glaxosmithkline - Shares - Not much increase in price?

CLAYTRAP

Hi all,
I am slightly confused in the price movement of Glaxo, as they are only one of two companies that seem to have a vaccination for the Swine Flu I thought that their share price would have increased dramatically?

Has anyone got any comments or ideas to why this is not the case.

regards

Rob

Reaper

Probably because:

1) Governments have been buying the drugs for many months already, they haven't just started.
2) GSK recently announced a drop in profits which balanced out the swine flu news:
http://www.rttnews.com/ArticleView.aspx?Id=920131

If it gets worse and existing stockpiles turn out not to be enough I expect you will see the price rise. However my feeling is it won't. The UK in particular has huge stockpiles and the disease has been mild so far outside Mexico.

It's pure speculation but I wonder if the severe cases are contracted directly from pigs while the human - to - human cases are a different much milder strain.