BioCryst Pharmaceuticals,Inc. (BCRX)

[krays]

Market Watch coverage

Four biotechs to watch in April
Commentary: Medical technologies tend to be insulated from market swings

BioCryst Pharmaceuticals Inc. /quotes/comstock/15*!bcrx/quotes/nls/bcrx (BCRX 6.99, +0.42, +6.39%) produced medications to fight the seasonal flu, but has recently been getting a lot of attention because of its swine flu medication peramivir that boasts a stunning 90% cure rate. Peramivir is in two Phase III pivotal trials that will conclude after the 2010-2011 flu season. That's very bullish news for next flu season. The icing on the cake is that the trials are being paid for by the Department of Health and Human Services, saving BioCryst a lot of cash.

Peramivir works remarkably well against swine flu, as well as avian flu. That's why the Centers for Disease Control and Prevention bought 10,000 courses of treatment at $2,250 each and added them to the national stockpile. What's more, though the U.S. government is backing the Peramivir trials, BioCryst is free to sell the drug to other governments around the world. That provides access to even bigger profits next flu season. Read A 90% Cure Rate for the Flu at 4X Earnings
Morgan Stanley /quotes/comstock/13*!ms/quotes/nls/ms (MS 29.29, +0.08, +0.27%) , their investment banker, estimates the company will earn $1.80 a share this year. The stock has been under relentless attack by short sellers and can be bought for about four times earnings. I think after a few more countries order Peramivir and the royalties start to flow from Japan, a short squeeze can carry the stock to $30 over the next 12 months.

http://www.marketwatch.com/story/four-biotechs-to-watch-in-april-2010-04-01?pagenumber=2