WSJ : Comscore Nears Deal With Charter, Qurate Retail and Cerberus

Comscore Nears Deal With Charter, Qurate Retail and Cerberus
Company has faced a number of challenges in recent years, including leadership departures, financial troubles and an SEC investigation

Comscore Inc. is nearing a deal with Charter Communications Inc., Qurate Retail Inc. and private-equity firm Cerberus Capital Management LP aimed at bolstering the finances of the troubled media-measurement company and potentially strengthening its commercial relationships, according to people familiar with the matter.

The exact structure of the deal couldn’t be learned. Comscore said in November it was in advanced discussions for a “recapitalization transaction” that would lower its debt and provide it with greater liquidity.

The deal could help free Comscore from its loan arrangement with activist investor Starboard Value LP, which imposed strict covenants requiring it to have a minimum cash balance and steep interest payments, as well as terms for repayment of $204 million next year, according to securities filings.

Comscore, known for its measurement tools for online and local media, as well as film viewing, has faced a number of challenges in recent years, including executive departures, an accounting scandal and a subsequent Securities and Exchange Commission investigation, which resulted in a $5 million settlement in 2019. The company has also faced increasing demand from media and marketing clients for new measurement capabilities.

Since 2019, Comscore’s stock price has plummeted more than 80%. Its shares recently traded at $2.40.

Comscore already has relationships with various cable operators and data providers, including Charter. But the deal could improve the measurement company’s access to the company’s trove of set-top box viewership data, helping it better compete with larger rival Nielsen Holdings PLC.

Media giants reliant on Nielsen ratings have called for more competition in media measurement. Both companies are under enormous pressure to adapt their services in order to keep up with the rapidly changing media consumption habits of consumers.

Comscore in late 2019 named Bill Livek its CEO. Months earlier, Bryan Wiener, the company’s former chief executive, and Sarah Hofstetter, its former president, announced their resignations after less than a year in the roles, citing disagreements with the board over the execution of the company’s strategy.

Shortly after their departures, the company announced layoffs and said it was working to renegotiate data contracts and lower its fixed costs.

Le Figaro : Disputes arabes autour de l'espalanade des mosquees a Jerusalem

Le Figaro : Disputes arabes autour de l'espalanade des mosquees a Jerusalem

ENQUÊTE - Les premières visites de personnalités du Golfe à Jérusalem, encouragées par les récents accords entre Israël et les Émirats, ont buté sur les rivalités autour du site, appelé mont du Temple par les juifs. Palestiniens et Jordaniens ont rappelé qu’ils sont les gardiens du lieu saint musulman.


Jérusalem

Le King David, avec sa vue sur les remparts de la Vieille Ville, est l’un des hôtels les plus prestigieux de Jérusalem. Les dignitaires étrangers y séjournent quand ils visitent la Ville sainte. Et c’est là que furent reçus, comme des chefs d’État, une demi-douzaine d’influenceurs des Émirats arabes unis et de Bahreïn, le 13 décembre dernier, en plein Hanoukka, la grande fête juive de l’hiver. La petite délégation est menée par l’Israélien Amit Deri, fondateur de Reservists on Duty, une association anti-BDS, le mouvement de boycott de l’État hébreu. Soigneusement organisée, la visite met en scène les accords de normalisation signés le 15 septembre dernier à Washington entre Israël, les Émirats arabes unis et Bahreïn.

«Nous devons faire face à la menace de la radicalisation islamique, qu’elle soit utilisée à des fins politiques ou religieuses. Notre ennemi principal, c’est le régime iranien, qui soutient des mouvements terroristes comme le Hamas et le Hezbollah», assène Amjad Taha, une figure des réseaux sociaux du Golfe. «Avec Israël, c’est une paix totale. Et pour la mettre en œuvre, on lance des projets communs. On veut échanger des technologies, du savoir, des étudiants…»


Les activistes numériques ont été reçus par le président israélien, Reuven Rivlin, ont visité le mémorial de la Shoah, rencontré des blogueurs israéliens à Tel-Aviv. Ils ont lancé une plateforme commune, Sharaka, «connectant peuples du Golfe et d’Israël ensemble pour un futur plus éclairé». Le moment fort du séjour a été l’allumage de bougies à l’occasion de Hanoukka, au pied du Mur des lamentations, face à des dizaines de fidèles juifs qui ont acclamé ces visiteurs en keffieh et dishdasha, la robe traditionnelle portée par les hommes dans le Golfe.



