Investing in Global Health Security: Undervalued Biotech Stocks in the Post-Mpox PHEIC Era

The World Health Organization's () declassification of mpox as a Public Health Emergency of International Concern (PHEIC) in August 2025 has sent ripples through the biotech and pharmaceutical sectors. While the decision signals a shift from emergency response to sustained containment, it also raises critical questions about the future of investment in mpox-related R&D. For investors, this transition presents both risks and opportunities. The key lies in identifying companies with robust pipeline assets, government partnerships, and the capacity to adapt to evolving public health priorities.

The PHEIC Deescalation and Its Implications

The WHO's decision to lift the PHEIC status followed a decline in global mpox cases and improved containment efforts in endemic regions. However, the virus remains a persistent threat, particularly in Africa, where clade Ib and clade IIb strains continue to circulate. The declassification does not negate the need for vaccines, diagnostics, or antivirals—it merely reorients the focus from emergency funding to long-term preparedness. This shift has already begun to reshape market dynamics.

Take Bavarian Nordic, the Danish firm behind , the only FDA-approved mpox vaccine. , reflecting investor optimism. However, post-declassification, the stock has stabilized, . This undervaluation may be misleading. Bavarian Nordic has secured WHO prequalification for , enabling procurement in low- and middle-income countries, . With Gavi's mpox vaccine stockpile initiative set to launch in 2026, the company's long-term revenue potential remains strong.

Undervalued Innovators in the Mpox Space

Beyond vaccines, the mpox landscape includes companies developing antivirals, diagnostics, and next-generation platforms. (NYSE: NNVC), for instance, is advancing , a broad-spectrum antiviral targeting orthopoxviruses. Unlike existing treatments like (TPOXX), which face efficacy and safety concerns, NV-387 is designed to resist viral mutations by mimicking . The drug is in late-stage clinical development, with a focus on high-risk populations in Africa. Despite its scientific promise, , reflecting skepticism about its commercial viability. Yet, with the 's emphasis on sustained mpox response, the company could benefit from renewed interest in antiviral therapies.

SIGA Technologies, which markets , has also seen its valuation dip post-declassification. However, the company's drug remains a critical tool in the mpox arsenal, . government order in 2023. While TPOXX is repurposed from , its role in treating severe mpox cases ensures continued demand. SIGA's stock, , may represent an undervalued opportunity for investors seeking exposure to the antiviral segment.

The Role of Government Partnerships and mRNA Innovation

Government contracts and public-private partnerships remain pivotal in sustaining mpox R&D. 's BNT166, a multivalent vaccine, . The company's , , facility—now operational—positions it to lead in both mpox and future outbreak responses. BioNTech's stock has underperformed relative to peers, , despite its strategic alignment with global health initiatives. This undervaluation may reflect market skepticism about the long-term profitability of mpox vaccines, but the company's mRNA platform offers scalability and adaptability, key advantages in a post-PHEIC world.

, , also warrants attention. While its vaccine is primarily for smallpox, the company's focus on mpox vaccines could differentiate it in a competitive market. , but its production capacity and government ties suggest resilience.

Investment Strategy: Balancing Risk and Resilience

The declassification of mpox as a PHEIC does not eliminate the virus's threat. Instead, it underscores the need for sustained investment in preparedness. For investors, this means prioritizing companies with diversified pipelines, government contracts, and platforms adaptable to future outbreaks. Bavarian Nordic, NanoViricides, and stand out for their alignment with these criteria.

However, risks persist. Vaccine distribution challenges, funding shortfalls, and the emergence of new strains could dampen returns. Investors should also consider macroeconomic factors, such as the potential for reduced U.S. foreign aid, which could impact procurement.

Conclusion: A Call for Prudent Optimism

The mpox declassification marks a turning point, not an end. While the immediate urgency has waned, the virus's persistence and the lessons of past outbreaks demand continued vigilance. For investors, this is an opportunity to support innovation in global health security while capitalizing on undervalued assets. The key is to focus on companies with strong fundamentals, strategic partnerships, and the agility to navigate a shifting regulatory and epidemiological landscape. In a world where emerging threats are inevitable, the biotech sector's ability to adapt will define its long-term success—and its value for investors.