The Canadian Money Forum in a report “Swine Flu Effects on the Market” said the initial stock market reaction to the news that the “swine flu” could become a pandemic was to cause aviation stocks to fall, but for pharmaceutical stocks there was a rise, especially those companies that made flu vaccines such as the United Kingdom-based company GlaxoSmithKline.
Courtesy of the FinalCallNewspaper, they shed the light on the situation:
According to Business Week, GlaxoSmithKline, the makers of Relenza, the other popular antiviral, stock increased by eight percent.
Also, according to Business Week, the makers of Tamiflu, Roche reported their shares were up four percent since April 27.
MarketWatch.com said GlaxoSmithKline stock fell 20-cents a share to $30.56 on the afternoon of May1.
The World Health Organization said in a press release that both companies had approached the UN organization about readiness to deploy their antiviral stock inventories.
EPFR said that as the cases of H1N1 infections expand governments must plan for vaccine production and tap emergency stockpiles of antiviral medicine.
The Wall Street Journal reported on May 1, the United Kingdom had enough Tamiflu to treat 33 million people, or 54 percent; France had enough Tamiflu to also treat 54 percent of its population; Japan had on hand enough to treat 28 percent of its people; while the U.S. had enough to inoculate 50 million people or 16 percent. The WSJ said that the World Health Organization reported that it had enough antiviral to treat one million on the African continent; however, no cases have been reported there at Final Call press time. Analysts say assuming Tamiflu stocks need replenishing it could come at a cost of $388 million. Critics of the big pharmaceuticals say they want to use the media attention on the flu crisis to draw attention to the corporate practices of the agriculture and pharmaceutical industries placing business before health.
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