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While the latest monkeypox outbreak has already affected more than 70 countries and has been declared a global emergency by the World Health Organization (WHO), it may provide an additional boost to trade, according to Bloomberg.
The pharmaceutical industry is made up of companies that research, develop, manufacture and market drugs and treatments that are used to treat or eradicate diseases and to vaccinate people.
The results of this analysis point to a silver lining to monkeypox: productive firms are more likely to survive, rather than having a detrimental effect on all firms, regardless of their efficiency.
In the midst of the outbreak monkey pox Around the world, investors are buying shares of companies in various sectors that could benefit from the race to quell the disease. According to news reported by BloombergStocks of vaccine producers, antiviral drug makers and protective equipment manufacturers are witnessing active demand as they generated profits for investors during the Covid-19 pandemic.
Companies with high demand for shares include biotech company Bavarian Nordic A/S, pharmaceutical company Siga Technologies Inc and medical tool provider Precision System Science Co.
The growth of the industry
The pharmaceutical industry It is made up of companies that research, develop, manufacture and market medicines and treatments that are used to treat or eradicate diseases and to vaccinate people. This includes some of the world’s largest and most well-known companies, such as Pfizer Inc., Merck & Co. Inc. and AbbVie Inc. Several pharmaceutical companies have seen a surge in their sales after gaining approval from the US and foreign governments for vaccines intended to prevent the virus. COVID-19.
Over the past 12 months, pharmaceutical stocks, based on the iShares US Pharmaceuticals ETF (IHE), have outperformed the market in general. IHE’s total return for the period was 8.0 percent compared to the total return for the Russell 1,000 of -1.6 percent.
In this regard, although the latest outbreak of monkeypox has already affected more than 70 countries and has been declared a global emergency by the World Health Organization (WHO), it can give an additional boost to trade, according to Bloomberg.
For example, the actions of Bavarian Nordic have more than tripled from a low in May after governments began mandating the flu vaccine monkey pox from the Danish company, the only one approved specifically to prevent infection. The firm has raised its revenue guidance several times this year.
Analysts are taking note, with Citigroup Inc.. raising his target price for the company’s shares by 20 percent and signaling there may be more profit if more orders come in. The actions of other companies that make vaccines or antivirals for monkeypox have also caught the attention of US retailers. the stock of Follow Technologieswhich manufactures a treatment called TpoxxIt has doubled this year. The therapy is approved to treat smallpox in the US and monkeypox and other viruses in the European Union and the United Kingdom.
Manish Bhargava, fund manager of Straits Investment Holdings said that the world depends only on one manufacturer at the moment, that is, Bavarian Nordic for the monkeypox vaccine, therefore, investors can also expect other biotech companies to increase research and production of related products. He said that is automatically beginning to be reflected in the strong share price performance for the sector.
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, which have its shares jumped nearly 40 percent in July thanks to monkeypox.
The results of this analysis point to a silver lining to monkeypox: productive firms are more likely to survive, rather than having a detrimental effect on all firms, regardless of their efficiency.