate ( KTP)
7.4.2.5 Alexandrite Lasers
7.4.2.6 Ruby Lasers
7.5 Gas Lasers
7.5.1 Overview
7.5.2 Gas Lasers: Medical Lasers Market Revenue and Forecasts to 2028 ( US $ Million)
7.5.2.1 Co2 Lasers
7.5.2.2 Argon Lasers
7.5.2.3 Krypton Lasers
7.5.2.4 Metal Vapor ( AU AND CU) Lasers
7.5.2.5 Helium-Neon Lasers
7.5.2.6 Excimer Laser
7.6 Dye Laser
8. Global Medical Laser Systems Market Revenue and Forecasts To 2028- By Application
8.1 Overview
8.2 Global Medical Laser Systems Market, By Application, 2021 & 2028 (%)
8.3 Dermatology
8.3.1 Overview
8.3.2 Dermatology: Medical Laser Systems Market Revenue and Forecasts to 2028 ( US $ Million)
8.4 Ophthalmology
8.5 Gynecology
8.6 Dentistry
8.7 Cardiology
8.8 Urology
9. Medical Laser Systems Market Revenue and Forecasts To 2028 - By End User
9.1 Overview
9.2 Global Medical Laser Systems Market Share by End User - 2021 & 2028 (%)
9.3 Hospitals
9.3.1 Overview
9.3.2 Hospitals: Medical Laser Systems Market Revenue and Forecast to 2028 ( US $ Million)
9.4 Specialty Clinics
9.5 Ambulatory Surgery Centers
10. Medical Laser Systems Market Revenue and Forecasts to 2028 - Geographical Analysis
11. Impact Of COVID-19 Pandemic on Medical Laser Systems Market
12. Medical Laser Systems Market-Industry Landscape
12.1 Growth Strategies Done by the Companies in the Market, (%) | general |
AHF Says, “ Invest in Health: Get Tested for HIV & TB ” on World TB Day! | ( Graphic: Business Wire)
( Graphic: Business Wire)
LOS ANGELES -- ( BUSINESS WIRE) -- Even though tuberculosis ( TB) is entirely preventable and treatable, more than 4,100 people lose their lives every day to TB, and nearly 28,000 more acquire the virus. On this World TB Day, AIDS Healthcare Foundation ( AHF), in addition to urging governments worldwide to increase resources to fight the deadly disease, encourages people everywhere to `` Invest in Health: Get tested for HIV & TB! ''
Along with being one of the world's most deadly infectious diseases, TB is one of the leading causes of death among people living with HIV. It's vital that global leaders, and individuals alike with their personal health care, boost investments to fight TB. Increasing resources and actions to battle tuberculosis is also especially critical amid another ongoing global health crisis in COVID-19.
`` The COVID-19 pandemic has rightfully captured the world's attention over the last two-plus years, but tuberculosis remains a significant threat to people in all countries. It's even more dangerous for people living with HIV since they're 18 times more likely to develop active TB disease than people without HIV, '' said AHF Director of Global Advocacy & Policy Guillermina Alaniz. `` With our World TB Day 2022 theme 'Invest in Health: Get tested for HIV & TB, ' we want to send the message loud and clear that the world must do more to preserve the precious gains we 've made in recent years fighting TB – and make a much-needed push to end this preventable and treatable disease. ''
Observed annually on March 24, World TB Day coincides with German physician and bacteriologist Robert Koch's announcement in 1882 of his discovery of Mycobacterium tuberculosis. The first World TB Day was held one century later when TB incidence was rising worldwide. For commemoration this year, select AHF country teams have virtual and in-person `` Invest in Health: Get tested for HIV & TB '' advocacy events planned. | general |
Assurant to Share Strategic Vision, 2022 Outlook and Long-term Financial Objectives at Investor Day | Company expected to deliver significant earnings growth and continued strong cash generation through 2024
NEW YORK -- ( BUSINESS WIRE) -- Assurant, Inc. ( NYSE: AIZ), a leading global business services company that supports, protects and connects major consumer purchases, today will host its virtual Investor Day where it will share its company vision and provide its financial outlook for 2022 and financial objectives for 2023-2024.
“ Our long track record of outperformance gives us confidence in our ability to deliver on our stated financial objectives over the next three years, ” said Keith Demmings, President and CEO, Assurant. “ Our global business is well-positioned to achieve our vision to become the leading business services company supporting the advancement of the connected world. ”
Assurant expects to deliver sustained 8-10 percent growth in adjusted EBITDA, excluding reportable catastrophes ( 1,2), and nearly $ 3 billion in segment cash generation ( 2,3) over the next three years. In addition to adjusted EBITDA, the company will also now include adjusted earnings per diluted share as a key performance metric for the company.
2022 Outlook
2023-2024 Financial Objectives
Adjusted EBITDA, excluding reportable catastrophes ( 1,2)
8 percent to 10 percent growth
10 percent average annual growth
Adjusted earnings, excluding reportable catastrophes, per diluted share ( 1,2)
16 percent to 20 percent growth
12 percent or higher average annual growth
Segment cash generation
~ $ 2.9 billion ( 2,3)
Demmings will be joined by four senior executives to highlight how the company’ s market leadership and competitive advantages, along with favorable market and consumer trends, position Assurant to meet evolving needs and to thrive in a connected world.
Management will showcase the company’ s progress since its last Investor Day in 2019, including successfully delivering against its enterprise financial objectives while outperforming the S & P 500 ( 4). Presenters include:
“ As Assurant continues to evolve into a more fee-based, capital-light and service-oriented enterprise, sustained earnings growth and cash flow generation are expected to continue to provide us with the flexibility to target strategic investments to drive long-term growth while at the same time returning capital to shareholders and maintaining our investment grade and financial strength ratings, ” said Demmings. “ We have a proven track record of making high-return, strategic investments in our businesses, backed by a long history of returning capital to our shareholders, which we believe in combination will maximize value creation going forward. ”
In the eighteen years since going public, Assurant has raised its common stock dividend every year and repurchased 66 percent of its common stock.
Given its ongoing shift to more fee-based businesses, beginning in first quarter 2022, Assurant will introduce adjusted earnings, excluding reportable catastrophes, per diluted share, in addition to adjusted EBITDA, excluding reportable catastrophes, as its performance metric for the enterprise. In addition, the company introduced a new metric within its Connected Living business, global mobile devices serviced, which includes the number of devices for which it provides value to its consumers and partners through trade-in, repair and broader dynamic fulfillment services. To provide investors with an opportunity to review the updated presentation prior to the publication of Assurant’ s first quarter 2022 results, the financial supplement as of December 31, 2021 has been revised to reflect these and other changes. The revised financial supplement is available on Assurant’ s Investor Relations website: https: //ir.assurant.com/investor/default.aspx.
( 1) Reportable catastrophes represent individual catastrophic events that generate losses in excess of $ 5.0 million, pre-tax, net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums.
( 2) The company outlook and financial objectives for adjusted EBITDA, excluding reportable catastrophes, adjusted earnings, excluding reportable catastrophes, per diluted share, and segment cash generation each constitute forward-looking information and the company believes that it can not reconcile such forward-looking information to the most comparable GAAP measure without unreasonable efforts. Many of the GAAP components can not be reliably quantified due to the combination of variability and volatility of such components and may, depending on the size of the components, have a significant impact on the reconciliation. For 2022, the company is able to quantify a full-year estimate of interest expense, depreciation expense and amortization of purchased intangible assets, each on a pre-tax basis, which are expected to be approximately $ 109 million, $ 85 million and $ 70 million, respectively. The interest expense estimate assumes no additional debt is incurred or extinguished in the forecast period and excludes after-tax interest expenses included in debt extinguishment and other related costs.
