Why Chinese Biotech Sinovac Soared

Shares of Sinovac Biotech soared as much as 50% intraday, as its hand, foot, and mouth disease (HMFD) vaccine aced a phase 3 trial. Before you get too excited over this groundbreaking vaccine's potential, watch this video, in which health-care analyst David Williamson argues why this new product may not transform Sinovac.

HMFD is a generally a mild illness with nearly all patients recovering in seven to 10 days. Even Sinovac said that over the last five years, only 500 to 900 cases have proven fatal -- less than one tenth of one percent of all infections -- in China, a country with over 1.3 billion citizens. It may not be considered a serious enough issue to prompt widespread use of the vaccine in mainland China, where Sinovac derives virtually all of its sales.

Watch and find out what it all means for investors.

Before investing in a stock like Sinovac, I urge you to read this brand-new Motley Fool special free report, "What's Really Eating at America's Competitiveness." Find out what has Warren Buffett concerned for the future of the U.S., and discover a little-known stock poised to profit from a major government initiative to combat this looming crisis. Grab your free copy today by clicking here.

The article Why Chinese Biotech Sinovac Soared originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. Follow David on Twitter @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.