As the WHO declares a global health emergency over the mpox outbreak, vaccine makers' stocks are surging. Is profiting from human misery the new normal?
The Grim Reality: Mpox and the Surge in Vaccine Stocks
The recent declaration of a global health emergency by the World Health Organization (WHO) in response to the escalating mpox outbreak in Africa has sent shockwaves through the financial markets. But, alongside the cry for humanitarian aid and global cooperation, the immediate reaction from the markets was a surge in vaccine company stocks as investors and traders sought to benefit from the surge in demand. This isn’t a blip on the radar, it’s a clear example of how the market capitalizes on crises, with a chilling focus on human suffering.
Mpox has spread from Congo to neighbouring countries, including Burundi, Kenya, Rwanda and Uganda, prompting the WHO to declare the outbreak of the disease a global public health emergency https://t.co/9zZBEST12G pic.twitter.com/2zYrF88om2
— Reuters (@Reuters) August 15, 2024
As investors rush to capitalize on the potential windfall from the crisis, shares in vaccine manufacturers have soared. Companies like Bavarian Nordic and Emergent BioSolutions have seen significant upticks in their stock prices following the WHO's emergency declaration. Bavarian Nordic, which produces the only FDA-approved vaccine for mpox, witnessed a surge in its stock value, while Emergent BioSolutions, a key player in vaccine production, saw similar gains. Other companies producing medical tools used in the production or administration of vaccines have also seen upticks.
🌍 🇩🇰 Bavarian Nordic $BAVA stock jumps up to 17% at open, post WHO's declaration of the Mpox outbreak as a global health emergency. 🚨 With an approved vaccine ready, the company pledges to deliver 10m doses by 2025. #BavarianNordic #Mpox #GlobalHealthEmergency #Vaccines 💉 pic.twitter.com/m7D6GXkux3
— Saxo Bank MENA (@SaxoBankMENA) August 15, 2024
Profiting from Misery
Let’s not mince words: the market’s enthusiastic response to the mpox emergency is pretty grim, though predictable. It's a stark reminder of how the financial system often operates with a moral compass that’s spinning wildly out of control. The surge in vaccine stocks isn't about hope or relief; it’s about profit—cold, hard cash made off the back of a public health crisis.
This pattern is nothing new. The pharmaceutical industry has a long history of reaping massive profits from global health crises. The Covid-19 pandemic was a prime example, with companies like Pfizer and Moderna enjoying unprecedented stock gains. But the current response to the mpox outbreak feels even more unsettling, given the slow, inadequate response to the needs of those suffering from the disease.
Remembering Martin Shkreli
If this all sounds familiar, it’s because it is. Just consider the case of Martin Shkreli and the infamous Daraprim price hike. In 2015, Shkreli, then CEO of Turing Pharmaceuticals, jacked up the price of Daraprim—a life-saving drug used to treat parasitic infections—from $13.50 to $750 per pill overnight. The public outrage was swift, but so was the financial windfall for Shkreli, a famed lover of Kayne West, and his company.
The conditions are different, for sure, but the idea of actively profiting off suffering, especially given the curative nature of the products produced by the vaccine manufacturers, makes it stick in the throat. One key difference? This time, it’s the entire market that’s jumping on the bandwagon, making the exploitation of a public health crisis a norm rather than an anomaly.
The Mpox Emergency: A Lesson in Unchecked Capitalism
The current surge in vaccine stocks raises uncomfortable questions about the nature of capitalism, particularly in the healthcare sector. When the market rewards companies for merely being in the right place at the right time, it becomes clear that profit, not people, is the driving force.
The WHO’s declaration of a global health emergency over the mpox outbreak was meant to mobilize resources, encourage cooperation, and prompt action, it wasn’t meant to be an indication that investors should line their pockets. This is not just an indictment of the market, but of the entire economic system that allows such behavior to thrive.
Looking Forward
So, where do we go from here? For starters, it’s crucial to recognize that the current model of profit-driven healthcare is fundamentally flawed. When life-saving treatments and vaccines are treated as commodities rather than public goods, the result is a system that prioritizes profit over people.
There’s a pressing need for stronger regulation and oversight to ensure that the healthcare industry serves the public interest rather than that of the shareholders. This could include measures such as price controls on essential medicines, stricter regulations on pharmaceutical patents, and greater transparency in pricing.
But beyond policy changes, there needs to be a cultural shift—a rethinking of the values that underpin our economic system. The idea that it’s acceptable to profit from human suffering should be rejected outright. We need to move towards a model of healthcare that is centered on equity, access, and the well-being of all people, not just the bottom line.
We can but hope, right?
To wrap it all up, the surge in vaccine stocks following the mpox emergency declaration is a disturbing reflection of our times. It highlights a systemic problem where human suffering is just another opportunity for profit. As we navigate through this crisis, it’s crucial to ask ourselves: what kind of society do we want to be? One that profits from pain, or one that prioritizes people over profit?
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