Ebola outbreak sends shares of vaccine maker GeoVax skyrocketing

Shares of micro-cap biotech GeoVax Labs jumped nearly 11% on Wednesday after the company said in comments that its experimental vaccine platform could potentially be used to combat multiple viruses, including the Bundibugyo strain of Ebola currently spreading in the DR Congo and Uganda. On Sunday, the World Health Organization declared the outbreak a public health emergency of international concern. Wall Street analysts see nearly 580% upside for GeoVax shares.

Shares of GeoVax, whose market capitalization on the Nasdaq stands at just $7.7 million, climbed nearly 11% on Wednesday to $2.23 per share. That marked the highest level since mid-February.

The company said its platform could be used to develop vaccines targeting multiple pathogens, including the Bundibugyo strain of the Ebola virus. There are currently no approved vaccines to prevent the virus, according to GeoVax.

GeoVax is developing so-called MVA vaccines. They use Modified Vaccinia Ankara (MVA), a modified smallpox vaccine virus that acts as a type of “carrier” or “delivery system” for the genetic material of other viruses to stimulate immunity in humans.

Vaccines developed using this approach mimic the structure of authentic viruses but are not capable of infecting humans or replicating inside the body, the company said. In addition, MVA can be used to develop vaccines targeting multiple diseases simultaneously.

GeoVax cited examples from animal studies in which vaccines developed using the technology demonstrated efficacy against other Ebola strains – Zaire and Sudan – as well as the Marburg virus, which is fatal in as many as 88% of cases.

“These outbreaks collectively reinforce a growing reality: preparedness against one viral strain does not necessarily ensure preparedness against the next,” GeoVax CEO David A. Dodd said in the company’s press release. “Outbreaks involving Ebola, mpox, Marburg, hantavirus, and other emerging pathogens collectively reinforce the growing need for platform technologies capable of supporting rapid response against evolving threats,” he added.

On Sunday, the WHO declared that Ebola disease caused by the Bundibugyo virus in the Democratic Republic of the Congo and Uganda constitutes a public health emergency of international concern (PHEIC). The organization said unusual outbreaks had been detected in several regions, most of which remain unconfirmed by laboratory testing, though symptoms are consistent with Ebola disease. As of Saturday, about 100 people had reportedly died after suspected infection with the virus.

GeoVax shares have fallen nearly 48% year to date. Two Wall Street analysts rate the stock a “buy,” while one recommends “hold.” The average target price stands at $15 per share, implying upside of roughly 573%.