Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine [View all]
Source: New York Times
Well-timed stock bets have generated big profits for senior executives and board members at companies developing vaccines and treatments.
On June 26, a small South San Francisco company called Vaxart made a surprise announcement: A coronavirus vaccine it was working on had been selected by the U.S. government to be part of Operation Warp Speed, the flagship federal initiative to quickly develop drugs to combat Covid-19.
Vaxart’s shares soared. Company insiders, who weeks earlier had received stock options worth a few million dollars, saw the value of those awards increase sixfold. And a hedge fund that partly controlled the company walked away with more than $200 million in instant profits.
The race is on to develop a coronavirus vaccine, and some companies and investors are betting that the winners stand to earn vast profits from selling hundreds of millions — or even billions — of doses to a desperate public.
Across the pharmaceutical and medical industries, senior executives and board members are capitalizing on that dynamic.
Read more: https://www.nytimes.com/2020/07/25/business/coronavirus-vaccine-profits-vaxart.html
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