Will monkeypox outbreak boost the shares of some companies? Read here

Amid the monkeypox outbreak around the world, investors are picking up the shares of companies in various sectors that could benefit from the race to quell the disease. According to news reported by Bloomberg, stocks of vaccine makers, antiviral drug makers and protective equipment manufacturers are witnessing active demand as these generated gains for investors during the Covid-19 pandemic.

The companies with high demand for shares include biotechnology company Bavarian Nordic A/S, pharmaceutical company Siga Technologies Inc and medical device supplier Precision System Science Co.

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

Manish Bhargava, a fund manager at Straits Investment Holdings Pte in Singapore, said the world is currently relying on only one manufacturer, Bavarian Nordic for the monkeypox vaccine, and so investors can also expect other biotech companies to accelerate research and production. of related products. He said it will automatically start to reflect in the strong stock price performance for the sector.

View some sectors and companies that have been active,

1) Vaccines and Antivirals

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

Analysts suggest that Citigroup Inc. raises its target price for the company’s stock by 20%, and therefore there may be a further increase as more orders come in.

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

Meanwhile, Japan has also started researching smallpox vaccines to prevent the spread of the monkeypox outbreak in the country. This may spark the interest of investors in Meiji Holdings Co. as its KM Biologics unit produces a smallpox vaccine.

2) Virus Detection

Investors are also targeting the companies that provide virus testing kits and tools. Shares of Precision System in Japan, which manufactures medical testing equipment, has nearly doubled since late June, according to Bloonberg. On the other hand, Switzerland’s Roche had said in May that it had developed three test kits for the detection of 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 is up nearly 40% in July. The manufacturers of antigen and antibody test kit makers such as Zhejiang Orient Gene Biotech Co. and Assure Tech (Hangzhou) Co. are the other potential beneficiaries.

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