According to a regulatory filing, Goldman Sachs Group Inc. created and subsequently sold a stake in Denmark’s first meme stock.
Orphazyme A/S, a small Danish biotech company, claimed on Wednesday that the Wall Street firm had an interest in the company that surpassed the 5% threshold that prompts a filing, but that it had promptly decreased its holding to below that level last week.
On June 16, Goldman held 5.58 percent of the stock, down to less than 5% the next day. The bank has never been included as an investor in Orphazyme’s regulatory filings.
On June 10, Orphazyme became a meme stock. The company’s American depositary shares jumped about 1,400 percent during U.S. trade hours after gaining a quick following on social media networks like Reddit. The stock’s value plummeted last week after it failed to gain regulatory approval for a critical treatment.
In my previous article on why Orphazyme went up 900% in a day, Orphazyme (ORPH) is a biopharmaceutical company, which engages in the development of treatment for patients living with life-threatening and debilitating rare diseases. It provides Arimoclomol program and molecular entities program. ORPH works with Arimoclomol to treat NPC disease, Gaucher disease and Niemann-Pick disease. Arimoclomol is administered orally, and has now been studied in 10 phase 1, four phase 2 and three pivotal phase 2/3 trials.