Shares of Emergent biosolutions (NYSE: EBS) were up 19.5% as of 11:09 a.m. ET on Friday, after rising as much as 34.1% earlier in the day. The big jump came after the European Centre for Disease Prevention and Control raised its risk level for Mpox from “low” to “moderate.” The decision followed the confirmation of an Mpox case in Sweden.
On Wednesday, the World Health Organization declared a global health emergency following an outbreak of MPOX in Africa. The first cases were reported in the Democratic Republic of Congo, but the virus quickly spread to other African countries.
What impact does the Mpox outbreak have on Emergent BioSolutions?
The only approved vaccine to prevent MPOX is manufactured by Bavarian NordicHowever, the US Centers for Disease Control and Prevention (CDC) have also recommended the ACAM2000 vaccine from Emergent BioSolutions to prevent MPOX.
ACAM2000 is currently approved only for the prevention of smallpox. It is also recommended by the Advisory Committee on Immunization Practices for some people who are at risk of contracting orthopoxvirus infections. Mpox is an orthopoxvirus that resembles smallpox.
Is Emergent BioSolutions stock a buy?
I don’t think Emergent BioSolutions stock is a buy because of the Mpox outbreak. The company could see a temporary boost in sales for ACAM2000, but there’s no reason to expect a significant, lasting impact at this time.
Meanwhile, Emergent BioSolutions is still trying to turn its business around, with second-quarter 2024 revenue down 25% year over year. Other healthcare stocks offer a better risk-reward proposition, in my opinion.
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Keith Speights does not own any of the stocks mentioned. The Motley Fool recommends Emergent BioSolutions. The Motley Fool has a disclosure policy.
Why Emergent BioSolutions Stock Is Soaring Today was originally published by The Motley Fool.
