Shares of Emergent BioSolutions (NYSE: EBS) were jumping 14.6% this week as of the market close on Thursday, according to data provided by S&P Global Market Intelligence. The stock’s momentum began after the World Health Organization (WHO) director-general declared the global monkeypox outbreak as a Public Health Emergency of International Concern (PHEIC) on July 23.
Emergent BioSolutions markets smallpox vaccine ACAM2000, which can also be used to provide protection against infection by the virus that causes monkeypox. In addition, the company announced in May that it plans to acquire Chimerix (NASDAQ: CMRX), the maker of smallpox antiviral therapy Tembexa. The drug can also be used to treat monkeypox.
So far, more than 18,000 monkeypox cases have been reported in 78 countries. Roughly 10% of cases have required patients to be admitted to hospitals. Governments around the world have taken steps to prevent the spread of the virus.
Emergent BioSolutions isn’t the only healthcare stock that has risen because of the monkeypox outbreak. Shares of Bavarian Nordic and Siga Technologies have especially taken off in recent months. Bavarian Nordic makes monkeypox vaccine Jynneos, while Siga markets oral smallpox therapy Tpoxx, which can also be used in treating monkeypox.
However, Emergent BioSolutions’ sales of smallpox vaccine ACAM2000 still are likely to increase with the global spread of monkeypox. The company reported $14.4 million in sales for the vaccine in the first quarter of 2022.
Investors should find out soon what impact the monkeypox outbreak is having on Emergent BioSolutions. The company provides its second-quarter update on Aug. 1, 2022.