Monkeypox stocks, our topic for today, have had a mostly mixed performance so far in 2022. It is likely, however, that they could benefit from the similar tailwinds enjoyed by companies, such as Pfizer (NYSE:PFE), BioNTech (NASDAQ:BNTX), and Moderna (NASDAQ:MRNA), which have developed the Covid-19 vaccines that have now become household names.
Monkeypox is a smallpox-like disease caused by the monkeypox virus. Both viruses share the same genus: Orthopoxvirus. Originally relegated to certain central and western African countries, the disease has spread to some 31,000 people globally. There are around 10,000 cases stateside. Yet, the majority of monkeypox cases are relatively mild.
The disease’s relative mildness aside, fears of a possible Covid-like monkeypox pandemic have alleviated some of the recent woes afflicting the biotech industry. Not entirely of course, as the NASDAQ Biotechnology Index, for example, is still down around 10% year to date (YTD). Meanwhile, the broader NASDAQ Composite has fallen almost 16% over the same period.
With governments worldwide stockpiling vaccines and treatments, monkeypox researchers and vaccine manufacturers could see a sharp increase in share prices. With that information, here are seven monkeypox stocks to buy in August.
|APDN||Applied DNA Sciences||$3.33|
|IDNA||iShares Genomics Immunology and Healthcare ETF||$33.64|
Applied DNA Sciences (APDN)
52-week range: $0.62 – $7.35
Our first on this list of monkeypox stocks is a testing play, Applied DNA Sciences (NASDAQ:APDN) offers DNA-based biotechnology solutions. The company operates in three primary business markets: the manufacture of DNA for use in nucleic acid-based therapeutics; the detection of DNA in molecular diagnostics testing services; and the manufacture and detection of DNA for industrial supply chain security services.
Management released third quarter FY22 results on Aug. 11. Revenue came in at $4.3 million, compared with $1.7 million for the same period last year. Net loss per share was 13 cents compared to 48 cents for the same period last year.
Recently, APDN announced that its wholly-owned clinical laboratory subsidiary, Applied DNA Clinical Labs (ADCL), has developed a PCR-based test to detect the monkeypox virus through its genetic signature. If approved by various health authorities, “the test will be used to power ADCL’s monkeypox testing services.”
APDN stock is down about 17% year-to-date (YTD) and 45% over a 12-month period. Shares trade at 1.68 times sales. Meanwhile, the 12-month median price forecast for APDN stands at $7.00.
Bavarian Nordic (BVNRY)
52-week range: $5.85 – $19.31
Bavarian Nordic (OTCMKTS:BVNRY) is a Danish biotechnology and pharmaceutical company. The company manufactures the only two vaccines approved in the U.S. for monkeypox: Imvanex and Jynneos. This alone makes it a top pick as far as monkeypox stocks go.
In early May, Bavarian Nordic reported Q1 financials. Revenue was 320 million Danish Kroner (DKK), decreasing from 535 million DKK the year before. Cash and equivalents totaled 2.95 billion DKK.
The company recently announced an additional contract to provide 350,000 doses of its Jynneos smallpox/monkeypox vaccine to an undisclosed Asia/Pacific Region country. The company already has contracts with governments in the U.S., Canada, and others. For instance, Jynneos is part of the Strategic National Stockpile, which contains enough vaccines to vaccinate every person stateside.
As a result of these positive developments, BVNRY stock has jumped up 11.7% YTD. Shares are trading at 13.1 times sales.
52-week range: $1.27 – $7.42
Biopharma play Chimerix (NASDAQ:CMRX) is known for TEMBEXA, an oral antiviral in tablet and oral suspension formulations used for the treatment of smallpox disease. It was approved by the Food and Drug Administration (FDA) in June 2021.
Management released Q2 results on Aug. 8. Revenue came in at $0.4 million. Net loss per share was 27 cents compared with 21 cents for the year-ago quarter.
In Late June, Chimerix announced that the Public Health Agency of Canada awarded a contract up to $25.3 million to procure TEMBEXA. Long-term CMRX shareholders would know that earlier in the year, the company agreed with Emergent BioSolutions (NYSE:EBS) for Emergent to sell Chimerix’s exclusive worldwide rights to TEMBEXA. Therefore, the exact amount of royalties for Chimerix needs to be finalized.
CMRX stock is down about 58% YTD and 56% over a 12-month period. Wall Street’s 12-month median price forecast for CMRX is $6.00.