Cette tournée triomphale n’a pas inclus l’esplanade des Mosquées. Ce site, appelé mont du Temple par les juifs et Noble Sanctuaire par les musulmans, est le plus sacré du judaïsme et le troisième lieu saint de l’islam. Avec la coupole dorée du dôme du Rocher, c’est aussi un symbole national pour la Palestine et un microcosme du conflit qui l’oppose à Israël. C’est enfin l’un des joyaux de la couronne du royaume jordanien, qui administre le site, via le waqf de Jérusalem, une fondation religieuse.

Le 18 octobre dernier, des hommes d’affaires émiratis visitent le sanctuaire quand un jeune homme leur intime sèchement de partir. «Je ne parle pas avec les normalisateurs comme vous. Dehors les Émiratis!», dit le gardien, originaire de Hébron comme beaucoup d’employés sur l’esplanade, en accompagnant leur sortie de noms d’oiseaux. Pas de sang versé ni même d’échauffourées, mais la symbolique est forte: de puissants Émiratis chassés par un modeste Palestinien. Car on n’entre pas sur l’esplanade comme dans un simple musée. Douze portes permettent d’accéder au site, toutes contrôlées par les Israéliens. Les non-musulmans doivent passer par la porte des Maghrébins, au sud. Les délégations invitées par le waqf de Jérusalem, gardienne des lieux saints musulmans et chrétiens administrée par la Jordanie, utilisent la porte des Lions, au nord. Les musulmans peuvent passer librement par n’importe quelle porte.

Les hommes d’affaires, sans prévenir les autorités jordaniennes, sont passés par la porte de la Chaîne, l’une des plus proches du dôme du Rocher, escortés par les forces de sécurité de l’État hébreu. «En procédant ainsi, les Émiratis reconnaissent implicitement la souveraineté israélienne sur le Noble Sanctuaire. Ce n’est pas la bonne approche. L’esplanade est ouverte à tout le monde, tant qu’on s’y comporte comme sur un lieu saint», dit Youssef Natsheh, l’une des voix du waqf. Pour les Palestiniens de Jérusalem, l’esplanade est plus qu’un lieu de culte. C’est un lieu de vie, où, sur les hauteurs de la vieille ville, ils échappent à la pesanteur de l’occupation.

Quand Donald Trump annonce, le 13 août dernier, qu’Israël et les Émirats arabes unis normalisent leurs relations, le coup est rude. Abu Dhabi brise le consensus arabe sur la Palestine, porté depuis 2002 par le roi Abdallah d’Arabie saoudite. Le texte appelle à la création d’un État palestinien avec Jérusalem-Est pour capitale. Cet espoir, déjà bien ténu, s’amenuise encore un peu plus. Un autre passage de la déclaration fait l’effet d’une bombe: «Tous les musulmans qui viennent en paix peuvent visiter et prier à la mosquée al-Aqsa, les autres lieux saints de Jérusalem doivent rester ouverts aux fidèles pacifiques de toutes les confessions.»

La formulation, d’apparence anodine, bouleverse en réalité le statu quo durement négocié entre Israéliens et Jordaniens sur la gestion des Lieux saints, selon l’ONG Jérusalem terrestre. Elle exclut la monarchie hachémite d’un site qu’elle est censée gérer depuis 1948. Et elle limite la zone de prière musulmane à la mosquée al-Aqsa, au sud de l’esplanade, alors que du point de vue de l’islam, l’espace entier, y compris à ciel ouvert, est une mosquée - et il y est interdit de prier pour juifs et chrétiens. La question est sensible. Depuis le début des années 2000, les sionistes religieux sont de plus en plus nombreux à se recueillir discrètement sur l’esplanade. Cette petite phrase les y encourage.

