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The mosquito-borne Zika virus remains a hot topic of discussion this year as more cases are coming to light. Concerns have increased with the Florida Department of Agriculture and Consumer Services announcing last week that it has detected Zika in three mosquito samples from a small area in Miami Beach.
What is Zika?
Zika is spread mostly by the bite of an infected Aedes species mosquito. What is scary about Zika is that infection during pregnancy can lead to microcephaly, a birth defect of the brain, and other severe fetal brain defects as well as problems like eye defects, hearing deficits, and impaired growth. Increased reports of Guillain-Barré syndrome, an uncommon sickness of the nervous system, have also been observed in areas affected by Zika.
Earlier this year, the World Health Organization (WHO) declared the Zika virus a Public Health Emergency of International Concern. According to data provided by WHO, the virus has spread in recent years to more than 60 countries and territories including the U.S.
Countries and territories that recently reported Zika infections for the first time are the British Virgin Islands and Singapore.
What is Being Done to Control the Outbreak?
Health agencies across the world are working on preventing the spread of the virus. While WHO has come out with the “Zika Strategic Response Framework", the Centers for Disease Control and Prevention (CDC) is working on creating awareness about the virus and identifying and reporting it. The CDC is tracking the spread of the Zika virus and other mosquito-borne viruses in the U.S. and around the world.
In early Aug 2016, the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), started human testing of a Zika vaccine. In late Aug 2016, a team of researchers at the National Center for Advancing Translational Sciences (NCATS – a part of NIH) identified compounds that can potentially be used to inhibit Zika virus replication and reduce its ability to kill brain cells. The compounds include emricasan, which is being evaluated for the reduction of liver injury and fibrosis, and niclosamide, approved by the FDA for use in humans to treat worm infections.
In Feb 2016, the Obama administration had submitted a request to Congress for $1.9 billion in emergency funding to support the full range of activities needed to prevent, detect, and respond to the Zika virus and its serious associated health effects. But Congress is yet to give its nod.
Meanwhile, quite a few drug stocks and academic groups are working on developing vaccines as well as diagnostic tests for the Zika virus. There are no approved vaccines or therapies for Zika virus infection.
Drug Stocks in Focus for Efforts to Fight Zika
Here is a look at some companies that are involved in the fight against Zika and stand to benefit if they are successful in their efforts.
Plymouth Meeting, PA-based Inovio Pharmaceuticals, Inc. (INO - Free Report) is working on a preventive Zika vaccine – GLS-5700. The company recently started a study on the vaccine in Puerto Rico, where the Zika virus outbreak has been declared a public health emergency. This is the second Zika vaccine study being conducted by Inovio and its collaborators. The first study is being conducted in sites across the U.S. and Canada with results due by year end. Positive data would allow the company to meet regulatory authorities next year to determine the development path forward. Inovio’s shares are up 41.9% year-to-date (YTD). According to Inovio, the company and a U.S. government research center are the only ones to have started human clinical studies.
Bethlehem, PA-based OraSure Technologies, Inc. (OSUR - Free Report) , a leader in point of care diagnostic tests and specimen collection devices, won a contract worth up to $16.6 million from the U.S. Department of Health and Human Services (HHS) Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (BARDA) to advance the company’s rapid Zika tests, which utilize its OraQuick technology platform.
While molecular tests for Zika are currently available, there is significant need and utility for a rapid Zika antibody test. Quick turnaround time for results will also benefit healthcare providers and patients. Shares of this Zacks Rank #3 (Hold) stock are up 37.3% YTD.
Another company that recently won a government contract is Japanese pharma company, Takeda Pharmaceutical Company Limited . Last week, the company said that its Vaccine Business Unit has been selected by BARDA to develop a vaccine to support the Zika response in the U.S. and affected regions across the world. Takeda could receive up to $312 million in funds if all options are exercised by BARDA. Takeda plans to develop an inactivated, adjuvanted, whole Zika virus vaccine.
GlaxoSmithKline plc (GSK - Free Report) also joined the efforts to develop a Zika vaccine by making an announcement in July regarding its plans. The company said that it is preparing research studies that will evaluate a new vaccine technology for Zika known as SAM (self-amplifying mRNA) in collaboration with the Vaccine Research Center at the NIH in the U.S.
Moreover, Sanofi (SNY - Free Report) , another big name in the pharma sector, is developing a Zika vaccine in collaboration with the U.S. government. The vaccine is being developed under a Cooperative Research and Development Agreement between Sanofi Pasteur (Sanofi’s vaccines global business unit) and the Walter Reed Army Institute of Research (WRAIR).
Another company that looks poised to benefit from the threat posed by the Zika virus is Spectrum Brands Holdings, Inc. (SPB - Free Report) . This Zacks Rank #3 company signed an exclusive, multi-year agreement earlier this year under which its Cutter brand was designated the official insect repellent of U.S. Soccer, including the U.S. Men's and Women's National Teams, and the National Women's Soccer League. The company’s shares are up 29.7% so far in 2016.
With no vaccines or treatments for Zika, the Zika outbreak is a cause for concern and the company that is the first to come out with a vaccine stands to benefit immensely. However, vaccines take a long time to develop and there is some concern that interest may wane if the Zika virus outbreak slows down just like it did in the case of Ebola. But, with Zika infection during pregnancy leading to serious birth defects, expectations are that vaccines will remain in demand.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
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6 Drug Stocks in Focus as Zika Virus Fear Spreads
The mosquito-borne Zika virus remains a hot topic of discussion this year as more cases are coming to light. Concerns have increased with the Florida Department of Agriculture and Consumer Services announcing last week that it has detected Zika in three mosquito samples from a small area in Miami Beach.
What is Zika?
