Shares in companies making and developing products against mpox surged on Friday as the European Union’s public health body raised its virus-spreading alert level in Africa and beyond.
A new variant has spread rapidly in Africa, prompting the World Health Organization to declare mpox a global public health emergency on Wednesday.
Europe’s disease prevention agency said on Friday more imported cases will appear in the region, a day after Sweden reported its first case of mpox linked to the new strain.
Shares of Danish biotech firm Bavarian Nordic, which makes an mpox vaccine, jumped 20% on Friday. They have climbed 50% this week as concerns over the virus rise.
Shares in Emergent BioSolutions (NYSE: EBS) gained 24% in U.S. trading. Its vaccine, approved for smallpox, has also been used as an mpox shot, but the U.S. Food and Drug Administration is yet to approve its application for use against the virus.
Jefferies analysts said in a note on Thursday they expect significant orders for Bavarian Nordic’s mpox vaccine due to the outbreak.
Up to roughly 3 million doses of the vaccine could potentially be made available in 2024 and 10 million in 2025, the Jefferies analysts said. Winning approval for administering to adolescents and children would be key, they said.
Shares in other companies involved in the mpox response have also swung wildly this week.
SIGA Technologies (NASDAQ: SIGA) jumped 9% on Friday, after falling nearly 20% a day earlier after its mpox drug failed to meet the main goal in a study.
U.S.-listed Geovax Labs (NASDAQ: GOVX), which had a market capitalization of less than $20 million as of Thursday, surged 110.75% to $7.06 in early trading. The company is developing a vaccine against mpox and smallpox.
Bavarian Nordic’s shares closed up 17.8% at 282.5 Danish crowns.
(Source: ReutersReuters)
