Swine fly is treated by medicine called Tamiflu. Roche of swtitzerland has worldwide rights for that medicine.

Indian companies Ranbaxy and Cipla (antiflu) do have generic version of Tamiflu called Oseltamivir. But we don't think they will be able to sell Tamifly in global markets. Unless Roche has capacity constraints and it can not produce enough of Tamiflu. Having said that Indian companies could still sell those medicine in local markets. That's exactly the reason that their stocks have surged few points . But I don't think this should be the only reason to buy these stocks.

Traders cak definitely take position on these stocks. Technically cipla is having good consolidation at 260-280 range. Break of 52 high can take it to further higher level in coming weeks. ( Remember ..these are very temporary phenomenon ) . If you don't believe in long term fundametal than get out of these stocks as soon as make your few bucks.

Think from shareholders point of view : what difference will one time earning jump can give to me. May be little extra dividend for next year. But shareholder value is appreciated in loger term by more basic business fundamentals.