Orphazyme A/S’s major shareholder Sunstone Life Science Ventures has reduced its stake following the retail investor-driven rally in the Denmark-based biopharmaceutical company’s shares.
What Happened: Orphazyme said on Tuesday it received a notice from Copenhagen-based Sunstone Life Science Ventures that as of June 11, funds held by Sunstone hold less than 5% of the company’s share capital.
In March, Orphazyme had disclosed in its annual report that Sunstone owned 5.2% of the company’s shares, according to areportby Bloomberg.
Only two investors — LSP V Coöperatieve U.A. with a 7.81% stake and Coöperative Aescap Venture I U.A. with a 5.1% stake — now own more than 5% of Orphazyme’s shares, the report added.
Why It Matters: Last week, Orphazyme emergedas one of the so-called stonks, or stocks popular with retail investors. The company’s sharesskyrocketedalmost 1,400% at one point on Thursday.
In a regulatory filing, Orphazyme said it isn't aware of any material change in its clinical development programs, financial condition or results of operations that would explain the price volatility in its shares that occurred since last Thursday.
However, the FDA is scheduled to rule on Orphazyme's NDA for Arimocolmol for the treatment of Niemann-Pick Disease Type C, on Thursday, June 17.
Price Action: Orphazyme shares closed 9.5% lower in Tuesday’s trading at $10.05.