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The novel coronavirus is described as a new strain that had not been detected in the past before its December epidemic in Wuhan, China. World Health Organization (WHO) has classified this outbreak as a public health emergency of global concern.
On 11 March 2020, WHO declared the rapidly spreading coronavirus outbreak a pandemic, straddling over 112 countries and regions around the globe. Pandemic is a term used for a disease that has become widespread across the world. WHO appealed all the countries to step up their attempts to slowdown the spread of COVID-19 (coronavirus).
Coronavirus update in Australia-
As per the recent reports, Australia is well planned for fighting against the deadly coronavirus, and the first class health system of Australia includes mechanisms for early diagnosis along with effective management of incidents and contacts.
Also read: How to Prepare for Coronavirus: Protective Measures and Myths
The Australian government seems to be proactive for monitoring and controlling pandemic COVID-19 and has disclosed that it will provide health package of approximately $2.4 billion for protecting all the Australians, including vulnerable people such as the aged and those with chronic conditions as well as Indigenous communities, from the coronavirus (COVID-19). This health package also comprises of pop-up fever clinics.
Addition to this, the government has secured supplementary surgical, masks (P2 and N95), for medical and aged care professionals to cater to patients with confirmed or suspected cases of coronavirus infection.
This health package provided by the government aims at decelerating the spread of coronavirus and includes approximately 100 pop-up fever clinics, Medicare article for telehealth consultations as well as a $30 million advertising campaign.
For the new pop-up fever clinics, nearly $205 million will be provided by the government as a key part of this package, and these clinics would be located in areas with utmost need of them, to test people with major concern of being infected by the deadly disease.
The government has committed to an equally shared health funding agreement with the territories and states for ensuring a speedy health response for progressing coronavirus epidemic.
The figure below provides an example of how the previous respiratory infection outbreaks could be characterised in terms of human-to-human transmissibility and clinical severity.
Impact of the estimated range of COVID-19 to other respiratory outbreaks-
Also read: Healthcare stocks reacting to Corona Fears
Moreover, Australia will approach this new COVID-19 outbreak by undertaking the following-
- Monitoring and investigating the outbreak as it arises;
- Identifying and characterising the nature of the virus and the clinical severity of the infection;
- Research respiratory disease-specific management strategies;
- Respond quickly and efficiently for decreasing the new coronavirus outbreak impact;
- Undertaking the strategies for reducing the risk of further transmission of infection;
- Contribute to the speedy and confident recovery of individuals, communities and services.
We would now discuss an ASX listed health care sector company that is engaged in testing its lead product for the COVID-19.
Let us zoom lens for MSB-
Mesoblast Limited (ASX:MSB)
A Melbourne headquartered health care company Mesoblast Limited is a world leader in developing innovative cellular medicines. The company has a robust emerging product pipeline for follow-on indications with three programs currently undergoing Phase 3 clinical studies. Mesoblast’s lead product candidates that are under clinical investigation are- Remestemcel-L, Revascor, MPC-06-ID and MPC-300-IV. Expansion and Immune Privilege are two distinct technical properties of proprietary cells of Mesoblast.
Evaluation of remestemcel-L for COVID-19-
Recently, Mesoblast on 10 March 2020, revealed that the Company intends to assess its MSC or allogeneic mesenchymal stem cell candidate known as Remestemcel-L in patients suffering from ARDS or acute respiratory distress syndrome triggered by coronavirus in the regions like Australia, China, the US and Europe.
MSB revealed that it is in talks with several regulatory authorities, medical institutions, government and pharma entities for executing these activities.
Mortality in coronavirus infected patients with the inflammatory lung condition acute respiratory distress syndrome is reported to approach approximately 50 per cent and is associated with age, co-morbidities like higher disease severity, diabetes, elevated markers of inflammation etc.
Additionally, MSB stated that in post-hoc analyses of a 60-patient randomised controlled trial in COPD, infusions of Remestemcel-L were well tolerated, significantly reduced inflammatory biomarkers, as well as improved pulmonary function in patients with high inflammatory biomarkers.
Mesoblast disclosed that in COVID-19 the same inflammatory biomarkers are elevated, so the data from the previous study indicate that Remestemcel-L could show positive results in the treatment of patients with acute respiratory distress syndrome due to COVID-19.
The Company also revealed that findings from chronic obstructive pulmonary study have been proposed for presentation at a global conference, with complete outcomes to be submitted soon.
Products under development-
MPC-06-ID
- Strategic partnership to develop and commercialise MPC-06-ID in Latin America and Europe;
- The Company would receive up to USD 150 million in upfront and milestone payments before the launch of the product;
- Mesoblast disclosed that milestone payments could surpass USD 1 billion depending on patient adoption;
- MSB will also receive tiered double digit royalties on product sales.
REVASCORTM
- In China, for REVASCORTM, Mesoblast has exclusive cardiovascular rights;
- The Company received approximately USD 40 million in an equity placement and upfront payment;
- Moreover, the Company is eligible for further milestones and royalties.
Stock Performance-
On 12 March 2020, MSB stock settled the day’s trade at $1.540, slipping down by 14.917% from its last close. The market capitalisation of the Company was observed at approximately $972.2 million. The stock has nearly 537.12 million shares outstanding, with the 52-weeks low and 52-weeks high price of almost $1.180 and $3.210, respectively. Also, the Company generated a negative return of nearly 11.71% on a year to date basis.
Read more: Opportunities to be Tapped in the Healthcare Sector Amid Coronavirus
