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COVID vaccine front-runner held back by China’s spat with Canada

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One of the world’s fastest-moving efforts to develop a COVID-19 vaccine is falling behind rivals, its advance appearing to be stymied by political tensions between China and Canada and concerns its shot may not work as well as others.

CanSino Biologics Inc., the Chinese company which in March started the world’s first human tests on an experimental coronavirus shot, has yet to start administering shots in critical final-stage trials on the vaccine it developed with the Chinese military. Meanwhile, rivals like U.S.-based Moderna Inc. and Britain’s AstraZeneca Plc as well as China’s Sinovac Biotech Inc. and Sinopharm are well into this last phase of testing, giving test inoculations to thousands of people to find out if they work.

With its progress toward Phase III trials trailing major competitors, CanSino hasn’t had the opportunity to assuage concerns from earlier-stage data, which showed the immune response generated by its shot varied greatly among participants. Its setbacks offer a look at both the scientific and political incertitudes companies are battling as they race to produce a vaccine against the virus that has already killed more than 850,000 people worldwide.

Just a few months ago, the Tianjin-based biotechnology firm was positioned at the vanguard of global vaccine trials thanks to a partnership with the Canadian government’s main research agency, which permitted the company to conduct tests in the North American country. CanSino was supposed to send its vaccine candidate — Ad5-nCoV, developed with Canadian technology — to Canada so that final-stage tests could begin there as early as in the fall. The vials never arrived.

Chinese customs hasn’t approved shipments of CanSino’s vaccine to Canada, the National Research Council of Canada said in an Aug. 26 email. The development appears to be part of a pattern of retribution against Canada since it arrested Meng Wanzhou, the chief financial officer of Chinese telecom giant Huawei Technologies Co., on a U.S. handover request in December 2018. In recent months the relationship between the two countries has only worsened.

Guy Saint-Jacques, a former Canadian ambassador to China, said it’s clear the blocking of CanSino’s vaccine to Canada isn’t just a bureaucratic glitch because the company appears to have shipped to countries friendly to China.

“This is part of China’s COVID-19 diplomacy,” he said. “It’s unfortunately part of the overall difficulties we’re having with China.”

Global Ties

For CanSino, international collaboration is vital because late-stage trials require large-scale testing in place where there is an active outbreak, something no longer possible inside China, which has largely stamped out local transmission.

With Canada as a trial site now in question, the company has had to look elsewhere.

After telling the Hong Kong Stock Exchange that it hadn’t started enrolling participants for Phase III trials as of Aug. 18, CanSino said Wednesday it has entered into an agreement with NPO Petrovax Pharm LLC to to conduct a trial in Russia. CanSino declined to comment further when contacted earlier for this story.

Petrovax told Bloomberg at the end of August that it plans to recruit 625 volunteers in eight medical institutions in Russia, and that the selection and vaccination of volunteers will be carried out by the end of September. In the statement Wednesday, CanSino said it and Petrovax have received approval for Phase III clinical trials.

Since Meng’s arrest, China has jailed two Canadians on espionage charges, halted billions of dollars in Canadian imports, and put four other Canadians on death row. Further denting relations between Beijing and Ottawa, Canada also suspended its extradition treaty with Hong Kong in response to a new security law imposed there by China.

China’s General Administration of Customs didn’t respond to a request for comment. In its email, the National Research Council of Canada said that while the CanSino-Canada partnership had been reviewed earlier by the Chinese government, after it was signed Beijing introduced changes regarding the export of vaccines. Canada was ready to begin preliminary trials in June but, due to the delay, the research council is turning its focus to other partners, it said. Canadian Prime Minister Justin Trudeau described the developments on the CanSino vaccine as “unfortunate.”

After hitting an all time high of HK$271.4 on July 31, CanSino’s stock went on a steady decline in August, shedding nearly 40%, as news emerged that the vials it was supposed to ship to Canada for trial never left China. The stock fell as much as 11% on Wednesday before paring losses after CanSino’s statement on the Russia trial. It is still up more than 150% since the beginning of this year.

CanSino has had other struggles. With most of the vaccine frontrunners now having published their early human testing data, there have been some concerns that the antibodies triggered by CanSino’s shot as part of a vaccine-induced immune response could be lackluster compared to those stimulated by rivals, said Brad Loncar, chief executive officer of Loncar Investments in the U.S.

That could well be why the company has appeared slow in striking deals with countries to run phase III trials, said Loncar, who has holdings in the Chinese vaccine developer.

“Of all the data that I’ve seen of companies that have published human stage data, I would say CanSino was one that I would be most nervous about the Phase III,” Loncar said. “The antibody levels in general, when you compare them to what other companies have put out there, like Moderna and Pfizer/BioNTech and even from the other Chinese vaccine makers like Sinovac and Sinopharm, I just think that the data hasn’t validated CanSino’s position as a frontrunner.”

While analysts have noted the varying standards used in measuring vaccine-induced immune response by different groups, CanSino suffers from one particular challenge: Its vaccine uses a genetically-engineered human adenovirus, which causes the common cold and to which a lot of people already have immunity. That preexisting immunity has shown to blunt the vaccine’s ability to generate the kind of antibodies that can bind to the spikes on the surface of the coronavirus to prevent it from entering human cells.

Rival Trials

Meanwhile, other Chinese vaccine makers are further ahead on Phase III trials. Beijing-based Sinovac has started vaccinating people in Brazil and Indonesia while more countries are signing up to be part of the company’s multi-center late-stage tests. State-owned China National Biotec Group is testing the two candidate vaccines it developed in the United Arab Emirates and has secured approval for further testing in Peru, Argentina and Morocco.

As for CanSino, in addition to the delayed Canada trial and its agreement with Russia, one of the company’s founders Qiu Dongxu said at a forum in July that the company is also talking to Brazil, Chile and Saudi Arabia on final-stage testing.

A large scale Phase III seeking to enroll 40,000 people is planned for Pakistan, according to an online clinical trials database. The trial has not yet started and will be headed by researchers from both China’s Center for Disease Control and Prevention and the Canadian Center for Vaccinology.

CanSino’s vaccine still warrants further testing since it isn’t yet known how strong an immune response the vaccine can shore up if it’s administered twice, a strategy that has been tested by almost all frontrunners but CanSino. Trials in Canada could potentially find out the effect of a booster shot — if the vials ever make it to Canadian shores.

–With assistance from Yuliya Fedorinova.

Source: – BNNBloomberg.ca

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

The Canadian Press. All rights reserved.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

The Canadian Press. All rights reserved.

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

The Canadian Press. All rights reserved.

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