Transcripts For BLOOMBERG Bloomberg Markets Americas 2024071

BLOOMBERG Bloomberg Markets Americas July 11, 2024

Monday, when we had 97 basis points. Some of the risk on currencies not necessarily reacting as they should, like the euro. We will break that down over the next couple of hours as the market digests the news and what it means Going Forward as cases pickup. Now we welcome our tv viewers andradio listeners, modernas ceo. The biggest question that it seems like people have is why does your vaccine require less cold storage then pfizer, key to distribution . Good morning, and thank you for having me. I think it goes back to the fact that we have been working on mrna vaccines for more than 10 years. That you mentioned, it is the first time they are doing an Infectious Disease vaccine. Over the years, we have invested heavily in science, and process develop and that allows us to have much better storage conditions than what we had five years ago. Guy this is really important because it is going to have a huge impact on distribution. How much of an effect will that stability at a higher temperature have for everyones ability to get a hold of this vaccine . Stephane i think it is a huge impact. We have another vaccine stored at 20 in the factory and distribution centers. Those are able to handle that type of product because they are andady approved by the emea europe, as well as the u. S. What is very important with todays news is that we can now have the vaccine stored in the , and everydge pharmacy, doctors office, hospital has that capability, so we think it is a game changer. The other piece to keep in mind is our vaccine does not require dilution. The other vaccine you mentioned requires dilution. You take the vaccine out and you need to dilute it. It is an extra step. What we need to get the world back to normal is a massive Vaccination Campaign that has never really happened before. Every time we are wasting doing these types of things is going to be an issue, so we think the storage and the fact that we do not require any dilution on site does give a big advantage to nurses, and to be able to provide the vaccine quickly to the population. Alix those are good distinctions. Have you had conversations with the Current Administration [no audio] stephane process to get the vaccines out to hospital and pharmacies. All of the big pharmacy chains in the u. S. Have signed up to get the vaccine, to provide administration and the pharmacies. So this is going to be available in hospitals, in some rural areas and community hospitals, in a gps office. Whereas the military is being involved to help with logistics. Guy one of the key questions as we all watch the case count climbing around the world is what impact will these shots have on transmission. If i had this in my arm, what effect will this have on my ability, if i come into contact or get the virus, to transmit it to others . Stephane this we dont know yet. What we know from todays data is if you get the vaccine, you have a 94 chance to have no covid disease. That is obviously a big deal. What is of his lien more important in my opinion is in the case of disease that we , thezed yesterday secondary endpoint of that phase 3 study, so 11 of the 95 cases were severe. So is really more so what is really breakable really there were no cases reported of the people who got the vaccine. When you put that data together, what does it tell you . It seems that our vaccine, if you get it, you have a very high chance of being with no disease, and if you get the disease, most probably you get the mild disease. Think about the impact on hospitalization, i see you, and the impact on the economy when governments around the world are trying to slow down contacts because they want to manage the limited hospital and i see you capacity and icu capacity. So if it can prevent severe disease, that is a game changer. To your question about transmission, we will know soon as part of a study. We are also looking at measuring antibodies that come from the fibrous, but could not come from a vaccine from the virus, but could not come from a. Accine the most important thing is to prevent disease. Vaccinated and do not have disease, we will be in a very different world. 65 . for people over what was the effect . Stephane we dont know all of the details yet because the company is blinded. The data is run by the independent safety board. But what we know is that we had only five active cases on the drug. We anticipate a good response in the elderly. We will know in a couple of weeks when we have the study , but if you look at the phase one data, of all of the vaccines in the clinic, we able too substate sustain the same level of antibodies for all participants in the study. So we are cautiously optimistic that in the elderly and of people with high comorbidity factors, we can successfully vaccinate. Guy Christine Lagarde was asked the other day what her greatest fear was. One of them was war. Wasof them the other mick. How big if fear is mutation, and is mrna vaccination the best way of dealing with any mutation . Yes, mrna stephane is the best to deal with any mutation. We have shown in january that it tos 42 days to go from a human, quality product. Tomorrow there was a new mutation like the one you mentioned that could have an impact on the efficacy of the vaccine, we could within a month go back and have a new vaccine. Chemistry for the molecule of mrna. It is the same manufacturing process. Message that the is very long, if you change it for mutation, you do not have to redo clinical studies anymore. So mrna is clearly the best for mutation. On the one you mentioned, we are tracking it. We are going to run the experiment very quickly to see does the blood that we have from humans who were in our phase one and phase to neutralize the new virus. If it does, we know the vaccine works well. If it doesnt, we can quickly change the sequence and avenue vaccine. Alix can you give me some perspective on the side effects . Stephane yes, the side effects, we have reported the serious side effects in the press release for transparency reasons. They are very similar to what you see with other vaccines. Report the fever because they were less than 2 of cases had fever, and what you see is with commercial vaccines. They go away with no medication, especially in the elderly group, you see people have a bit of headache. Those things go away usually within a day or so. Of course, people can take a tylenol or equivalent and actually not even feel this. Guy you mentioned a moment ago about being able to reformulate. How quickly do you think you will get into 2. 