Le camp de la normalisation a bougé. Au tour de celui du boycott. Le lendemain de l’annonce de Trump, quelques drapeaux et portraits du cheikh des Émirats Mohammed Ben Zayed sont brûlés sur l’esplanade. L’Autorité palestinienne rappelle ses ambassadeurs. Le mufti de Jérusalem déclare que les pèlerins musulmans ne sauraient passer par les autorités israéliennes, mais par les voies palestiniennes ou jordaniennes. La tension monte. La deuxième Intifada, en 2000, avait commencé après la visite d’Ariel Sharon sur l’esplanade. La dernière épreuve de force remonte à l’été 2017, quand les autorités israéliennes cherchaient à installer des portiques de sécurité pour accéder au mont du Temple. Les Palestiniens avaient réussi à pacifiquement bloquer la ville pendant plusieurs semaines. Nétanyahou avait fini par reculer. «L’Autorité palestinienne utilise Jérusalem. En interdisant l’accès officiel des Émiratis aux Lieux saints, elle veut montrer que Jérusalem est toujours sa capitale. On nous fait passer le message de ne pas travailler avec des gens du Golfe», explique Tony Khashram, président de l’association des acteurs du tourisme en Palestine.

Côté jordanien, le royaume hachémite, fragilisé par une crise économique chronique et contesté par une opposition islamiste toujours vivace, ne peut se permettre de perdre les joyaux de sa couronne - l’administration du Noble Sanctuaire. Amman s’inquiète périodiquement des visées des pays du Golfe, et en premier lieu de l’Arabie saoudite, sur la gestion des Lieux saints. Le waqf agit en coulisses. Ignore-t-il les demandes de visite des Émiratis ou des Bahreïnis, ou ceux-ci testent-ils les capacités de résistance du peuple de l’esplanade? «Nous avons transmis des demandes au waqf. Ils nous ont simplement répondu: “Allez-y”. Alors que quelques semaines plus tôt, on brûlait nos drapeaux. Si moi, en tant qu’arabe et musulman, je ne peux pas prier à al-Aqsa, les Jordaniens ne font pas un bon travail», s’emporte Amjad Taha, l’influenceur du Golfe.



Ce n’est pas la gestion des Lieux saints qui intéresse Abu Dhabi. C’est son potentiel économique. Encourager le tourisme musulman est l’un des objectifs avoués de ces accords de normalisation, y compris du côté israélien. De 100.000 visiteurs musulmans en 2018, Israël espère en accueillir 2 millions. Sans compter le hub de Dubaï, qui raccourcit la route vers les grands pays islamiques d’Asie de l’Est, comme la Malaisie et l’Indonésie.

«La Turquie avait commencé à organiser des visites d’al-Aqsa, au début des années 2010. C’était vendu comme un pèlerinage authentique. Les Jordaniens et les Palestiniens ont vu le potentiel, et ont progressivement écarté les Turcs du marché, en disant qu’il fallait passer par leurs canaux pour ne pas trahir la cause. Les agences palestiniennes prenaient en charge 40% du tourisme musulman. 2017 a été excellente. 2018, superbe. 2019, magnifique. Jérusalem était remplie de touristes chaque jour. Tout le monde faisait de l’argent, directement et indirectement. L’économie palestinienne montait en puissance, et l’argent gagné était réinvesti en Cisjordanie. La pandémie a stoppé tout ça», regrette Tony Khashram.

Avec l’algarade d’octobre 2020 sur l’esplanade, Palestiniens et Jordaniens ont montré aux Émiratis qu’on ne pouvait la visiter sans passer par eux. «Je pense que les visiteurs du Golfe ont été poussés par les Israéliens et les Américains. Mais ils ont compris le message. Il ne faut pas toucher à al-Aqsa, ou si ça continue, du sang sera versé entre musulmans», estime Daniel Seidemann, le directeur de l’ONG Jérusalem terrestre. La phrase polémique sur al-Aqsa ne figure plus dans le texte des accords signés le 15 septembre. Pour Amman, le risque de la perte de la gestion des Lieux saints semble écarté, avec l’élection de Joe Biden. Après un appel entre le futur président américain et le roi de Jordanie en novembre, la monarchie a réaffirmé son rôle de gardien.

