According to the latest news, the European Center for Disease Prevention and Control has raised the risk level of monkeypox cases spreading in the European Union from “low” to “moderate”, raised the overall risk of monkeypox infection in the EU from “very low” to “low”, and required European countries to be highly alert to travelers from affected regions. WHO spokeswoman Margaret Harris warned that more monkeypox cases are expected soon outside of Africa, as a result of increased testing.

As the new round of the monkeypox epidemic attracted market attention, the stock prices of pharmaceutical companies and related companies that produce and develop monkeypox vaccines skyrocketed across the board. The one that performed the most ferocious was the US monkeypox concept stock$GeoVax Labs (GOVX.US)$The company's stock price soared 110% last Friday;$Emergent BioSolutions (EBS.US)$Up more than 24%. Concept stocks related to the A-share market also surged across the board.

Furthermore, the stock price of Danish pharmaceutical company Bavaria Nordic soared by nearly 48% last week. According to the news, the company is planning to increase its monkeypox vaccine production capacity and expand the scope of vaccination. The company has supplied up to 2 million doses of the monkeypox vaccine since this year, and plans to increase supply to 10 million doses by the end of 2025.

Europe is anxious

Various signs indicate that a new round of monkeypox outbreaks has now spread all over the world.

According to the latest news, the European Center for Disease Prevention and Control (ECDC) has raised the risk level of monkeypox distribution in the European Union from “low” to “medium”, raised the overall risk of monkeypox infection in the EU from “very low” to “low”, and raised the risk level of infection among people in the EU and the European Economic Area and travelers to affected regions: people traveling to affected areas and having close contact with local communities have a “high risk” risk of infection; people in close contact with confirmed or suspected imported cases are at “medium risk”.

Wagner, director of the European Center for Disease Control and Prevention, said: “Given the close ties between Europe and Africa, we must prepare for more imported cases of 'Branch I' monkeypox.”

The European Center for Disease Control and Prevention anticipates that by strengthening surveillance and emergency preparedness and making full use of members' medical resources and response capabilities, the “branch I” strain of the monkeypox virus will have less impact on Europe. As long as imported cases can be diagnosed quickly and effective prevention and control measures are taken, the risk of continued transmission of monkeypox virus in Europe is still very low.

However, the European Center for Disease Control and Prevention pointed out that it is still important to note that the strain that caused the current outbreak in Africa is different from the 2022 strain; the latter is still spreading at a low level in Europe and around the world.

The Swedish Public Health Authority issued a communiqué on the 15th saying that a patient in the Stockholm region was diagnosed with the “branch I” strain of monkeypox. This is the first time it has been confirmed that patients infected with this strain have been found outside of the African continent. The patients have traveled to Africa.

WHO spokeswoman Margaret Harris warned that more monkeypox cases are expected soon outside of Africa, which is also a result of increased testing. However, WHO does not recommend any travel restrictions to stop the spread of the virus.

The WHO announced on the 14th that the monkeypox outbreak constituted a “public health emergency of international concern”. This is the second time since July 2022 that WHO has issued the highest level of warning under the International Health Regulations regarding the monkeypox outbreak.

On August 16, local time, the WHO urged vaccine manufacturers to increase production of the monkeypox vaccine to control the spread of a more dangerous strain of monkeypox.

Brenwen Nicol, a senior official in charge of public health emergencies at the International Federation of Red Cross and Red Crescent Societies, said most vaccine stocks are in wealthy countries, and vaccines shipped to Africa so far are “just a drop in the ocean.” Across the continent, she said, there is an extreme shortage of tests, treatments and vaccines for the monkeypox virus. “These shortages seriously hinder local capacity to prevent and control the epidemic.”

A sharp rise across the board

As the new round of the monkeypox epidemic attracted market attention, the stock prices of pharmaceutical companies and related companies that produce and develop monkeypox vaccines skyrocketed across the board.

On Friday, the US monkeypox concept stock GeoVax Labs surged 110%, and Emergency Biosolutions surged more than 24%. According to the data, GeoVax Labs is a clinical-stage biotechnology company headquartered in the US. The company is engaged in the development of immunotherapies and vaccines against cancer and infectious diseases, using a novel patented modified Ankara virus-like particle (GV-MVA-VLP) vector vaccine platform. The product line includes HIV vaccine, hemorrhagic fever vaccine, Zika vaccine, malaria vaccine, and cancer immunotherapy.

Concept stocks related to the A-share market also surged across the board. Among them$Nanjing Hicin Pharmaceutical (300584.SZ)$,$Zhejiang Yatai Pharmaceutical (002370.SZ)$Strong victory for 2 consecutive boards,$Tellgen Corporation (300642.SZ)$,$Hainan Poly Pharm (300630.SZ)$,$Cowealth Medical China (603122.SH)$Rise and stop.

Furthermore, the stock price of the Danish pharmaceutical company Bavarian Nordic A/S (Bavarian Nordic A/S) continued to skyrocket, with a cumulative increase of 48% last week.

According to the news, the company has submitted clinical data to the European Medicines Agency (EMA) seeking to expand the indications of the Imvanex vaccine to adolescents aged 12 to 17. According to information, Imvanex (MVA-BN, trade name Jynneos in the US, Imvamune in Canada) is a smallpox vaccine used to protect adults, but data shows that it is effective in preventing monkeypox.

According to reports, the Bavarian Nordic Company is the only company approved to produce the monkeypox (Mpox) vaccine in the US and Europe. In 2022, the US Food and Drug Administration (FDA) granted emergency use authorization for the Imvanex vaccine for adolescents.

According to Reuters, the Bavarian Nordic Company said on the 17th that it plans to increase its monkeypox vaccine production capacity and expand the scope of vaccination.

Bavaria Nordic said it has supplied as many as 2 million doses of the monkeypox vaccine since this year and plans to increase supply to 10 million doses by the end of 2025. The company also said it is expanding its production network to Africa and is preparing to work with the African Center for Disease Control and Prevention and the World Health Organization to make this vaccine available to all countries.

It should be explained that the monkeypox vaccine mentioned by the Bavarian Nordic Company was initially developed to prevent infection with the smallpox virus. The WHO previously estimated that the vaccine was 85% effective in preventing the monkeypox virus.

Paul Chaplin, president and CEO of Bavaria Nordic, said in a statement, “Amid the ongoing outbreak in Africa, children and young people are particularly affected by monkeypox, which highlights the importance and urgency of expanding access to vaccines and treatments for this vulnerable population.”

Manish Bhargava, fund manager at Singapore Straits Investments Holdings, said: “The recent outbreak of the monkeypox virus in Africa may bring back memories of the COVID-19 pandemic. “As the monkeypox outbreak is still in its early stages, investors are expected to remain alert and wait for further data before responding.”

Another analyst said that the transmission methods and conditions of monkeypox are quite severe. The intensity of transmission is directly related to the level of social and economic development in the region, and there are no conditions for a large-scale outbreak of monkeypox outbreaks in the country. The monkeypox concept hype in the secondary market may be somewhat irrational, and investors need to be aware of short-term risks.

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