0, 3. 0 . How quickly do you think that cycle will happen, and what improvements do you think you will be looking for . As you look for reformulations, what work are you doing, and how improved will be the product, and how quickly . Stephane that is a great question. We are always working on temperature and stability. Have the data. We continue to monitor the stability. The other piece is singledose usage. The current product, like all of the other products, is multidose. You will get 10 doses for 10 people. Thateason the industry did is there enough there is not enough capacity in the world. So we can get much quicker product in the marketplace to vaccinate people. If you thing about the potential use of the mid to long in terms much easier will be to have a single dose vaccination like when you get the seasonal flu shot. Guy as you said at the beginning of this conversation, you have been working on this for a long time. Mrna forooking to use other therapies. Can you talk to me about the acceleration you have been through within your business as a result of covid19 . I am looking for silverlinings here. Will this help and treatments elsewhere, cancer and other areas . Stephane yes, the place is going to most it is going to help the most is Infectious Disease vaccines. Is cmv, a virus that drives the number one cause of birth effects in europe or in the u. S. 10,000 cases in the u. S. Per year. No vaccine on the home market. The industry has tried for 20 years to get the vaccines to work. They all failed. With a positive phase ii study year,tember, phase 3 next we have notuct that licensed, and we have many more like this. We Just Announced we are going to get into the flu business. It is a derisking of platforms for vaccines, which has a lot of value. We were supposed to be commercial in the 2023 to 2024 timeframe. Now we are being commercial before the end of the year. Guy that is quite in the coloration. Thank you very much that is quite an acceleration. Thank you very much. Bancel, the modernist ceo the moderna ceo, joining us on tv and radio. Lets talk more about modernas interim results. Doing this is dr. Gregory Clinic Research group. Dr. Poland this is exciting new to for the field of facts analogy in dealing with this but as a scientist, you always want to temper your enthusiasm with what you dont know yet. Remember, this is a press release. We havent actually seen the data. This is efficacy in the 14 days after the second dose. What will the durability of that immunity be . What will the protections be against a symptom at disease and transmission . What will efficacy against death be . Room or that generally speaking, in the context of these trials, they are being carried out in places where we are Wearing Masks and we are socially distancing. What are the same metrics with masks off . Those are important for us to examine as we go along. The other thing is that i absolutely agree that the stability at refrigerator temperature is important. Important to show is keeping it at that temperature gives us the same measures of efficacy. And finally, we want to know detail. Who were the five that got infected . Where they elderly . Were they people who had certain comorbidities . These are all very important as we try to develop strategies and policies for how the vaccine will be used. Alix related to your first point, when are we going to know that information . That vaccineation had a good efficacy rate because we were all Wearing Masks and socially distancing, that that maybe creates the efficacy . Dr. Poland we always know that the efficacy of a vaccine in a carefully controlled Clinical Trial is lower when you actually the data. People who are excluded from Clinical Trials would now be included in the general use, and. S i say, the distancing lets talk a bit about reformulation. How quickly does this treatment get better . Dr. Poland this is a really important question that you asked. I am going to add something to the context of this discussion, and that is yes, they can move very quickly. That is one of the exciting things about mrna based vaccines. The second thing is we might need that. On the mrna that produces the s protein from a particular strain. What happens when we give a vaccine against one type of protein from one type of sars virus, and that mutates . It has already mutated. It doesnt appear to be something that will change the. Fficacy of the vaccine where does this leave astrazenecas vaccine in terms of timing, and terms of what we need to look for, whether it may be better, etc. . Dr. Poland good question. That really awaits seeing the data. Remember, all we have for the mrna vaccines are two press releases. Those are fine, but as scientists, we really want to see the data begin to dissect, what are the assumptions here . Where did not work . That thell say is adeno vector vaccines in my experience, you have to give higher doses of it. The news that there is the potential for this mrna vaccine to be stored for 30 days at refrigeration temperature means that this vaccine, funded by the american taxpayer for the benefit of the world, could actually be used around the world. When you get to requiring 75 freezers, you have now limited it to Major Medical centers in the west and not the rest of the world. So if this stability turns out to not harm efficacy, this will be really important in the use of this product. Alix gregory, so great to talk to you and for helping us break that down. Medicalpoland, mayo School Vaccine group director, thank you. Lets take a look at how investors are weighing these developments. Ahnsen, Bahnsen Group cio, is joining us now. The reaction today is muted, kind of disappearing. Youre not really seeing any moving yields. The nasdaq is underperforming, but still up on the day. More thanhink it is just a small cap action. There was a big rotation