Has the Monkeypox Ship Sailed for Investors?

8/17/2022

Health

0 min read


Image Credit: NIAID (Flickr)

Monkeypox Treatments and Vaccines are Creating Investor Opportunities

Investors are joining healthcare providers and public officials as they all gear up for what is now being called a public health emergency. Monkeypox was a rare disease that has been infecting humans since 1970. The latest global monkeypox outbreak, while significant, has demonstrated the known disease is less of a concern than the novel coronavirus, which made its way to the U.S. in 2020. However, the U.S. President, the WHO, and other global authorities have declared monkeypox an emergency. They have begun stockpiling pills, patches, and vaccines in anticipation of a full-scale effort to prevent the spread.

As authorities declare their intentions, investors are working toward understanding the disease and the likely treatments. From this, they forecast which they expect will be most supported, effectively “the winners.” This list is likely to include everything from antiseptic manufacturers, to contact tracing products, condom manufacturers, and of course, preventatives and treatments. It is the medical side of preventing and treating the diseases that is already getting support from deep-pocket governments.

The virus continues to spread. There were 12,688 confirmed monkeypox cases in the U.S. on Tuesday (August 16), according to the CDC. This is an increase from 9,492 the previous Tuesday. The U.S. has more confirmed cases than any other country. Outside the U.S., Brazil, France, Germany, Spain, and the U.K. each also have thousands of monkeypox cases.

Investor’s Attention

Bavarian Nordic (BAVA.CO), a Copenhagen-listed company, is a Danish biotech vaccine manufacturer. The company manufactures the only authorized vaccine against monkeypox in the world. Bavarian Nordic has received an onslaught of requests for supplies of the shot. While they have a monopoly on an approved vaccine, they told Bloomberg today (August 17), “Demand keeps rising, and it’s no longer certain that we can continue to meet the demand we’re facing even with the upgrade of our existing manufacturing site in Denmark.” This could provide investors with additional opportunity if they choose to outsource manufacturing of their Jynneos monkeypox vaccine.

BAVA is up 164% since May 1.

Siga Technologies (SIGA), is a U.S.-based Nasdaq listed company. Siga manufactures a therapy for smallpox that is not yet approved in the U.S. for monkeypox called Tpoxx. Tpoxx has been approved for use for monkeypox in the UK and other affected countries outside the U.S.

SIGA is up 266% since May 1.

Tonix Pharmaceuticals (TNXP), is a U.S.-based Nasdaq listed company that is developing a live form of the horsepox virus to be used as a preventative for monkeypox and smallpox infections. In January 2020, the company announced the results of test studies in non-human primates that were challenged with monkeypox. In that study, the safety of TNX-801 was exhibited by stable body weights and body temperatures for all treated animals.

Read the most recent TNXP research
report by Noble Capital Markets.

Take Away

Just a short time ago, investors were made aware of how profitable a declared healthcare crisis can be for companies and their investors. Obviously, those medically impacted benefit as well. While the growing monkeypox outbreak does not pose as large a threat as Covid-19, it provides an interesting opportunity as it is already declared a health threat. The emergency status means there will be significant financial support to curtail and eliminate the outbreak. Learning early where that will be could be profitable

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Paul Hoffman

Managing Editor, Channelchek

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