Why Is SIGA Stock Roaring 12% Higher Today?

  • Siga Technologies (SIGA) recently announced that it has procured $28 million in contracts for TPOXX.
  • Next week, the World Health Organization (WHO) will also meet to discuss the “global health threat” of monkeypox.
  • SIGA stock surged today on the momentum, closing up by nearly 12%.
An image showing a representation of the monkeypox virus.
Source: Zeedign.com / Shutterstock.com

If the race to find treatments for monkeypox is giving rise to a new boom, SIGA Technologies (NASDAQ:SIGA) stock is one of the clear winners. Weeks since the initial outbreak, monkeypox cases continue to rise. According to the U.N. agency, there are now more than 9,000 cases spread across 63 countries. Meanwhile, SIGA stock is enjoying an excellent month.

Today, SIGA reported even more good news; the company has procured $28 million in new government contracts for its monekeypox treatment. As Investor’s Business Daily reports, “the bulk of the contracts comes from Canada where the Public Health Agency of Canada signed a $22 million deal” for doses of TPOXX. The country’s Department of National Defense is also stocking up on $4 million worth of TPOXX.

These aren’t the only lucrative contracts SIGA has inked recently. What’s more, next week, the World Health Organization (WHO) will meet to discuss whether monkeypox is a “global health threat.”

Let’s take a closer look at what this could mean for SIGA stock.

Monkeypox and SIGA Stock

Today, SIGA stock closed up by almost 12% on contract news. Last week, the company also received more good news from U.K. regulators, who granted its oral monekypox and smallpox treatment approval. This specific news didn’t send SIGA stock up, but shares have still gained 38% over the past one-month period.

According to CNBC, most patients recover from monkeypox fairly quickly, often within two to four weeks. But that doesn’t mean the need for treatments isn’t increasing. World leaders don’t want another pandemic and will do whatever they can to prevent the global spread of disease. The fact the WHO has scheduled a second emergency meeting for next week means the outbreak may be getting serious.

If monkeypox is declared a global health emergency, demand for SIGA’s treatment will only increase. On June 29, there were 306 confirmed cases in the U.S. alone. Now, as of July 11, there are 767 cases. As monkeypox treatment orders pile up, SIGA stock should continue to climb.

What Comes Next

Right now, it’s unclear what the WHO will declare, if anything. But it is clear that monkeypox is spreading. Even if the outbreak is not declared a global health emergency, the need for treatments will not go away. As such, investors should watch SIGA stock carefully as the world awaits the verdict from the WHO.

On the date of publication, Samuel O’Brient did not hold (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.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/why-is-siga-stock-roaring-12-higher-today/.

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