( 3) 2022-2024 segment cash generation to approximate 75% of segment adjusted EBITDA, including a $ 120M annual catastrophe load, which represents average actual losses over the last three years.
( 4) Assurant’ s total shareholder return was 107% compared to 80% for the S & P 500 from 12/31/2018 through 3/15/2022. Total shareholder return assumes dividends are reinvested. Data sourced from Factset.
Investor Day Webcast
A live webcast of the event will be held on March 24, 2022 at 9:00 a.m. E.T. A live Q & A session with management will be available for the investment community via the webcast platform as well as phone dial-in. The live and archived replay of the presentation will be available through the Investor Relations section of Assurant's website at www.assurant.com. Slides of the presentation will be posted for viewing before the event begins.
About Assurant Assurant, Inc. ( NYSE: AIZ) is a leading global business services company that supports, protects and connects major consumer purchases. A Fortune 300 company with a presence in 21 countries, Assurant supports the advancement of the connected world by partnering with the world’ s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender-placed insurance products and other specialty products.
Learn more at assurant.com or on Twitter @ Assurant.
Safe Harbor Statement Some of the statements included in this news release, including our business and financial plans and any statements regarding the company’ s anticipated future financial performance, business prospects, growth and operating strategies and similar matters, including performance outlook, financial objectives, business drivers, our ability to gain market share, and the strength, diversity, predictability and resiliency of enterprise and segment earnings, cash flows and other results, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
You can identify forward-looking statements by the use of words such as “ outlook, ” “ objective, ” “ will, ” “ may, ” “ can, ” “ anticipates, ” “ expects, ” “ estimates, ” “ projects, ” “ intends, ” “ plans, ” “ believes, ” “ targets, ” “ forecasts, ” “ potential, ” “ approximately, ” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this news release are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management, including those projected in the company outlook and financial objectives:
( i)
the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues;
( ii)
significant competitive pressures, changes in customer preferences and disruption;
( iii)
the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;
( iv)
the failure to find suitable acquisitions at attractive prices, integrate acquired businesses effectively or identify new areas for organic growth;
( v)
our inability to recover should we experience a business continuity event;
( vi)
the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
( vii)
risks related to our international operations;
( viii)
declines in the value of mobile devices, or export compliance or other risks in our mobile business;
( ix)
our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
( x)
risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
( xi)
the impact of catastrophe and non-catastrophe losses, including as a result of climate change;
( xii)
negative publicity relating to our business or industry;
( xiii)
the impact of general economic, financial market and political conditions and conditions in the markets in which we operate;
( xiv)
the impact of the COVID-19 pandemic and measures taken in response thereto;
( xv)
the adequacy of reserves established for claims and our inability to accurately predict and price for claims;
( xvi)
a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;
( xvii)
fluctuations in exchange rates;
( xviii)
an impairment of goodwill or other intangible assets;
( xix)
the failure to maintain effective internal control over financial reporting;
( xx)
unfavorable conditions in the capital and credit markets;
( xxi)
a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;
( xxii)
an impairment in the value of our deferred tax assets;
( xxiii)
the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
( xxiv)
the credit risk of some of our agents, third-party administrators and clients;
( xxv)
the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends or repurchase shares;
( xxvi)
limitations in the analytical models we use to assist in our decision-making;
( xxvii)
the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;
( xxviii)
breaches of our information systems or those of third parties with whom we do business, or the failure to protect the security of data in such systems, including due to cyber attacks and as a result of working remotely;
( xxix)
the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection or tax;
( xxx)
the impact of litigation and regulatory actions;
( xxxi)
reductions or deferrals in the insurance premiums we charge;
( xxxii)
changes in insurance, tax and other regulations;
( xxxiii)
volatility in our common stock price and trading volume; and
( xxxiv)
employee misconduct.
For additional information on factors that could affect our actual results, please refer to the factors identified in the reports we file with the U.S. Securities and Exchange Commission ( the “ SEC ”), including but not limited to the risk factors identified in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, each as filed with the SEC.
Media: Linda Recupero Senior Vice President, Global Enterprise Communications 201.519.9773 linda.recupero @ assurant.com
Stacie Sherer Vice President, Corporate Communications 917.420.0980 stacie.sherer @ assurant.com | general |
Polestar 2 Single Motor Electric Vehicle Now Available in United States | GOTHENBURG, Sweden -- ( BUSINESS WIRE) -- Polestar, the premium electric performance car maker, today announced inbound availability of the all-electric Polestar 2 Long range Single motor fastback in the United States. Available to order online at Polestar.com, the single-motor Polestar 2 features an accessible starting price of $ 45,900, or as low as $ 33,400 after qualified federal and state incentives *.
In addition to being the lowest priced vehicle in the Polestar lineup, this latest model’ s EPA estimated 270-mile range * * is the brand’ s longest, all while offering the same standard features as the high-performance dual-motor Polestar 2. This includes the world’ s first infotainment system powered by Android Automotive OS with Google built-in, a premium vegan interior, and Polestar’ s renowned chassis tuning.
Expanding the Polestar 2 model range in the United States represents another step in the company’ s robust growth plans, including a global sales target of approximately 65,000 vehicles in 2022. In September 2021, the company announced its intention to list on the Nasdaq stock exchange through a business combination with Gores Guggenheim, Inc. ( Nasdaq: GGPI, GGPIW and GGPIU).
“ The single-motor Polestar 2 can be had for well under $ 35,000 in states like New Jersey, making it one of the most compelling offerings on the market, ” said Gregor Hembrough, Head of Polestar North America. “ All variants of the Polestar 2 exude the brand’ s leadership in cutting-edge technology with the Google infotainment system, premium sustainable materials, and unparalleled avant-garde design. ”
“ Plus ” and “ Pilot ” option packs are both available on all Polestar 2 variants. The Plus Pack ( $ 4,000), features a-new-for-2022 mechanical heat pump to extend range, a full-length panoramic glass roof, a 13-speaker Harman Kardon audio system, and WeaveTech vegan interior upholstery. The Pilot Pack ( $ 3,200) offers enhanced safety and driver assistance features, including Pilot Assist, Adaptive Cruise Control ( ACC), and Blind Spot Information System ( BLISTM). With these combined technologies, the Pilot Pack aids drivers to safely alleviate stress in certain driving situations.
Additionally, all Polestar 2 owners receive Over-The-Air ( OTA) updates that deliver enhancements directly to the vehicle, enabling even the oldest cars to run with the latest technology. Recent updates include the ability to schedule charging sessions, quicker DC charging enabled by battery preconditioning, and a Range Assistant app that includes an Eco Climate function.
As part of the brand’ s digital-first retail model, Polestar 2 can be ordered online at https: //www.polestar.com/us/polestar-2/configurator/ or with the help of Polestar Specialists at one of the brand’ s retail locations.
Polestar currently has retail locations – or Spaces – open in major markets across the US. This includes test drives, sales, and service of Polestar vehicles in Los Angeles, the San Francisco Bay Area, and Orange County, Calif.; New York City; Denver, Colorado; Boston; Central and Southern New Jersey; Dallas and Austin, Texas; Detroit; Minneapolis; Phoenix; Seattle; Atlanta; Charlotte, North Carolina; Connecticut; South Florida; and Washington D.C. Additionally, Polestar offers vehicle pick up and delivery for test drives, sales, and service within 150 miles from any Polestar Space.
Polestar 2 test drives can be scheduled at Polestar.com/test-drive, or arranged at any Polestar Space.
