Thaks, Wilder,
That is what I was looking for. VXGN's rise does seem overdone to me, both for that, and for this:
>>NEW YORK -- Shares of VaxGen Inc. (NasdaqNM:VXGN - News) soared Friday after a university study suggested that smallpox vaccination may help prevent HIV infection.
Researchers at George Mason University's National Center for Biodefense said the preliminary findings were based on laboratory studies conducted on the blood cells of individuals recently vaccinated with Wyeth's smallpox virus.
Shares of VaxGen, which is developing a smallpox vaccine, rose 79 cents, or 14%, to $6.51 at around 3:55 p.m. EDT on the Nasdaq Stock Market (News - Websites). The shares traded as high as $7 earlier in Friday's session.
Along with VaxGen, American depositary receipts of Acambis PLC , the United Kingdom biotechnology company that supplies the smallpox vaccine to the U.S. government, jumped $3.45, or 5.9%, to $62 on the Nasdaq. One Acambis ADR is equal to 10 of the company's British shares.
A VaxGen spokesman declined to speculate on the reason for the stock's move Friday but added that he "wouldn't necessarily link" it to the possible HIV- smallpox connection.
VaxGen's smallpox vaccine is based on a different strain than Wyeth's and Acambis' vaccines, spokesman Lance Ignon noted. The company would have to see stronger evidence of a benefit before it investigates the link between smallpox and HIV, he said.
Acambis also said it plans more research into whether the vaccine can also help prevent HIV infection.
According to a press release distributed by the university, the study only involved 10 vaccinated and 10 unvaccinated subjects. Nonetheless, the release said, "there was a statistically significant difference in resistance to HIV infection between the blood cells from the vaccinated and the unvaccinated subjects."
Researchers cautioned in the press release that the evidence may not translate into direct immunity in humans but remained optimistic about the potential applications of their results to the development of an HIV vaccine.
C.E. Unterberg analyst Ken Trbovich said that while it's "nice to have these encouraging announcements," he thinks the market is overreacting.
"Investors are always looking for those kinds of ideas to get in early [even though] from a scientific standpoint it would seem to be way too early to tell [ whether there is really a link between smallpox and HIV prevention]."
Mr. Trbovich doesn't own shares of VaxGen. His firm makes a market in the company but has no investment banking relationship.
Mr. Ignon, the VaxGen spokesman, pointed out a practical problem that could arise from administering smallpox vaccines to large populations.
The vaccine, he noted, couldn't be offered in regions where AIDS is widespread because it would kill anyone who is already has AIDS, and it would be would be difficult to test everyone before vaccinating them.
Still, Mr. Ignon noted, "The world needs an HIV vaccine desperately and any promising lead should be followed."
-By Michelle Rama; Dow Jones Newswires; 201-938-4046; michelle.rama@dowjones.com <<
So BSCP will look to start another position tomorrow.
Cheers, Tuck |
