Everything You Need To Know About Flu Vaccine Stocks For This Year
Stocks were mixed on
higher oil prices. Oil closed over $51.
The ISM’s non-manufacturing index slipped to 56.7 for September vs.
59 for August. A number above 50 indicates growth.
Chiron
(
CHIR |
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PowerRating) was halted after
Britain suspended the manufacturing license for three months.
“Its license has been
suspended for three months because of problems with the manufacturing process,”
said a Department of Health spokesman.
Chiron said it will not supply any Fluviron flu vaccine for the 2004-2005 flu
year. One-half the US flu vaccine supply comes from Chiron–approximately 48
million doses. Flu season typically lasts from November to March. The company is
40% owned by Swiss company Novartis. The earnings impact is expected to be
1.10-1.15; the old estimate was 1.80-1.90, so the new estimate should be
0.70-0.75. The stock re-opened at 30.50, down $15 and rallied $7 rapidly. At a
news conference, CEO Howard Pien said “We profoundly regret we will be not be
able to meet the public health needs this season.” CHIR fell 16% on the day.
Henry Schein
(
HSIC |
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PowerRating), which
distributes Fluviron, was halted and did not re-open today. PSS World Medical
(
PSSI |
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PowerRating) and Priority Healthcare
(
PHCC |
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PowerRating) are also distributors and
the stocks fell 6.88% and 3.89%, respectively.
Medimmune
(
MEDI |
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PowerRating) gained 6%. The
company makes an inhaled vaccine–FluMist–that is available for healthy 5 to
49-year-olds.
ID Biomedical
(
IDBE |
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PowerRating) rose on the
news. The company makes 75% of the flu vaccine in Canada but does not have
approval to sell vaccine in the US.
The CDC reports that on average, 36,000 people
die annually from the flu, which affects some 35 million Americans each year.
Economic costs of the flu are estimated at $22 billion per year.
Secretary of Health & Human Services Tommy
Thompson said a vaccine shortage was anticipated, that he contacted Aventis
about supplying more flu vaccine this year and that his department will make
sure vaccine reaches the most vulnerable. The US has 54 million doses available.
Pulte Homes
(
PLT |
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PowerRating) warned that Q3 earnings would fall short. The
company said it was tied to a specific event tied to Las Vegas, Pulte raised
prices more than 50% and buyers balked.
Challenger said planned job cuts rose 45%
in September to an 8-month high.
| Dow | -38.56 | 10177.98 |
| S&P 500 | -0.66 | 1134.51 |
| Nasdaq | +3.19 | 1955.50 |
Strong sectors were: Oil
(
XOI.X |
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Chart |
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PowerRating) +8.82%, Computer Technology
(
XCI.X |
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PowerRating) +4.75%,
Natural Gas
(
XNG.X |
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PowerRating)
+3.84%.
Weak were: Biotech
(
BTK.X |
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PowerRating) -6.75%, Insurance
(
IUX.X |
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PowerRating)
-4.39%, Cyclicals
(
CYC.X |
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PowerRating) -3.81%.
10-year Notes were +020 at 112 105
The dollar
was -0.21 at 88.20
Gold was +5.40 at 417.80
Crude Oil was +1.14 at 51.05
1.69 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1579 | Up Vol 501 |
| Declining | 1721 | Down Vol 762 |
| Ratio | 1.08 | 1.52 |
| Nasdaq |
||
| Advancing | 1344 | Up Vol 904 |
| Declining | 1743 | Down Vol 650 |
| Ratio | 1.29 | 1.39 |
Stocks in the News
Advanced Micro Devices
(
AMD |
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PowerRating) said revenue would be lower than
forecast, citing softness in memory chips.
Boeing
(
BA |
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PowerRating) will sell 24 planes to Libya in a deal worth $1.5
billion.
IBM was upgraded at JP Morgan to ‘overweight.’
Forest Labs
(
FRX |
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PowerRating) guided higher for the last half of 2004.
Medarex
(
MEDX |
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PowerRating) said its melanoma vaccine was granted fast track
status by the FDA.
Netflix
(
NFLX |
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PowerRating) said it would beat earnings estimates.
Genentech
(
DNA |
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PowerRating) said it received a subpoena regarding the
marketing of its drug Rituxin.
Yum Brands
(
YUM |
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PowerRating) will report after the bell; estimates are 0.60.
America West
(
AWA |
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PowerRating) warned, citing higher fuel costs.
Apollo Group
(
APOL |
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PowerRating) will report after the bell; estimates are
0.48.
Echelon
(
ELON |
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PowerRating) lowered its guidance.
Brice Wightman