The U.S. Food and Drug Administration (FDA) approved a treatment developed by AstraZeneca (AZN) and Merck Co. (MRK) for advanced ovarian cancer.The FDA approved the ovarian drug Lynparza to be used in combination with bevacizumab as a first-line maintenance treatment of adult patients with advanced epithelial ovarian, fallopian tube or primary peritoneal cancer. Patients will be selected for therapy based on an FDA-approved companion diagnostic for Lynparza.Lynparza is a first-in-class PARP inhibitor, which is a targeted treatment to potentially exploit DNA damage response (DDR) pathway deficiencies, such as so-called BRCA mutations to kill cancer cells. It is being tested in a range of tumor types. Ovarian cancer is the fifth most common cause of death from cancer in women in the U.S. This year, it is estimated that more than 21,000 women will be diagnosed with ovarian cancer and nearly 14,000 women will die of the disease.The nod by the U.S. regulator followed a biomarker subgroup study of 387 patients with positive tumors from the Phase 3 PAOLA-1 trial, which showed that the Lynparza drug in combination with bevacizumab reduced the risk of disease progression or death by 67%. It improved progression-free survival (PFS) to a median of 37.2 months vs. 17.7 months with bevacizumab alone in patients with advanced ovarian cancer.“Advances in understanding the role of biomarkers and PARP inhibition have fundamentally changed how physicians treat this aggressive type of cancer,” said Dr. Roy Baynes, senior vice president and chief medical officer at Merck Research Laboratories. “Today’s approval based on the PAOLA-1 trial highlights the importance of homologous recombination deficiency (HRD) testing at diagnosis to identify those who may benefit from Lynparza in combination with bevacizumab as a first-line maintenance treatment.”AstraZeneca and Merck said they are also seeking to get approval by the European Union, Japan and other countries for Lynparza’s use in combination with bevacizumab as a first-line maintenance treatment for patients with advanced ovarian cancer.Mara Goldstein, analyst at Mizuho Securities reiterated Merck’s Buy rating with a $100 price target.“The likelihood that MRK's business rebounds in 2H20 with the easing of stay-at-home restrictions is high, in our view, and drives our support of the shares,” Goldstein wrote in a note to investors.TipRanks data shows that 9 out of the 11 Wall Street analysts covering the stock in the past three months have a Buy on the stock. The remainder say Hold adding up to Strong Buy consensus rating. The $92.10 average price target suggests 21% upside potential in the shares in the coming 12 months. (See Merck stock analysis on TipRanks). Related News: Quidel’s Rapid Covid-19 Antigen Test Scores Emergency FDA Approval GM Ramps Up Coffers With $4 Billion Debt Sale, Plans New $2 Billion Credit Line Weekly Market Review: Stocks Back to Winning Ways More recent articles from Smarter Analyst: * Carnival Cruises Enjoys Huge Bookings Surge- Report * AstraZeneca, Daiichi Get FDA Breakthrough Status For Gastro Cancer Drug * Tesla’s China Model 3 Sales Tumbled 64% In April * Solid Biosciences: Keep Your Eyes On The Prize Says Top Analyst

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May.11 — Jun Bei Liu, portfolio manager at Tribeca Investment Partners, looks at how the coronavirus outbreak is affecting the global economy and stock markets, and shares her investment strategy. Federal Reserve Bank of Minneapolis President Neel Kashkari said Americans should brace for even more gut-wrenching news on unemployment amid the coronavirus pandemic. Liu speaks with Rishaad Salamat and Selina Wang on “Bloomberg Markets: Asia.”

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Sales of Tesla’s (TSLA) Model 3 sedan in China plunged 64% in April vs March, according to new figures from the China Passenger Car Association (CPCA) CNBC reports.Specifically, Tesla sold 3,635 Model 3 cars in April, a significant decrease from the 10,160 vehicles sold in March. This means that Tesla has now sold 19,705 Model 3 cars in China since the beginning of the year.However, while sales fell, demand in China for electric vehicles rose. The country experienced a 9.8% increase in electric car sales from March to April, the CPCA found. The industry association also says that auto demand is now recovering following the coronavirus outbreak.On May 8 Tesla revealed that it secured a 4 billion yuan ($565M) lending line for continued expansion of production at the Gigafactory Shanghai.The plant is currently out of action, reportedly due to supply disruption, with Tesla stating on May 7: “Tesla Shanghai is adjusting to normal production due to test run[s] and maintenance of production lines that were carried out during the recent holidays.” Notably Tesla did not say when production would recommence, simply adding: “All work is being executed according to plan.”Merrill Lynch analyst Ming-Hsun Lee recently upgraded TSLA stock from hold to buy. “In March-April, [Chinese] auto demand at premium segment recovered faster than at mass-market,” Lee explained.However the majority of analysts present a cautious outlook on shares. The Hold consensus is based on 10 recent Hold ratings, 10 Sells and 7 Buys. With shares almost doubling year-to-date, the $627.40 average price target now translates into 23% downside potential from current levels. (See Tesla’s stock analysis on TipRanks)“While we recently raised our Tesla price target to $680, we believe the shares offer a risk/reward skew commensurate with an Equal-Weight rating relative to our sector at this time” Morgan Stanley’s Adam Jonas wrote on May 7.Related News: Uber Puts Hopes on Food Delivery Momentum After $2.9 Billion Loss Southwest Scores $815M With Sale-Leaseback of 20 Boeing Planes GM Ramps Up Coffers With $4 Billion Debt Sale, Plans New $2 Billion Credit Line More recent articles from Smarter Analyst: * AstraZeneca, Daiichi Get FDA Breakthrough Status For Gastro Cancer Drug * Solid Biosciences: Keep Your Eyes On The Prize Says Top Analyst * Columbian Carrier Avianca Files For Bankruptcy Protection Due to Coronavirus Woes * Seres Therapeutics Reports Weak Earnings, But Significant Upside Lies Ahead

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