In this article, we will look at 10 healthcare and biotech stocks to buy amid the monkeypox threat.
In May of 2022, the first case of the monkeypox virus, outside of Africa, was reported in the United Kingdom. Ever since then, the virus has spread throughout the globe and, as of August 5, has achieved a toll of 28,727 cases worldwide. On July 23, the World Health Organization declared the global monkeypox outbreak a Public Health Emergency of International Concern (PHEIC). The World Health Organization reported that as of July 2022, the majority of reported cases of monkeypox were found in the European region.
Monkeypox In The U.S.
On July 29 New York State governor, Kathy Hochul, declared the monkeypox outbreak a state emergency. On August 2, president Joe Biden named two federal officials, Bob Fenton and Dr. Daskalakis to lead and accelerate the U.S. government’s response against monkeypox. Together, Mr. Fenton and Dr. Daskalakis will work towards controlling the outbreak in the U.S. and also devise measures and protocols for monkeypox testing, vaccinations, and treatments. On August 4, the Biden Administration declared the monkeypox outbreak a public health emergency. According to Our World in Data, as of August 5, the number of reported cases of the monkeypox virus has reached 7,492 in the United States.
With the monkeypox virus causing havoc, governments around the world are issuing protocols and stockpiling vaccines to address the global outbreak. As of now, there is only 1 FDA-approved monkeypox vaccine on the market, the JYNNEOS vaccine which is manufactured by Denmark-based biotechnology company Bavarian Nordic A/S (OTC:BVNRY). Healthcare providers are following the lead of Bavarian Nordic A/S (OTC:BVNRY) and are developing tests and treatments for the monkeypox virus. However, many of the world’s leading healthcare providers such as Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), and Merck & Co., Inc. (NYSE:MRK) are still devoting their research and development efforts to battle the COVID-19 pandemic instead of addressing the alarming monkeypox situation.
Photo by RephiLe water on Unsplash
Our Methodology
To determine the 10 healthcare and biotech stocks that can benefit from the ongoing monkeypox outbreak, we reviewed companies that are actively involved in the space. We identified companies that are offering and also developing vaccines and tests for the monkeypox virus. We studied each company’s projects related to the monkeypox virus and narrowed down our selection to the best stocks that have high anticipation for success and consequently, the potential to gain more market share. Along with each stock, we have included the hedge fund sentiment around it. We ranked our picks in increasing order of hedge fund holders.
10 Healthcare and Biotech Stocks to Buy Amid Monkeypox Threat
10. Bavarian Nordic A/S (OTC:BVNRY)
Number of Hedge Fund Holders: N/A
9. Aethlon Medical, Inc. (NASDAQ:AEMD)
Number of Hedge Fund Holders: 1
Aethlon Medical, Inc. (NASDAQ:AEMD) is a medical technology company that focuses on developing products to diagnose and treat life and organ-threatening diseases in the United States. The company’s flagship product, the Aethlon Hemopurifier, is a clinical-stage immunotherapeutic device that removes tumor-derived exosomes and life-threatening viruses from the human circulatory system.
The Aethlon Hemopurifier has been proven successful against the monkeypox virus in the past. In 2008, Aethlon Medical, Inc. (NASDAQ:AEMD) announced completing a successful study to test the efficacy of the Aethlon Hemopurifier against monkeypox. The company reported that within 20 hours, its Hemopurifier removed 98% of infectious monkeypox virus from the subject. As the number of monkeypox cases is rising, so are shares of Aethlon Medical, Inc. (NASDAQ:AEMD). As of August 5, the stock has gained 16.78% over the past six months.
As of the first quarter of 2022, Jim Simons’ Renaissance Technologies is the most bullish hedge fund on Aethlon Medical, Inc. (NASDAQ:AEMD) and owns roughly 0.27 million shares of the company. The funds stake was valued at $0.39 million.
Unlike mainstream healthcare stocks like Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), and Merck & Co., Inc. (NYSE:MRK), Aethlon Medical, Inc. (NASDAQ:AEMD) is a cheap investment option for beginner investors as the stock is trading at just $1.3 as of August 9.