«Il se disait à Riyad que les Israéliens songeaient à donner une souveraineté symbolique sur al-Aqsa à l’Arabie saoudite, au moment des négociations du plan de paix avec les Américains, vers 2018. L’idée était que si Riyad lançait la normalisation des relations, le reste du monde arabe suivrait. Mais Mohammed Ben Salman s’est empêtré dans l’affaire Khashoggi, et les Émirats ont pris l’initiative. Riyad n’est plus vu comme la locomotive. Le sentiment est que les Saoudiens finiront par normaliser quand d’autres l’auront fait», estime Stéphane Lacroix, professeur associé à l’École des affaires internationales de Sciences Po, spécialiste du Golfe.

WWD : LVMH Names Leadership Trio for Tiffany

LVMH Names Leadership Trio for Tiffany
Anthony Ledru joins the iconic jeweler from Louis Vuitton.


Tightening its grip after the dramatic $15.8 billion acquisition of Tiffany & Co., LVMH Moët Hennessy Louis Vuitton has selected Vuitton executive Anthony Ledru to become chief executive officer of the American jeweler, effective immediately.
What’s more, Alexandre Arnault, CEO of Rimowa since 2017 and the second eldest son of LVMH chairman and CEO Bernard Arnault, is to become Tiffany’s executive vice president, product and communications, lending his strong digital acumen, Millennial perspective, branding expertise and vast network of connections in Silicon Valley.
And Michael Burke, chairman and CEO of Louis Vuitton, will become chairman of the Tiffany board of directors, bringing his vast experience and impeccable track record in luxury to the task.

This powerful trio will be charged with accelerating the growth and intensifying the sparkle of LVMH’s newest luxury jewel, which is sure to transform the French group’s watches and jewelry division.
Ledru takes over from Alessandro Bogliolo, who was widely expected to exit once the transaction was finalized on Jan. 7. WWD had identified Ledru as a frontrunner in a report on Dec. 30, and signaled that Alexandre Arnault was also in the management frame.
However, Bogliolo has agreed to stay on until Jan. 22 to facilitate the transition.

“I am pleased to welcome Tiffany and all their talented employees in our group,” Bernard Arnault said. “Tiffany is an iconic brand and a quintessential emblem of the global jewelry sector. We are committed to supporting Tiffany, a brand that is synonymous with love and whose Blue Box is revered around the world, with the same dedication and passion that we have applied to each of our prestigious Maisons over the years.
“We are optimistic about Tiffany’s ability to accelerate its growth, innovate and remain at the forefront of our discerning customers’ most cherished life achievements and memories. I would like to thank Alessandro Bogliolo and his team for their dedication to Tiffany and their work over the past three years, especially during this challenging period,” he added.
Ledru is Vuitton’s executive vice president, global commercial activities, and will be charged with leading the global expansion and upscaling of Tiffany, synonymous with diamonds, blue gift boxes, and the late Audrey Hepburn.
The Frenchman has logged most of his luxury career in the U.S. jewelry business, rising through the ranks at Cartier over a 12-year career to become vice president of retail until moving over to Harry Winston as global vice president of sales in 2011.
In fact, Ledru had first joined Vuitton as president and CEO of its North American business in December 2014 from Tiffany & Co., where he spent a little under two years as senior vice president, North America, which is Tiffany’s largest market, generating about 43 percent of sales.
Peter Marino, Shuji Mukai and Anthony Ledru Andrew Morales
Ledru said he is “delighted to re-join Tiffany, the most iconic American luxury brand which I have long admired.”

