The American newspaper The New York Times reports that insiders who worked on the coronary vaccine or drug in at least 11 companies have enriched a total of up to $ 1 billion by selling their shares in a timely manner.
Among the enriched are pharmaceutical and biotechnology executives and board members who have managed to sell their shares at peak value.
However, the magazine emphasizes that there is nothing illegal about selling in a timely manner, but it may raise suspicions that the rich have used inside information secret from the public to achieve better profits. Experts interviewed by the magazine say “seeing the corona on payday” can in turn shatter confidence in pharmaceutical manufacturers and other companies working to fight a pandemic.
As one indication, the American newspaper cites Waxart, a small 15-person company from San Francisco. Waxart’s value skyrocketed when it was reported to have become part of the U.S. government’s Warp Speed program. Access to the Warp Speed program boosted the company’s credibility, when in fact the company did not receive significant support from the program.
However, the stock bounced and benefited from a New York hedge fund that hoarded the company’s shares a week earlier, led by two people sitting on Waxartink’s board.
In total, the fund made a profit of approximately EUR 200 million through timely movements. The fund had acquired shares for a few million dollars before the increase in value. At the time, the stock paid 30 cents a share, but the fund sold its shares for $ 14 a share.
According to the New York Times, several benefits like Waxart have been seen. In the fight against the coronavirus, the value of a company can be boosted not only by access to the support program when the drug or vaccine gives positive test results or when the authorities give the company a green light on the outcome of its work.
Just as Waxart did in terms of communicating about the Warp Speed program, many other companies are twisting their curves in reporting on their success, the magazine says.
Waxart is the biggest success, but according to the company, among others, the management of the biotechnology company Regenero, vaccine manufacturer Moderna and pharmaceutical manufacturer Novanax have earned millions after selling shares immediately after the positive news.
In addition to companies, individual researchers can also get rich with the wings of the corona. The British Guardian reports that the assets of three researchers at the University of Southampton, among others, rose immediately to around € 1.8 million per person after a product they developed seemed to facilitate recovery from the corona.
A trio of medical professors had set up a company around SNG001 in the early 2000s. Prior to the increase in value, each asset was approximately EUR 330,000.
Helsingin Sanomat previously reported on the website.