8. GeoVax Labs, Inc. (NASDAQ:GOVX)
Number of Hedge Fund Holders: 2
GeoVax Labs, Inc. (NASDAQ:GOVX) is a clinical-stage biotechnology company that develops human vaccines and immunotherapies against infectious diseases and cancers. On August 3, GeoVax Labs, Inc. (NASDAQ:GOVX) reported that it has begun an animal study to evaluate a Phase 1 clinical trial for its MVA-VLP-MUC1 immunotherapy candidate. The company reported that its MVA-based vaccines, particularly the company’s GEO-CM04S1, are effective against monkeypox. GeoVax Labs, Inc. (NASDAQ:GOVX) said that it is currently evaluating the GEO-CM04S1 and its effectiveness against monkeypox and said that it expects the vaccine to be able to treat both COVID-19 and monkeypox.
On May 23, Maxim analyst Jason McCarthy reiterated his Buy rating and $6.00 price target on GeoVax Labs, Inc. (NASDAQ:GOVX). McCarthy believes GeoVax Labs, Inc. (NASDAQ:GOVX) is undervalued and noted that its MVA-based vaccine technology has the potential to drive the company’s growth since it has proven its effectiveness against monkeypox in the past.
As of August 5, GeoVax Labs, Inc. (NASDAQ:GOVX) has gained 41.85% over the past six months.
At the close of Q1 2022, 2 hedge funds were bullish on GeoVax Labs, Inc. (NASDAQ:GOVX) and held stakes worth $0.51 million in the company. Of these, Armistice Capital was the leading shareholder with stakes worth $0.43 million.
7. Applied DNA Sciences Inc. (NASDAQ:APDN)
Number of Hedge Fund Holders: 2
Applied DNA Sciences, Inc. (NASDAQ:APDN) develops and markets DNA-based technology solutions for use in nucleic acid-based vitro diagnostics and preclinical nucleic-acid-based drug development and manufacturing markets. The company is a leader in polymerase chain reaction technologies and on August 2, announced that it has initiated analytical validation of its PCR-based monkeypox virus test that is mapped onto the genetic signature of the monkeypox virus. As of August 5, Applied DNA Sciences, Inc. (NASDAQ:APDN) has surged 73.51% over the past six months.
On August 4, Applied DNA Sciences, Inc. (NASDAQ:APDN) announced a $12 million stock offering at $4 per share. The offering comprises of 3 million common shares of the company with Series A and Series B warrants to purchase up to 3 million additional shares each. Applied DNA Sciences, Inc. (NASDAQ:APDN) said that it will use the net proceeds to further the development of its Therapeutic DNA Production and MDx Testing Services. The offering is expected to close on August 8, 2022.
At the end of Q1 2022, 2 hedge funds were long Applied DNA Sciences Inc. (NASDAQ:APDN) and held stakes worth $1.01 million in the company. This is compared to 2 positions in the previous quarter with stakes worth $0.22 million. As of March 31, Armistice Capital owns 0.45 million shares of Applied DNA Sciences Inc. (NASDAQ:APDN) and is the largest shareholder in the company.
6. Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP)
Number of Hedge Fund Holders: 5
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) operates as a clinical-stage biopharmaceutical company that focuses on discovering, acquiring, developing, and licensing therapeutics and diagnostics to treat and prevent human diseases. The company’s portfolio is concentrated in immunology, rare disease, infectious disease, and central nervous system products. The company’s treatment for smallpox and monkeypox is the TNX-801 vaccine.
On July 28, Tonix Pharmaceuticals Holdings Corp. (NASDAQ:TNXP) announced that it will be working with the Kenya Medical Research Institute to seek regulatory approval for and conduct a Phase 1 clinical study in Kenya to develop TNX-801 as a vaccine to protect against monkeypox and smallpox. The study is expected to commence in the first half of 2023.
At the close of Q1 2022, 5 hedge funds disclosed ownership of stakes in Tonix Pharmaceuticals Holdings Corp. (NASDAQ:TNXP). These funds held collective stakes of 5.81 million.
In the first quarter of 2022, Renaissance Technologies raised its stakes in Tonix Pharmaceuticals Holdings Corp. (NASDAQ:TNXP) by 80%, bringing them to $4.42 million. As of March 31, Renaissance Technologies owns more than 19.2 million shares of Tonix Pharmaceuticals Holdings Corp. (NASDAQ:TNXP) and is the largest shareholder in the company.
Unlike Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), and Merck & Co., Inc. (NYSE:MRK), Tonix Pharmaceuticals Holdings Corp. (NASDAQ:TNXP) is leading the healthcare industry to combat the monkeypox virus.
