Siga Technologies said Wednesday it won government contracts worth roughly $28 million for its monkeypox treatment, and Siga stock rocketed.
The bulk of the contracts comes from Canada where the Public Health Agency of Canada signed a $22 million deal for doses of Tpoxx. Tpoxx is approved in the U.S. and Canada as an oral smallpox treatment. Smallpox is related to monkeypox. In Europe, Tpoxx can treat smallpox, monkeypox, cowpox and complications from the smallpox vaccine.
Also in Canada, the Department of National Defense procured $4 million worth of the monkeypox treatment. Two other jurisdictions — one in Europe and one in the Asia Pacific region — entered deals for a collective $2 million in initial doses. That brings the total Tpoxx orders this year up to $56 million from six countries, Siga said in a news release.
"The increase over the last two months in international orders of oral Tpoxx reflects an initial public health reaction to the evolving monkeypox outbreak," Siga Chief Executive Phil Gomez said in a written statement.
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On today's stock market, Siga stock jumped 11.8% to 14.54.
Siga Stock: Tpoxx Orders Soar
Monkeypox began cropping up in May in countries where the disease isn't endemic, including the U.S. The disease is spread through skin-t0-skin contact or contact with contaminated items, like eating utensils, bedding or towels, according to the Centers for Disease Control and Prevention. It can also arise from contact with an animal or animal product that exists solely in Africa.
The virus, which belongs to the orthopoxvirus family, leads to a rash and flu-like symptoms within three weeks of exposure.
Siga's Tpoxx is an oral monkeypox treatment. The company says it has received "a large number of ongoing inquiries about accessing oral Tpoxx."
"These new orders and the ongoing inquiries highlight the overall importance of health security preparedness, and that by increasing both the scale and scope of Tpoxx stockpiling, countries can be better prepared for the outbreak risks of smallpox, monkeypox, and other viruses in the orthopoxvirus family of viruses and make sure that patients are able to access treatment," CEO Gomez said.
Monkeypox Treatment In Focus
Siga stock has risen nearly 89% since mid-May after the first U.S. case was discovered. Shares are now consolidating with a buy point at 14.90, according to MarketSmith.com.
Notably, the biotech stock has a Relative Strength Rating of 99. This puts Siga stock in the leading 1% of all stocks in terms of 12-month performance, according to IBD Digital. Further, shares have a strong Composite Rating of 96 out of a total 99. The CR measures a stock's fundamental and technical measures, putting Siga among the leading 4% of all stocks regardless industry group.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
