Skip to main content

A biotech investor reportedly made $255 million in just 4 weeks on Novavax's 120% surge (NVAX)


For one biotech firm, an investment in vaccine company Novavax is paying off. 

RA Capital, a small biotech investment firm based in Boston, made $255 million in paper profits in less than four weeks from an investment in Novavax, Gregory Zuckerman of The Wall Street Journal reported Thursday. The firm bought 4.4 million shares of convertible preferred stock on June 12 for $200 million, about 7.5% of Novavax's total shares, according to the report. 

The firm made the investment after becoming convinced that the coronavirus will remain a threat for many years, and that any vaccine may be needed annually, according to the report. 

Since June 12, Novavax's shares have skyrocketed 120%. This year, the company's stock has rallied nearly 2,300% amid the coronavirus pandemic — Novavax announced in February it was working on a COVID-19 vaccine.

Read more: GOLDMAN SACHS: Wall Street is bracing for a historically wild stock market as the presidential election nears. Here's a surprising yet simple strategy for protecting your portfolio — regardless of outcome.

It's steadily gained since then as investors look to capitalize on hopes that a vaccine will soon come. On Tuesday, Novavax surged as much as 41% when the company announced it will receive $1.6 billion from the government to develop and manufacture its coronavirus vaccine candidate. It pared some of those gains Thursday, falling as much as 5%. 

Shares of competing pharmaceutical companies such as Moderna, Regeneron, and Gilead have also skyrocketed this year. 

NOW WATCH: A cleaning expert reveals her 3-step method for cleaning your entire home quickly

See Also:

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.