GeoVax Labs (GOVX)
52-week range: $0.55 – $7.50
Next on our list of monkeypox stocks is GeoVax Labs (NASDAQ:GOVX). GeoVax is a clinical-stage, pre-revenue pharma company with a focus on vaccines and immunotherapies. Its current research programs center around Covid-19, various hemorrhagic fever viruses, Zika virus, malaria, and various forms of cancer. The company utilizes recombinant-DNA-based genetic engineering to develop its drugs.
In early August, GeoVax provided Q2 earnings. Loss per share was 18 cents, compared to a loss per share of 21 cents the prior year. Cash and equivalents totaled $30.9 million.
Recently, the company announced that its GEO-CM04S1 vaccine was being evaluated for effectiveness against monkeypox. GeoVax also revealed that its hemorrhagic fever virus vaccine will also be assessed as a possible candidate for monkeypox. GeoVax anticipates both vaccines will show effectiveness against the virus.
Yet, despite the potential, GOVX stock has lost close to a third of its value since January. Shares are trading at 80.4 times sales.
iShares Genomics Immunology and Healthcare ETF (IDNA)
52-Week Range: $24.77-$55.55
Dividend Yield: 1.15%
Expense Ratio: 0.47% per year
Recent metrics suggest that the global biotechnology market can hit $3.9 trillion by 2030, expanding at a compound annual growth rate (CAGR) of 13.9% between 2022 and 2030. Thus, our next choice is an exchange-traded fund (ETF) that focuses on global biopharmaceutical and healthcare companies.
The iShares Genomics Immunology and Healthcare ETF (NYSEARCA:IDNA) invests in businesses that could benefit from the long-term growth and innovation in genomics, immunology, as well as bioengineering. Many of these stocks are involved in critical research and development (R&D). The fund was first listed in June 2019.
IDNA, which tracks the NYSE FactSet Global Genomics and Immuno Biopharma Index, currently holds a basket of 41 holdings. The top 10 stocks comprise more than 40% of $217.2 million in net assets. More than two-thirds of the companies come from the U.S. Next in line are businesses from Germany (7.6%), Japan (6.4%), China (4.5%), and Denmark (3.9%).
Leading names include biotechnology company Beam Therapeutics (NASDAQ:BEAM); clinical-stage genome editing firm Intellia Therapeutics (NASDAQ:NTLA); Cayman Islands-based biotech name Beigene (NASDAQ:BGNE); clinical-stage biopharmaceutical company Fate Therapeutics (NASDAQ:FATE); and Moderna.
IDNA has dropped nearly 22% since January and 35.5% over the past 12 months. Trailing price-to-earnings (P/E) and price-to-book (P/B) ratios stand at 12.36x and 2.19x, respectively. Interested readers whose long-term portfolios can handle short-term choppiness could invest in the promising prospects of the biotech sector through IDNA.
SIGA Technologies (SIGA)
52-week range: $5.49 – $25.54
SIGA Technologies (NASDAQ:SIGA) is a commercial-stage pharmaceutical company. It offers, TPOXX, an antiviral medication used to treat smallpox and other pox viruses, including monkeypox. It is also available through the Strategic National Stockpile.
In early August, SIGA posted Q2 metrics. Revenue totaled $16.7 million, compared to $8.7 million the previous year. Diluted income per share was 3 cents. Cash and equivalents totaled $114.5 million.
The company recently announced its TPOXX antiviral medication will be used in an experimental treatment protocol in the Central African Republic, CAR. The company will provide up to 500 doses to the study, sponsored by Oxford University in the U.K.
SIGA stock has skyrocketed almost 230% since the beginning of the year. Shares are trading at 12.6 times sales.
Tonix Pharmaceuticals (TNXP)
52-week range: $1.19 – $24.89
Last on our list of monkeypox stocks is the clinical-stage biopharmaceutical company Tonix Pharmaceuticals (NASDAQ:TNXP). Its portfolio comprises of candidates for the central nervous system (“CNS”), immunology and infectious diseases.
Management reported Q2 results on Aug. 8. The pharma play has not recorded any revenues, yet. However, loss per share went down to $1.22 compared to $2.25 for the prior-year quarter.
Recently, TNXP announced a collaboration with the Kenya Medical Research Institute (KEMRI) to seek regulatory approval for conducting a Phase 1 clinical study in Kenya. The study aims to develop TNX-8011 as a vaccine to protect against monkeypox and smallpox and is expected to start in the first half of 2023.
TNXP stock is down 86% YTD struggling to stay above $1 per share to stay listed on the stock exchange. Therefore, it is a risky biotech and smallpox play, not suitable for most portfolios.
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On the date of publication, Tezcan Gecgil, Ph.D., is both long and short BNTX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.