Swine flu: Who's winning and losing in the H1N1 virus pandemic?
Filed under: Company News, Healthcare
President Obama declared the H1N1 flu outbreak a national emergency last weekend. While U.S. officials insist the move is not a reaction to new developments but a preventive measure, it comes just as the vaccine shortage has been making headlines, with the Centers for Disease Control "frustrated" by the tight supply of vaccine -- and Friday's report that swine flu, still on the rise in schools, has forced 315 schools to temporarily shut down.Of course, in times of crisis, some always benefit while others take a hit, and one drug company that's done rather well by the H1N1 pandemic is vaccine-maker Novavax (NVAX).
Last week, the CEO of Novartis (NVS) -- the biggest U.S. supplier of the H1N1 vaccine -- said most of its swine flu vaccine may not reach the U.S. until the first quarter due to the lack of antigen, the key ingredient that induces immunity. SanofiAventis (SNY) is also said to have problems with yields of the vaccine, and GlaxoSmithKline (GSK) failed to get Food & Drug Administration approval for its drug.
All of these setbacks may give an opening to Novavax, based in Rockville, Md. Novavax uses a novel method -- proprietary viruslike particle technology that stimulates the immune system to develop antibodies without infecting it. This approach was found to stimulate a better response than current vaccines for seasonal influenza -- and its production is much faster. Additionally, most of Novavax's rivals are based outside the U.S. (The largest supplier of vaccine so far is Astra's MedImmune unit, which makes the nasal-spray version and is based near Novavax in Gaithersburg, Md.)
Novavax's fortunes are tangled in regulatory red tape. But on Friday, the FDA authorized the emergency use of BioCryst's (BCRX) investigational antiviral drug peramivir for hospitalized adult and pediatric patients with confirmed or suspected 2009 H1N1 influenza infections and who aren't responding to other forms of the drug. Apart from peramivir, no FDA-approved intravenously administered antivirals can treat influenza. BioCryst has donated and transferred to the U.S. Department of Health & Human Services an initial supply for 1,200 courses of peramivir and is producing 130,000 additional courses, with plans to produce even more.
NVAX shares traded about 7 percent higher in late-afternoon trading. BCRX shares jumped more than 10 percent by late afternoon trading.
If vaccine- and drugmakers are thriving as the H1N1 flu pandemic takes root, insurers are taking a beating. Health insurer Amerigroup Corp. (AGP) cut its third-quarter earnings outlook and withdrew its full-year outlook due to medical costs associated with a severe H1N1 season. The virus particularly virulent among children, pregnant women and other high-risk groups -- a category representing about 87 percent of the Amerigroup's 1.7 million members.
"In September, we experienced a spike in flu-related activity among our Medicaid members," said James G. Carlson, Amerigroup chairman and CEO. "It is difficult to determine if, and when, the situation will abate, continue at current trends, or worsen." Shares dropped over 3 percent in late-afternoon trading.
More than 11 million doses of the H1N1 vaccine have been shipped out so far, and the 16 million total doses available are not remotely close to the 195 million doses the CDC planned to have by year-end (or the 40 million to 45 million doses it had expected by mid-October). Swine flu is widespread in 46 states, with 1,000 confirmed deaths and more than 20,000 hospitalized.
D-Day for Harry Reid: Can he wrangle 60 votes for Senate health reform bill?
Fed stalls on Chinese bank deal, costs taxpayers $1.7 billion
Dell in a handbasket: Should founder Michael Dell resign?
Reader Comments (Page 1 of 4)
10-26-2009 @ 6:14PM
Chris Goe said...
Fight the flu and Swine Flu with Aloe!!
Reply
10-28-2009 @ 2:11AM
Ron said...
Of course the drug companies are going to profit from this. Who do you think fabricated the virus in the 1st place. Anyone who buys the vaccine is just contributing to future wrong doing by the pharmaceutical companies. I will not, and my family will not EVER get a flu vaccine!
11-02-2009 @ 11:23AM
Bob said...
More kids died in car wrecks last month than from all flu strains combined. Q: Why is a lesser problem the greater concern?
10-26-2009 @ 6:37PM
brucelee said...
Everyone that went in for the Swine Flue shot in 2009 came out with the H1N1. In 2007, everyone that went in with SARS came out with the Swine Flu. In 2005, everyone that went in with the Bird Flu came out with SARS. In 2003, everyone that went in with The West Nile virus came out with the Bird Flu. In 2001, everyone that went in with with Anthrax came out with Bird Flu.
Do you see the pattern after the 2000 cheating elections in Florida. Either the news media is selling Americans more media hoaxes every odd number year starting in 2001 to make you forget the 2000 elections, or the hospitals are injecting people with viruses. Right
Reply
10-31-2009 @ 7:07AM
dkurtz said...
brucelee:
Where did you get your information? I am curious and would like to read it.
10-31-2009 @ 10:25PM
michelle said...
anthrax is NOT a virus. google it. retard.
By the way, go to the CDC website, 99% of all flu cases reported thus far have been swine flu. Seasonal flu has yet to rear its ugly head. Why do you people post such idiotic crap on here?!
11-02-2009 @ 11:25PM
Billy said...
My grandaughter is lyeing in Vanderbuilt Hospital brain dead because of H1N1 flu. Dont tell me about hoax.