into energy and the financials, and i think you are seeing that continuing today. I think it is obviously catalytic from the vaccine news last weekend this week, but i also think it is inevitable and has been inevitable, but boy, is it taking some patients to get here. Guy do i just ignore what is happening on the ground right now . Do i just ignore the climbing case counts, look through it, invest for next year . David you do, and the reason why is we have already been through this lesson. The case count is irrelevant to markets. We found out what we needed to know months ago, which is that there is a particularly vulnerable class of people for covid19 in our country, and we have the ability to better protect them. We have more than doubled the discharge rate getting out of hospitals because of therapeutic improvements, and the mortality rate not only for cases, but even for severe hospitalizations , has collapsed. So markets are able to look through that and see that, though the headline number around higher testing produces higher positive cases, the fact of the matter is we are able to safely reopen, and in fact, have to do so. Alix but david, doesnt what we do now affect how we come out of this . For example, we dont have the stimulus out of this. Have the program from the the stimulusas rolling off at the end of the year. Isnt that where it matters . David let me offer a different perspective on that when you say we dont have the stimulus here. We dont have a fourth stimulus, but we havent spent all the money from the third stimulus yet. We need a more targeted package. I agree that there will need to be additional, and in fact, the market is well aware that there is going to be. The questions are just if it is going to be in the lameduck session or into q1, and what the size and scope of it will be, but the fact of the matter is the stimulative effects of c. A. R. E. S. Act are nowhere near gone, let alone the trillions of dollars of monetary stimulus. Theres still ppp benefits throughout society. That is the lowest fruit for additional stimulus, giving more support to those businesses that were doubly impacted by the lockdowns. Guy can i just come back to this kind of tension that is in the market right now, between the here and now in the huge numbers of people suffering from covid, and the post covid world generated by the vaccines we are going to be getting . Is the rotation a Straight Line . Are we going to see quite a lot of turbulence between now and then . How do you pick your entry point . How do you position yourself during this period . David that is a really quite a really great question. I believe what is usually just referred to as a growth into value rotation, but there is a lot more nuance around it now, sector specific and even subsector, but it wont happen in a Straight Line. My argument is it began in september, and yet theres certainly been big nasdaq rallies, and big faang rallies along the way. But this is the rotation that is not just going to be driven by the vaccine and post covid economic realities. It is a rotation that was long overdue anyways. Pick growth got another pick up. It was a perfect storm for that relationship. That unwinding and mean reversion is a market inevitability throughout history. I think we are in that moment, but i think there will be turbulence. To your question about picking the entry point my cup the entry point, my earnest advice is to not try to pick an entry point because they will not be able to. That is my job, to tell people that they will not pick a perfect entry point, so they has to kind of average into those right spots and in a properly diversified portfolio. Alix so it is not a 100 rotation all the time. How long term is the rotation going to be . Citi looks at next year, yields capped at 1. 25 for the 10 year. I wonder, does that cap the rotation . David i dont see this is only connected to the level of yields. I do think the steepness of the curve matters. I dont happen to agree that we will even get to 1. 25 , but that has more to do with fed manipulation then it does economic strength. I think the economy will be plenty Strong Enough to support a 1. 255 a 1. 25 10 year, but the fed is not going to let the 10 year and thirtyyear year with deficits this high get there. I think they will end up using yield curve control to put down the longer into the curve. But ultimately, i think the issue is that it is sort of a permanent reality, and yet we just got so out of whack in terms of the relationship of certain sectors to one another that there has to be a mean reversion. It would be very market disruptive, i think mostly positive. As you know, we are Dividend Growth investors. Other sectors will have their day, but there will be new stimuli and new catalysts that affect the future rotation. Guy thank you for the input today. Greatly appreciate it. What have we got coming up . We are going to look at how these vaccines are going to be stored and then moved. We are going to diss to discuss all of that with stuart henderson. That conversation is coming up. We generate the vaccine, but storage and transport and stability are absolutely pivotal in its ability to get around the world and have the effect that everyone is hoping it will have. In terms of the market reaction, we were off to the races. Today we are seeing a more subdued response, we do have equities higher. Even the nasdaq is up a bit now. Crude absolutely surging. This is bloomberg. Guy this is Bloomberg Markets. Lets carry on our conversation about our top story. The Moderna Vaccine has been hailed as a potential game changer. Is oneution and storage of the critical questions we need to answer. Joining us for more is stuart henderson, accenture global lifesciences lead. We were just talking to the ceo of moderna, and talking about distribution and how important temperature is going to be in terms of being able to deliver the vaccines from labs to peoples arms. Can you walk me through just how complicated a process this is . Stuart thanks, guy. Great to be on. Before i dive into explaining thatger piece temperature piece, we are truly grateful to not only scientists and also the Health Care Providers and

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