Here's Why Orphazyme Shares Rocketed Higher on Wednesday
Shares of Orphazyme AS (NASDAQ: ORPH), a clinical-stage biopharmaceutical company, shot through the roof on Wednesday after the company disclosed a significant sale from one of its largest shareholders. Retail investors, convinced this is a sign the company was preparing for a buyout offer, pushed the volatile biotech stock 77.1% higher as of 3:23 p.m. EDT.
On Jun. 15, 2021, Orphazyme made a disclosure to investors regarding one of the company's largest investors, the Sunstone Life Ventures fund. The company didn't disclose how many shares Sunstone sold, but it was enough to lower its share of voting rights below a 5% threshold that required the disclosure. Some investors took this as a sign Sunstone was getting out of the way to make room for a potential merger.
Image source: Getty Images.
Source Fool.com