Another pandemic crunch for profits

Here's the latest news from the global pandemic. Europe is casting aside its double-dip slump as growth restarts Warren Buffett sees a 'red hot' economy with creeping inflation India's virus surge leaves another 7 million people jobless Another pandemic crunch for profits Americans may be getting vaccinated and getting ready to go outdoors without their masks. But the pandemic isn't quite done dealing out pain for corporate profits. Drugmakers have been in the spotlight as never before during the race to develop and distribute Covid-19 vaccines. However, there's more to the companies than those shots, and below the immunization limelight, some of the pharmaceutical industry's most reliable money makers were a little less dependable in the first few months of the year. The reason: In a replay of the pandemic's initial wave last year, many Americans stayed away from the doctor's office as infections soared this past winter. The squeeze was visible last week in the results of some of the top U.S. drug companies. Merck reported fewer new patients starting treatment with its blockbuster cancer drug Keytruda and getting vaccinated for HPV and pneumococcal disease. Sales of Amgen's arthritis drug Enbrel declined as fewer patients were diagnosed and started treatment. And Bristol-Myers Squibb saw revenue drop for a key cancer drug and other products administered in health-care settings. The doctor's office is actually fairly Covid-safe. Photographer: VALERIE MACON/AFP "The pandemic suppressed demand for all health care other than Covid over the last year, even in chronic disease where you think people will get cancer infusions or get an HbA1c test for diabetes," Eli Lilly Chief Executive Office David Ricks, whose company reported reported declines in sales of drugs including insulin in the most recent quarter, said in an interview. "Those procedures haven't even returned to pre-pandemic levels yet." This coming week, the two companies that have supplied the bulk of the shots for the U.S. immunization campaign will report results. Moderna, which has no other approved products aside from its Covid vaccine, may provide the clearest picture of just how much having a shot can change a company's fortunes. Pfizer meanwhile will show the benefits of having a vaccine among an arsenal of other medicines. For the industry as a whole, however, the wait for a return to normal will continue.—Timothy Annett  Ask us anything We want to know what you need to know. So ask us. Each week we will select one or two commonly asked questions and put them to our network of experts so you and your families can stay safe—and informed. Get in touch here or via CovidQs@bloomberg.net.   What you should read British Parents Cut Covid Pocket Money for Kids Weekly allowances fell 14% with pandemic squeeze on household finances. Australia Defends Ban on Returns From India Breaches of the ban could be punished with 5 years jail, $51,000 fines. Rare Vaccine Injury Victims Ask Who Will Pay Bills Nevada woman's first medical bill after the J&J inoculation was $513,000. Singapore Sees First Covid Death in Two Months A cluster of 37 cases has been identified at a hospital since last week. U.S. Travel Ban Makes No Sense: Ex-FDA Head Gottlieb said bans on India, China, and U.K. lack clear sense of purpose. Know someone else who would like this newsletter? Have them sign up here. Have any questions, concerns, or news tips on Covid-19 news? Get in touch or help us cover the story. Like this newsletter? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Get the newsletter You received this message because you are subscribed to Bloomberg's Coronavirus Daily newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022