5. SIGA Technologies Inc. (NASDAQ:SIGA)
Number of Hedge Fund Holders: 10
SIGA Technologies, Inc. (NASDAQ:SIGA) is a commercial-stage pharmaceutical company that manufactures TPOXX, an oral formulation antiviral drug for the treatment of human smallpox disease caused by the variola virus. On July 12, SIGA Technologies, Inc. (NASDAQ:SIGA) announced that it has received approximately $28 million of procurement orders for its oral antiviral drug, TPOXX.
While TPOXX is only FDA-approved for the treatment of smallpox, on August 4 it was reported the U.S. FDA is looking to conduct clinical trials of the oral vaccine to determine its efficacy for monkeypox. As of August 5, shares of SIGA Technologies Inc. (NASDAQ:SIGA) have soared 206.18% year to date.
On August 4, Siga Technologies Inc. (NASDAQ:SIGA) reported earnings for the second quarter of 2022. The company reported a revenue of $17 million of which roughly $5 million was attributed to international sales of oral TPOXX and $4 million was attributed to sales of oral TPOXX to the U.S. Department of Defense. The company reported its operating income for the second quarter of 2022 amounted to $3.1 million and its diluted earnings per share came in at $0.03. As of July 31, Siga Technologies Inc. (NASDAQ:SIGA) has received $60 million worth of international orders of which roughly $5 million worth of orders were delivered in the second quarter of 2022.
At the end of Q1 2022, SIGA Technologies Inc. (NASDAQ:SIGA) was spotted on 10 hedge fund portfolios. The total stakes of these hedge funds amounted to $37.66 million. This is compared to 13 positions in Q4 2021 with stakes worth $43.71 million.
As of March 31, AltraVue Capital owns 2.47 million shares of SIGA Technologies Inc. (NASDAQ:SIGA) and is the largest shareholder in the company. The fund’s stakes are valued at $17.52 million and the investment covers 2.38% of its 13F portfolio.
4. Emergent Biosolutions Inc. (NYSE:EBS)
Number of Hedge Fund Holders: 17
Emergent BioSolutions Inc. (NYSE:EBS) operates as a life sciences company that focuses on the provision of preparedness and response solutions that address accidental, deliberate, and naturally occurring public health threats in the United States. The company offers the ACAM2000 for treating smallpox and vaccinia immune globulin intravenous that addresses complications from its smallpox vaccine. The U.S. is stockpiling monkeypox vaccines and has also reportedly stocked the ACAM2000 which can be used to treat monkeypox.
On May 16, Emergent BioSolutions Inc. (NYSE:EBS) announced that it has entered into an agreement with Chimerix, Inc. (NASDAQ:CMRX) to acquire the global exclusive rights for the distribution of TEMBEXA. TEMBEXA is the first FDA-approved antiviral drug for the treatment of smallpox in individuals of all ages.
At the close of Q1 2022, 17 hedge funds held stakes in Emergent Biosolutions Inc. (NYSE:EBS). The total value of these stakes amounted to $137.21 million, up from $124.55 million in the previous quarter with 15 positions. The hedge fund sentiment for the stock is positive.
In the first quarter of 2022, D E Shaw raised its stakes in Emergent Biosolutions Inc. (NYSE:EBS) by 24%, bringing them to $47.77 million. As of March 31, D E Shaw is the largest shareholder in Emergent Biosolutions Inc. (NYSE:EBS).
3. Quest Diagnostics Incorporated (NYSE:DGX)
Number of Hedge Fund Holders: 37
Quest Diagnostics Incorporated (NYSE:DGX) provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine testing, non-routine & advanced clinical testing, anatomic pathology testing, and other diagnostic information services.
On July 13, Quest Diagnostics Incorporated (NYSE:DGX) announced that it has developed a molecular diagnostic test to diagnose the monkeypox virus. The company’s PCR-based test is the first commercially available test to detect the monkeypox virus and classify it from other non-variola orthopoxviruses. As of August 5, Quest Diagnostics Incorporated (NYSE:DGX) has gained 3.61% over the past six months.
