These Three Stocks are Experiencing an Outbreak– Or a Breakout Depending How you Look at it

Monkeypox Outbreak Fuels Surge in Related Biopharma Stocks

The recent resurgence of monkeypox has sparked widespread concern and reignited the market's interest in companies working to combat viral diseases. As the outbreak spreads, parallels to the COVID-19 pandemic are being drawn in both the media and financial markets. During the COVID-19 crisis, pharmaceutical companies that developed vaccines, treatments, and diagnostics experienced unprecedented growth, with investors flocking to these stocks in search of gains. Now, as the world faces another potential health emergency, a new set of companies is stepping into the spotlight.

The global health community and investors alike are keeping a close eye on monkeypox, a disease caused by the monkeypox virus, which shares similarities with smallpox. While the outbreaks have been sporadic and relatively contained in the past, recent concerns have shifted focus toward vaccine and treatment development. The monkeypox market, although smaller in scope than COVID-19, holds significant potential. The World Health Organization and public health bodies are calling for increased awareness, testing, and vaccination. As a result, companies developing monkeypox-related therapies and vaccines are seeing their stock prices soar.

Three such companies—GeoVax Labs, Tonix Pharmaceuticals, and Chimerix—are garnering substantial interest. All three have ties to the smallpox market, which, in turn, gives them relevance in the monkeypox conversation. Below is a review of these companies, their roles in combating the outbreak, and their stock performance over the short, medium, and long term.

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GeoVax Labs (NASDAQ: GOVX)

GeoVax Labs has emerged as one of the frontrunners in the monkeypox vaccine race. Based in Georgia, this clinical-stage biotechnology company specializes in vaccines that leverage its proprietary Modified Vaccinia Ankara Virus-Like Particle (MVA-VLP) platform. The company has been developing vaccines for various infectious diseases, including smallpox, Ebola, and Lassa fever. However, with the recent monkeypox outbreak, GeoVax's focus on viral hemorrhagic fevers and poxvirus diseases has become particularly relevant.

GeoVax's stock soared as concerns around monkeypox escalated, with investors seeing potential in its MVA-based vaccine technology. Its smallpox vaccine is designed to offer cross-protection against monkeypox due to the close relation between the two viruses. This has made GeoVax a significant player in the biopharma space, as public health agencies explore all options for controlling the spread of the virus.

• 1-Day Return: +33%
• 1-Month Return: +234%
• 1-Year Return: +21%

GeoVax shares have experienced strong upward momentum over the past month, driven by mounting concerns over monkeypox. Over the past year, the stock has gained substantial value as the company has positioned itself as a leader in the viral vaccine space.

Tonix Pharmaceuticals (NASDAQ: TNXP)

Tonix Pharmaceuticals, another biotech firm in the spotlight, is developing live virus vaccines that may offer protection against monkeypox and other orthopoxvirus diseases. Based in New Jersey, Tonix has focused on immunology, chronic diseases, and rare infectious diseases. One of its notable projects is its live virus vaccine candidate, TNX-801, designed to protect against both smallpox and monkeypox.

A recent Benzinga article highlighted the company’s preclinical results, which demonstrated long-term immunity and protection against these viruses. Tonix’s TNX-801 is based on a horsepox viral platform, which is closely related to smallpox and monkeypox. The company is working on creating a robust, durable immune response that can withstand mutations and future outbreaks. What makes Tonix attractive is the potential for TNX-801 to be used as a preventive measure in populations at high risk of contracting monkeypox.

• 1-Day Return: +40%
• 1-Month Return: +12%
• 1-Year Return: -98%

Tonix Pharmaceuticals has seen a notable rise in its stock price over the past month, as interest in its vaccine candidate has intensified. However, the stock’s performance over the past year reflects the inherent volatility in biotech investing, with a significant drop amid broader market conditions and uncertainty in the clinical trial space.

Chimerix, Inc. (NASDAQ: CMRX)

Chimerix, Inc., a biotechnology company based in North Carolina, is another name linked to the monkeypox outbreak. While the company gained attention for its smallpox drug, Tembexa, the renewed interest in orthopoxviruses like monkeypox has brought Chimerix back into the conversation. Tembexa (brincidofovir) is an FDA-approved treatment for smallpox, which gives Chimerix an edge as governments explore stockpiling options for poxvirus diseases.

Though Chimerix has not explicitly developed a monkeypox treatment, the parallels between smallpox and monkeypox suggest that Tembexa could play a role in mitigating the effects of the outbreak. The drug's broad-spectrum antiviral activity makes it a candidate for off-label use in monkeypox cases. In a market where few treatments exist, Chimerix’s existing FDA approval for Tembexa may provide a quicker pathway for emergency use if the monkeypox crisis intensifies.

• 1-Day Return: +5%
• 1-Month Return: +20%
• 1-Year Return: +14%

Chimerix’s stock has seen a short-term bump as investors reevaluate its smallpox drug in light of the monkeypox outbreak. However, much like Tonix, the stock’s performance over the past year has been challenging, marked by sell-offs and investor uncertainty around the company’s long-term prospects.

Conclusion

As monkeypox continues to spread, the market is once again turning to biopharmaceutical companies for solutions. GeoVax Labs, Tonix Pharmaceuticals, and Chimerix Inc. are at the forefront of efforts to address this public health crisis, each leveraging its expertise in smallpox and viral disease research. While the global market for monkeypox treatments is still emerging, these companies are well-positioned to capture the growing demand for vaccines and antiviral treatments.

Investors should keep a close eye on clinical developments, regulatory approvals, and government stockpiling programs, as these will be key drivers of stock performance in the coming months. Like the COVID-19 pandemic, the monkeypox outbreak has the potential to create significant winners in the biotech sector. However, as always with biopharma stocks, the risks are high, and careful due diligence is necessary before jumping into this volatile space.

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This article is from an unpaid external contributor. It does not represent Stocktwits reporting or views and has not been edited for content or accuracy.