WHO declares mpox global health emergency, causing health stocks to surge.

• Bavarian Nordic's Danish vaccine shares surged up to 17% on Thursday, coinciding with a broader upturn in the healthcare sector's stock performance.
• The World Health Organization has declared an intensifying mpox outbreak in Africa as a public health emergency.
• In Tokyo, Precision System Science Co experienced a 40% increase, while Shanghai ZJ Bio-Tech Co saw an 8% growth in China.

The stock price of Bavarian Nordic, a Danish vaccine manufacturer, increased by up to 17% on Thursday, coinciding with a broader surge in the value of healthcare stocks, following the World Health Organization's declaration of an intensifying mpox outbreak in Africa as a public health emergency.

In Copenhagen, Denmark, Bavarian Nordic, the only company with an approved mpox vaccine, experienced a 16.5% increase in early deals, building on its 13% gains from the previous session after announcing it could meet growing shot demand.

The stock's gains were pared to around 8% by 4:36 p.m. local time.

The stock price of a US pharmaceutical company that produces the ACAM2000 vaccine, which is among the two recommended by the CDC along with Bavarian Nordic's JYNNEOS, increased after hours trading in New York.

Meanwhile, medical tools supplier soared 40% in Tokyo.

On Wednesday, the WHO issued its second declaration in two years regarding mpox, following an outbreak in the Democratic Republic of Congo that has since spread to neighboring countries.

The WHO's highest designation, "public health emergency of international concern," aims to speed up international cooperation and public health measures to control a disease.

A disease known as mpox, which is transmitted from animals to humans, causes flu-like symptoms and pus-filled lesions on the body. Although typically mild, it can be fatal in rare instances.

It is believed that the increase in cases is due to a new variant, clade Ib, which is easier to spread through close contact, including sexual contact. This variant has been confirmed in Burundi, Kenya, Rwanda, and Uganda.

Following a decline in cases, the WHO removed the public health emergency designation for the virus that caused an outbreak in 2022, resulting in thousands of cases worldwide.

The new outbreak of the disease is particularly concerning due to its increased prevalence among children, and more needs to be done to improve vaccine access, according to Brian Ferguson, an associate professor of immunology at the University of Cambridge.

Despite the availability of effective vaccines, there is a shortage of doses, which are not reaching the areas where they are needed, according to him.

The WHO is collaborating with countries and vaccine manufacturers to enhance access for affected regions. The U.N. health organization has allocated $1.45 million in emergency funds and may require additional funds in the near future. It anticipates an immediate funding requirement of an initial $15 million for its response plan.

An estimated 10 million vaccine doses will be necessary to tackle the outbreak, according to Jimmy Whitworth, Emeritus professor at the London School of Hygiene and Tropical Medicine, who stated that the cost and availability of the vaccine would pose a significant challenge.

If governments place orders, Bavarian Nordic CEO Paul Chaplin stated that the company could produce 2 million doses by the end of the year and 10 million by the end of 2025. "We have the capacity, but we need orders to start coming in quickly," he emphasized.