[Pressreleases] "Bioterrorism as a business opportunity in biotechnology"

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 To undisclosed recipients
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 December 29, 2001
 Prof. Joe Cummins
 e-mail: jcummins en uwo.ca
 
 "Bioterrorism as a business opportunity in biotechnology"

    The January 2002 issue of Nature Biotechnology discussed the business 
 opportunities available to the biotechnology industry. [Nature 
 Biotechnology] January 2002 Volume 20 Number 1 pp 21 - 25 
 "Bioterrorism--biotechnology to the rescue?" by Eric Niiler reviewed the 
 opportunities and developments surrounding the activity following the 
 release of the bioterror agent anthrax in the United States. The article 
 is concerned with the following issues: "As bioterrorism becomes a 
 reality, US federal agencies are turning to biotechnology for new means 
 of detection and safer therapeutics. But does the industry have all the 
 answers?
 Experts have warned for years about the threat of bioterrorism and its 
 potential to cripple an unprepared nation. Sadly, their concerns were 
 vindicated after mailed anthrax spores led to near hysteria in the 
 United States last autumn. The advent of biowarfare on US shores has 
 prompted new attention--and a welcome new flux of funding--to this once 
 obscure field. Quick to make the most of the opportunity, biotechnology 
 and pharmaceutical companies have lined up for government research 
 grants and contracts, and investors have been wooed by the promise of 
 quick profits in security. However, various institutional obstacles 
 could continue to hamper biowarfare research and development (R&D): the 
 FDA still lacks guidelines for the clinical testing of therapeutics 
 against lethal biological agents; the military has a spotty record in 
 overseeing its own vaccine programs; and defense grants for bioweapons 
 research are usually too short-lived to enable products to reach 
 commercial development.The threat is defined: The US Centers for Disease 
 Control (CDC; Atlanta, GA) has identified potential bioweapons based on 
 the following criteria: their ease of dissemination or transmission, 
 potential impact on major public health, the potential for public panic 
 and social disruption, and how ready public health systems are to cope. 
 The biological agents of greatest concern include Bacillus anthracis 
 (anthrax), Yersinia pestis (plague), variola major (smallpox), 
 Clostridium botulinum toxin (botulism), Francisella tularensis 
 (tularemia), filoviruses (Ebola and Marburg hemorrhagic fever), and 
 arenaviruses (Lassa fever, Junin or Argentine hemorrhagic fever, and 
 related viruses). Most of these diseases are highly contagious, and few 
 effective vaccines or treatments are available."
    The climate of fear in the United States  has prompted government grants 
 for research and development and as well pumped the stocks of many 
 companies capable of  advancing solutions to potential terror weapons or 
 companies presenting themselves as problem solvers.
 "Although government grants have been small--usually only a few million 
 dollars each--several small biotechnology companies have used these funds 
 to help grab investors' attention. Shares of small companies developing 
 detectors and treatments for biological or chemical weapons have 
 skyrocketed in the past few months as investors line up to pour in 
 money. For example, Cepheid (Sunnyvale, CA) received a $5 million DARPA 
 grant to build a microfluidics device for rapid detection of the DNA of 
 airborne organisms. Despite having only $3 million in sales this year, 
 the company's share price jumped from $1.50 per share in September to 
 over $8 per share a month later. Shares in Nanogen (San Diego, CA), 
 which is developing a microchip array capable of detecting biowarfare 
 agents, also saw its share price nearly triple after announcing a 
 three-year $1.5 million USAMRIID grant to detect organisms in the blood.
 However, despite the investor attention given these high flyers, most 
 will return to obscurity when the biowarfare scare subsides, says Sam 
 Olesky, founding money manager at Olesky Capital Management (San 
 Francisco, CA), a investment company that tracks the biotechnology 
 industry. "There will be some companies that receive extra funding or 
 revenues, but is it enough to justify the value of the fervor that has 
 driven these stocks? Probably not," says Olesky. "My guess is that there 
 are probably more that will wither away, or go back to usual, than ones 
 that will benefit strongly or use [the bioterrorism scare] to become a 
 medium-sized company."
 Viren Mehta, senior analyst at Mehta Partners, a New York investment 
 firm, agrees: "We would recommend investors to be cautious about not 
 getting swept up in the bioterrorism euphoria or hype," Mehta said. "The 
 opportunities are there but there are going to be many ups and downs, 
 and we are not convinced the bioterrorism threat is a real one."
    The scenario revealed seems to lie between salvation and "pump and dump". 
   The present thinking about the anthrax attack in the United States is 
 that the source of the toxin is more likely a domestic terrorist than 
 the terror cells of alQueda or its associates. It is unlikely that the 
 domestic terrorists are engaging in creative marketing of  biotechnology 
 products but the stock market is responding as if it was. Recognizing 
 the current state of worldwide concern  government should carefully 
 evaluate bioterrorism research and development protocols.
 
 Prof. Joe Cummins
 

  ----ends---

Quote:

"All policymakers must be vigilant to the possibility of research data being
manipulated by corporate bodies and of scientific colleagues being seduced
by the material charms of industry. Trust is no defence against an
aggressively deceptive corporate sector," 
THE LANCET, April 2000

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De    : joe cummins <jcummins en uwo.ca>
Asunto: B-GE:bioterrorism as a business opportunity
Fecha : Sat, 29 Dec 2001 21:11:47 -0500
Tamaño: 6894
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