* The discounted $ 33,400 price is for illustrative purposes only and is inclusive of all incentives available to a qualifying New Jersey resident as an example. The lower price is inclusive of the following deductions: ( i) $ 7,500 federal EV tax credit and ( ii) $ 5,000 Charge Up New Jersey incentive. These incentives are only available in NJ and are not guaranteed, nor in Polestar’ s control. Polestar recommends you consult your tax advisor for personal eligibility.
* * This is an electric vehicle. Since electricity is not measured in gallons, a conversion factor is used to translate the fuel economy into miles per gallon of gasoline equivalent ( MPGe). Polestar 2 Long range Single motor is EPA-estimated 113 city/100 highway/107 combined MPGe. Use for comparison purposes only. Your MPGe will vary for many reasons, including but not limited to, driving conditions, how and where you drive, how you maintain your vehicle, battery-package/condition, and other factors. See www.fueleconomy.gov
About Polestar
Polestar was established as a new, standalone Swedish premium electric vehicle manufacturer in 2017. Founded by Volvo Cars and Geely Holding, Polestar enjoys specific technological and engineering synergies with Volvo Cars and benefits from significant economies of scale as a result.
Polestar is headquartered in Gothenburg, Sweden, and its vehicles are currently available and on the road in markets across Europe, North America, China and Asia Pacific. By 2023, the company plans that its cars will be available in an aggregate of 30 markets. Polestar cars are currently manufactured in two facilities in China, with additional future manufacturing planned in the USA.
In September 2021, Polestar announced its intention to list as a public company on the Nasdaq in a business combination agreement with Gores Guggenheim, Inc. Full information on this definitive agreement can be found here.
Polestar has produced two electric performance cars. The Polestar 1 was built between 2019 and 2021 as a low-volume electric performance hybrid GT with a carbon fiber body, 609 hp, 1,000 Nm and an electric-only range of 124 km ( WLTP) – the longest of any hybrid car in the world.
The Polestar 2 electric performance fastback is the company’ s first fully electric, high volume car. The Polestar 2 model range includes three variants with a combination of long- and standard range batteries as large as 78 kWh, and dual- and single-motor powertrains with as much as 300 kW / 408 hp and 660 Nm.
In the coming three years, Polestar plans to launch one new electric vehicle per year, starting with Polestar 3 in 2022 – the company’ s first electric performance SUV. Polestar 4 is expected to follow in 2023, a smaller electric performance SUV coupe.
In 2024, the Polestar 5 electric performance 4-door GT is planned to be launched as the production evolution of Polestar Precept – the manifesto concept car that Polestar released in 2020 that showcases the brand’ s future vision in terms of design, technology, and sustainability. As the company seeks to reduce its climate impact with every new model, Polestar aims to produce a truly climate-neutral car by 2030.
About Gores Guggenheim, Inc.
Gores Guggenheim, Inc. ( Nasdaq: GGPI, GGPIW, and GGPIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, founded by Alec Gores, and by an affiliate of Guggenheim Capital, LLC. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Gores Guggenheim's strategy is to identify and complete business combinations with market leading companies with strong equity stories that will benefit from the growth capital of the public equity markets and be enhanced by the experience and expertise of Gores ' and Guggenheim’ s long history and track record of investing in and operating businesses.
Forward-Looking Statements
Certain statements in this press release ( “ Press Release ”) may be considered “ forward-looking statements ” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the future financial or operating performance of Gores Guggenheim, Inc. ( “ Gores Guggenheim ”), Polestar Performance AB and/or its affiliates ( the “ Company ”) and Polestar Automotive Holding UK Limited ( “ ListCo ”). For example, projections of future Adjusted EBITDA or revenue and other metrics are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “ may ”, “ should ”, “ expect ”, “ intend ”, “ will ”, “ estimate ”, “ anticipate ”, “ believe ”, “ predict ”, “ potential ”, “ forecast ”, “ plan ”, “ seek ”, “ future ”, “ propose ” or “ continue ”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Gores Guggenheim and its management, and the Company and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: ( 1) the occurrence of any event, change or other circumstances that could give rise to the termination of definitive agreements with respect to the Business Combination; ( 2) the outcome of any legal proceedings that may be instituted against Gores Guggenheim, the combined company or others following the announcement of the Business Combination and any definitive agreements with respect thereto; ( 3) the inability to complete the Business Combination due to the failure to obtain approval of the stockholders of Gores Guggenheim, to obtain financing to complete the Business Combination or to satisfy other conditions to closing; ( 4) changes to the proposed structure of the Business Combination that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the Business Combination; ( 5) the ability to meet stock exchange listing standards following the consummation of the Business Combination; ( 6) the risk that the Business Combination disrupts current plans and operations of the Company as a result of the announcement and consummation of the Business Combination; ( 7) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; ( 8) costs related to the Business Combination; ( 9) risks associated with changes in applicable laws or regulations and the Company’ s international operations; ( 10) the possibility that the Company or the combined company may be adversely affected by other economic, business, and/or competitive factors; ( 11) the Company’ s estimates of expenses and profitability; ( 12) the Company’ s ability to maintain agreements or partnerships with its strategic partners Volvo Cars and Geely and to develop new agreements or partnerships; ( 13) the Company’ s ability to maintain relationships with its existing suppliers and strategic partners, and source new suppliers for its critical components, and to complete building out its supply chain, while effectively managing the risks due to such relationships; ( 14) the Company’ s reliance on its partnerships with vehicle charging networks to provide charging solutions for its vehicles and its strategic partners for servicing its vehicles and their integrated software; ( 15) the Company’ s ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm, including from lithium-ion battery cells catching fire or venting smoke; ( 16) delays in the design, manufacture, launch and financing of the Company’ s vehicles and the Company’ s reliance on a limited number of vehicle models to generate revenues; ( 17) the Company’ s ability to continuously and rapidly innovate, develop and market new products; ( 18) risks related to future market adoption of the Company’ s offerings; ( 19) increases in costs, disruption of supply or shortage of materials, in particular for lithium-ion cells or semiconductors; ( 20) the Company’ s reliance on its partners to manufacture vehicles at a high volume, some of which have limited experience in producing electric vehicles, and on the allocation of sufficient production capacity to the Company by its partners in order for the Company to be able to increase its vehicle production capacities; ( 21) risks related to the Company’ s distribution model; ( 22) the effects of competition and the high barriers to entry in the automotive industry, and the pace and depth of electric vehicle adoption generally on the Company’ s future business; ( 23) changes in regulatory requirements, governmental incentives and fuel and energy prices; ( 24) the impact of the global COVID-19 pandemic on Gores Guggenheim, the Company, the Company’ s post business combination’ s projected results of operations, financial performance or other financial metrics, or on any of the foregoing risks; and ( 25) other risks and uncertainties set forth in the section entitled “ Risk Factors ” and “ Cautionary Note Regarding Forward-Looking Statements ” in Gores Guggenheim’ s final prospectus relating to its initial public offering ( File No. 333-253338) declared effective by the SEC on March 22, 2021, and other documents filed, or to be filed, with the SEC by Gores Guggenheim or ListCo, including the Registration/Proxy Statement. There may be additional risks that neither Gores Guggenheim, the Company nor ListCo presently know or that Gores Guggenheim, the Company or ListCo currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements.
Nothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Neither Gores Guggenheim, the Company nor ListCo undertakes any duty to update these forward-looking statements.
