Will the monkeypox epidemic boost the stocks of some companies? Read here

Amid the monkeypox outbreak across the world, investors are snapping up stocks of companies in various sectors that could benefit from the race to fight the disease. According to information reported by Bloomberg, stocks of vaccine producers, antiviral drug makers and protective equipment manufacturers are showing active demand as these generated gains for investors during the Covid pandemic. -19.

Companies with strong demand for stocks include biotech company Bavarian Nordic A/S, pharmaceutical company Siga Technologies Inc and medical tools supplier Precision System Science Co.

The latest outbreak of monkeypox, which has already affected more than 70 countries and has been declared a global emergency by the World Health Organization (WHO), could give trade an additional tailwind, according to Bloonberg.

Manish Bhargava, fund manager at Straits Investment Holdings Pte in Singapore, said the world is dependent on just one manufacturer at the moment, namely Bavarian Nordic for the monkeypox vaccine, therefore investors can also s expect other biotech companies to grow. research and production of related products. He said this was automatically beginning to be reflected in the sector’s strong stock price performance.

Take a look at some industries and companies that have been active,

1) Vaccines and antivirals

After governments began ordering the Danish company’s monkeypox vaccine, shares of the Nordic Bavarian company have tripled since a low in May. The Danish company’s vaccine against the monkeypox virus is the only one approved to ward off the infection at present.

Analysts suggest that Citigroup Inc. is raising its target price for the company’s shares by 20%, therefore there could be a further rise if more orders are placed.

Shares of other medical companies producing monkeypox vaccines or antivirals have also caught the attention of US retailers. These companies are Siga Technologies (maker of a treatment called Tpoxx), which has doubled this year, Tembexa from Chimerix Inc. (treatment used for smallpox) and ACAM2000 from Emergent (vaccine used in some cases of monkeypox).

Meanwhile, Japan also initiated smallpox vaccine research to prevent the monkeypox outbreak from spreading in the country. This could spark investor interest in Meiji Holdings Co., as its KM Biologics unit produces a smallpox vaccine.

2) Virus detection

Investors are also focusing on companies that provide virus testing kits and tools. Shares of Japan’s Precision System, which makes medical testing equipment, have nearly doubled since late June, according to Bloonberg. On the other hand, the Swiss Roche declared in May that it had developed three test kits for the detection of the monkeypox virus.

In China, more than 30 companies have obtained EU certification for their monkeypox test kits. These include Autobio Diagnostics Co., Shanghai ZJ Bio-Tech Co. and Daan Gene Co. Shanghai ZJ soared nearly 40% in July. Manufacturers of antigen and antibody test kit manufacturers such as Zhejiang Orient Gene Biotech Co. and Assure Tech (Hangzhou) Co. are the other potential beneficiaries.

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