Emergent BioSolutions Inc. saw a significant stock surge, leading to the rise in companies focused on vaccines and antiviral products. The surge comes as investors await a decision from US regulators on whether the company’s smallpox vaccine can also be used for the rapidly spreading mpox virus.
With the World Health Organization declaring mpox a global health emergency, Emergent’s stock has more than quadrupled in 2024, climbing over 60% in the past four days. The company expects FDA approval by the end of this quarter.
Other pharmaceutical companies also experienced stock interest. Bavarian Nordic A/S, the only company with an approved mpox vaccine in the US and Europe, has seen its shares rise for nine consecutive sessions, jumping 18% in one day.
Bavarian Nordic aims to expand its vaccine approval to include adolescents, anticipating a significant increase in sales amid growing mpox concerns. Despite some uncertainty, similar market behavior has been observed during previous virus outbreaks as day traders speculate on potential winners.
Siga Technologies Inc., which produces a smallpox treatment, Tpoxx, that is being studied for use in mpox patients, also saw a stock rise of 24% before settling to a 9% gain. Though its mpox study did not meet its primary goal, some benefits of the drug were observed, keeping the company’s momentum.
However, pharmaceutical companies face challenges as mpox vaccines are not in high demand in wealthier nations, and lower-cost sales and donations are required for poorer nations, where the disease is more prevalent.
Africa, which faces unique challenges in vaccine distribution, is struggling to afford the high-cost mpox vaccines. Jean Kaseya, head of Africa’s CDC, highlighted that many African nations cannot afford the current vaccines, priced at $100 per dose and requiring two doses.
The continent needs an estimated $4 billion to effectively combat the disease. While mpox poses a low risk to the general European population, health agencies expect to see more imported cases as the virus spreads.
Benchmark analyst Robert Wasserman remains optimistic about Emergent’s smallpox vaccine, ACAM2000, being approved for mpox, which could lead to procurement orders and boost the company’s medical countermeasures division.
Other companies like Tonix Pharmaceuticals and GeoVax Labs also experienced stock volatility as they advanced their mpox vaccine efforts, with GeoVax seeing its best one-day stock gain in two years. Despite challenges, companies in the mpox vaccine and treatment space continue to attract investor interest.
