Shares of Emergent BioSolutions (EBS +3.10%) were skyrocketing 19.5% higher as of 11:09 a.m. ET on Friday after rising as much as 34.1% earlier in the day. The big gain came after the European Centre for Disease Prevention and Control raised its risk level for mpox to "moderate" from "low." The decision followed the confirmation of a case of mpox infection in Sweden.
On Wednesday, the World Health Organization declared a global public health emergency after 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.
NYSE: EBS
Key Data Points
How does the mpox outbreak impact Emergent BioSolutions?
The only approved vaccine for preventing mpox is made by Bavarian Nordic. However, the U.S. Centers for Disease Control and Prevention (CDC) has also recommended Emergent BioSolutions' ACAM2000 vaccine for preventing mpox.
ACAM2000 is currently approved only for preventing smallpox. It is also recommended by the Advisory Committee on Immunization Practices for some people at risk of exposure to orthopoxvirus infections. Mpox is an orthopoxvirus similar to 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 experience a temporary sales bump for ACAM2000, but there's no reason at this point to expect a significant sustained impact.
In the meantime, Emergent BioSolutions is still trying to turn its business around, with revenue sinking 25% year over year in the second quarter of 2024. Other healthcare stocks offer better risk-reward propositions, in my view.
