Shares of monkeypox treatment maker GeoVax surge 50% amid news flow
Shares of GeoVax Labs, a biotechnology company developing a monkeypox treatment, soared more than 50% early on Monday, August 19. The jump came after disappointing study results for another monkeypox treatment developed by SIGA Technologies. In addition, last week the World Health Organization (WHO) declared a public health emergency due to the monkeypox outbreak in Africa, boosting the stocks of vaccine and drug makers for several days in a row.
Details
On Monday, GeoVax Labs stock rose as high as $10.88 per share, a 54% gain from the closing price on Friday and the highest mark for GeoVax since late May 2023. Over the past five sessions, the stock has skyrocketed over 225%.
Meanwhile, shares of SIGA fell as much as 8% to $9.70 per share on Monday, versus a 9% gain on Friday.
Bavarian Nordic, which makes the only approved monkeypox vaccine in the U.S. and Europe, saw its shares fall 5% on Monday in Denmark after they hit a two-year high on Friday, having risen 20% at one point.
The stock of another vaccine maker, Emergent BioSolutions, jumped more than 20% on Monday before giving back some of the gains to close 12.2% higher. In 2017, the company acquired from Sanofi the smallpox vaccine ACAM2000, which might now be approved for use against monkeypox, according to Forbes. Emergent BioSolutions shares were buoyant on Friday as well, having surged 24% at one point.
What is driving the stock moves
SIGA Technologies announced early Thursday U.S. time that the results of a study on its antiviral drug tecovirimat for treating monkeypox did not reach statistical significance on its primary endpoint of being superior to placebo. In the study, patients were randomly assigned to receive either oral tecovirimat in combination with standard of care or placebo plus standard of care for two weeks. The data nevertheless affirmed the safety of tecovirimat, and the company is continuing additional clinical trials, according to the statement.
Context
The rally in shares of monkeypox vaccine and treatment companies began last week. On Wednesday, August 14, the WHO declared a public health emergency due to the outbreak in Africa.
The next day, the first case of monkeypox was reported in Sweden, indicating the spread of the disease beyond Africa. “A case in Sweden most likely means dozens of undetected cases in Europe,” health expert and Georgetown University professor Lawrence Gostin told Reuters.
During the last monkeypox outbreak in the summer of 2022, investors worldwide rushed to buy shares of biotech companies that could potentially offer treatments. The main beneficiaries then were Bavarian Nordic, SIGA Technologies, and Precision System Science.
Analyst insights
GeoVax stock is now trading approximately 90% higher than at the beginning of the year, driven by a 530% jump in the last three months. Four analysts currently cover the company, all of whom rate it a buy, according to MarketWatch.
