Shares Up for GlaxoSmithKline, Novartis and Iomi, After Landing Vaccine Contracts

The Department of Health and Human Services [DHHS] has awarded GlaxoSmithKline (GSK), Novartis Vaccines and Diagnostics (NVS) and Iomai (IOMI) all a total of $133 million in funding for the development of H5N1 Avain Flu vaccines.

GSK's contract will total $63 million over 5 years, while Novartis will receive $55 million over the same period. Iomi was awarded just $14 million over 15 months for the completion of phase I trials of its skin patch, designed to stimulate the immune system when used along with vaccines. The company can be awarded a further $114 million if the study shows positive results.

Each of the three companies is expected, under the terms of the contracts, to be able to provide 150 million doses of the vaccines within 6 months of the start of an Avian Flu pandemic attack.

Shares of GSK and Novartis both gained just a little over 1% on Wednesday, while Iomi jumped more than 15% to end trading at $5.88, with an intra-day high of $6.85.

Related Reading:
Project BioShield Has Given Biotechs Little Motivation to Protect Americans

IOMI vs. GSK vs. NVS 1-yr chart

Comments

[lonie:]

According to Chinese news last summer,the Chinese had developed a vaccine for the bird flu. Any truth to it?

2007 Jan 19 05:05 AM