"Bird Flu Hype Infecting Biotech Industry"

SAN FRANCISCO (AP) - Two years ago, as fears of a SARS pandemic spread, a San Diego biotech company aided by federal dollars speeded a promising vaccine out of the lab and into human testing.

But when Vical Inc. (VICL) and the government wrap up the 15-person test next year, the drug is expected to end up on the shelf because the dreaded global epidemic never panned out. Bird flu has now overtaken SARS as the No. 1 feared global death threat.

As biotechnology companies suddenly refocus their profit mission to the new threat - and investors drive stock prices to new highs - some analysts wonder if these endeavors could face the same fate Vical met with its rapid response to severe acute respiratory syndrome, or SARS.

"There are so many unknowables and a lot of hype," said AG Edwards analyst Al Goldman. "The avian flu potential is something that you can't get your arms around because no one knows if - or when - a pandemic is going to happen."

http://apnews1.iwon.com/article/20051204/D8E9I8780.html