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Biotech / Medical : SARS and Avian Flu -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (35)	4/4/2003 4:58:58 PM
From: rel4490	Read Replies (1) \| Respond to of 4232

SARS Drug: DOW JONES NEWSWIRES By Steven Vames of DOW JONES NEWSWIRES NEW YORK -- Shares of drug developer AVI Biopharma Inc. (AVII) rose as much as 30% Monday amid a major reshuffling among drug and biotechnology investors seeking a haven as they piled out of Imclone Systems Inc. (IMCL). "We're seeing some rotation within biotech and drugs. Several companies seem to be benefitting from the negative news out of Imclone," said John Licatta, senior market strategist at BrokerageAmerica in New York. In late trading, shares of Imclone were down roughly 10% after the company announced it is delaying the release of its 2002 results, citing the need to restate financial statements for 2001 and later periods, and to state charges relating to nonpayment of taxes. AVI Biopharma, despite losing nearly $30 million in 2002, is drawing considerable interest because it is one of the few companies that has a drug in the pipeline that could be effective against severe acute respiratory syndrome, or SARS. Company officials were unavailable for comment. In recent months, the pneumonia-like illness is reported to have killed roughly 60 people worldwide and sickened more than 1,600, with the majority of cases in Hong Kong and China. Recently, about 100 suspected cases have shown up in Toronto, prompting fears of a North American outbreak. "There is increased awareness of SARS - particularly with the cases that have developed in Toronto - and only a couple of players work with therapeutics for these types of virus," said Ren Benjamin, analyst with Rodman & Renshaw in New York. Analysts and researchers investigating the disease have recently identified it as a single-strand ribonucleic acid virus - the target of some of AVI Biopharma's main products. In a press release March 20, the company announced that its 'Neugene' product had shown promising preclinical results in fighting several suspected bioterorism viruses, as well as SARS. "AVI is the only company that has announced it is specifically working on these types of viruses," said Jim McCamant, analyst at Moors & Cabot Inc. in San Francisco. One company that works with similar technology as AVI Biopharma, but has yet to say it is promising against SARS, is ISIS Pharmaceuticals (ISIS), analysts say. In trading Monday, shares of ISIS were up $0.28, or about 9%, at $3.59. Shares Of AVI Biopharma recently traded at $3.40, up 23%, or 64 cents, on volume of 1 million shares, well above the company's average daily volume of 156,750. Though formal clinical trials for use of its Neugene drugs specifically in the fight against SARS have not been formally announced, the company's potential role in developing a treatment for the illness likely drew interest of investors who were busy dumping shares of biotech giant Imclone. -Steven Vames; Dow Jones Newswires; 201-938-2206; steven.vames@dowjones.com Corrected March 31, 2003 13:58 ET (20:58 GMT) "AVI is the only company that has announced it is specifically working on these types of viruses," said Jim McCamant, analyst at Moors & Cabot Inc. in San Francisco. (An item that ran at 3:35 p.m. EST incorrectly identified the analyst's firm.) Licatta of BrokerageAmerica, McCamant of Moors & Cabot, and Benjamin of Rodman & Renshaw, own no shares in AVI Biopharm, and their respective firms currently have no banking relationships with the company. -By Steven Vames, Dow Jones Newswires; 201-938-2206; steven.vames@dowjones.com Updated March 31, 2003 4:23 p.m.