On July 21, Quest Diagnostics Incorporated (NYSE:DGX) reported earnings for the fiscal second quarter of 2022. The company reported earnings per share of $2.36 and beat EPS estimates by $0.09. The company’s revenue for the quarter came in at $2.45 billion and outperformed Wall Street expectations by $117.15 million. On July 22, Mizuho analyst Ann Hynes revised her price target on Quest Diagnostics Incorporated (NYSE:DGX) to $160 from $185 and reiterated a Buy rating on the shares.
At the close of Q1 2022, 37 hedge funds were bullish on Quest Diagnostics Incorporated (NYSE:DGX) and held stakes worth $442.83 million in the company. This is compared to 32 positions in the previous quarter with stakes worth $602.84 million.
As of March 31, Renaissance Technologies is the leading shareholder in Quest Diagnostics Incorporated (NYSE:DGX) and owns roughly 1.13 million shares of the company. The investment covers 0.18% of Jim Simons’ 13F portfolio.
2. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 41
Moderna, Inc. (NASDAQ:MRNA), a leading healthcare company, announced on May 24 that it is working on a vaccine to treat monkeypox. Back in May 2022, the company was running vaccine tests against monkeypox at a pre-clinical level. On August 3, Moderna, Inc. (NASDAQ:MRNA) announced that its pre-clinical trials of a monkeypox vaccine are still ongoing and that the company is simultaneously focusing on its vaccines against COVID-19. As of August 5, Moderna, Inc. (NASDAQ:MRNA) has returned 21.87% to investors over the past six months.
On August 3, Moderna, Inc. (NASDAQ:MRNA) reported earnings for the fiscal second quarter of 2022. The company reported earnings per share of $5.24 and beat EPS estimates by $0.75. The company reported a revenue of $4.75 billion, up 9.07% year over year, and beat revenue consensus by $794.40 million.
At the end of Q1 2022, 41 hedge funds were bullish on Moderna, Inc. (NASDAQ:MRNA) and held stakes worth $3.79 billion in the company. This is compared to 43 positions in the previous quarter with stakes worth $3.88 billion.
As of March 31, Coatue Management is the largest shareholder in Moderna, Inc. (NASDAQ:MRNA) and holds a stake worth $1.19 billion in the company. The investment covers 8.72% of Coatue Management’s 13F portfolio.
1. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products worldwide. The company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Although the company does not currently have a vaccine to treat monkeypox, on May 26, Abbot Laboratories (NYSE:ABT) announced that it is developing a test to diagnose monkeypox. Jorge Osorio, a monkeypox expert, and a pandemic defense coalition partner at Abbott Laboratories (NYSE:ABT), explained everything there is to know about monkeypox and what measures can individuals take to protect and prevent its spread.
On July 20, Abbot Laboratories (NYSE:ABT) released earnings for the fiscal second quarter of 2022. The company reported earnings per share of $1.43 and outperformed EPS estimates by $0.29. The company’s revenue for the quarter amounted to $11.26 billion, up 10.11% year over year, and beat Wall Street expectations by $856.54 million.
Wall Street is bullish on Abbot Laboratories (NYSE:ABT). On July 21, Citi analyst Joanne Wuensch revised her price target on Abbott Laboratories (NYSE:ABT) to $123 from $125 and reiterated a Buy rating on the shares.
At the end of Q1 2022, 68 hedge funds were long Abbot Laboratories (NYSE:ABT) with stakes worth $4.09 billion. This is compared to 64 positions in the previous quarter with stakes worth $4.25 billion.
As of March 31, Fisher Asset Management owns more than 9.1 million shares of Abbot Laboratories (NYSE:ABT) and is the largest shareholder in the company. The investment covers 0.63% of Ken Fisher’s 13F portfolio.
Here is what Diamond Hill Capital had to say about Abbot Laboratories (NYSE:ABT) in its “Diamond Hill Large Cap Concentrated Fund” first-quarter 2022 investor letter:
“Abbott Labs announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”
You can also take a look at 11 Best Covid Vaccine and Pill Stocks To Invest In and 10 Healthcare Dividend Stocks with Over 3% Yield.
Follow Insider Monkey on Twitter
Suggested articles:
- 15 Biggest Vaccine Companies In The World
- 10 Best Vaccine Stocks to Buy Now
- 10 Best Healthcare Stocks To Buy
Disclosure: None. 10 Healthcare and Biotech Stocks to Buy Amid Monkeypox Threat is originally published on Insider Monkey.
