- RA Capital Management, a small biotech investment company, has made $255 million in paper profits in less than four weeks from a bet on Novavax, The Wall Street Journal reported Thursday.
- Shares of pharmaceutical company Novavax have risen almost 2,300%this year. In February, the company stated it was dealing with a vaccine for COVID-19
- On Tuesday, shares jumped as much as 41%when the business announced it will get $1.6 billion from the federal government to establish and produce its coronavirus vaccine.
- Watch Novavax trade survive on Markets Insider.
- Read more on Service Expert
For one biotech firm, an investment in vaccine business Novavax is paying off.
RA Capital, a little biotech investment company based in Boston, made $255 million in paper profits in less than 4 weeks from a financial investment in Novavax, Gregory Zuckerman of The Wall Street Journal reported Thursday. The company purchased 4.4 million shares of convertible favored stock on June 12 for $200 million, about 7.5%of Novavax’s total shares, according to the report.
The firm made the financial investment after becoming persuaded that the coronavirus will remain a risk for many years, and that any vaccine may be required yearly, according to the report..
Since June 12, Novavax’s shares have actually increased 120%. This year, the business’s stock has rallied almost 2,300%amidst the coronavirus pandemic– Novavax announced in February it was working on a COVID-19 vaccine.
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It’s gradually gotten ever since as financiers want to profit from hopes that a vaccine will soon come. On Tuesday, Novavax rose as much as 41% when the company announced it will receive $1.6 billion from the federal government to establish and produce its coronavirus vaccine prospect. It pared some of those gains Thursday, falling as much as 5%.
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