Shares of Cerus Corp. (Nasdaq: CERS) and Rollins Inc. (NYSE: ROL) moved higher on July 29 (and are higher in this morning’s trading) in response to the developing story in the state of Florida with regard to the Zika virus.  Rollins Inc. is the leading global pest control company, operating well known brands such as Orkin and Critter Control.  Cerus owns the Intercept System for blood supply neutralization of viruses and bacteria.

Cerus: Positioned for Huge Potential Growth

Cerus Corp. is poised to become a key player in the interplay between the blood supply and the Zika virus.

The state of Florida has confirmed that four cases of Zika were transmitted by mosquitoes. These are the first documented mosquito transmitted cases of the virus in the United States.  In response the state has restricted blood and blood product donations.  Cerus has been granted a special application for its Intercept system to be used for platelets and plasma in order to neutralize the Zika virus if it were to be present in any blood product samples.  I expect that the current and steadily developing Zika situation could have a positive influence in the FDAs potential approval of Cerus’ Intercept system to be used for red blood cells.  If that happens, and there is no guarantee of it happening, it would be a huge boost for Cerus’ earnings and revenue potential, given that the global red blood cell transfusion market has a multibillion dollar potential.

Cerus has been steadily expanding its presence throughout the world, especially in Zika prevalent areas such as Brazil and parts of Africa.  In the U.S. Cerus has partnered with the Red Cross, the largest blood and blood product broker and is also expanding its market share.

Buy Cerus up to $8.

Rollins has the Goods for Mosquitoes and other Critters

Rollins is likely to play a major role in any mosquito extermination operation, related to Zika or otherwise, due to its global presence.  The company continues to expand aggressively and has recently bought its first operation in the U.K.  It has franchises in South America and Australia and continues to look for further areas to enlarge its presence. 

Rollins recently reported its 41^st straight quarter of revenue and earnings growth. The stock pulled back and is offering a lower entry point.

Buy Rollins up to $29.

Both Cerus and Rollins are excellent companies with which to participate in what looks to be a potentially serious epidemiological situation.