Biotech and Pharma

Drugmaker Merck divests stake in vaccine-maker Moderna

Drugmaker Merck sells stake in Moderna
Drugmaker Merck sells stake in Moderna

U.S. drugmaker Merck said on Wednesday it has sold its equity investment in Moderna, 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.

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.

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