Virax Biolabs (NASDAQ:VRAX), a specialist in diagnostic tests, veritably captured the market news cycle today, with its shares skyrocketing 120% before giving up some ground in the afternoon session. Still, VRAX stock is about double from its prior closing price. The stock is a beneficiary of the current monkeypox threat, a virus that multiple agencies have declared a health emergency. Virax recently announced that it will launch a polymerase chain reaction (PCR) kit for monkeypox.
On July 30, NPR reported that New York City officials declared a public health emergency due to the spread of the monkeypox virus. Adding to concerns, they labeled the city “the epicenter” of the outbreak. On July 28, San Francisco declared a state of emergency over the growing number of monkeypox infections. These two announcements followed the World Health Organization (WHO) declaring the virus a global health emergency on July 23.
According to data from the Centers for Disease Control and Prevention (CDC), authorities have disclosed more than 22,000 monkeypox cases throughout the world since the outbreak first started in May. Further, Newsweek reported an increase in monkeypox cases found in children ahead of the fall semester. Therefore, testing for the underlying virus is paramount, thus bolstering VRAX stock.
Interestingly, Virax Biolabs just launched its initial public offering (IPO) recently, though trading has been incredibly wild. However, with rising concerns about monkeypox infections occurring over the weekend, pent-up demand may have contributed to the surge in VRAX stock.
VRAX Stock: Why It Matters
The monkeypox outbreak has created a sense of urgency similar to that of the coronavirus pandemic. Various testing, treatment and prevention protocols are in focus. VRAX stock finds itself in a prime position to advantage the social need for managing this latest outbreak.
According to the Wall Street Journal, Bavarian Nordic (OTCMKTS:BVNRY) is the “world’s sole supplier of a licensed vaccine for monkeypox.” Not surprisingly, BVNRY is up double digits in late-afternoon trading.
Previously, very few government agencies were interested in the company. Within the last few weeks, however, Bavarian reports that orders for the vaccine have come in from dozens of countries across the globe. Management is now looking into whether the firm can operate 24-hours a day, seven days a week to meet demand.
Virax similarly stands to benefit from the testing angle. Indeed, the urgency for monkeypox-related mitigatory products has surged. Therefore, despite the significant risks associated with VRAX stock, it’s benefitting from current relevancies.
On the date of publication, Josh Enomoto 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.