almost 2 years ago • 1 min
Outbreaks of monkeypox in Europe and North America have been getting people worried about its potential spread, but getting investors excited about the potential for gains. They’ve zoned in on three biotechnology companies that are developing a treatment, with shares of SIGA Technologies (SIGA), Emergent BioSolutions (EBS), and Bavarian Nordic (BVNRY) all posting double-digit gains on Thursday.
Now, monkeypox is neither as easily transmissible as Covid-19, nor as deadly. And there’s a chance the monkeypox spread will be contained as quickly as it’s appeared, which could blunt investors’ enthusiasm for those stocks. After all, the most recent outbreak in the US is believed to have been limited to 47 people.
Still, governments will probably be particularly proactive in clamping down on the virus, given how fresh the initial Covid outbreak is in people’s memories. That attention alone could push the price of those stocks even higher. It’s just worth using a tight stop-loss to limit your losses, in case we’re fortunate enough that they manage to nip it in the bud before too long.
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