Sunstone Life Science Ventures, previously one of the biggest shareholders in Orphazyme A/S, has cut its stake after the Danish biotech’s sudden transformation into a meme stock last week doubled its value.
Funds held by the Copenhagen-based investor now own less than 5% of Orphazyme, according to a filing late on Tuesday. In Orphazyme’s March 2 annual report, Sunstone waslistedas owning 5.2%. At the company’s 2017 initial public offering, Sunstone was among its top three shareholders.
Orphazyme emerged as Denmark’s first meme stock late last week after U.S. traders drove its American depositary shares up by almost 1,400% at one point on Thursday. The company has warned investors against being dragged into the frenzy, which it says doesn’t reflect any corporate developments. Since late last week, Orphazyme has been gripped by extreme bouts of volatility. Its Danish share price is up about 100% since Thursday, even including a roughly 25% decline this week.
Sunstone didn’t immediately reply to an email request for comment outside business hours.
Orphazyme now has two investors left who own more than 5%: LSP V Coöperatieve U.A. with 7.81% and Coöperative Aescap Venture I U.A. with 5.1%.