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BioHealth Investor

BioHealth Investor (BHI) is a blog and journal focused on providing updated commentary and financial news from the biotech and medical technology industry. BHI's content is featured on Yahoo!Finance, Google Finance, TheStreet.com, SeekingAlpha.com and many other blogs and websites. BHI is also a proud member of The Business of Biotech Network, and the Investors Blog Network.

Mrsa Update: Cepheid, Basilea And Nektar

Posted on 10/30/2007 19:16 PM | Link | Post Comment
by Michael Shulman
BiotechBlitz



The news and activity surrounding the killer-staph infection, MRSA, is increasing. A brief update and then a couple of companies of interest:

• Senator Richard Durbin of Illinois is set to introduce MRSA legislation next week. This bill would require a government agency -- the Agency for Healthcare Research and Quality -- to promulgate guidelines on how to control MRSA and other hospital-acquired infections. The bill would force hospitals to report infection rates to the CDC. This action follows, by one day, a call by Senator Charles (Chuck) Schumer of New York for hospital reporting of infections.

• A recent study showed MRSA has spread to the animal population, possibly from pets serving as companions to people in nursing homes and other long-term café facilities.

• More and more cases of non-hospital-acquired MRSA are being reported around the country, mostly in schools and mostly among athletes or kids frequenting athletic facilities.

• So far, the tort lawyers are not involved. Stay tuned.

Why do I mention tort lawyers? Because several countries in Europe have virtually eliminated MRSA and the U.S. Dept. of Veterans Affairs reduced it 75% in a pilot program.

The infection can be contained and perhaps eradicated over time in a hospital setting, BUT a hospital with a bad infection rate is going to be a target for these attorneys. Go get ‘em, I say!

That will get the hospitals' collective butts in gear. There is no excuse for the level of infections and the thousands of deaths – the CDC suggests at least 17,000 per annum – caused by MRSA.

Is there money to be made? Check it out yourself – the best and increasingly dominant test is from Cepheid (CPHD). I own the stock. And a new form of antibiotic is being developed by Basilea (SWX: BSLN). Nektar (NKTR) is working on an inhaled form of antibiotic useful in niches.




BiotechBlitz is a regular contributor to BioHealth Investor
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