By Derek Hall
Scrutiny of Silicon Valley is mounting in Washington. A Democratic-led House panel released a report Tuesday that said America's biggest technology companies leveraged their dominance to stamp out competition and stifle innovation. The report capped a 16-month inquiry into the market power of Facebook, Google, Amazon and Apple. Republicans issued a separate response that didn't endorse many of the Democrats' policy prescriptions and accused the companies of bias against conservative viewpoints. Facebook shares fell 2.3% Tuesday.
Regeneron Pharmaceuticals Inc.
A treatment meant to jump-start President Trump's immune response to Covid-19 provided a healthy boost to Regeneron Pharmaceuticals shares on Monday. The President touted Regeneron's drug cocktail after doctors administered it along with other treatments, including Gilead Sciences Inc.'s remdesivir, which has been authorized for emergency use to treat hospitalized Covid-19 patients. The Regeneron treatment hasn't been approved for broad use, and the company said that Mr. Trump received the drug under a compassionate-use request, which allows the use of unapproved medicines in patients with serious diseases and no other treatment options. Regeneron shares rose 7.1% Monday.
Eli Lilly & Co.
Eli Lilly's stock is also looking healthier after the company said it asked the FDA to authorize its Covid-19 antibody drug. The company requested U.S. authorization for emergency use of the experimental treatment for people with recently diagnosed, mild-to-moderate Covid-19. If approved, the drug could be the first to treat less severe cases of Covid-19 and open the door for a new class of coronavirus treatments capable of helping early cases and perhaps even preventing them. The drug was derived from a blood sample of one of the earliest U.S. survivors of the virus, and Eli Lilly said it could supply 100,000 doses this month and as many as one million by the end of the year if emergency use is allowed. Eli Lilly shares rose 3% Thursday.
Southwest Airlines Co.
Southwest Airlines wants employees to ease some of the discomfort building in its cabin. The carrier is asking workers to accept pay cuts for the first time to avoid furloughs, saying it could avoid taking that step through the end of next year if it could reach a deal with labor unions. Southwest has never furloughed or laid off employees. Chief Executive Gary Kelly, who has been receiving reduced pay since March, also said Monday that he will forgo his salary altogether through the end of 2021. Airlines have started to take more drastic action without a pandemic relief package from Congress. Southwest shares fell 2.4% Tuesday.
Bristol-Myers Squibb Co. is cutting its cancer risk. The drugmaker, which derives much of its revenue from treatments for lung cancer and multiple myeloma, said it would pay $13.1 billion in cash for MyoKardia to bolster its lineup of heart drugs. Bristol's reliance on cancer therapies has grown heavier since its $74 billion acquisition of multiple-myeloma drug leader Celgene Corp. last year. MyoKardia's lead pipeline drug, which Bristol plans to seek approval for next year, treats a chronic heart condition that can cause irregular heart rhythms in some patients and even death. The drug, code-named mavacamten, could fetch more than $1.5 billion in world-wide sales by 2025, according to BMO Capital Markets analysts. MyoKardia shares rose 58% Monday.
AT&T's WarnerMedia, owner of HBO and Warner Bros., plans to part ways with thousands of its supporting players. It is restructuring its workforce to reduce costs by as much as 20%, according to people familiar with the matter, and that strategy includes thousands of job cuts.
The coronavirus pandemic has pummeled the film and TV business, prompting rivals including Walt Disney Co. and Comcast Corp.'s NBCUniversal to also cut jobs in recent months. The overhaul at WarnerMedia would result in thousands of layoffs across Warner Bros. studios and TV channels like HBO, TBS and TNT, people familiar with the matter said. AT&T shares fell 1% Friday.
Eaton Vance Corp.
Eaton Vance is benefiting from a Wall Street giant's desire to reduce its reliance on trading. Morgan Stanley said it is paying $7 billion to buy the fund manager as it continues to move toward steadier, simpler businesses like money management. The shift is part of a decadelong turnaround project for Chief Executive James Gorman, who closed risky trading operations and doubled down on wealth and asset management. Morgan Stanley completed its $11 billion takeover of E*Trade Financial Corp. just days before the Eaton Vance deal. Eaton Vance shares rose 48% Thursday.
(END) Dow Jones Newswires