Additional Information
In connection with the proposed Business Combination, ( i) ListCo has filed with the SEC a Registration/Proxy Statement, and ( ii) Gores Guggenheim will file a definitive proxy statement relating to the proposed Business Combination ( the “ Definitive Proxy Statement ”) and will mail the Definitive Proxy Statement and other relevant materials to its stockholders after the Registration/Proxy Statement is declared effective. The Registration/Proxy Statement will contain important information about the proposed Business Combination and the other matters to be voted upon at a meeting of Gores Guggenheim stockholders to be held to approve the proposed Business Combination. This Press Release does not contain all the information that should be considered concerning the proposed Business Combination and is not intended to form the basis of any investment decision or any other decision in respect of the Business Combination. Before making any voting or other investment decisions, securityholders of Gores Guggenheim and other interested persons are advised to read, the Registration/Proxy Statement and the amendments thereto and the Definitive Proxy Statement and other documents filed in connection with the proposed Business Combination, as these materials will contain important information about Gores Guggenheim, the Company, ListCo and the Business Combination. When available, the Definitive Proxy Statement and other relevant materials for the proposed Business Combination will be mailed to stockholders of Gores Guggenheim as of a record date to be established for voting on the proposed Business Combination. Stockholders will also be able to obtain copies of the Registration/Proxy Statement, the Definitive Proxy Statement and other documents filed with the SEC, without charge, once available, at the SEC’ s website at www.sec.gov, or by directing a request to: Gores Guggenheim, Inc., 6260 Lookout Rd., Boulder, CO 80301, attention: Jennifer Kwon Chou.
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Participants in the Solicitation | general |
Altus Power, Inc. Announces Full Year and Fourth Quarter 2021 Financial Results | Fourth Quarter and Full Year 2021 Financial Highlights
Recent Business Highlights
STAMFORD, Conn. -- ( BUSINESS WIRE) -- Altus Power, Inc. ( NYSE: AMPS) ( “ Altus Power ” or the “ Company ”), a leading clean electrification company, today announced results for the fourth quarter and full year 2021. Revenues for the full year 2021 were $ 71.8 million, compared with $ 45.3 million for full year 2020. The Company reported 2021 GAAP net income of $ 13.0 million, compared to a $ 1.9 million net loss in 2020. Adjusted EBITDA for 2021 totaled $ 41.0 million, with adjusted EBITDA margin of 57%. *
“ In 2021, Altus Power continued to drive our business forward, providing clean electrification options to customers and growing our operating footprint. At the same time, we executed on strategic partnerships and added key personnel to provide for our growing customer pipeline, ” said Lars Norell, Co-CEO of Altus Power. “ Altus Power expects to continue our success through emphasis on streamlined customer acquisition, leveraging digital capabilities and deploying low cost capital. ”
Commercial Momentum Continuing
During 2021, Altus Power increased the size of its portfolio of assets by over 50% to a total of 362 megawatts of installed capacity. In 2022 Altus Power will continue its close collaboration with Blackstone Real Estate and cultivate new relationships under its agreement with CBRE.
Since the close of its business combination with CBRE Acquisition Holdings in December, Altus Power and CBRE’ s Renewable Energy Solutions team have quickly identified a pool of CBRE clients that could immediately benefit from Altus Power’ s clean energy project development expertise. This process has yielded immediate results, and the Company looks forward to executing on these and additional opportunities in the near future.
“ We’ ve hit the ground running with the CBRE team in 2022, ” said Gregg Felton, Co-CEO of Altus Power. “ The types of commercial partnerships we’ re exploring are exactly what we envisioned under our agreement with CBRE. We look forward to the opportunity to partner with additional CBRE clients to reduce their electricity costs and help decarbonize their operations.
“ Work also continues with our long-time partner Blackstone to prioritize and execute on clean energy opportunities across their commercial real estate holdings, highlighted by our recent 35 megawatt community solar award which will be hosted on Blackstone industrial real estate in New Jersey, ” continued Felton.
Altus Power continues to prioritize the digitization of its processes, which promises to further streamline origination and construction workflows and reduce costs as Altus Power scales its business.
“ Our number one digitization goal is building out the technology infrastructure that leverages CBRE’ s vast data resources, allowing us to efficiently capitalize on our new relationship, ” said Julia Sears, Chief Digital Officer at Altus Power. “ By leveraging our enhanced technology platform to clearly identify the massive value Altus Power can deliver to our clients, we will be able to convert prospects into customers more efficiently, including for the ever-growing Community Solar market. Whether evaluating building and usage data, measuring client consumption, or managing our operations from initial customer engagement through construction and ongoing maintenance, we are investing in our technology platform to support all areas of our growth. ”
Fourth Quarter Financial Results
Revenues during the fourth quarter of 2021 totaled $ 21.6 million, compared to $ 11.3 million during the same period of 2020, an increase of 92%.
Fourth quarter 2021 GAAP net income totaled $ 14.5 million, which included a $ 12.8 million one-time gain on sale, compared to a net loss of $ 3.3 million for the same period last year.
Adjusted EBITDA during the fourth quarter of 2021 was $ 12.9 million, compared to $ 5.6 million for the fourth quarter of 2020, a 129% increase. * The quarter over quarter growth in adjusted EBITDA is the result of increased revenue from additional solar energy facilities outpacing the increase of operating and general administrative expenses. *
Full Year 2021 Financial Results
Revenues for the full year 2021 totaled $ 71.8 million, an increase of 59% over 2020 full year revenue of $ 45.3 million, primarily due to the increased number of solar energy facilities in our portfolio.
GAAP net income for full year 2021 totaled $ 13.0 million, including a one-time gain on sale of $ 12.8 million, compared to a net loss of $ 1.9 million for 2020.
Adjusted EBITDA for the full year 2021 totaled $ 41.0 million, an increase of 60% over 2020 adjusted EBITDA of $ 25.6 million, due to the growth in revenue from additional solar energy facilities outpacing the increase of operating and general administrative expenses. *
Balance Sheet and Liquidity
Altus Power ended 2021 with $ 326 million in unrestricted cash, and $ 546 million of total debt, resulting in net debt of $ 220 million. The Company expects to fund its operations using available cash, additional borrowings under debt facilities and third-party tax equity, for the foreseeable future.
Initiating 2022 Adjusted EBITDA guidance
Today Altus Power is initiating a 2022 adjusted EBITDA guidance range of $ 57-63 million, nearly 50% growth over 2021 at the midpoint. * Management focuses on adjusted EBITDA and adjusted EBITDA margin as key measures of profitable growth and approximation of cash flow generation. Management will give further details on guidance during the Company’ s earnings call.
Conference Call Information
The Altus Power management team will host a conference call to discuss its full year and fourth quarter 2021 financial results on Friday, March 25, 2022, at 8:30 a.m. Eastern Time. The call can be accessed via a live webcast accessible on the Events & Presentations page in the Investor Relations section of Altus Power’ s website at www.altuspower.com. An archive of the webcast will be available after the call on the Investor Relations section of Altus Power’ s website as well.
Use of Non-GAAP Financial Information
* We present our operating results in accordance with accounting principles generally accepted in the U.S. ( “ GAAP ”). We believe certain financial measures, such as adjusted EBITDA and adjusted EBITDA margin provide users of our financial statements with supplemental information that may be useful in evaluating our business. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define adjusted EBITDA as net income ( loss) plus net interest expense, depreciation, amortization and accretion expense, income tax expense, acquisition and entity formation costs, non-cash compensation expense, and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, gain on fair value remeasurement of contingent consideration, gain on disposal of property, plant and equipment, change in fair value of redeemable warrant liability, change in fair value of alignment shares, loss on extinguishment of debt, and other miscellaneous items of other income and expenses.
