Shares in Orphazyme A/S soared after trading started in the U.S., indicating that interest in Denmark’s first meme stock is alive and well despite the biotech firm’s failure to win regulatory approval for a key treatment.
The American depositary shares soared as much as 57% on Wednesday, while the Danish shares rose 45%. The moves followed an announcement by the company that Goldman Sachs Group Inc. had briefly built, then sold a stake, according to a regulatory filing.
Goldman’s holding was 5.58% as of June 16, and less then 5% a day later. The bank hasn’t previously appeared as an investor in regulatory filings for Orphazyme.
Orphazyme morphed into a meme stock on June 10. After building a sudden fan base on social media platforms such as Reddit, the company’s American depositary shares soared almost 1,400% at one point during US trading hours. Last week, the stock’s share price crashed after it failed to win regulatory approval for a key treatment.
