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Most equity markets closed lower across the globe today, while
gold rallied to another multi-year high. US government bonds closer
higher and the curve flattened on the flight to quality. iTraxx and
CDX credit indices widened across IG/high yield, while both Brent
and WTI closed pretty much unchanged on the day. The rolling
seven-day average of daily new US COVID-19 cases broke records
yesterday for the 28th consecutive day and the growth in cases has
been having a measurable dampening effect on US retail traffic for
the past two weeks.
Americas
US equity markets closed lower; Russell 2000 -1.9%, DJIA -1.5%,
S&P 500 -1.1%, and Nasdaq -0.9%.
10yr US govt bonds closed -3bps/0.65% and 30yr bonds
-6bps/1.38% yield.
CDX-NAIG closed +3bps/71bps and CDX-NAHY +21bps/509bps.
Crude oil closed almost flat, for the second consecutive day,
at $40.62 per barrel.
Gold futures closed +0.9%/$1,809 per ounce today, breaching a
new almost nine-year high.
Retail traffic in the U.S. was down the most (-82.6% Y/Y) so
far in 2020 during the week ended April 18, according to data from
the retail consultancy ShopperTrak. From then until the past 14
days, there were slight improvements, but over the past two weeks,
retail traffic declines have accelerated once more. The week ended
June 27 traffic in the U.S. was down 35.7%, according to
ShopperTrak. Last week it was down 39.5% compared with the prior
year. (CNBC)
According to the latest data by FAIR Health's monthly
telehealth regional tracer, telehealth claims during April
increased by more than 8,335% compared with the previous year. FAIR
Health tracked telehealth usage using a database of over 30 billion
private medical and dental claims. Telehealth claims by volume
represented almost 20% of all claims in April 2020 compared with
0.07% in April 2019. According to the data, the top five diagnoses
were for mental health conditions (34.1%), joint/soft tissue
diseases and issues (5.8%), hypertension (3.7%), acute respiratory
diseases and infections (3.1%), and skin infections and issues
(3.0%). Regarding regional discrepancies, the northeast (including
New York, New Jersey, Connecticut, Maine, Massachusetts, Vermont,
Pennsylvania, and Rhode Island) recorded the most significant jump
year on year in April, increasing by about 26,209% compared with
the previous year. (IHS Markit Life Science's Margaret Labban)
The US FDA has issued an emergency use authorization (EUA) for
Becton Dickinson's (BD; US) COVID-19 rapid antigen diagnostic test,
Veritor System for Rapid Detection of SARS-CoV-2, which can provide
results within 15 minutes. The diagnostic test can detect fragments
of proteins in samples collected from nasal cavity swabs. Its use
is restricted to laboratories that are certified under the Clinical
Laboratory Improvement Amendments of 1988 (CLIA) regulations for
high, moderate, or waived complexity testing, and for those already
using the BD Veritor Plus Analyzer Instrument. This is the second
antigen test to garner an FDA EUA for COVID-19, after the agency
approved Quidel Corporation's (US) diagnostic in May. Unlike
traditional diagnostic tests that rely on amplifying extracted RNA
material from the virus over several hours to obtain readouts, the
rapid antigen tests detect SARS-CoV-2 nucleocapsid proteins via
immunoassays. (IHS Markit Life Science's Margaret Labban)
The May JOLTS report indicates the number of US hires jumped by
2.4 million to an all-time high of 6.5 million after slumping to an
all-time low of 4.0 million in April. The accommodation and food
services industry accounted for more than 30% of the hires. The
number of job openings increased to 5.4 million in May. (IHS Markit
Economist Akshat Goel)
Job separations continued to decline; after hitting an all-time
high of 14.6 million in March and 10.0 million in April,
separations fell to 4.1 million in May.
The layoffs and discharges rate fell from 5.9% to 1.4% in May;
the two-year pre-pandemic average of the rate was 1.2%. The quits
rate, a valuable indicator of the general health of the labor
market, recovered to 1.6%; it is still significantly below its
two-year pre-pandemic average of 2.3%.
Hires exceeded separations for the first time in three months.
However, over the 12 months ending in May, there is still a net
employment loss of 11.3 million.
There were 3.9 workers competing for every job opening in May.
With the exception of the last three reports, the number of job
openings has exceeded the number of unemployed in every report in
the last two years.
