U.S. drugmaker Merck & Co. Inc. said on Wednesday it has sold its equity investment in Moderna Inc., 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 US$55.80-billion as of Tuesday’s closing price.
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 US$50-million in Moderna in 2015, said it would retain exposure to the company indirectly through its investment in venture funds.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.