Adjusted EBITDA is a non-GAAP financial measure that we use as a performance measure. We believe that investors and securities analysts also use adjusted EBITDA in evaluating our operating performance. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The GAAP measure most directly comparable to adjusted EBITDA is net income. The presentation of adjusted EBITDA should not be construed to suggest that our future results will be unaffected by non-cash or non-recurring items. In addition, our calculation of adjusted EBITDA is not necessarily comparable to adjusted EBITDA as calculated by other companies.
We believe adjusted EBITDA is useful to management, investors and analysts in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis. These adjustments are intended to exclude items that are not indicative of the ongoing operating performance of the business. Adjusted EBITDA is also used by our management for internal planning purposes, including our consolidated operating budget, and by our board of directors in setting performance-based compensation targets. Adjusted EBITDA should not be considered an alternative to but viewed in conjunction with GAAP results, as we believe it provides a more complete understanding of ongoing business performance and trends than GAAP measures alone. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.
Altus Power does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty and without unreasonable effort, items such as acquisition and entity formation costs, gain on fair value remeasurement of contingent consideration, change in fair value of redeemable warrant liability, change in fair value of alignment shares. These items are uncertain, depend on various factors, and could be material to Altus Power’ s results computed in accordance with GAAP.
About Altus Power, Inc.
Altus Power, based in Stamford, Connecticut, is the nation’ s premier clean electrification company. Altus Power serves its commercial, industrial, public sector and community solar customers by developing, owning and operating locally sited solar generation, energy storage, and EV charging infrastructure across 18 states from Vermont to Hawaii. Visit altuspower.com to learn more.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “ anticipate ”, “ believe ”, “ could ”, “ continue ”, “ expect ”, “ estimate ”, “ may ”, “ plan ”, “ outlook ”, “ future ” and “ project ” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Altus Power’ s future prospects, developments and business strategies. These statements are based on Altus Power’ s management’ s current expectations and beliefs, as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Altus Power’ s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: ( 1) the ability of Altus Power to maintain its listing on the New York Stock Exchange; ( 2) the ability to recognize the anticipated benefits of the recently completed business combination and related transactions ( the “ Transactions ”), which may be affected by, among other things, competition, the ability of Altus Power to grow and manage growth profitably, maintain relationships with customers, business partners, suppliers and agents and retain its management and key employees; ( 3) costs related to the Transactions; ( 4) changes in applicable laws or regulations; ( 5) the possibility that Altus Power may be adversely affected by other economic, business, regulatory and/or competitive factors; ( 6) the impact of COVID-19 on Altus Power’ s business; and ( 7) the failure to realize anticipated pro forma results and underlying assumptions related to the Transactions.
Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found under the heading “ Risk Factors ” in Altus Power’ s Form 10-K filed with the Securities and Exchange Commission on March 24th, 2022, as well as the other information we file with the Securities and Exchange Commission., as well as the other information we file with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Altus Power undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.
This press release is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Altus Power and is not intended to form the basis of an investment decision in Altus Power. All subsequent written and oral forward-looking statements concerning Altus Power or other matters and attributable to Altus Power or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
Altus Power, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
( In thousands, except share and per share data)
Three Months Ended December 31,
Year Ended December 31,
2021
2020
2021
2020
Operating revenues, net
$
21,578
$
11,265
$
71,800
$
45,278
Operating expenses
Cost of operations ( exclusive of depreciation and amortization shown separately below)
4,024
2,633
14,029
9,661
General and administrative
4,731
3,032
16,915
10,143
Depreciation, amortization and accretion expense
6,800
3,522
20,967
11,932
Acquisition and entity formation costs
303
575
1,489
1,015
Gain on fair value remeasurement of contingent consideration
( 400
)
—
( 2,800
)
—
Gain on disposal of property, plant and equipment
( 12,842
)
—
( 12,842
)
—
Total operating expenses
$
2,616
$
9,762
$
37,758
$
32,751
Operating income
18,962
1,503
34,042
12,527
Other ( income) expenses
Change in fair value of redeemable warrant liability
2,332
—
2,332
—
Change in fair value of alignment shares liability
( 5,013
)
—
( 5,013
)
—
Other ( income) expense, net
( 593
)
154
245
258
Interest expense, net
5,971
3,730
19,933
14,073
Loss on extinguishment of debt
—
—
3,245
—
Total other expense
$
2,697
$
3,884
$
20,742
$
14,331
Income ( loss) before income tax expense
$
16,265
$
( 2,381
)
$
13,300
$
( 1,804
)
Income tax expense
( 1,792
)
( 964
)
( 295
)
( 83
)
Net income ( loss)
$
14,473
$
( 3,345
)
$
13,005
$
( 1,887
)
Net income ( loss) attributable to noncontrolling interests and redeemable noncontrolling interests
7,285
( 334
)
7,099
( 8,680
)
Net income ( loss) attributable to Altus Power, Inc.
$
7,188
$
( 3,011
)
$
5,906
$
6,793
Net income ( loss) per share attributable to common stockholders
Basic
$
0.07
$
( 0.03
)
$
0.06
$
0.08
Diluted
$
0.06
$
( 0.03
)
$
0.06
$
0.07
Weighted average shares used to compute net income ( loss) per share attributable to common stockholders
Basic
104,653,303
88,741,089
92,751,839
88,741,089
Diluted
109,155,128
88,741,089
96,603,428
90,858,718
Altus Power, Inc.
CONSOLIDATED BALANCE SHEETS
( In thousands, except share and per share data)
As of December 31,
2021
2020
Assets
Current assets:
Cash
$
325,983
$
33,832
Current portion of restricted cash
2,544
3,465
Accounts receivable, net
9,218
5,752
Other current assets
6,659
1,748
Total current assets
344,404
44,797
Restricted cash, noncurrent portion
1,794
909
Property, plant and equipment, net
745,711
519,394
Intangible assets, net
16,702
11,758
Goodwill
601
—
Other assets
4,037
4,702
Total assets
$
1,113,249
$
581,560
Liabilities, redeemable noncontrolling interests, and stockholders ' equity
Current liabilities:
Accounts payable
$
3,591
$
1,571
Interest payable
4,494
2,665
Purchase price payable
—
2,638
Current portion of long-term debt
21,143
35,209
Other current liabilities
3,663
1,369
Total current liabilities
32,891
43,452
Redeemable warrant liability
49,933
—
Alignment shares liability
127,474
—
Long-term debt, net of unamortized debt issuance costs and current portion
524,837
353,934
Intangible liabilities, net
13,758
4,647
Asset retirement obligations
7,628
4,446
Deferred tax liabilities, net
9,603
11,001
Other long-term liabilities
5,587
6,774
Total liabilities
$
771,711
$
424,254
Commitments and contingent liabilities
Redeemable noncontrolling interests
15,527
18,311
Stockholders ' equity
Common stock $ 0.0001 par value; 988,591,250 shares authorized as of December 31, 2021 and 2020; 153,648,830 and 89,999,976 shares issued and outstanding as of December 31, 2021 and 2020, respectively
15
9
Preferred stock $ 0.0001 par value; 10,000,000 shares authorized; zero shares issued and outstanding as of December 31, 2021 and 2020
—
—
Additional paid-in capital
406,259
205,772
Accumulated deficit
( 101,356
)
( 80,802
)
Total stockholders ' equity
