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Businesses that could benefit from the Swine Flu

by Charles Simmins

Created on: June 23, 2009   Last Updated: August 27, 2009

Pandemic swine flu continues to rage world-wide. As millions of people become infected, there are businesses that are positioned to benefit from the pandemic.

Novel H1N1 is treatable with antiviral medications. There are two such drugs approved by the CDC, Tamiflu and Relenza.

Roche Laboratories (OTC: RHHBY) manufactures Tamiflu. It is a division of a Swiss firm, F. HoffmannLa Roche, Ltd. Relenza is manufactured by GlaxoSmithKline (NYSE: GSK). Both are huge pharmaceutical companies. As the demand for their product increases, they should see increased profits.

A number of pharmaceutical companies have already been awarded contracts to develop a vaccine against swine flu. Their profit, in the United States, is almost certain since Federal law protects them from lawsuits if the vaccine has side effects or poor results.

Among the first thing that many American businesses and individuals did when the disease outbreak began was to go out and buy hand sanitizer. Many companies manufacture this product, but one household name is Purell. Johnson & Johnson Consumer Companies, Inc. (NYSE: JNJ) makes Purell. Companies like J&J that make products that kill the flu germ should see increased business.

Johnson and Johnson, as a manufacturer of many consumer health products, is one of many companies that will see increased demand. Over the counter symptom relief products, facial tissues, and other related items are very useful to a patient with the swine flu. The industry as a whole should benefit.

The health and medical firms that cater to the medical profession, doctors, clinics, nursing homes and hospitals, will see increased demand for supplies. From N95 masks, gowns, face shields and gloves to oxygen masks, tubing and IV fluids, the patients with swine flu will need supportive care and the firms that make those products will receive many more orders and be manufacturing more product.

Many government agencies and businesses have, as a part of their planning, the use of telecommuting to allow their employees to work from home during an outbreak of illness. Enabling telecommuting places businesses in the computer networking and Internet services industries in the spotlight. Whether it is the local phone company, cable company or some tiny computer services business, orders will increase and so will profits.

There are many businesses that could benefit from the Swine Flu. Drug manufacturers are certainly on the list. Medical suppliers will be filling orders for personal or professional use. Consumer health suppliers will be shipping tons of facial tissue and cough syrup. Even the businesses that connect us via the Internet will see a jump in demand. The Swine Flu will benefit many businesses.

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