Stocks to Watch During the H1N1 Flu Outbreak

Some businesses will thrive due to H1N1 flu (formerly called Swine Flu). Those industries contributing towards stemming the tide Influenza A Swine Flu, should expect to see market gains. Companies with drugs to fight the spread through medications or the manufacturing of personal protective equipment (PPE) should be able to take advantage of the current outbreak. Increase drug sales has positively impacted the stocks in the health-care category on the S&P. Companies currently manufacturing drugs to combat the disease or are likely to discover a new vaccine have ticked upwards as demonstrated by AstraZenica (AZN) and Roche (ADR).

Roche's, maker of the medication Tamiflu (oseltamivir), stock has risen. Tamiflu is one of two drugs proving to be effective in combating H1N1. GlaxcoSmithKline is the maker of the other drug, Relenza (zanamivir). (GSK) has already sent over 100,000 packs of Relenza to medical authorities in Mexico. They have also supplied 170,000 doses of seasonal flu vaccine to that government as well.

Pharmaceutical companies to watch include Gilead Science (GILD) and BioCryst Pharmaceutical (BCRX). Gilead already manufactures antiviral drugs; these stocks may increase. A riskier investment is BioCryst Pharmaceuticals. Peramivir, a drug in clinical trials for treating flu, is nearing the end of its studies required by the FDA. As potential for pandemic ebbs closer, this drug has enough promise that the FDA may fast track approval. Although it isn't available currently, it may be on the market by fall of 2009.

At pandemic stage, winning companies developing quick ways to produce a new effective vaccine are good bets. Neither Baxter (BAX) nor Novavax (NVAX) who are developing vaccines, have FDA approval. Traditionally, it takes flu vaccine 12 weeks to be produced as it is grown in chicken eggs. With the ticking time-bomb of a pandemic the FDA may throw caution to the wind in favor of quick distribution.

Must watch stocks are companies like, Inverness Medical Innovations (IMA), Quidel (QDEL), Genzyme (GENZ), Meridian Bioscience (VIVO) and 3M (MMM) makers of influenza detection kits. 3M has the extra advantage of diversification making PPE and with the making of masks; their stocks will continue to rise.

Johnson & Johnson (JNJ) is the maker of the alcohol based hand sanitizer, Purell. Alcohol based hand sanitizers will assist in quelling the spread of disease. Expect to see rises in this company as well as other companies that make products such as Purell.

CVS (CVS) and Walgreens (WAG) will experience overall increase in purchases as anti-diarrheal agents, anti-viral tissues, alcohol based hand sanitizer, and medications are purchased; plus, never underestimate the power of the impulse buying once in the store.

With more people staying home companies providing diversions at home like Netflix (NFLX), which can deliver DVD rentals in the mail, are a good hunch. Stores such as eBay (EBAY) or Amazon.com (AMZN) can bring the amusement of shopping home. The need for communicating with friends and family will rise; suggestions include social networks like MySpace ultimately owned by News Corp (NWS); Twitter is not publically traded although there is widespread speculation that it will be soon. While home, people will their use of search engines; watch Google (GOOG) has it has shown gains recently.