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OPKO Health, Inc.’s OPK company, ModeX Therapeutics Inc., announced the dosing of the first participant in the Phase I study (NCT06655324) of an Epstein-Barr virus (EBV) vaccine candidate yesterday. The EBV vaccine is being developed in collaboration with Merck, which is known as MSD outside the United States and Canada.
Per management, the first participant has been dosed with novel investigational EBV vaccine targeting multiple viral proteins in the Phase I study.
It is worth mentioning that this development triggers an undisclosed cash milestone payment from Merck to ModeX.
The move is expected to be a significant milestone for ModeX’s research and development programs related to the EBV vaccine, thereby solidifying OPKO Health’s foothold in the niche space.
OPK Stock Up Following the News
Following the announcement, shares of the company gained nearly 4.1% till yesterday’s closing.
Historically, the company has gained a top-line boost from its various research and development programs and positive study outcomes. We expect market sentiment on the stock to remain positive around this announcement too.
OPKO Health currently has a market capitalization of $1.02 billion. It has a current ratio of 2.97, favorable than the industry’s 2.44. In the last reported quarter, OPK delivered an earnings surprise of 130%.
Significance of OPKO Health’s Announcement
EBV causes infectious mononucleosis and is associated with various types of cancer and multiple sclerosis. Per OPKO Health, the EBV infection (for which there are currently no treatments or vaccines) poses long-term risks of cancer and autoimmunity.
Per OPKO Health’s management, human trials to advance a novel vaccine candidate have now begun through its collaborators at Merck. Management is hopeful about the company’s nanoparticle vaccine, which aims to stimulate protective immunity in patients and prevent these diseases.
Industry Prospects to Benefit OPK
Per a report by BCC Research, the global market for nanoparticles in biotechnology, drug development and drug delivery is expected to grow from $102.7 billion in 2023 to $156.8 billion by 2028 at a CAGR of 8.8%. Factors such as increasing research and development activities in the nanoparticle analysis field, rising cases of cancer and technological advancements are likely to drive the market.
Given the market potential, the latest announcement is expected to be a significant milestone for OPKO Health’s business.
OPKO Health’s Notable Development
In October 2024, OPKO Health’s ModeX was awarded $35 million of additional funding under an existing contract with the Biomedical Advanced Research and Development Authority, part of the Administration for Strategic Preparedness and Response at the U.S. Department of Health and Human Services. The funding brings the total support awarded to ModeX to $110 million out of $205 million if all options are executed.