why did vrax shoot up today then come right back down

Virax Biolabs' stock surge and subsequent decline can be attributed to several factors:

1. Agreement for Mpox Virus Detection Kits Distribution: Virax Biolabs entered into a distribution agreement with a supplier of RT-PCR Mpox virus detection kits, which will be commercialized in 13 European countries and the GCC countries. This strategic move to equip healthcare professionals with tools to diagnose and mitigate the spread of the Mpox virus likely contributed to the stock's initial rise.
2. Financial Performance and Growth Prospects: The company's recent registered direct offering, which closed with approximately $5 million in gross proceeds, indicates a strong financial position and potential for future growth. This financial boost could have been a positive signal to investors, especially considering the company's focus on developing T-Cell-based test technologies.
3. Market Response to Global Health Emergency: The World Health Organization's declaration of Mpox as a global health emergency may have heightened investor awareness of companies involved in the diagnostics and treatment of the virus. Virax Biolabs' involvement in the distribution of detection kits could have positioned it as a beneficiary of this global health concern, leading to increased investor interest.
4. Trading Volume and Penny Stock Status: The trading volume for Virax Biolabs was significantly higher than average, with more than 75 million shares traded compared to the stock's float of 1.8 million shares. This high trading volume, coupled with the company's status as a penny stock, may have led to volatility as traders responded to the news of the distribution agreement.
5. Market Dynamics and Investor Sentiment: The stock's initial rise could have been driven by positive market sentiment and investor optimism about the company's prospects. However, the subsequent decline might reflect a correction as investors reassessed the stock's valuation and the sustainability of the rally.

In conclusion, the sharp increase in Virax Biolabs' stock was likely a result of a combination of strategic moves, financial performance, and the global health emergency, while the subsequent decline may have been a correction in response to market dynamics and investor sentiment.