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Swine Flu Profits Drug Companies
Key Excerpts from Article on Website of ABC News


ABC News, April 29, 2009
Posted: May 3rd, 2009
http://abclocal.go.com/wjrt/story?section=news/national_worl...

Pharmaceutical stocks are skyrocketing on fears that a swine flu outbreak could go global. Manufacturers of antiviral drugs [and] companies gearing up to produce a vaccine ... are turning profits in an otherwise skittish and down market. Companies gearing up for swine flu, including Roche, Gilead Sciences and GlaxoSmithKline, the manufacturers of the leading antiviral flu medications, are best positioned to see a boost in profits if the disease escalates to epidemic proportions, analysts said. Tamiflu ... was developed by Gilead and manufactured by Roche. Both companies' share prices spiked soon after the U.S. government allowed for its stockpiles of the drug to be made publicly available. Gilead stock surged to $47.53 at the end of the day Monday, up 3.78 percent. Roche rose to $31.72, up 4.34 percent. The other major flu drug currently on the market is Relenza, also stockpiled and released by the government, and manufactured by GlaxoSmithKline. Shares of Glaxo closed surged Monday to $31.56, up 7.57 percent. Both Tamiflu and Relenza are stockpiled by governments and in the case of an outbreak the companies are often required to sell the drugs directly to the government at a discount. "Government stockpiling is viewed as boon for profits. Though the government gets a discount and the margins sold to the government are lower than those if they sold to Walgreens, from a stock perspective it's an unexpected positive surprise," he said.

Note: Pharmaceutical companies make big bucks from scares like the avian flu and swine flu. Yet are the recommended drugs really effective? Many studies say they are not. For analysis of profiteering by the pharmaceutical industry during a previous flu scare, click here. See this link for lots more.


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