On May 2, the World Health Organization (WHO) reported an outbreak of hantavirus, a serious respiratory disease transmitted by rodents, after several passengers contracted it on the MV Hondius cruise ship.
Although the WHO assessed the public health risk as low, the news prompted a notable increase in several pharmaceutical stocks as investors speculated on which companies might be best positioned to respond to the outbreak.
Moderna, known for its COVID-19 vaccine, saw its stock rise by 7% in premarket trading after announcing it was conducting preclinical research on hantavirus in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases.
However, analysts from Evercore ISI cautioned that this situation is unlikely to present a significant revenue opportunity for Moderna, describing the market for hantavirus as low-incidence and suggesting that any stock movements are driven more by sentiment than by fundamental business prospects.
Other companies also experienced stock increases, with Inovio Pharmaceuticals rising by 13%, Emergent Biosolutions by 4%, and Novavax by 3%. U.S. President Donald Trump commented that the outbreak was under control and indicated that further reports would follow.
The strain involved is the Andes virus, which is capable of human transmission, with the WHO confirming eight cases and three deaths related to this outbreak. As the situation develops, the MV Hondius has docked in Tenerife, Spain, where health authorities are managing the disembarkation of passengers and crew under strict health protocols