Flu Stocks SVA and BCRX among Movers and Shakers

0 Comment(s) - Post a Comment

Visits to doctors for influenza-like illness continue to increase in the United States according to the latest reports from the CDC and as H1N1 continues to be a growing concern here in the U.S. and abroad, so called "Flu Stocks" will likely continue to rise- just as they do in non-pandemic years.

On Tuesday, shares of Sinovac Biotech Ltd. (AMEX: SVA) jumped up $0.81 or 10.83% to end the day at $8.29 after its wholly-owned subsidiary, Sinovac Biotech (Hong Kong) Ltd, received the Certificate of Approval to distribute Panflu (H5N1), its H5N1 (bird flu) pandemic influenza vaccine, in Hong Kong.

Sinovac's certificate is valid through September 13, 2014 and thereafter will be renewable for periods of five years at a time, subject to payment of the registration fee. Just last week, Sinovac announced that it had received its second purchase order for its H1N1 vaccine, PANFLU.1, from the Ministry of Industry and Information Technology of the People's Republic of China for the national stockpiling plan. Under this purchase order, Sinovac Biotech Ltd. is required to produce an additional three million doses of PANFLU.1 (15ug/0.5ml), Sinovac Biotech Ltd.'s H1N1 vaccine for the central government.

Shares of BioCryst Pharmaceuticals, Inc.(NASDAQ:BCRX), which had been declining in recent weeks, closed up to $8.92+0.61 (7.34%) and continued trading higher after hours after a JMP Securities analyst initiated coverage with an "Outperform" rating, citing revenue potential for the company's flu treatment peramivir and cancer drug forodesine.

JMP analyst Charles C. Duncan gave BioCryst shares an "Outperform" rating and expects shares to reach $15 apiece over the next 12 months as the biotechnology company shifts into a revenue-producing operation. "We anticipate a share price inflection point with the company's transition into a revenue-driven biotech over the next 12 to 24 months as it develops and markets lead drugs peramivir and forodesine," the analyst told Forbes magazine. BioCryst shares of the company had been declining in recent weeks after rumors that the company might be deal-shopping to raise cash.