Investors adopt shares of firms benefiting from monkeypox

As health officials around the world search for ways to contain the monkeypox outbreak, investors are scrambling to stock up on companies that could benefit from the race to eradicate the disease.

Shares of vaccine producers, antiviral drug makers and protective equipment makers are in demand as investors tap a strategy that delivered gains during the coronavirus pandemic. Biotechnological company Bavarian Nordic A/S and pharmaceutical firm Siga Technologies Inc. Focus as well as medical tools supplier Precision Systems Science are among the company’s shares.

While nowhere is as severe as the COVID-19 outbreak, the spread of monkeypox infection to more than 70 countries in a matter of months has prompted the World Health Organization to declare it a global emergency. The announcement could give the business an additional tailwind.

“Right now, the world is dependent on one manufacturer, Bavarian Nordic, for the monkeypox vaccine,” said Manish Bhargava, a fund manager at Straits Investment Holdings Pte in Singapore. β€œTo keep up with demand, we can expect other biotech firms to ramp up research and production. This is starting to reflect strong stock price performance for the sector.”


Here are some sectors and companies that are active:

Vaccines and Antivirals

Shares of Bavarian Nordic have more than tripled in May after governments began ordering the Danish company’s monkeypox vaccine – the only one specifically approved to ward off the infection. The firm has increased its revenue guidance several times this year.

Analysts are noting that Citigroup Inc. Ltd. has increased its target price for the company’s stock by 20 per cent and said it may pick up further if more orders are placed. Stocks of other companies that make monkeypox vaccines or antivirals have also caught the attention of US retailers. The stock of Siga Technologies, which makes a treatment called Tpoxx, has more than doubled this year. The therapy is approved to treat smallpox in the US and monkeypox and other viruses in the EU and UK.

See also  For small businesses suffering from current economic challenges, SCORE offers support

Chimerix Inc. Tembexa is a countermeasure used to treat smallpox, and the firm said in May that it would sell the drug to Emergent BioSolutions Inc. Will sell On the vaccine side, Emergent’s ACAM2000 is a smallpox vaccine that can be used in some cases. Against monkeypox. SIGA, Chimericks and Emergent are “major beneficiaries” of the WHO’s declaration that the monkeypox outbreak is a global emergency, according to Cowen Inc analyst Boris Pecker. Pecker wrote in a note, “With increased resources allocated to contact tracing and testing in the EU and the US, we expect a significant increase in case numbers over the next few months, potentially leading to a greater number of countermeasures.” leading up to the purchase.”

Monkeypox declared a health emergency in NYC

Officials in New York City have declared a public health emergency due to the outbreak of the monkeypox virus, calling the city the ‘epicentre’ of the outbreak. An announcement made on Saturday by Mayor Eric Adams and Health Commissioner Ashwin Vasan said the city’s 150,000 residents could be at risk of infection.

The announcement will allow officials to issue emergency orders under the city’s health code and amend code provisions to implement measures to help slow the spread.

Over the past two days, New York Governor Kathy Hochul declared a state disaster emergency declaration and the state Department of Health called monkeypox an “imminent threat to public health.” New York had reported 1,345 cases as of Friday (Reuters,

Dear reader,

Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and sharp comments on relevant relevant issues.
However, we have a request.

See also  The Hidden Dangers of the Business Case for Diversity

As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.

support quality journalism and Subscribe to Business Standard,

digital editor