Canada's Ivey Purchasing Managers' Index (PMI) rose 19.1 points
to 58.2 in June, increasing for the second consecutive month and
settling above 50.0 for the first time in four months. (IHS Markit
Economist Alexander Minelli)
Purchasing managers' spending activity showed a major
improvement in June, a reassuring sign that the worst is over as
pandemic-related restrictions continue to be loosened.
The supplier deliveries index grew by 15.7 points to 53.4,
indicating faster deliveries compared with May as supply-chain
disruptions were remedied.
The inventories index again rose for the third month from its
low in March, increasing 15.0 points to 61.8 as purchasing managers
prepare for a rebound in customer demand.
The employment index further improved by 10.9 points, reaching
52.8, as businesses began to bring back workers, albeit in modified
settings to enhance worker safety.
The prices index, the only sub-index that did not fall below
50.0 in prior months, tacked on 1.5 points to 56.4, indicating mild
inflation pressure.
Volkswagen (VW) AG has met its obligations under the settlement
with the US government over the diesel emissions scandal, based on
the results of a third and final audit, specifically addressing
governance and processes that could increase risk of non-compliance
with US and California laws and rules. According to a VW statement,
the audit was prepared by the company's independent compliance
auditor, Larry Thompson. VW states, "The report did not find any
new violations and states that Volkswagen has met its obligations
under the Third Partial Consent Decrees with the United States
Department of Justice (DOJ) and California Attorney General."
Hiltrud D Werner, VW AG board of management member for integrity
and legal affairs, commented, "We are proud of the progress we have
made to enhance our internal compliance, reporting and monitoring
functions. We would like to thank Mr. Thompson and his team for
their guidance through the audit and support in satisfying our
obligations under the Third Partial Consent Decrees with the U.S.
authorities." (IHS Markit AutoIntelligence's Stephanie
Brinley)
Light-vehicle (LV) registrations in Brazil decreased 42.6% year
on year (y/y) in June, according to data from the National
Association of Motor Vehicle Manufacturers (Associação Nacional dos
Fabricantes de Veículos Automotores: Anfavea). Brazil's LV exports
dropped 54.1 y/y in June, while LV production declined 58.5% y/y.
(IHS Markit AutoIntelligence's Tarun Thakur)
June's figures are an improvement over May's y/y numbers. LV
registrations in Brazil decreased 75.8% y/y in May, according to
data from Anfavea. Brazil's LV exports dropped 92.6 y/y in May,
while LV production declined 85.6% y/y.
Brazilian LV sales topped 2.66 million units in 2019, roughly
8% higher than in 2018. The LV sales were driven by increased
availability of credit, and the sales increased last year despite a
somewhat sluggish economy, which grew at 1%.
We expect a serious drop in LV sales in Brazil in 2020 to less
than 1.8 million units, owing to the impact of the COVID-19 virus
pandemic.
Along with announcing the month's results, Luiz Carlos Moraes,
president of Anfavea, indicated that the organization has dropped
its expectations and forecasts that full-year sales will fall 40%
to only 1.67 million units, although it did not provide a forecast
for production or exports.
Europe/Middle East/ Africa
Most major European equity markets closed lower; UK -1.5%,
Spain -1.4%, Germany -0.9%, France -0.7%, and Italy -0.1%.
10yr European govt bonds closed mixed; Italy/UK -2bps, Spain
-1bp, France flat, and Germany +1bp.
iTraxx-Europe closed +2bps/63bps and iTraxx-Xover
+11bps/365bps.
Brent crude closed almost flat at $43.08 per barrel.
Saudi Arabia's General Authority for Statistics announced that
real GDP declined only modestly, by 0.4% quarter on quarter in
seasonally adjusted terms in Q1 2020, as the full impact of the
lockdown measures was not reflected yet and the agreement of the
OECD+ countries, which included severe cuts to Saudi oil
production, came into force only in April. (IHS Markit Economist
Ralf Wiegert)
In annual terms, it went down by 1.0% largely thanks to
government consumption (+8.0% year on year).
The services industries showed hardly any major change in the
first quarter compared to the final quarter of 2019, and production
of crude oil edged up a mere 0.3%.
Manufacturing, though, went down by 5.1% on the quarter,
reflecting the steep decline of IHS Markit Purchasing Manager Index
for Saudi Arabia in March down to 42.4 points, while the index was
still firmly above 50 in January and February.
