Go!
As governments around the world scramble to ensure there are adequate supplies of antiviral medications, all of them wish they had a vaccine to better protect their populations. Currently there is no vaccine for things like swine flu, but which of these antiviral-medication manufacturers has an effective treatment for H1N1 as well as long-term prospects for income-oriented investors?

A.)  GlaxoSmithKline (GSK)
B.)  Johnson and Johnson (JNJ)
C.)  Chem Rx Corp. (CHRXE.OB)
D.)  Inhibition Therapeutic (IHBT.OB)
E.)  GeoPharma, Inc. (GORX)

Published: May 11, 2009

The correct answer is      (A.) GlaxoSmithKline (GSK)

Headquartered in Great Britain, GSK is the world's fourth largest pharmaceutical company with annual revenue of nearly US$36 billion dollars. The company manufactures and markets a number of over-the-counter products such as Tums and Gaviscon, dental products such as Aquafresh, the smoking control best-seller Nicorette, and the billion-dollar OTC diet product Alli.

When swine flu broke out in Mexico, related investments were already in play by the morning of the outbreak. Predictably, the makers of the antiviral medications used to treat swine flu were up; Roche Holding AG (OTC: RHHBY) produces TAMIFLU and GSK manufactures Relenza.

GSK is also looking to steady profits from vaccines. It already supplies one quarter of the world's vaccines and has made this a major focus of research and development. In early 2009, the company had more than 20 new vaccines in clinical development.

Though five of GSK's best-selling drugs lost patent protection in 2008, the company used this event as a catalyst to refocus its research efforts on smaller drugs and smaller markets. That's why income-oriented investors might consider buying GSK for long-term income. The company pays a level quarterly dividend for each of the first three quarters, and a higher dividend in the fourth quarter. GSK's new CEO, Andrew Witty, is also seeking to use the company's large cash balance of US$8.8 billion to develop steady earnings. He recently completed a US$3.6 billion acquisition of Stiefel Laboratories.

Swine flu may not be the epidemic everyone expected, but it's a lesson in how stocks can rise as people react to world events. And although capitalizing on short-term trends is an important idea in the investing world, income investors know it's also important to consider long-term potential. That's why the latest issue of High-Yield International takes a look at the market effects of swine flu and offers two in-depth looks at picks positioned to help income investors benefit from a renewed global vigilance about vaccines. To learn the names of the picks, and to learn more about High-Yield International, please visit this link.

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