The two companies that produce drugs that may provide some relief from the swine flu are considered by some to present attractive investment opportunities. Both Roche, which produces Tamiflu (or oseltamivir), and GlaxoSmithKline (GSK), which produces Relenza (or zanamivir), are expected to report record earnings. But Roche recently indicated that ramping up production of Tamiflu was not that simple. From synthesis of the drug to packaging requires a lead time of eight months. Swine flu may have run its course by then.
It will be interesting to see how the share prices of those companies rise, more in reaction to press hype, than in relation to swine flu deaths. When prices peak, it may be an opportune time to go short Roche and GSK.
In the meantime, I’m washing my hands.
Tags: GlaxoSmithKline, Relenza, Roche, swine flu, Tamiflu