After the World Health Organization announced a slowdown in Ebola spreading, the shares of leading Ebola associated stocks including Alpha Pro Tech, Ltd. (NYSEMKT:APT) And Lakeland Industries, Inc. (NASDAQ:LAKE) plunged in the day’s trading. At the same time, demand for protective gear is likely to reach higher in near future.
The shares of Alpha Pro Tech, Ltd. (NYSEMKT:APT) plunged 26.77% yesterday closing at $7.36 breaking its growth streak after several weeks. The latest data from WHO stated 8,914 possible suspects of Ebola with 4,447 deaths from the crisis. According to the assistant director-general, Bruce Aylward, these numbers are “relatively flat” when compared with nearly 1,000 new cases per week for the last 3 to 4 weeks.
Similarly, the shares of Lakeland Industries, Inc. (NASDAQ:LAKE) witnessed 26.10% decline in its share prices closing at $21.43 yesterday. The company is involved in the manufacturing of hazmat suits for healthcare workers. As per WHO, the only reason for concern is the global widespread of Ebola virus in the past few days, as the disease spreads through capital cities of Africa.
Ebola has raised the demand for protective suits in various government institutions and international organizations, as told by company executives. According to WHO, as many as 3 million protective suits would be necessary to cover the Ebola outbreak and ensure the safety of the healthcare workers. According to the Centers for Disease Control and Prevention (CDC), if the community behavior doesn’t change in Africa, there could be as many as 1.4 million Ebola cases until January 2015 in western Africa alone.
When asked about the increasing demand from these protective suit manufacturers, DuPont, protective suit manufacturer supplying in both U.S. and West Africa, said that the company has nearly tripled its production post the Ebola outbreak earlier this year. Medline, another medical supply manufacturer and distributor, said to witness an increase of 40% in the sale of eyewear, facemasks, and shields along with 25% increase in the sale of protective apparels.
This article has been written by Prakash Pandey.