Air Products will partner with ACWA Power (Riyadh, Saudi
Arabia) and NEOM to develop a $5-billion green ammonia production
facility in Saudi Arabia to supply carbon-free hydrogen for
transportation markets. The joint venture will be owned equally by
the three partners. The facility will be in an industrial cluster
within the NEOM economic zone in northwest Saudi Arabia, a planned
model city that will be powered by renewable energy sources. The
project is scheduled to come onstream in 2025. The green ammonia
produced will be largely for export. "Air Products will be the
exclusive off-taker of the green ammonia and intends to transport
it around the world to be dissociated to produce green hydrogen for
the transportation market," it says. The facility will be powered
by over four gigawatts of renewable power from solar, wind, and
storage with up to 650 metric tons/day of green hydrogen to be
produced by electrolysis using technology supplied by Thyssenkrupp,
according to Air Products. The 1.2 million metric tons/year of
green ammonia will be produced using Haldor Topsoe technology. The
project will also include an air separation unit to supply
nitrogen. Air Products plans to invest a combined total of
approximately $3.7 billion in the JV production facility and its
100%-owned distribution network for the green ammonia and hydrogen
to end customers worldwide. Air Products says the focus is on
fueling hydrogen fuel cell buses and trucks.
Italy's retail sales in volume terms increased by 24.3% month
on month (m/m) in May after falls of 10.7% m/m in April and 21.2%
m/m in March. It was still 12.6% below its level in February 2020.
(IHS Markit Economist Raj Badiani)
Importantly, spending on non-food items jumped by 66.3% m/m in
May after crashing in April and March.
Retail sales were 10.5% lower than a year ago in May. The
largest year-on-year (y/y) drops occurred for furniture and textile
items and household furnishings (34.8%), clothing (38.1%) and
shoes, leather goods, and travel items (37.4%).
Foreign visitors are still sparse, which will weigh down on the
country's retail sector. Italy's sizeable tourism sector, which
accounted for 13.2% of GDP in 2018 (source: World Travel and
Tourism Council), is an important support to the country's retail
sector.
French exports of goods (by value) rebounded by 16.8% month on
month (m/m) in May, following declines of 16.8% m/m in March and
32.7% m/m in April. However, they still stood more than a third
below their level in February. (IHS Markit Economist Diego Iscaro)
Exports to other eurozone member states rebounded strongly by
21.3% m/m, following a fall of 31.4% m/m in April, boosted by
higher sales to Germany (+27.9% m/m), Belgium (+22.4% m/m), and
Spain (+17.1% m/m). Exports to the United Kingdom, which had halved
on a m/m basis in April, rose by 35.7% m/m.
The breakdown by type of goods shows strong m/m rebounds in
exports of transport materials (+68.0%), textiles (+74.4%), and
electrical equipment (+33.2%). However, in all cases, they followed
even larger declines during the previous two months and still stood
well below their pre-COVID-19 virus peaks.
Among the main types of goods, pharmaceutical goods performed
well, while exports of transport materials were still more than 60%
below their February level.
Imports rose by 20.7% m/m in May, following a fall of 24.8% m/m
in April. Imports were less affected by the COVID-19 virus shock
than exports, although they still stood 26.1% below their February
level.
Seasonally and calendar-adjusted German industrial production
excluding construction bounced by 9.7% month on month (m/m) in May,
having fallen by 28.8% during March-April. Importantly, as the 9.7%
increase relates to a much smaller base, this recovers only
one-quarter and not one-third of the ground lost in March-April.
The latter's -28.8% compares with a decline by 22.7% during the
global financial crisis of 2008-09, although at that time the drop
occurred over a period of eight instead of two months. (IHS Markit
Economist Timo Klein)
Total production including construction rebounded by only 7.8%
m/m in May, following a combined fall of 24.8% during March-April.
Construction activity had declined to a much smaller extent in the
two preceding months (-4.5%), thus the absence of much of a rebound
in May (0.5%) does not surprise (see table below).
Expectedly, the manufacturing breakdown reveals that rebounding
investment goods output was the main factor in May by far. Its jump
by 27.6% m/m stands out compared to only stagnating intermediate
goods production and only a small increase in consumer goods
output.
The split according to industrial branches shows that car
output - which was only resumed by most major manufacturers at the
very end of April - leapt by 216% m/m. However, this only boosts
the output level from 14% to 44.5% of the average level in
2015.
In other sectors, monthly rebounds were much more restrained
(9.8% for machinery & equipment, 5.4% for metals) or
essentially non-existent; at 0.4% for electronic/electrical
equipment, -1.1% for the food sector, and even -6.1% for the
chemicals/pharmaceuticals sector, which had outperformed the rest
during the downturn.
