Page 15 - ISQ October 2020

INVESTMENT STRATEGY QUARTERLY

Contagious COVID
Asymptomatic carriers, diverging opinions, and the ease of transmission make
the spread of COVID-19 difficult to control.

like convalescent plasma, are showing promise, but we still case spread, the full impacts of schools reopening has yet to
do not have a ‘cure' for the virus. be seen. We anticipate that schools that have chosen to
reopen will likely switch to online if virus spread surges.
After struggling in the early days with testing, the US has now
completed nearly 100 million tests. New advancements in rapid
tests have the potential to dramatically increase testing levels yet THE RACE FOR A VACCINE
again. If these tests become broadly available, we could see As individuals return to school, work, and other activities this
increases in the comfort level of individuals to fly, attend large fall, the race for a vaccine becomes particularly important. On
gatherings, and participate in other public group activities. the vaccine front, several candidates show strong potential.
According to Raymond James Biotechnology Analyst Steven
The decision of whether to open schools, remain entirely vir- Seedhouse, leading vaccines are being tested from companies
tual, or some hybrid approach during the school year is one of and institutions such as AstraZeneca/University of Oxford,
the most challenging and divisive for those influencing the BioNtech/Pfizer, Inovio Pharmaceuticals, Johnson & Johnson,
decisions. This decision is particularly complicated given the Merck, Moderna, Novavax and Sanofi/GSK. China and Russia
ramifications of 1) not opening schools, and consequently have granted limited approval to vaccines without conclusive
depriving many students of social support, school-provided results on their efficacy. The Trump Administration’s Operation
supplies, sponsored meal programs, and school-provided Warp Speed (OWS) is the coordinated government effort one
accommodations; versus 2) reopening schools, and poten- would expect in a time of crisis. OWS has funded multiple vac-
tially causing an outbreak of the deadly coronavirus among cine candidates and is working to ensure the US has hundreds
communities, children, families, teachers, and the broader of millions of doses available in 2021. Analysis of new data on
US. Fortunately, according to the latest information from the vaccines continues and it is possible that an emergency use
Centers for Disease Control and Prevention (CDC), children authorization (EUA), which is not the same as full approval,
are at relatively low risk of experiencing severe side effects; could be given by the Food and Drug Administration (FDA) for a
however, they can spread the virus to others. For most states, vaccine prior to the end of 2020 and possibly before the elec-
the decision to reopen is left to local school jurisdictions and tion.
local health authorities. Only Texas, Florida, Iowa, Missouri,
and Arkansas have required in-person education to be avail- President Trump and his campaign team are pushing hard to get
able. On the other hand, Vermont, Rhode Island, West Virginia, an EUA for a vaccine before election day. The FDA continues to
DC, New Mexico, and Puerto Rico have orders banning all push back against accusations that they may prematurely
in-person instruction. Although some schools have reported approve vaccines or therapeutics due to political pressure from

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