It is very real and we dont know if she will even live
10-26-2009 @ 6:43PM
charles said...
Does anyone know if we have a Surgeon General under Obama and if so, why isn't he/she out front on this H1N1 issue? This is scary stuff and the only info I see is stuff from politicans and political appointes , with mixed messages from the CDC when the vaccine is going to be available and who should get it.
Reply
10-27-2009 @ 3:25AM
Lyn said...
We don't have a Surgeon General yet; the Republicans are blocking her nomination. Rumor is the insurance companies don't like her . . . don't know if that's true or not. We really do need someone in that position with the flu pandemic!
10-27-2009 @ 9:01AM
refuse2lose said...
I can see that you and others have been taken captive by the mainstream media.The "swine flu"is no worse than the normal flu,the CDC is not even sharing information with states because they know it is a scam.80%of investigated cases that were "reported"as swine flu were actually not.
The WHO has already admitted that they subject the public to viruses and other diseases to see how they react.
DO YOUR OWN RESEARCH!!!!
10-26-2009 @ 6:47PM
TomW said...
The reason health officials had to point out that the President's declaration of the swine flu emergency was not about a new development was that everyone else has been doing this stuff for months and Obama just felt the need now, that vaccinations are underway to grab some of that great illness news headlines and made a declaration and that means....well it means absolutely nothing just like his Presidency. State and local health depts having been working on this for months.
Reply
10-26-2009 @ 7:28PM
bill said...
What a joke this vaccine shortage is. When it is all said and done they will quitly disclose that it was the regular yearly flu that caused the majority of the deaths. This is nothing but politics at work. As Obama's Emanual said, " Never let a crisis go to waste." I see that Reid said today (10-26-2009) that the senate bill will now have the public option included in their bill. The American public needs to get their heards out of their rears and challenge politicians, regardless of which party they come from. Try thinking people!!!!
Reply
10-26-2009 @ 10:35PM
arianna said...
the only heads in the sand are the ones that occured for the past 8 years....now they want to come out of the woodwork and complain...Funny how no one complained when our soldiers were being killed in Iraq and for what was the casue..oh yeah, weapons of mass destruction and bin laden....heads in the sane huh...no intelligence or thought processes involved in the past eight years....and now they want to complain...how morally ironic not even worth commenting on.
10-26-2009 @ 10:56PM
Teekers said...
Bill, you are completely wrong. This IS H1N1 we are seeing and dealing with. We stopped sending swabs to the Health Dept b/c they were only coming up H1N1. The regular flu is starting to make an appearance in the US, but not yet where we live and we are regularly getting positive results for Influenza A. We are inundated with influenza A positive flu and are no longer going after the 'label' H1N1 b/c we know that is what we are seeing.
Please see the H1N1 maps and the influenza (yearly flu) maps on the CDC website. It is very simple. No need for conspiracy theories . . .!
10-26-2009 @ 7:36PM
Andy said...
The Swine Flu, do you all know that Obama has invest his own money in the Company that make the Swine Flue vaccine. This investment into the company was in the year 2005. When he became President he made a executive order that the Company will not be liable for any harm or injury to any person or persons, or cannot be sued for damages that this preventive medicine cause to any individual. It is surprising that all this medicine is being sold and push out, and all this fear of this disease. When it all is being pushed from Obama Government administration. I WONDER WHO IS MAKING MONEY NOW. DECEIVING OBAMA IS AT IT AGAIN.
Reply
10-27-2009 @ 3:36PM
jeano said...
Ok, Andy, put the proof out there for us all and make sure it doesn't come from Fox news cuz we want the TRUTH!
10-26-2009 @ 7:56PM
DICK JENSEN said...
ANOTHER GOVERNMENT BOONDOGGLE. OBAMA SPEAKS AND THINGS GO TO S--T. OBAMA CAN RUN ALL OVER THE COUNTRY MAKING SPEECHES. HE CAN RUN ALL OVER THE WORLD MAKING SPEECHES. WHEN IT COMES TO ACTION HE SHOOTS BLANKS. OBAMA NEEDS TO MANUP. HE PROMISED TRANSPARENCY, HE WAS SO RIGHT, YOU CAN SEE RIGHT THROUGH HIM. HE IS TRULY TRANSPARENT.
Reply
10-26-2009 @ 10:48PM
ruby said...
I guarantee that the O'Bama family has had all their Swine vaccines and everyone involved with the White House and all their families. I guess they figure if enough of us die they can brainwash the rest. First there was an oversupply of vaccines and now they can't find any or very little. The last time the Swine appeared in the 70's there was plenty of shots to go around. Everyone that wanted one got it. It seems that technology has gone backwards. We should be more concerned on what's going on the White House then what's going on in Fox or Rush!
Reply
10-26-2009 @ 11:07PM
katy said...
O'bama??? He's not from Ireland.
10-27-2009 @ 12:32PM
antcmanche said...
Actually, Obama and his family, including his daughters, are not getting the H1N1 vaccine. He said that he is in the age group that is not really in danger and is healthy so he does not need it, since there is a shortage of the vaccine. His daughters, apparently are excused for getting the vaccine, for some reason. This entire "pandemic" smells fishy. Most people who get it are fine after a few days of rest and drinking plenty of fluids. The regular flu is taking more of a toll than Swine. And Obama's declaring an emergency gives him WAY too much power over all of us, research it.