- Cases of monkeypox are spreading in the U.S., Canada and Europe
- Danish drugmaker Bavarian Nordic (OTCMKTS:BVNRY) produces a vaccine for the virus
- BVNRY stock is surging after a large vaccine order from Europe
For the first time since 2020, a new disease is in focus today. Cases of monkeypox are spreading throughout the U.S. and Canada, as well as multiple European countries. The rare virus is typically found in forest regions of Africa. Now these scattered cases have led to alarm in some communities. However, Danish pharmaceutical producer Bavarian Nordic (OTCMKTS:BVNRY) has an effective vaccine. Both the U.S. and Europe have already placed orders, sending BVNRY stock soaring.
What’s Happening With BVNRY Stock
News of the monekypox outbreak has only been trending for the past two days. Since it has, BVNRY stock has been shooting up. Shares began climbing yesterday, but today, as reports increased, they began to skyrocket. While shares have since cooled off slightly, the momentum remains strong. As of this writing, BVNRY stock is up more than 68% for the day. But this could be just the beginning of its new growth trajectory.
Let’s take a closer look at the forces driving BVNRY stock up.
Why It Matters
Bavarian Nordic claims to be the only pharmaceutical producer to successfully gain regulatory approval for a monkeypox vaccine. The European country that placed the vaccine order has not been disclosed, but it won’t be the only one. The virus has been detected in Spain and Portugal, as well as part of the U.K., and it is authorized for use across Europe and the U.S.
Every country with cases will likely stock up on the vaccine to prevent further spread. While data is still being collected on the virus, it doesn’t seem as though the virus poses an immediate threat to the general public. But in the wake of the Covid-19 pandemic, governments aren’t willing to take any chances on their nation becoming the breeding ground for the next public health emergency. Even as a precautionary measure, governments will be placing orders within the coming days. And when they do, BVNRY stock will shoot up even further.
The fact that the U.S. quickly placed a $119 million order as part of a larger vaccine contract with Bavarian Nordic should serve as an indicator of how seriously countries are taking the growing threat.
What It Means
Bavarian Nordic is in the unique position of being able to provide a product that the entire world may soon need. Countries are still dealing with rising Covid-19 cases, and another infectious disease is the last thing anyone needs. A rare virus vaccine from a little-known drug maker may be about to prevent the next public health crisis.
BVNRY stock should be at the top of every investor’s watchlist as new details emerge. The Covid-19 vaccine race ushered in a new biotech boom as investor focus shifted to the pharmaceutical sector. Wall Street may be about to see the same phenomenon play out as other biotech stocks rise on the momentum generated by a new vaccine champion.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.