Will monkeypox outbreaks increase stakes in some companies? I read here

Amid the outbreak of monkeypox around the world, investors are hoarding stocks of companies in various sectors that could benefit from the race to eradicate the disease. According to news reported by Bloomberg, stocks of vaccine producers, antiviral drug makers and protective equipment makers are seeing brisk demand as they made such gains for investors during the Covid-19 pandemic.

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

According to Blunberg, the latest outbreak of monkeypox has already infected more than 70 countries and the World Health Organization has declared a global emergency, it may give trade additional winds.

Manish Bhargava, a fund manager at Straits Investment Holdings Pte in Singapore, said the world is only dependent on one plant at the moment, the northern Bavarian for monkeypox vaccine, and therefore, investors can also expect other biotech companies to ramp up research and production of related products. He said that it automatically begins to reflect in the strong share price performance of the sector.

Take a look at some of the sectors and companies that have been active,

1) Vaccines and antiviral drugs

After governments began ordering the Danish company’s monkeypox vaccine, the North Bavarian company’s shares tripled from their lowest level in May. The Danish company’s vaccine against monkeypox is currently the only one approved to ward off infection.

Analysts suggest that Citigroup Inc. It raises the target price for the company’s stock by 20%, therefore, there may be more upside if more orders are received.

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

Meanwhile, Japan also began researching smallpox vaccines to prevent a monkeypox outbreak in the country. This may interest investors in Meiji Holdings Co, whose unit KM Biologics produces the 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 doubled since late June, according to Blunberg. Meanwhile, the Swiss company Roche said in May that it had developed three test kits to detect monkeypox virus.

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

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