Green Cross shares boosted by new flu vaccine

by Nam Kwang-sik
SEOUL, July 22 (Yonhap) -- Shares of Green Cross Corp., a South Korean vaccine
developer, were boosted on Wednesday by expectations that its new flu vaccine may
help lift earnings in the second half of this year.
Green Cross shares rose 1.32 percent to 115,000 won (US$92) as of 11:10 a.m. on
the Seoul bourse, after hitting a record high of 118,000 won at one point.
HMC Investment Securities Co. raised its investment recommendation for Green
Cross on Wednesday to "buy," also increasing its target price for the company to
140,000 won.
"The government plans to secure enough doses of the new flu vaccine to inoculate
13 million people down the road and Green Cross will produce half of the total in
August. The vaccine production will contribute to Green Cross' earnings in the
fourth quarter of this year," said Choe Jong-kyung, an analyst at HMC Investment
Securities.
Green Cross is expected to post an additional 84 billion won in sales of the
vaccine late this year and early next year, Choe predicted, saying the figure
accounts for 16.3 percent of the company's 2008 revenue.
Daewoo Securities Co. also raised its target price for Green Cross to 145,000 won
on Monday, while upgrading its investment recommendation to "buy."
The government earlier said it has set aside 174.8 billion won to secure enough
vaccine to inoculate around 27 percent of the nation's population against the flu
virus. The vaccines will be available beginning in November, ahead of the winter
flu season, it added.
South Korea's health authorities heightened the country's alert against type-A
influenza to the second-highest level Tuesday. They also confirmed Wednesday 48
new cases of type-A influenza, raising the number of total infections here to
983.
Green Cross started producing a prototype of the new flu vaccine at its plant in
Hwasun, 343km southwest of Seoul, early this month.
ksnam@yna.co.kr
(END)