Posts Tagged ‘swine flu’

CSL wins U.S. vaccine contract

Friday, May 29th, 2009

The U.S. government has placed a $232 million order with Australian pharmaceutical company CSL for a swine flu vaccine.

The vaccine for the type A (H1N1) influenza is still in development but clinical trials are due to begin in the next few months, funded by the US Department of Health and Human Services. Manufacture of the vaccine will be at CSL s Parkville facility in Victoria.

The Australian government has ordered 10 million doses.

This all seems like great news for CSL and its shareholders, but according to an article in The Age this morning, vaccine production accounts for only 8% of CSL s revenue due to the size of the Australian market, making this more of a good public relations opportunity rather than a financial bonanza. If CSL can gain a share of the US market, however, things could become interesting.

The CSL share price was up on market open this morning:

Source: Market Analyser. Click here for a free trial.

For more details on this news story:

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Companies bracing for swine flu impact

Thursday, May 28th, 2009

As the government warns of a likely increase in confirmed cases of swine flu, companies and organisations are feeling the impact.

  • Qantas and Virgin Blue have quarantined flight attendants who came in direct contact with confirmed swine flu cases
  • News Limited is advising any staff returning from overseas to stay away from the office for 48 hours, and then only return after clearance from HR
  • The Commonwealth Bank has conducted planning and risk assessment scenarios
  • Jetstar has cancelled almost a third of its flights to Japan, as concern for the flu impacts on demand
  • A McDonald s outlet in northern Melbourne was closed after a staff member was diagnosed

So while the Prime Minister encourages us all to wash our hands, CIOs are busy dusting off business continuity plans

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Swine flu likely to hurt the economy

Tuesday, April 28th, 2009

Analysts are worrying over the impact a swine flu outbreak is likely to have on an already shaky world economy.

So far, the deadly flu has not reached the pandemic proportions SARS reached in 2003, but some economic impact can already be seen, and analysts are bracing for more damage.

So far

  • oil prices have dropped as fears of the flu spreading are causing people to defer air travel, and consequently lowering petroleum demand.
  • Qantas shares dropped 5% yesterday, as investor anxiety increased with the new pressure on the travel industry.
  • Biota jumped 77% following news of governments around the world stockpiling the company s antiviral drug Relenza, licensed to GlaxoSmithKline in return for a 7% royalty.

Ongoing concerns

  • business in the affected countries will suffer due to foreign tourists staying away, and locals staying home and not spending money.
  • the Mexican economy, already in a serious recession, could see the flu outbreak shave 0.6% off GDP this year. The figures would be even worse if the crisis worsens and countries issue travel bans and trading blocks.

For more info

Stocks for your watchlist

  • Qantas: QAN.AX (ASX)
  • Biota: BTA.AX (ASX)

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