$
304,918
$
124,979
Noncontrolling interests
21,093
14,016
Total equity
$
326,011
$
138,995
Total liabilities, redeemable noncontrolling interests, and stockholders ' equity
$
1,113,249
$
581,560
Altus Power, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
( In thousands)
Year ended December 31,
2021
2020
Cash flows from operating activities
Net income ( loss)
$
13,005
$
( 1,887
)
Adjustments to reconcile net income ( loss) to net cash from operating activities:
Depreciation, amortization and accretion
20,967
11,932
Unrealized ( gain) loss on interest rate swaps
( 324
)
82
Deferred tax expense
219
60
Amortization of debt discount and financing costs
2,873
2,538
Loss on extinguishment of debt
3,245
—
Change in fair value of redeemable warrant liability
2,332
—
Change in fair value of alignment shares liability
( 5,013
)
—
Remeasurement of contingent consideration
( 2,800
)
—
Gain on disposal of property, plant and equipment
( 12,842
)
—
Stock-based compensation
148
82
Other
104
780
Changes in assets and liabilities, excluding the effect of acquisitions
Accounts receivable
162
( 1,287
)
Due from related parties
—
3
Other assets
( 4,647
)
495
Accounts payable
2,001
( 1,477
)
Interest payable
1,909
1,769
Other liabilities
2,365
( 794
)
Net cash provided by operating activities
23,704
12,296
Cash flows from investing activities
Capital expenditures
( 14,585
)
( 36,677
)
Payments to acquire businesses, net of cash and restricted cash acquired
( 201,175
)
( 110,691
)
Payments to acquire renewable energy facilities from third parties, net of cash and restricted cash acquired
( 27,364
)
( 23,381
)
Proceeds from disposal of property, plant and equipment
19,910
—
Payments for customer and site lease acquisitions
—
( 893
)
Other
( 36
)
300
Net cash used for investing activities
( 223,250
)
( 171,342
)
Cash flows from financing activities
Proceeds from issuance of long-term debt
311,053
205,808
Repayments of long-term debt
( 160,487
)
( 55,754
)
Payment of debt issuance costs
( 2,628
)
( 1,584
)
Payment of debt extinguishment costs
( 1,477
)
—
Distributions to common equity stockholder
—
( 22,500
)
Proceeds from the Merger and PIPE financing
637,458
—
Payment of transaction costs related to the Merger
( 55,442
)
—
Proceeds from issuance of common stock and Series A preferred stock
82,000
31,500
Repayment of Series A preferred stock
( 290,000
)
—
Payment of dividends and commitment fees on Series A preferred stock
( 22,207
)
( 12,950
)
Payment of contingent consideration
( 153
)
( 501
)
Contributions from noncontrolling interests
3,846
23,927
Redemption of noncontrolling interests
( 5,324
)
( 1,524
)
Distributions to noncontrolling interests
( 4,978
)
( 1,307
)
Net cash provided by financing activities
491,661
165,115
Net increase in cash and restricted cash
292,115
6,069
Cash and restricted cash, beginning of year
38,206
32,137
Cash and restricted cash, end of year
$
330,321
$
38,206
Non-GAAP Financial Reconciliation
Reconciliation of GAAP reported Net Income to non-GAAP adjusted EBITDA:
Three Months Ended December 31,
Year Ended December 31,
2021
2020
2021
2020
( in thousands)
Reconciliation of Net income ( loss) to Adjusted EBITDA:
Net income ( loss)
$
14,473
$
( 3,345
)
$
13,005
$
( 1,887
)
Income tax expense
1,792
964
295
83
Interest expense, net
5,971
3,730
19,933
14,073
Depreciation, amortization and accretion expense
6,800
3,522
20,967
11,932
Non-cash compensation expense
37
21
148
82
Acquisition and entity formation costs
303
575
1,489
1,015
Gain on fair value remeasurement of contingent consideration
( 400
)
-
( 2,800
)
-
Gain on disposal of property, plant and equipment
( 12,842
)
-
( 12,842
)
-
Change in fair value of redeemable warrant liability
2,332
-
2,332
-
Change in fair value of alignment shares liability
( 5,013
)
-
( 5,013
)
-
Loss on extinguishment of debt
-
-
3,245
-
Other ( income) expense, net
( 593
)
154
245
258
Adjusted EBITDA
$
12,860
$
5,621
$
41,004
$
25,556 | general |
‘ Enough touchscreen tipping already! I’ m over it’: Two years into the COVID-19 pandemic, do I have to tip for coffee, ice cream and takeout? Am I being cheap? | Dear Quentin,
I recently bought an ice cream cone at a nearby parlor. It’ s a big-name joint and I won’ t name it here, but suffice it to say you can pay up to $ 8 for a carryout cone or a cup. The line is out the door, especially in the evening.
At lunchtime, I like to buy fish sandwiches with chips and an iced tea at my local sandwich shop. ( I’ m a baby boomer and my doctor says I should avoid red meat, but that’ s a story for another day.)
If you order online, they usually have the lunch ready for you when you get there. The online-order service request a tip. Am I a bad person? Am I supposed to now tip
before
I pick up my own food? I already tip the delivery workers.
Enough touchscreen tipping already! I’ m over it. When is enough enough?
Feeling Short-Changed and Nickel-and-Dimed
Dear Short-Changed,
Tipping fatigue is real, and it’ s getting worse.
People want to show their appreciation for good service in restaurants that have been hit hard by the pandemic — many of which closed and/or are still struggling to recover — and those people who literally put their lives in your hands during those early months of COVID-19 before there were vaccines. But we’ re now asked to tip in the most unexpected places.
So why do people feel tipping fatigue? Because no one likes to be taken by surprise. When that server swivels the touchscreen around for us to pay — and we are forced to choose between 10%, 15%, 20% or “ No tip! ” — it puts us on the spot. Customers hate feeling wrong-footed and exposed. We may smile and coo over the ice-cream flavors, but being surprised with a tipping option leaves us with a bad taste.
The last two years have also helped many of us to reevaluate our often privileged place in the world. We’ re a culture that has been nudged and bombarded with notifications to want everything now, or we will call your boss and give them a piece of our mind. Tipping was one way for us to show that we do, in fact, care. And, no, that doesn’ t need to include tipping before we pick up an online order.
We’ ve all been guilt tipped by technology. Do I choose “ No tip ” and risk looking cheap or “ 20% ” and feel like I’ ve been the subject of a gotcha? Consumers are cajoled by technology into adding another $ 1 to an ice cream or coffee, while the server pretends not to notice. They notice. ( The Moneyist, for what it’ s worth, is happy to pay $ 1.50 for a strong bodega coffee over Starbucks any day.)
“
‘ Customers hate feeling wrong-footed and exposed.’
”
The end result: We walk away licking our honeycomb ice cream, not feeling the tingle of pleasure we had originally anticipated. There is a bitter aftertaste. We may suspect we’ ve been silently judged for not tipping an $ 1 for an $ 8 ice cream. Or we believe we’ ve been tricked into paying more than we would have been comfortable with, if we’ d been prepared for that digital swivel.
Americans claim to have become more generous tippers. More than half of customers say they upped the amount they tip during the pandemic, and they generally tip 20% or more, according to a poll by Popmenu, a restaurant software company, this past fall. While most people ( 61%) said they tip delivery people 15%, nearly four in 10 people reported tipping 20% or more.
In recent months, a separate report by Square, a financial-services and digital-payments company, suggests that magnanimity is waning. The higher tipping at full-service restaurants during the first year of the COVID-19 pandemic, which surpassed 21%, has now fallen closer to 19%, the company said. Those more ebullient tippers, it seems, returned to more provident pastures.
That’ s a long way of saying you don’ t have to tip when you are standing in line to buy coffee or ice cream. An extra $ 1 here and there has a meaningful impact for the service staff who are often working at close to minimum wage. At a bar, incidentally, if you want the attention of the barman, it’ s $ 2 for a cocktail or glass of liquor. ( When it comes to coat-check staff and bar staff,
the $ 1 tip is dead.
