Merck sells its $175 million investment stake in Moderna after recording a 'substantial' gain - Business Insider | Canada News Media
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Merck sells its $175 million investment stake in Moderna after recording a 'substantial' gain – Business Insider

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4 years ago

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The Merck logo is seen at a gate to the Merck & Co campus in Linden, New Jersey

Reuters

  • Following an eye-popping rally in 2020, Merck said on Wednesday that it sold its entire stake in Moderna.
  • Merck, which is collaborating with Moderna on potential cancer treatments, invested in Moderna in 2015 and 2018.
  • Merck said it recorded a “substantial gain” in its investment in Moderna, and still holds indirect exposure to Moderna through its investments in venture funds.
  • Shares of Moderna initially traded lower on the news, but have since recovered in Wednesday trades.
  • Visit Business Insider’s homepage for more stories.

One investor cashing in on Moderna’s meteoric rise in 2020 is Merck, the New Jersey-based pharmaceutical giant.

In a statement on Wednesday, Merck said it sold its equity stake in Moderna in the first half of the fourth quarter, adding that it achieved a “substantial gain” on its holdings.

Shares of Moderna traded down as much as 9% in early morning trades, but have since recovered as of Wednesday afternoon.

Merck initially invested $50 million in Moderna before it was public in 2015, and subsequently invested $125 million in the company in 2018. Moderna went public in late 2018.

Year-to-date through the start of the fourth quarter, shares of Moderna were up 255%. The stock has continued to rally in the fourth quarter, with Moderna hitting an all-time high of $178.50 in Tuesday’s trading session, representing year-to-date gains as high as 813%. 

Read more: BlackRock is channeling more cash to high-momentum and relatively small stocks as the economy recovers. These are the 20 companies they’re earmarking the most money for.

Merck said it still holds indirect exposure to Moderna’s equity through venture funds. 

Merck did not specify how much it booked in profits on the investment. The company said it will record the gain in the “other income” section of its income statement when it reports earnings.

The two biotech companies continue to collaborate on potential cancer vaccine treatments.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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2 days ago

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October 16, 2024

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

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1 week ago

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October 11, 2024

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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1 week ago

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October 10, 2024

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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