U.S. drugmaker Merck (NYSE:MRK) said on Wednesday it has sold its equity investment in Moderna (NASDAQ:MRNA), after benefiting from a surge in the stock price of the vaccine developer this year.
Merck did not disclose the details of the sale proceeds, but said it expects to record a small gain from the sale in the fourth quarter of 2020.
Moderna’s shares have risen more than seven-fold this year, valuing the company at $55.80 billion as of Tuesday’s closing price. They opened Wednesday down $3.62, or 2.6%, to $137.39.
Moderna is one of the front-runners in the race to develop a coronavirus vaccine, and on Monday filed for U.S. emergency use authorization of its vaccine.
Merck, which had invested $50 million in Moderna in 2015, said it would retain exposure to the company indirectly through its investment in venture funds.
Merck had invested a sizable amount in Moderna in 2018 via a preferred-equity stake.A $20 stock at the start of 2020, Moderna nearly touched $180 earlier this week after positive results from its Covid-19 vaccine candidate. Shares pulled back to $141 yesterday. If Merck sold in the first half of Q4, that would mean a price somewhere between roughly $70 and $100
Merck shares opened Wednesday up 79 cents, or nearly 1%, to $82.33.