Why is SIGA Technologies stock soaring on Monday?

SIGA Technologies stock soared 43% on Friday.
SIGA stock is up another 30% in Monday's premarket.
SIGA has a monkeypox vaccine candidate that got FDA approval.

Ivan Brian FXStreet

SIGA Technologies is soaring again on Monday as the company continues to benefit from the spread of monkeypox throughout the globe. Monkeypox is a viral infection that was common in West Africa but has now been identified globally. Initial cases are relatively small, but the wide geographical spread means that the number of cases is likely to grow. Monkeypox has been likened to chickenpox or smallpox, and it is for this reason that SIGA shares have been in demand. SIGA Technologies makes a smallpox treatment. Smallpox treatments will be effective for the treatment of monkeypox, according to experts, as monkeypox is in the same viral family.

SIGA Technologies stock news

SIGA stock and others involved with monkeypox or smallpox vaccines saw impressive gains last week. The WHO said last week it was concerned about the spread of the disease throughout summer in Europe.

"As we enter the summer season in the European region, with mass gatherings, festivals and parties, I am concerned that transmission could accelerate, as the cases currently being detected are among those engaging in sexual activity, and the symptoms are unfamiliar to many," Dr. Hans Henri P. Kluge, the WHOs Regional Director for Europe.

The US has already confirmed at least one case of the virus with Europe reporting several. The disease is native to West Africa. Last week the US FDA approved the intravenous use of SIGA's TPoxx treatment as an addition to the already approved use as an oral solution to smallpox. SIGA stock also gained last week as the US Department of Defense awarded SIGA a $7.5 million contract for the supply of oral TPOXX. This was in addition to a $26 million contract SIGA already has with the Department of Defense.

Other notable gainers in the space are Tonix Pharma (TNXP) and Emergent Bio (EBS).

SIGA stock chart

SIGA stock chart, weekly

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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