The manufacturing orders recovery was even more modest than the
production rebound when compared to the preceding decline. May's
10.4% follows a combined drop by 37.3% during March-April, implying
that less than one-fifth of the drop in orders has been recovered
(given differing base levels). There was no major difference to
orders excluding big-ticket items, which posted an even smaller
8.9% increase in May
Domestic orders recovered more strongly than foreign orders,
the latter being restrained by non-eurozone demand (only 2.0% m/m)
whereas Eurozone orders bounced quite sharply (20.9% m/m).
The orders split by industrial branch also reflects the
automobile sector's return to life (44.4% m/m), followed by the
machine-building industry (12.4%). The demand recovery in the metal
processing sector was already much more subdued (2.8%), and there
were even further declines in the electronic/electrical equipment
(-0.6%) and chemicals/pharmaceuticals sectors (-2.3%).
S&P Global Ratings has issued a long-term rating of BBB
with a stable outlook to Siemens Energy, which will soon operate as
an independent entity after Siemens AG implements its planned
spinoff of its gas and power operations and its 67% stake in
Siemens Gamesa Renewable Energy SA. According to S&P Global,
the stable outlook reflects the expectation that Siemens Energy
will successfully manage the transition to a publicly listed
independent company and maintain strong credit metrics over the
next two years, despite the expected coronavirus-related economic
slowdown and ongoing group restructuring. (IHS Markit Upstream
Costs and Technology's Kamila Langklep)
In May, Danish industrial and manufacturing output collapsed by
14.2% and 13.2% year on year (y/y), respectively. This is the
steepest rate of collapse since the global financial crisis and
much more severe than in April. However, compared to January 2020,
industrial and manufacturing output is down by just 5.8%. (IHS
Markit Economist Daniel Kral)
The only sub-components to grow in May and the year to date
(YTD) were the manufacture of chemicals and transport equipment.
However, these have a combined weight of just 8.5% in the
index.
In 2019, Danish manufacturing output grew by 4.4%, almost
exclusively driven by pharmaceuticals subcomponent, which grew by
15.3% and has the largest weight in the index (20.1%). However,
pharmaceuticals have become a major drag in 2020, with the high
base effects likely a contributing factor.
In a separate release, Statistics Denmark shows that retail
sales have rebounded strongly in May and were 5.0% higher than in
January 2020. Meanwhile, the number of people in employment has
shrunk by just 1.5% compared to January 2020. Car registrations
appear to have bottomed out in April with an improvement visible in
May.
Recent data releases by Statistics Denmark covering May and
June provide the latest view on the developments in the Danish
economy. We have captured some of them in the below activity
tracker chart.
The UK passenger car market posted another accelerated decline
in June as the country began lifting its COVID-19 virus-related
lockdown and dealerships began to reopen. The market was down 34.9%
and 78,044 units year on year (y/y) to 145,377 units during June.
(IHS Markit AutoIntelligence's Tim Urquhart)
However, this compared favorably at least to the massive 89.0%
y/y decline in May, when dealers throughout the country were
closed.
The UK government's COVID-19-related restrictions were eased
and dealers began reopening in England on 1 June, but this was not
the case in other parts of the UK. Northern Ireland dealers opened
on 8 June, Welsh dealers reopened on 22 June and Scottish dealers
did not open until 29 June and these different opening times will
have had a negative impact on the overall picture.
The June result meant that the market for the first half of the
year was down by 48.5% y/y to 653,502 units.
The demand from private buyers proved far more resilient than
that of private registrations, indicating that there was
substantial pent-up demand waiting to be unlocked for the private
market during lockdown as many potential buyers spent the time
considering a vehicle purchase.
Private sales only fell by 19.2% y/y in June to 72,827 units,
despite large numbers of dealers not having reopened yet.
Fleet sales fell at a much more marked level with a 45.2% y/y
to 69,498 units, with businesses understandably reluctant to commit
to short-term expenditure in a time of such economic
uncertainty.
The UK's leading brand was Ford, which fell slightly short of
the overall market performance in June, with a 38.2% y/y decline in
sales volumes to 13,622 units. This left it down by 53.2% for the
first half of the year with sales of 59,874 units.
According to the National Bank of Georgia (NBG), the current
account in the first quarter of 2020 showed a deficit of USD417
million, widening of 86% year on year (y/y). As a percentage of
GDP, the gap deteriorated to 11.0% from 5.9% in the first quarter
of 2019. (IHS Markit Economist Venla Sipilä)
With exports falling and imports modestly rising, the goods
trade deficit grew by some 11% y/y. Meanwhile, the service account
surplus dwindled by one-third, as the fall of exports, at nearly
16% y/y, far outpaced the retreat of imports, at 3% y/y.
