Ebola fears driving stock winners
Fears of Ebola have plagued the United States since late September, and some biotech companies have capitalised on this fear. These fears and some hopes of potential contracts or increased orders have been accounted for and prices have risen as a result in some of the key Ebola stocks.
In Monday’s premarket trading, iBio Inc. (NYSEMKT: IBIO) has been the biggest winner, up more than 80% to $2.66 from Friday’s close of $1.47. This is on the heels of Friday’s rally of more than 80% from its Thursday close of $0.80. The company is reported to be a player in a government effort to ramp up production of an Ebolarelated drug, ZMapp. iBio uses the iBioLaunch platform, which is a proprietary gene expression technology capable of producing high levels of target proteins in plants. Ultimately these proteins are used to create vaccines and can be produced quickly and efficiently. By partnering with Mapp Biopharmaceuticals, the producer of ZMapp, they can bring its Ebola treatment to market quicker than previously expected. iBio’s shares have a consensus analyst price target of $3.00 and a 52-week trading range of $0.24 to $1.57.
Lakeland Industries Inc. (NASDAQ: LAKE) has been another beneficiary of the “Ebola outbreak.” This hazmatsuit maker has seen its stock shoot up roughly 216% to a high on Friday of $21.94 from its close on September 30 of $6.95. In Monday’s premarket, the stock was up about 16% to $22.80 from the previous close of $19.63. Shares of Lakeland have a consensus analyst price target of $7.35 and a 52-week trading range of $4.75 to $21.94.
Allied Healthcare Products Inc. (NASDAQ: AHPI) saw its shares take a large uptick on Friday, gaining 78% to reach $3.30 from the previous close of $1.85. This rally continued into the premarket Monday as shares were up another 10% to $3.65. Allied Healthcare is a manufacturer of respiratory therapy and emergency medical supplies. It would appear that the company has finally received recognition for what role it can play in this Ebola saga with its emergency and respiratory equipment. Its stock has a consensus analyst price target of $4.51 and a 52-week trading range of $1.60 to $3.90.
Tekmira Pharmaceuticals Corp. (NASDAQ: TKMR) shares were correcting in Monday’s premarket after taking a hit on Friday. Shares were down roughly 4% to close at $22.80 on Friday, while they gained almost 6% in the premarket to $24.14 on Monday. The company’s shares have a consensus analyst price target of $27.54 and a 52week trading range of $7.17 to $31.48.
Sarepta Therapeutics Inc. (NASDAQ: SRPT) was up only about 1.8% at $19.19 shortly after the open.