NewLink Genetics Corp (NASDAQ: NLNK) and
licensing partner Merck & Co., Inc. (NYSE: MRK) appear to have made a major breakthrough in prevention of one of the deadliest
diseases in the world. This week, The
Lancet reported 100 percent efficacy in Merck's final-stage trial of an experimental Ebola vaccine administered to more than
11,000 people exposed to the disease during a 2013–2016 outbreak in Guinea.
The outbreak killed
more than 11,300 people in West Africa.
“While these compelling results come too late for those who lost their lives during West Africa’s Ebola epidemic, they show that
when the next Ebola outbreak hits, we will not be defenseless,” the World Health Organization’s Marie-Paule Kieny said.
Shares of the $162 billion pharma
giant Merck barely moved on the news, but shares of $313 million NewLink were up 10.49 percent in Friday’s session.
Competitors In The Space Rejoice Alongside Merck, NewLink
Surprisingly, shares of rival Ebola vaccine biotech stocks are joining in on the NewLink rally, even though their vaccine
research is in much earlier stages. Sarepta Therapeutics Inc (NASDAQ: SRPT) shares were up 4.97 percent on Friday. The company’s Ebola vaccine candidate
is currently in Phase I testing.
BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) shares were up by 7.9 percent. The company’s Ebola vaccine candidate is
currently in Phase I testing as well.
NewLink Chief Financial Officer John Henneman told Benzinga that the company will not be receiving any further milestone
payments from Merck from this point forward. He expects the Ebola vaccine is “highly unlikely to drive future profit in [the]
company.”
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