Conversely, the secondary income surplus strengthened, as
inflows increased by 10.5% y/y. This was entirely due to favourable
developments in private-sector transfers, whereas government
transfers were negative.
On the financial account, FDI inflows to Georgia amounted to
USD167 million, falling by 40% y/y. They covered 40% of the
first-quarter current-account gap, after having been more than
enough to finance the whole 2019 deficit.
Gross external debt of Georgia at the end of March totaled
USD18.3 billion, having eased by 1.9% during the first quarter of
the year. General government debt, in particular, remained nearly
stable, accounting for around 31% of total debt.
Asia-Pacific
APAC equity markets closed mixed; Hong Kong -1.4%, South Korea
-1.1%, Japan -0.4%, Australia flat, China +0.4%, and India
+0.5%.
Japan's monthly cash earnings fell by 2.1% year on year (y/y)
in May. The weakness was due largely to a 25.8% y/y drop in
non-scheduled cash earnings, reflecting a 29.7% decline in
non-scheduled hours worked in response to continued containment
measures for the COVID-19 virus. (IHS Economist Harumi Taguchi)
The contraction of monthly cash earnings was particularly
severe for eating and drinking services (down 11.2% y/y),
transportation and postal services (down 9.0% y/y), and
manufacturing (down 4.8% y/y) because of closures or shortened
business hours during the state of emergency. The containment
measures also led to a 3.0% y/y decline in the number of
part-timers.
Monthly household expenditure continued to drop, despite the
lifting of the state of emergency in late May, moving down by 0.4%
month on month (m/m) or 16.2% y/y. Although the reopening of
non-necessary stores helped lift spending from the previous month
on clothing and footwear and furniture and household fittings,
spending on transportation and culture and recreation continued to
fall as households and firms followed the government's request to
avoid crowds and domestic travel in May.
Imported vehicle sales in Japan declined 29% year on year (y/y)
to 25,354 units during June, compared with 35,676 units in June
2019, according to the Japan Automobile Importers Association
(JAIA). (IHS Markit AutoIntelligence's Isha Sharma)
Of this total, sales of foreign-brand imported vehicles
declined by 32% y/y to 21,252 units, while sale of Japanese-branded
imported vehicles fell 8% y/y to 4,102 units.
By brand, Mercedes-Benz continued to lead the imported market
with an 18.19% share, its sales declining 25.4% y/y to 4,611
units.
BMW followed with sales of 3,220 units (down 36.8% y/y) and a
market share of 12.7%.
Volkswagen (VW) took third place with a market share of 10.85%
and sales of 2,752 units, down 42.5% y/y.
Among the Japanese brands, Toyota sold 789 imported units last
month (down 55% y/y), followed by Honda with 497 units (down 59%
y/y).
The main creditor bank of SsangYong, Korea Development Bank
(KDB), has rolled over the automaker's KRW90 billion (USD75.3
million) worth of debt maturing this month to help it stay afloat
amid the COVID-19 virus pandemic, reports the Yonhap News Agency.
KDB has extended the deadline for the payment of KRW70 billion,
which matured on 6 July, and KRW20 billion maturing on 19 July to
the end of this year. As of 6 July, SsangYong Motor has KRW199
billion worth of short-term debt that has to be paid back to KDB
and foreign lenders such as JP Morgan, BNP Paribas, and Bank of
America within the next 12 months. SsangYong is struggling and
recorded a net loss for the 13th consecutive quarter in the first
quarter of 2020. The automaker recorded a net loss of KRW193.5
billion in that quarter, compared with a net loss of KRW26.1
billion during the same period in 2019. (IHS Markit
AutoIntelligence's Jamal Amir)
LG Chem is planning to produce lithium-ion (Li-ion) batteries
for Tesla at its plant in South Korea, reports Reuters. The plan is
in line with Tesla's aim to meet the increasing orders for
batteries for the Chinese market. LG Chem is reportedly converting
some of its production in South Korea to cater to Tesla's order. LG
Chem already supplies batteries for Tesla's Shanghai plant, which
are manufactured at LG Chem's plant in Nanjing (China). While Tesla
sources batteries from Panasonic for its operations in the United
States, the automaker has partnered with LG Chem and Chinese
battery maker Contemporary Amperex Technology Limited (CATL) for
operations at its Shanghai plant. (IHS Markit AutoIntelligence's
Jamal Amir)
Bloomberg and the South China Morning Post reported on 6 July
that the Hebei branch of the People's Bank of China (PBoC) has
begun asking both retail and business customers to pre-report any
intended large deposits or withdrawals from banks from 1 July. (IHS
Markit Banking Risk's Angus Lam)
Retail and business depositors are required to make requests
before withdrawing more than CNY100,000 (USD14,000) and CNY500,000,
respectively.
