Yes, it's scary. But since last week's entry on bird flu, it's been pointed out to me that the prospect of a bird flu pandemic has been very good for some. Check this report on US Secretary of Defence Donald Rumsfeld making $5 million on it after selling shares in Gilead Sciences, the California biotechnology company that developed the drug.
Rumy was on the Gilead board from from 1988 to 2001, and was its chairman from 1997. He has been one of several political heavies who have cashed in on bird flu. The list includes former Secretary of State George Shultz, who is on Gilead's board and who has sold more than $7 million worth of Gilead since the beginning of 2005, according to reports that started surfacing last year.
But let's not get cynical. After all, connections can achieve a great deal. Maybe Gilead can do something about purifying the water for the troops in Iraq after allegations that Dick Cheney's old company Halliburton had failed to ensure it was safe.
Biotech investing is one of the “highest risk” investments one can make. Mr. Rumsfeld took the risk and has every right to “cash in” as we all would do. His chances of losing on a biotech investment were much greater and we should be thankful individuals like Mr. Rumsfeld who invest in a risky sector so that we can have the medicines of today.
Mr. Rumsfeld did not create the bird flu or the fact that Tamiflu ends up being beneficial in fighting the virus. As old as he may look I can assume he wasn’t around in 1918 for the Spanish Flu and as science has shown, this is just a part of nature that pops up every so often. The closest Mr. Rumsfeld comes to a chicken is probably at the dinner table and with his assests I’m sure he is more of a “steak” kind of guy.
Thank you,
Brian Ages
Savannah, Georgia USA