The Danish biotech company Bavarian Nordic is once again in the market spotlight after announcing plans to increase production of its Mpox vaccine. This decision comes in response to recent Mpox virus outbreaks in Africa and the confirmation of a new, more dangerous variant outside the continent. Following this news, the company's stock saw a significant rise before profit-taking pushed the price back down.

On Tuesday, Bavarian Nordic's stock temporarily reached a gain of 3.36 percent at 279.60 Danish Krone on the Copenhagen stock exchange. However, it ultimately closed 1.04 percent lower at 267.70 Danish Krone. The announcement of the planned production increase over the weekend and the upcoming release of the half-year figures on Thursday likely influenced the price movements.

Bavarian Nordic produces the only Mpox virus vaccine approved so far in the USA and Europe and has announced plans to increase production capacity in response to new outbreaks and WHO warnings. The company plans to provide an additional ten million vaccine doses by the end of 2025, with up to two million doses available as early as 2024. Additionally, vaccine production in Africa is to be expanded through technology transfer to local manufacturers.

The upcoming release of semi-annual figures could indicate whether recent developments have already had a positive impact on Bavarian Nordic's financial performance. However, analysts expect a significant decline in earnings per share to 1.92 Danish kroner in the second quarter, compared to 6.90 Danish kroner in the same period last year. Revenue is also expected to be lower compared to the previous year.

Despite the positive news, "WirtschaftsWoche" warns that the stock price increase may not be sustained. A similar rise in the stock during the Mpox outbreak in 2022 was quickly followed by losses. Additionally, Bavarian Nordic could face political pressure to offer its vaccines at a lower cost to affected countries or to release patents, which could impact future profits.