The South China Morning Post reported that this scheme will be
expanded to Zhejiang province and the city of Shenzhen from 1
October, but with a higher trigger point for retail customers, at
CNY300,000 and CNY200,000, respectively.
There were two cases of bank runs in China in May and June,
affecting two smaller banks in Hebei and Shanxi provinces. The
regulators were quick to assure bank customers and detained
individuals for spreading rumors.
Although latest financial reports are yet to be released and
banks' health cannot be confirmed, the fast credit growth to micro,
small, and medium-sized enterprises (MSMEs) and associated loan
moratorium are likely to put pressure on banks' liquidity,
especially when sudden and fast withdrawals take place.
Geely Auto has announced its sales results for June. The
combined sales volumes of Geely- and Lynk & Co-branded vehicles
in June totaled 110,129 units, up 21% year on year (y/y). (IHS
Markit AutoIntelligence's Abby Chun Tu)
The data include sales in the Chinese market and exports. The
company reports its sales volumes in China were 106,020 units in
June.
Geely Auto's total sales volumes in June also marked an
improvement of 1% from 108,822 vehicles in May.
In the first half of the year, the total sales volumes of Geely
Auto were 530,446 units, down 19% y/y, which represents 38% of the
company's target of 1.41 million units in 2020.
A breakdown of Geely Auto's sales by vehicle type shows sport
utility vehicles (SUVs) are still in high demand, along with sedan
models. Geely Auto's sales of SUVs and sedans stood at 70,167 units
and 37,154 units respectively in June.
Geely Auto's sales of multi-purpose vehicles (MPVs) totaled
2,808 units in June.
The sales volumes of Lynk & Co brand surged 53% y/y in June
to 13,214 units.
The strong results in June also marked a six-month high in
sales for the Lynk & Co brand.
Geely Auto's export business, by contrast, continues to decline
as demand falls in overseas markets due to the COVID-19 virus
outbreak. The automaker's exports continued to contract in June,
with volumes slumping 34% y/y to 4,109 units.
Beijing Innovation Center for Mobility Intelligent (BICMI) has
released a list that indicates six companies have received permits
to conduct autonomous vehicle (AV) road tests in the Chinese
capital in 2020. According to BICMI, the city's AV testing service
agency, the companies are Toyota Motor Engineering &
Manufacturing (China), Beijing Baidu Netcom Science Technology,
Beijing Pony.ai Science and Technology, Daimler Greater China, Audi
(China) Enterprise Management, and Beijing Sankuai Online
Technology, reports Gasgoo. Beijing was one of the earliest Chinese
cities to implement policies for AVs and announced the policies in
December 2017. (IHS Markit Automotive Mobility's Surabhi
Rajpal)
Mylan (US/Netherlands) has said that it will launch its generic
version of Gilead Sciences' antiviral Veklury (remdesivir) for
COVID-19 in India at a price of INR4,800 (USD64.31), intensifying
the price competition over licensed generic versions of the
medicine. Mylan, Hetero Labs (India), Cipla (India), and Jubilant
Life Sciences (India) have all received approval from the Drug
Controller General of India (DCGI) for restricted emergency use of
their locally manufactured licensed generic remdesivir products for
the treatment of COVID-19 under an accelerated pathway. According
to Reuters, Mylan has said that it will price its product at
INR4,800 per 100 mg vial/dose, which is around 80% "below the price
tag on the drug for wealthy nations". The price announced for India
by Mylan is marginally lower than the prices announced so far by
Cipla and Hetero Labs. Cipla announced last week that the price of
its remdesivir generic Cipremi will be "less than" INR5,000 (USD65)
per 100 mg vial/dose. Hetero has priced Covifor at INR5,400 per 100
mg vial/dose for the Indian market. (IHS Markit Life Science's
Sacha Baggili)
Posted 07 July 2020 by Chris Fenske, Head of Fixed Income Research, Americas, IHS Markit
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