Emergent Biosolutions Stock Trends After FDA Nod For Use Of Smallpox Vaccine To Tackle Mpox Threat

Emergent Biosolutions Inc (EBS) became the second-most trending stock on Stocktwits on Friday noon after the U.S. Food and Drug Administration (FDA) gave its approval for using its smallpox vaccine in individuals determined to be at high risk for mpox infection.

Mpox, previously known as monkeypox, is an infectious disease that is endemic to central and west Africa. It is caused by the double-stranded DNA mpox virus.

Emergent Biosolutions said the approval is based on previously available human safety data and data from a well-controlled animal study in which the vaccine was shown to be effective in protecting against mpox virus exposure.

After witnessing a decent rally on Thursday, the stock pared its gains on Friday, falling over 7% by noon. However, retail sentiment on Stocktwits flipped into the ‘extremely bullish’ territory (84/100) from ‘bearish’ a day ago. 

The company explained that its ACAM2000 is a single-dose vaccine administered percutaneously via a bifurcated needle that is dipped into the vaccine solution. The skin is pricked several times in the upper arm with a droplet of the vaccine.

Emergent said the vaccine was first approved by the FDA in 2007 for active immunization for the prevention of smallpox disease in individuals determined to be at high risk for smallpox infection.

CEO Joe Papa stated the expanded indication for the vaccine comes at a critical time as the global health community comes together to ensure an effective and cohesive response to the recent upsurge in mpox cases.

Meanwhile, the company has filed an expression of interest (EOI) with the World Health Organization (WHO) for its assessment of the vaccine to be added as an Emergency Use Listing in connection with the mpox outbreak.

EBS shares have gained a whopping 221% this year in the wake of the mpox outbreak. With the stock falling nearly 7% on Friday, bullish Stocktwits users believe it may be time to accumulate more.