“The inclusiveness and optimism upon which Tiffany was founded resonate now more than ever. I also come back to a maison that is at the forefront of the environmental and sourcing standards in its industry. Going forward, I have deep confidence in LVMH’s commitment to protect the brand, drive its growth strategy and apply the highest standards of retail excellence to Tiffany. The potential ahead is limitless, and I look forward to writing this next deeply promising chapter, along with the 14,000 Tiffany employees around the world.”
Indeed, LVMH is expected to spiff up Tiffany boutiques, renew its product range, rev up communications and leverage its expertise in fast-growing China. Luxury analysts say the French group has the financial and management muscle to transform Tiffany into a luxury megabrand.
The luxury giant has a strong track record of grooming executives and recruiting from within whenever a big role opens up, rarely poaching from luxury rivals for CEO roles. The current CEOs at Dior, Fendi, Givenchy and Loewe, for example, all rose through the ranks of either Dior or Vuitton.
Installing Alexandre Arnault at Tiffany also reflects widening responsibilities for Bernard Arnault’s children, and echoes Delphine Arnault’s role as executive vice president of Louis Vuitton, in charge of all product-related activities. Antoine Arnault, CEO of Berluti and chairman of Loro Piana, last year added oversight of LVMH’s environmental department, in addition to his role as head of image and communications at the group, while Frédéric Arnault, the youngest executive in the Arnault clan, became CEO of Tag Heuer last year.
Alexandre Arnault graduated from École Telecom ParisTech and holds a master’s degree from École Polytechnique.
Before joining Rimowa after initiating and leading LVMH’s acquisition of the German firm, he worked consultancy McKinsey & Co., then in private equity at KKR, both in New York. He then joined LVMH and Groupe Arnault to focus on digital innovation.
Rimowa is expected to name a new CEO shortly.
LVMH is sure to apply its formidable braintrust of family members and seasoned executives to ensure the success of Tiffany, which it contends has underperformed in a buoyant consumer segment.
Founded in 1837 by Charles Lewis Tiffany and catapulted to a higher plane by his son Lewis Comfort Tiffany, the jeweler has served the wealthy — both old and new money — ever since it was established. As of the end of March 2020, it operated 326 stores worldwide.
LVMH first agreed to buy Tiffany for $16.2 billion in November 2019 in what was billed as the largest acquisition in the luxury space. But that was pre-pandemic.
After the coronavirus began making its way around the globe, causing mass shutdowns, LVMH seemed to get cold feet. Last September, the French group said it was walking away from the deal, sparking a war of words and multiple lawsuits that threatened to derail the mega deal.
But by October, the parties reached a truce in order to avoid legal proceedings seen as harmful to both sides. At the end of 2020, Tiffany shareholders overwhelmingly approved an updated acquisition agreement calling for a $131.50 in cash per share purchase price, compared with the original offer of $135 a share. That amounted to about $420 million in savings for LVMH.
Tiffany is no longer a public company, but an indirect, wholly owned subsidiary of LVMH, whose vast stable of fashion, beauty, liquor, hospitality and retail brands brands includes the jewelers Bulgari, Chaumet and Fred.
Despite an uneven performance performance earlier in 2020, Tiffany’s earnings shot up in its most recent quarter, which ended Oct. 31, by 52 percent to $119 million, beating out analyst expectations. E-commerce sale were up 92 percent during the quarter.
Among Ledru’s first challenges will be to galvanize Tiffany’s 14,000 employees behind LVMH’s ownership and strategy, and smooth over any lingering acrimony among top brass and board members.
Bogliolo joined Tiffany from Diesel in 2017 and sought to boost growth in China and through omnichannel initiatives while also raising average unit retail prices and accelerating product innovation. The executive stands to receive a change of control payout in excess of $44 million, according to LVMH.
Bogliolo and Krakoff were key in helping turn around the plodding Tiffany, modernizing the company with a focus on China, elevating the brand and expanding with The Blue Box Café, three distinct high-jewelry collections, and Tiffany Paper Flowers, which runs from fine to high jewelry.
It is understood that Krakoff is not being replaced, but that the company would operate with different design studios for different categories in keeping with how many of LVMH’s other powerhouse businesses operate.
Mark Erceg, executive vice president and chief financial officer, told employees late Wednesday that he would leave with the change of power, according to sources.
The leadership team walking out of Tiffany managed to steer the company through the pandemic — and through the bruising court battle with LVMH that ultimately led to a price cut in the deal.
While the springtime COVID-19 shutdown hurt Tiffany, the company was bouncing back in the third quarter and for the last two months of the year posted a 2 percent gain in net sales — marking the brand’s best holiday sales haul ever.

WWD : Inditex Said to Shut All Bershka, Pull&Bear and Stradivarius China Stores

Inditex Said to Shut All Bershka, Pull&Bear and Stradivarius China Stores
The company said last year it plans to close as many as 1,200 smaller stores and focus on its larger flagships.

