The First Ebola Vaccine Has Been Approved in the US

By Chris Lange Updated Jan 30, 11:55AM EST · Published Dec 20, 11:45AM EST

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The First Ebola Vaccine Has Been Approved in the US — © David Greedy / Getty Images

NewLink Genetics Corp. (NASDAQ: NLNK) and Merck & Co. Inc. (NYSE: MRK | MRK Price Prediction) shares made handy gains on Friday after it was announced that the U.S. Food and Drug Administration (FDA) has granted approval to Ervebo, the Zaire Ebola virus vaccine V920.

The approval comes almost three months prior to the Prescription Drug User Fee Act (PDUFA) target FDA action date, originally set for March 14, 2020.

Overall, this represents the first vaccine approved by the FDA for the Ebola virus and follows the November 11 grant by the European Commission of a marketing authorization for Ervebo across 31 European countries.

As NewLink has previously stated, the FDA’s approval of this Ebola vaccine will trigger the issuance of a priority review voucher (PRV) owned by Merck and in which NewLink Genetics has a substantial economic interest. NewLink will have the right to monetize its share of interest in the voucher.

Eugene Kennedy, M.D., chief medical officer and member of NewLink Genetics’ Office of the CEO, commented:

We are delighted by the FDA’s decision to approve this Ebola vaccine and by the agency’s recognition of the potential this vaccine may offer to protect individuals who may be exposed to Ebola from contracting this deadly disease. We are grateful to our partner Merck, and to the regulatory bodies involved, for their dedication to advancing solutions to combat this deadly illness.

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Shares of Merck were last seen up about 1.6%, at $91.46 in a 52-week range of $70.89 to $92.63. The consensus price target is $97.94.

NewLink Genetics shares were up about 14% to $1.83. The 52-week range is $1.13 to $2.27, and the consensus price target is $4.00.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.