)
That said, if you choose to tip the friendly scooper in an ice-cream parlor or the cool barista in a fancy coffee house, make sure you’ re doing it because you want to — not because you’ re caught off guard. In cities like New York, where the cost of living is high, it’ s customary to tip servers 20%. The residents of other cities tip 15%, and Europeans — I’ m sorry to say, as I hail from across the pond — only tip 10%.
My motto: When in Rome, tip like a New Yorker.
Yo
u
can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell @ marketwatch.com, and follow Quentin Fottrell on
Twitter.
Check out
the Moneyist private Facebook
group, where we look for answers to life’ s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.
The Moneyist regrets he can not reply to questions individually.
By emailing your questions, you agree to having them published anonymously on MarketWatch.
By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties
.
More from Quentin Fottrell
:
•
My girlfriend says I should tip in restaurants. I say waitstaff are just like construction and fast-food workers. Who’ s right?
•
‘ He was infatuated with her’: My brother had a drinking problem and took his own life. He left $ 6 million to his former girlfriend who used to buy him alcohol
•
‘
She had a will, but it was null and void’: My friend and her sister are fighting over their mother’ s life-insurance policy and bank account. Who should win out? | business |
European drugs regulator recommends AstraZeneca's COVID drug | The European Medicines Agency on Thursday authorised the use of AstraZeneca Plc's antibody drug for preventing COVID-19 infections in adults and adolescents over 12 years of age. ( Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli) | business |
Journal of Computational Finance Volume 16, Number 4 ( June 2013) | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Welcome to Volume 16, Issue 4 of The Journal of Computational Finance. In this issue we present 4 research papers: 'An efficient pricing algorithm for swing options based on Fourier cosine expansions ' by B. Zhang and C. W. Oosterlee; 'Optimal execution under jump models for uncertain price impact ' by Somayeh Moazeni, Thomas F. Coleman and Yuying Li; 'Tracking value-at-risk through derivative prices ' by Simon I. Hill; and 'An application to credit risk of a hybrid Monte Carlo-optimal quantization method ' by Giorgia Callegaro and Abass Sagna.
After five years as Editor-in-Chief of The Journal of Computational Finance, Peter Forsyth will be stepping down as of next month. It has been my pleasure to work with Peter over the past three years. His professionalism and dedication to the journal has ensured top-quality content and a smooth and timely review process. I would like to thank him for all the work he has put into editing, reviewing and promoting the journal. His efforts have been reflected in the increased readership and standing of the journal. His commitment to the journal extended to suggesting Cornelis ( Kees) W. Oosterlee as his successor and to making an initial approach to him. I am delighted to say that he has accepted and will start as editor from the fall issue.
As regular readers of the journal will know, Kees, from the Center for Mathematics and Computer Science ( CWI) and Delft University of Technology, has been on the editorial board of The Journal of Computational Finance for five years. He is a leading thinker in his field and a regular contributor to the journal. In fact, his most recent paper can be found in this issue.
I am confident that with this background knowledge Kees will continue to run the journal to the highest possible standard. I would like to welcome him to his new role and again extend my thanks.
I look forward to working with Kees in the years to come and with Peter, who I am pleased to say has agreed to stay on as an active member of the editorial board.
Somayeh Moazeni, Thomas F. Coleman and Yuying Li
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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To use this feature you will need an individual account. If you have one already please sign in. | general |
NYC Mayor Lifts Vax Restrictions On Athletes, Performers | New York City Mayor Eric Adams on Thursday said he would lift a COVID-19 vaccination exemption for local athletes and entertainers, the move coming as Brooklyn Nets star Kyrie Irving has been forced to sit out home games and just weeks before the opening of the Major League Baseball season.Speaking from the New York Mets home stadium Citi Field on Thursday, Adams said he is signing an emergency executive order to expand the COVID-19 vaccine exemption for athletes and entertainers of private employers to allow them to perform in the city. `` I 'm the mayor of the city, and I am... | general |
Norway news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
Nordnet offers a range of listed products in the Nordics and has now partnered with SG for a product based on African equities. Product manager Alexander Tiainen talks to Vita Millers
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Equities news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
If the past two years have taught prime brokers anything, it’ s that those with real-time risk and margin management tools at their fingertips have a competitive edge and staying power. Award-winning software platform TS Imagine offers prime brokers the…
This paper revisits the cross-sectional approach to the performance analysis of multifactor investment strategies.
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Dow Jones Industrial Average ( DJIA) news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
Two of the latest structured products Wells Fargo has registered in the US public market are based on multiple underlyings, making a play on correlation. The supply registered with the US Securities and Exchange Commission on March 8 includes 88 new…
US equities were the major theme in index-linked issuance at the end of last week, although diversification away from the S & P 500 was on offer from some providers.
As volumes see a slow recovery after the summer, issuers are diversifying the underlyings and Barclays focuses on real estate.
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Systematic trading news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
This paper present a novel systematic commodity trading model utilizing a time series momentum strategy.
Alpha generation can be an elusive goal, particularly when trading volatility. Three different approaches to trading volatility were discussed by a panel looking at the role of systematic and carry strategies in finding profit in a high-volatility world
Big US Treasury trader has seen hedge fund add $ 1.5bn this year
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Journal of Computational Finance Volume 16, Number 3 ( March 2013) | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
Welcome to Volume 16, Issue 3 of The Journal of Computational Finance. In this issue we present 4 research papers: 'Numerical methods for an optimal order execution problem ' by Fabien Guilbaud, Mohamed Mnif and Huyen Pham, 'Fast and accurate long-stepping simulation of the Heston stochastic volatility model ' by Jiun Hong Chan and Mark Joshi, 'Pricing high-dimensional Bermudan options using variance-reduced Monte Carlo methods ' by Peter Hepperger, and 'Pricing synthetic collateralized debt obligations based on exponential approximations to the payoff function ' by Ian Iscoe, Ken Jackson and Xiofang Ma.
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Journal of Energy Markets Volume 10, Number 2 ( June 2017) | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
The papers in this issue of The Journal of Energy Markets all touch upon topics of considerable importance and relevance. They involve aspects of theory or methodology but, in keeping with the objectives of the journal, they also seek to inform and improve professional practice. Their subjects range from the well-established themes of oil price modeling and optimal oil production to the more recent market for green certificates and the emerging interest in flexibility provisions in power markets.
In the first paper, “ Optimal management of green certificates in the Swedish– Norwegian market ”, Fred Espen Benth, Marcus Eriksson and Sjur Westgaard develop a valuation model for the tradeable green certificates ( TGCs) in the Swedish–Norwegian market. This is formulated as a stochastic control problem in which the model takes into account the production rate of renewable energy from a typical plant, the price of TGCs and the cumulative amount of certificates sold. With particular stochastic assumptions, the authors derive optimal decision rules and a closed-form solution to the control problem. A case study on data from Denmark validates the model choice and shows the practical relevance of the proposed methodology.
“ Barriers for district heating as a source of flexibility for the electricity system ” by Klaus Skytte, Ole Jess Olsen, Emilie Rosenlund Soysal and Daniel Møller Sneum is the issue’ s second paper. Here, the authors examine the important role that district heating facilities can provide in meeting the flexibility requirements that large amounts of intermittent energy, such as wind energy, impose upon the power system. However, regulatory barriers and different energy market designs may hinder the potential benefits from system integration and lower the potential that can be realized. Combined heat and power ( CHP) is widely integrated into the power market in Scandinavia, but it is threatened by low electricity prices due to the increasing amounts of wind power. Power-to-heat technologies, electric boilers and heat pumps are blocked by high tariffs and taxes. A calculation of the heat costs of different district heating technologies demonstrates that CHP and power-to-heat under the present price and tax conditions in Denmark and Sweden are unable to compete with heat-only boilers that use tax-free biomass. This paper provides important quantitative insights into a topic that has been attracting considerable interest.
