NEW YORK: A record surge in Moderna Inc’s shares delivered a US$5.5bil blow to short sellers who had bet that the vaccine maker’s years-long slump would continue.
Moderna’s stock price soared 177% on Wednesday after the company said its personalised cancer vaccine developed with partner Merck & Co helped reduce the recurrence of melanoma in a late-stage trial.
The jump generated paper losses of about US$5.5bil for short sellers, bringing mark-to-market losses to roughly US$7.7bil this year, according to data from S3 Partners LLC.
“This is an exceptionally painful move for Moderna shorts,” said Matthew Unterman, managing director at S3 Partners.
“Today’s move materially changes the risk/reward for anyone maintaining a bearish position.”
Moderna’s stock had been on a tear this year, gaining 114% even before the melanoma trial results, as investors piled into the firm on hopes that its flu vaccine would help the company diversify away from its declining Covid-19 immunisation business.
Shares had suffered four straight years of losses as demand for its Covid-19 shot waned, dragging the stock nearly 94% below its 2021 peak. — Bloomberg