LONDON — Fast-fashion giant Inditex is shutting all of its Bershka, Pull&Bear and Stradivarius physical stores in China as soon as the end of January, WWD has learned from multiple sources.

Their official website and Tmall stores will remain operational. Zara, Massimo Dutti, Oysho and Zara Home will retain their physical presences in China.

Each brand still has around a dozen stores that are still open in first and second-tier cities such as Beijing, Shanghai, Shenzhen, Chengdu and Hangzhou, according to Inditex’s website. The company has been shutting them since last year. There were 62, 65, and 35 Bershka, Pull&Bear and Stradivarius stores in China, respectively, a year ago. It means that Inditex has shuttered more than 120 stores of the three brands in the past year.

A former salesperson from Bershka’s Grandview Mall store in Guangzhou, the biggest shopping outlet in southern China, said the brand has been liquidating the inventory since June 2020 before shutting the store for good in July. Pull&Bear and Stradivarius closed their stores in the same location in August and October, respectively.

Inditex could not be reached immediately for comment at press time.

With the rise of local competitors in recent years, such as Peacebird, Urban Revivo and Mo & Co, the Chinese fast-fashion market is becoming increasingly crowded. Bershka, Stradivarius and Pull&Bear, which sit at the same price range with similar product offerings, appear less attractive in the eyes of a new generation of fashion-forward consumers.

It’s believed that Inditex’s store closures in China are part of the company’s wider adjustment in the wake of the pandemic. The company said last year it plans to close smaller stores and focus on its larger flagships. As many as 1,200 stores could be culled by 2022.

Last October, Zara opened its largest store in Asia in Beijing, spreading more than 37,600 square feet across four floors. The flagship store is located on Wangfujing Street, one of the most famous shopping streets in China.

WSJ : The New Covid-19 Strain in South Africa: What We Know

The New Covid-19 Strain in South Africa: What We Know
Researchers warn that the new variant may spread faster and could reduce the efficacy of vaccines

A new variant of the coronavirus is driving a powerful second wave of infections in South Africa. The variant has already spread to other countries in Africa and Europe and raised concerns over how it will respond to Covid-19 vaccines.

What is the new Covid-19 variant present in South Africa?
It’s normal for viruses to mutate, and variants observed so far in the coronavirus sweeping the globe have made little difference to how it functions. The South African variant, known as B.1.351, has worried scientists because of its unusually large number of mutations, especially in the spike protein, which the virus uses to attach to and infect human cells.

How dangerous is this new variant?
The discovery and spread of the South African variant has coincided with a powerful surge in infections in the country. New daily cases and deaths have already surpassed those seen in the first wave, which peaked in July, and infections are still going up. South African researchers say they also believe that the new variant is more transmissible, since it has quickly crowded out other versions of the virus circulating in the country. Still, they say human behavior—with thousands of South Africans crowding into bars, restaurants and beaches—is likely the main reason for the sharp rise in infections in recent weeks. They are now racing to understand how much more transmissible the new variant is and whether it leads to more severe cases of Covid-19.

Are there any cases of this new variant in the U.S.?
No cases of the South African variant have been detected in the U.S., but that may be because not enough positive test samples have been sequenced. In the past two weeks, laboratories in Finland, the U.K., Australia, Switzerland, Japan and South Korea have found the South African variant in coronavirus tests conducted there. Researchers in neighboring Zambia say the South African variant now also appears to be the dominant virus there.

How is the new Covid-19 variant different from the one discovered in the U.K.?
The scientists who sequenced the South African variant’s genome say it has a mutation—known as N501—that it shares with a separate variant discovered in the U.K. British scientists say that mutation may be responsible for making the variant there much more transmissible.
But the South African variant also has another potentially important mutation, dubbed E484K, that isn’t present in the U.K. variant. Researchers believe that the E484K mutation has changed the shape of the virus’s spike protein, which it uses to attach to and infect human cells, in a way that makes it harder for some antibodies to get a good grip and neutralize the virus. That could have implications on how the variant affects people who have previously recovered from Covid-19 or have gotten a Covid-19 vaccine.
The U.K. variant has been detected in many more countries across Europe, in China as well as in several U.S. states, including Colorado, California, Florida and New York.