Moustapha Pemy looks at optimal oil production in our third paper, “ Optimal oil production under mean-reverting Lévy models with regime switching ”. How quickly an oil producer should, or might, extract resources has often been a question of international relevance and speculation. In this context, Pemy’ s paper is concerned with finding the optimal extraction policies of an oil field under various financial and economic constraints. Taking into account the fact that the oil price in worldwide commodity markets fluctuates randomly following global and seasonal macroeconomic parameters, oil price is modeled as a mean-reverting regime-switching jump–diffusion process. The author demonstrates the convergence of a numerical solution for approximating the optimal reward function and the optimal extraction policy.
Continuing with the theme of oil price modeling, in “ Modeling superior predictors for crude oil prices ”, Sjur Westgaard, Petter Osmundsen, Daniel Stenslet and Jo Ringheim question the common perception in the literature that oil price dynamics are most adequately explained by fundamental supply-and-demand factors. In contrast, they find that financial indicators are even more significant for modeling and predicting oil prices. They demonstrate empirically that the futures spreads level, high-yield bond spreads and the PHLX Oil Service Sector ( OSX) index are the best predictors of oil prices in the period February 2000–June 2013. The OSX index is particularly interesting, as no study has analyzed its predictive power prior to this paper. The relationship is intuitively meaningful, as stock prices, which strongly depend on the oil price, are determined in a market with well-informed investors. The authors also demonstrate through an out-of-sample analysis that their most parsimonious model is superior to various relevant benchmarks. Evidently, these findings do not imply that the financial sector determines oil prices but, rather, that fundamental information of practical importance is traceable from financial markets.
This paper proposes and investigates a valuation model for the income of selling tradeable green certificates in the Swedish–Norwegian market, formulated as a singular stochastic control problem.
In this paper, the authors investigate the barriers to including DH as a flexible resource for the electricity market in Denmark, Norway and Sweden.
This paper models the evolution of the oil price as a mean-reverting regime-switching jump–diffusion process.
This paper provides an analysis of a broad spectrum of fundamental and nonfundamental indicators for crude oil prices.
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Morgan Stanley news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
US legislative tweak was meant to prevent banks from using their own capital models too liberally. It’ s now something different
Also: Citi shells out $ 45m for misleading stock trading info; coding clangers cost Credit Suisse $ 9m. Data by ORX News.
Stock buybacks and dividends hit $ 117.7 billion last year
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Asia Risk Feb 2022 | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
For a generation of bankers and vendors, client hospitality was part of life. But the party is winding down
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Quantitative news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
Traditionally quants have learnt to pick data apart. Soon they might spend more time making it up
‘ Rough volatility’ models promise better pricing and hedging of options. But will they catch on?
Steering a portfolio of non-linear derivatives, such as options and more exotic products, is challenging at the best of times. Market risks change as markets move and time passes, risks offset in complex ways and proxy hedging is common. In this feature, …
Credit risk analysts at emerging market banks not only need high-quality data, but also the necessary tools to manage it. Improving consistency and reducing the risk of errors in credit risk data create more time to concentrate on the core activity of…
Regulators consider banks’ internal capital adequacy and assessment process ( ICAAP) and internal liquidity adequacy assessment process ( ILAAP) important tools in managing risk. The European Central Bank’ s ( ECB’ s) updated guidance – which came into effect…
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Imperial College London news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
As impending global changes brought about by climate change loom, one issue in particular threatens to cause massive losses to institutional investors – rising sea levels. David Lunsford and Boris Prahl, of MSCI, explore where, despite the efforts of…
Amid a global push towards green policies, the reality of overhauling how industries worth trillions of dollars operate is causing concern. A forum of market participants and sponsors of this report discuss the levels of awareness of climate risk and its…
Part 2: Statistical methods In this second of two articles, Rodney Coleman, of Imperial College London, continues his demonstration of the uncertainty in measuring operational risk from small samples of loss data.
© Infopro Digital Risk ( IP) Limited ( 2022). All rights reserved. Published by Infopro Digital Services Limited, 133 Houndsditch, London, EC3A 7BX. Companies are registered in England and Wales with company registration numbers 09232733 & 04699701.
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Stochastic volatility news and analysis articles | The transition from LIBOR to RFR has brought challenges for structured products. There are still legacy IBOR products to consider and at the same time the pricing and risk systems need to be upgraâ¦
To ease the pain associated with meeting compliance targets, global institutions are exploring ways to become more efficient by integrating regulatory and business initiatives.
Wire payment fraud is a major growing risk for financial institutions in the aftermath of the COVID-19 pandemic. These cases of fraud donât just hurt finâ¦
Asia Risk is proud to present Asia Risk Live, a face-to-face event in Hong Kong and Singapore. An opportunity to reconnect in person to learn and exchange new ideas.
View our latest in market leading training courses, both public and in-house.
The Energy Risk Awards recognise the leading firms in energy risk management. Corporates, financial players, technology and data firms, consultancies, brokers and exchanges are all welcome to submit â¦
The Asia Risk Awards recognize best practices in risk management and derivatives use by banks and financial institutions around the region.
Take a look at the wide variety of events and training on offer.
This eBook is based on the 2021 industry research by Acuiti, as well as the FIS Readiness Report. Youâll find plenty of support for a move to AI-powered cloud computing, a modular approach that ensurâ¦
Maximising value from better risk management and deal efficiency This Risk.net survey and white paper, commissioned by SS & C Intralinks, assesses the outlook for the CMBS market in the US and Europe, â¦
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Edited by Bill Coen and D. R. Maurice
This paper looks at ways of solving ( decoupled) forward–backward stochastic differential equations numerically using regression trees.
In this paper the universal approximation theorem of artificial neural networks ( ANNs) is applied to the stochastic alpha beta rho ( SABR) stochastic volatility model in order to construct highly efficient representations.
This paper looks at the impact of compounding on zero-coupon bond prices by considering the short rate when it follows a Gaussian diffusion process or a stochastic volatility jump-diffusion process.
This paper proposes an extension of the classical CARR model, the ACARR-MIDAS model, to model volatility and capture the volatility asymmetry as well as volatility persistence.
This paper calibrates a perpetual-debt structural model ( PDSM) by using Moody’ s historical credit ratings.
This paper applies the smart expansion method to the Heston–Hull–White model, which admits stochastic interest rates to enhance the model, and obtains the expansion formula for pricing options in the model up to second order.
This work presents an efficient computational framework for pricing a general class of exotic and vanilla options under a versatile stochastic volatility model.
In this paper, the authors introduce two mixing fractions that can be controlled separately to apply impact to the volatility-of-volatility and the correlation in a lognormal LSV model.
This work generalizes existing one- and two-dimensional pricing formulas with an equal number of barriers to a setting of n dimensions and up to two barriers in the presence of stochastic volatility.
In the present paper, a decomposition formula for the call price due to Alòs is transformed into a Taylor-type formula containing an infinite series with stochastic terms. The new decomposition may be considered as an alternative to the decomposition of…
This paper develops two local mesh-free methods for designing stencil weights and spatial discretization, respectively, for parabolic partial differential equations ( PDEs) of convection–diffusion–reaction type.
The main goal of this paper is to perform a comprehensive nonparametric jump detection model comparison and validation. To this end, the authors design an extensive Monte Carlo study to compare and validate these tests.
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