Shares of Bavarian Nordic Surge as WHO Declares Mpox Outbreak a Global Health Emergency

Shares of Bavarian Nordic surged in Danish trading Friday as investors bought into the company with the only approved mpox vaccine in the U.S. and Europe, after the World Health Organization (WHO) declared the fast-breaking outbreak a global health emergency.

The WHO’s Declaration

The World Health Organization (WHO) made the announcement on Wednesday, stating that the surge in mpox cases in African countries constituted a global public health emergency. This is the second time in two years that the WHO has declared mpox a global emergency. The virus, previously known as monkeypox, was first declared a global emergency in July 2022 but the declaration was lifted 10 months later.

Bavarian Nordic’s Mpox Vaccine

Bavarian Nordic, a Danish firm, is the only company with an approved mpox vaccine in the U.S., Europe, Canada, and the UK. The company’s shares rose about 48% this week following the WHO’s declaration.

The vaccine is currently approved for adults aged 18 and over. However, Bavarian Nordic announced on Friday that it had submitted clinical data to European regulators to extend the vaccine’s approval for use in adolescents between the ages of 12 and 17.

Mpox Outbreak in Africa

The mpox outbreak has been spreading rapidly in African countries, with the Democratic Republic of Congo and its neighboring countries being the most affected. Sweden recently confirmed the first case of mpox outside of the African continent in an individual who had traveled to central Africa.

The WHO identified a new, more severe strain of mpox called clade 1b, which has contributed to the urgency of the global health emergency declaration.

Investor Response

Investors responded positively to the news of Bavarian Nordic’s approved mpox vaccine and the WHO’s declaration of a global health emergency. Bavarian Nordic’s stock closed up 18% in Danish trading on Friday, reaching 283.50 Danish kroner ($41.84). The stock has seen a surge of approximately 48% this week.

Conclusion

The surge in mpox cases in African countries has prompted the World Health Organization to declare a global health emergency for the second time in two years. Bavarian Nordic, the only company with an approved mpox vaccine in the U.S. and Europe, has seen a significant increase in its stock value as investors recognize the importance of its vaccine in combating the outbreak. With the submission of clinical data for the vaccine’s approval in adolescents, Bavarian Nordic aims to expand the reach of its vaccine and contribute to the global efforts to control the mpox outbreak.

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