US Military Accidentally Ships Live Anthrax via FedEx; These Are the Stocks to Watch in Its Wake

WINDSOR, ON / ACCESSWIRE / June 1, 2015 / The Wealthy Biotech Trader, an Investment Newsletter focused on showing everyday Investors new opportunities in rapidly growing, little-known, Biotech stocks making news and subsequent market moves.

This week it came to light that live anthrax samples were sent around the United States and out of the country, at times via FedEx. While reportedly there is no public health threat in this case, the media attention and event does put increased government focus on preparing for such an event. Along these lines, a device that could quickly and inexpensively test for the presence of such pathogens could have prevented the problem all together as well as helped secure the public afterwards. Positive ID's (PSID) Firefly Dx is one such device under development. Other companies also involved in similar equipment or treatments whose stocks could get a boost are Rosetta Genomics (ROSG), PharmAthene (PIP), and Nanosphere (NSPH).

ANTHRAX INADVERTENTLY SHIPPED AROUND THE WORLD

A Maryland based lab sounded the alarm last Wednesday that it received live samples of anthrax. The lab notified the Centers for Disease Control and Prevention (CDC) and prompted it to investigate. So far, four lab workers in the United States and up to 22 globally were put into post-exposure treatment for anthrax after the U.S. military mistakenly shipped live anthrax samples to locations in nine states.

The live samples, at times sent via FedEx, were shipped under a less intensive protocol because they were thought to be dead. The Department of Defense (DOD) has stated there is no risk to the public from the shipments. The people exposed in the labs were largely military personal with the exception of three civilians and four contractors. Currently, no personnel have displayed signs of exposure.

The samples were shipped under a research program and are an example of the possible risks to the public every day. While live samples are not supposed to be transported in this fashion, mistakes can happen and create public health risks. The need for random, rapid testing in situations like this is critical.

Ironically, a DOD spokesman said the department was sending the supposedly dead samples to help develop a field test to identify biological threats in the environment. Technology like the Firefly Dx from PositiveID (PSID) is seeking the same goal. The DOD statement helps confirm the need for these devices in the market today.

There is both a military and general public health market for these devices. The military is at risk in the field and needs devices to test for it in a combat setting as well as in the lab. In this instance, shipping and logistics companies like FedEx could use products like the Firefly Dx to quickly scan packages for biological and chemical agents. While the DOD and CDC do not believe there is a larger health risk here, there really is no way prevent just that from happening in the future. When PositiveID's (PSID) Firefly Dx is on the market, it could perform this test and confirm these statements without the delay of doing lab based testing.

POSITIVE ID'S FIREFLY DX COULD BE A SOLUTION

PositiveID (PSID) and other companies are developing technology to quickly identify threats like this recent example with anthrax. The market for a product that works quickly in the field to accurately test for threats from pathogens, such as viral pathogens, bacteria and other environmental containments.

In early May, PositiveID (PSID) announced that it had successfully tested for E. Coli with its Firefly Dx handheld device. On May 27, it issued another press release that the device detected influenza successfully. This maker of biological detection and diagnostic tools uses polymerase chain reaction (PCR) to quickly test for these pathogens. The influenza added a challenges since it is an RNA virus and requires a reverse transcription step prior to a PCR test. PositiveID (PSID) was able to create cDNA from the RNA and use this for the test. This is a positive sign that the Firefly Dx can test for additional RNA viruses that are potential threats.

Based on what the Company has learned from the development of M-BAND, a product developed under a Department of Homeland Security contract jointly marketed through their partner Boeing, the Firefly Dx can as well test for anthrax and other potentially weaponized pathogens. The market here stretches beyond the medical field and would also include first responders and Homeland Security. According to research from IQ4I Research & Consultancy, the quantitative PCR and real-time testing markets could grow to $5.65 billion by 2020.

STOCKS THAT COULD BENEFIT

PositiveID (PSID) and PharmAthene (PIP) shares both have significant upside from events like this. Any time media attention shifts to biological and chemical threats we could see an increase in government focus on possible solutions. Positive ID's Firefly Dx is a solution for rapid detection and PharmAthene's (PIP) products are the medical response after it is detected. These are the two most critical needs in the fight against accidents and more malicious use of these agents.

In addition, a similar device from Nanosphere (NSPH) is able to detect viruses and bacteria. Nanosphere (NSPH) is more focused on the identification of deadly infections disease and early detection for optimal treatment. Unlike Firefly Dx, it is not a handheld device for use in the field, but more suited for use in a clinical environment.

Another diagnostic testing company that can test RNA like Positive ID's is Rosetta Genomics (ROSG). Its diagnostic equipment tests microRNAs that identify tumor types for the treatment of cancer among other uses. It is not in the handheld or threat detection market.

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