MRSA Update: Cepheid, Basilea and Nektar
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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