Will existing vaccines work against the new variants?
Researchers who have studied the E484K mutation say it may make the existing Covid-19 vaccines less effective against the new variant, but is unlikely to be totally immune to the shots. A reduction in the vaccines’ efficacy could mean that a higher percentage of recipients would still be susceptible to getting Covid-19 or that they might still get a mild form of the disease. It could also mean that a larger proportion of people need to get vaccinated to produce herd immunity and end the pandemic.

What measures are being put in place to handle the new variant?
South Africa has banned social gatherings and closed beaches and parks that are popular during its current summer holiday season. Masks are mandatory in all public places. The government has also prohibited the sale of alcohol, which it says makes people forget about social-distancing rules, and leads to accidents and violence that put more pressure on hospitals. However, restaurants and stores remain open to preserve jobs and livelihoods in a country where many people still live in poverty.

South Africa expects to get its first one million doses of a vaccine developed by the University of Oxford and AstraZeneca PLC this month, with a second shipment of 500,000 doses due in February. The shots, manufactured by the Serum Institute of India, will be given to health-care workers, who have borne the brunt of a surge in new cases of Covid-19.

FT : Arthritis drugs found to reduce risk of death in severe Covid-19 cases

Arthritis drugs found to reduce risk of death in severe Covid-19 cases
Immunosuppressants tocilizumab and sarilumab also reduce stays in intensive care by at least seven days on average

Scientists have found that two drugs used to fight arthritis cut the risk of death from Covid-19 by a quarter, in results that will come as relief to health systems around the world which are buckling under the recent rapid spread of the virus.

The immunosuppressants tocilizumab and sarilumab, were found to reduce stays in intensive care by at least seven days on average, according to data released by the UK government-backed Remap-cap study, conducted by researchers at Imperial College London and Utrecht university in the Netherlands.

It is one of only a handful of breakthroughs around potential treatments for the virus, and comes at a time when Covid-19 is putting extreme pressure on the healthcare system in large parts of the UK. 

These are the first immune-modulating drugs found to have an effect on outcomes of hospitalised Covid-19 patients, adding to positive results from the cheap and plentiful steroid dexamethasone.

“Our findings are real and important and we hope they will be able to improve treatments for patients [in hospitals] where numbers are rising rapidly,” said Anthony Gordon, professor of anaesthesia and critical care at Imperial College London and the trial’s UK chief investigator.

The researchers gave participants the arthritis drugs on top of steroids and found that they reduced the death rate by 8.5 percentage points, from 35.8 per cent to 27.3 per cent.

Furthermore, they added that “patients receiving these drugs . . . left intensive care between seven to 10 days earlier on average”.

Dexamethasone, which costs roughly £50 for a 10-day course of treatment, was found in June to cut the death rate of the most seriously ill patients on ventilators by one-third, and by one-fifth in patients receiving oxygen. 

By contrast, courses of tocilizumab and sarilumab cost between £750 and £1,000 per patient. This is still significantly below the average cost of one night’s stay on an intensive care ward, which is about £1,800.

The NHS announced that it will on Friday update its guidance, encouraging NHS trusts to use tocilizumab, which is already widely used in the health service, to treat Covid-19 patients who are admitted to intensive care units. 

“The UK has proven time and time again it is at the very forefront of identifying and providing the most promising, innovative treatments for its patients,” said Matt Hancock, the health secretary. “Today’s results are yet another landmark development in finding a way out of this pandemic and, when added to the armoury of vaccines and treatments already being rolled out, will play a significant role in defeating this virus.”

The government said it would work closely with the Swiss pharmaceutical company, Roche, which manufactures tocilizumab, to ensure supplies remained available.

Martin Landray, professor of medicine & epidemiology at Oxford university, said the results “injected that bit of optimism we all need”.

The researchers at Imperial believe the outcomes they observed stem from the fact that they looked specifically at severely ill patients and intervened very early during these patients’ deterioration, administering the drugs within 24 hours of them entering intensive care.

Tocilizumab targets single immune signalling molecules called cytokines, and is not commonly used in intensive care settings, unlike common steroids such as dexamethasone. The drugs work by blocking specific receptors in the body that cause inflammation.

Findings from the randomised controlled trials, involving 800 patients, have not yet been peer-reviewed.