The development of a vaccine for a flu pandemic at this point before the outbreak occurs ensures that GlaxoSmithKline will be ahead in capturing market share. It has already received commitments from some governments to purchase the vaccine if the flu strikes.
The swine flu scare that’s hit Europe, North America, Central America and Asia so far this week has been responsible for over eighty deaths. That’s especially bad if you’re down in Mexico, where the strain has hit the hardest. Here in the U.S., up in Canada, Spain, France, Hong Kong, and New Zealand, the situation seems to be much more in hand despite official worries that the world is likely to see many more cases before this is over.
But in hand or not, the pharmaceutical sector is making out on this one. As everything from heightened levels of caution to full out fear and panic rises among governments and citizens alike, many investors are looking at the situation from a completely different angle…
… Which is exactly why Gilead Sciences Inc. (Nasdaq: GILD), GlaxoSmithKline (Nasdaq: GSK), Switzerland-based Roche and like-minded companies are doing as well as they are this morning.
Sure, the major indexes are all back up after a rough start this morning, but how many other stocks can claim they more than doubles?
Novavax (Nasdaq: NVAX) can for one, since savvy investors know that its experimental vaccine for one strain of avian influenza produced a strong immune response in human test cases so far. And Novavax says that utilizing its specialized technology, it could produce a suitable vaccine for this emerging problem in double-time.
If officials are right that things will get worse before they’ll get better, you can better believe that those stocks will continue to rise.
GlaxoSmithKline’s new vaccine for HPV, Cervarix, could become a major player in the market once it is approved, likely in early 2008. Demand for this vaccine, which would prevent the virus that causes cervical cancer, will likely be substantial.
GlaxoSmithKline’s ability to effectively plan “life-cycle management” through reformulating drugs has allowed it to protect Coreg from generic competition. This technique will continue to help it capture more revenue from its research investments.