Zika is spread mostly by the bite of an infected Aedes species mosquito. What is scary about Zika is that infection during pregnancy can lead to microcephaly, a birth defect of the brain, and other severe fetal brain defects as well as problems like eye defects, hearing deficits, and impaired growth. Increased reports of Guillain-Barré syndrome, an uncommon sickness of the nervous system, have also been observed in areas affected by Zika.
Earlier this year, the World Health Organization (WHO) declared the Zika virus a Public Health Emergency of International Concern. According to data provided by WHO, the virus has spread in recent years to more than 60 countries and territories including the U.S.
Countries and territories that recently reported Zika infections for the first time are the British Virgin Islands and Singapore.
What is Being Done to Control the Outbreak?
Health agencies across the world are working on preventing the spread of the virus. While WHO has come out with the “Zika Strategic Response Framework", the Centers for Disease Control and Prevention (CDC) is working on creating awareness about the virus and identifying and reporting it. The CDC is tracking the spread of the Zika virus and other mosquito-borne viruses in the U.S. and around the world.
In early Aug 2016, the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), started human testing of a Zika vaccine. In late Aug 2016, a team of researchers at the National Center for Advancing Translational Sciences (NCATS – a part of NIH) identified compounds that can potentially be used to inhibit Zika virus replication and reduce its ability to kill brain cells. The compounds include emricasan, which is being evaluated for the reduction of liver injury and fibrosis, and niclosamide, approved by the FDA for use in humans to treat worm infections.
In Feb 2016, the Obama administration had submitted a request to Congress for $1.9 billion in emergency funding to support the full range of activities needed to prevent, detect, and respond to the Zika virus and its serious associated health effects. But Congress is yet to give its nod.
Meanwhile, quite a few drug stocks and academic groups are working on developing vaccines as well as diagnostic tests for the Zika virus. There are no approved vaccines or therapies for Zika virus infection.
Drug Stocks in Focus for Efforts to Fight Zika
Here is a look at some companies that are involved in the fight against Zika and stand to benefit if they are successful in their efforts.
Plymouth Meeting, PA-based Inovio Pharmaceuticals, Inc. (INO - Free Report) is working on a preventive Zika vaccine – GLS-5700. The company recently started a study on the vaccine in Puerto Rico, where the Zika virus outbreak has been declared a public health emergency. This is the second Zika vaccine study being conducted by Inovio and its collaborators. The first study is being conducted in sites across the U.S. and Canada with results due by year end. Positive data would allow the company to meet regulatory authorities next year to determine the development path forward. Inovio’s shares are up 41.9% year-to-date (YTD). According to Inovio, the company and a U.S. government research center are the only ones to have started human clinical studies.
INOVIO PHARMAC Price
INOVIO PHARMAC Price | INOVIO PHARMAC Quote
Bethlehem, PA-based OraSure Technologies, Inc. (OSUR - Free Report) , a leader in point of care diagnostic tests and specimen collection devices, won a contract worth up to $16.6 million from the U.S. Department of Health and Human Services (HHS) Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (BARDA) to advance the company’s rapid Zika tests, which utilize its OraQuick technology platform.
While molecular tests for Zika are currently available, there is significant need and utility for a rapid Zika antibody test. Quick turnaround time for results will also benefit healthcare providers and patients. Shares of this Zacks Rank #3 (Hold) stock are up 37.3% YTD.
ORASURE TECH Price
ORASURE TECH Price | ORASURE TECH Quote
Another company that recently won a government contract is Japanese pharma company, Takeda Pharmaceutical Company Limited . Last week, the company said that its Vaccine Business Unit has been selected by BARDA to develop a vaccine to support the Zika response in the U.S. and affected regions across the world. Takeda could receive up to $312 million in funds if all options are exercised by BARDA. Takeda plans to develop an inactivated, adjuvanted, whole Zika virus vaccine.
TAKEDA PHARMACT Price
TAKEDA PHARMACT Price | TAKEDA PHARMACT Quote
GlaxoSmithKline plc (GSK - Free Report) also joined the efforts to develop a Zika vaccine by making an announcement in July regarding its plans. The company said that it is preparing research studies that will evaluate a new vaccine technology for Zika known as SAM (self-amplifying mRNA) in collaboration with the Vaccine Research Center at the NIH in the U.S.
GLAXOSMITHKLINE Price
GLAXOSMITHKLINE Price | GLAXOSMITHKLINE Quote
Moreover, Sanofi (SNY - Free Report) , another big name in the pharma sector, is developing a Zika vaccine in collaboration with the U.S. government. The vaccine is being developed under a Cooperative Research and Development Agreement between Sanofi Pasteur (Sanofi’s vaccines global business unit) and the Walter Reed Army Institute of Research (WRAIR).
SANOFI-AVENTIS Price
SANOFI-AVENTIS Price | SANOFI-AVENTIS Quote
Another company that looks poised to benefit from the threat posed by the Zika virus is Spectrum Brands Holdings, Inc. (SPB - Free Report) . This Zacks Rank #3 company signed an exclusive, multi-year agreement earlier this year under which its Cutter brand was designated the official insect repellent of U.S. Soccer, including the U.S. Men's and Women's National Teams, and the National Women's Soccer League. The company’s shares are up 29.7% so far in 2016.
SPECTRUM BRANDS Price
SPECTRUM BRANDS Price | SPECTRUM BRANDS Quote
Bottom Line
With no vaccines or treatments for Zika, the Zika outbreak is a cause for concern and the company that is the first to come out with a vaccine stands to benefit immensely. However, vaccines take a long time to develop and there is some concern that interest may wane if the Zika virus outbreak slows down just like it did in the case of Ebola. But, with Zika infection during pregnancy leading to serious birth defects, expectations are that vaccines will remain in demand.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>