Aug 19 (Reuters) – Investors betting against shares of Moderna faced record one-day losses on Wednesday as the biotech company’s stock more than doubled in value following upbeat data on its personalized mRNA cancer therapy.
At $159, short sellers were on pace for about $4.8 billion in mark-to-market losses, according to data analytics firm ORTEX.
“With each shorted share now down almost $100, that is exactly the kind of pressure that can trigger a squeeze,” said Peter Hillerberg, co-founder of ORTEX.
“There is clearly a real catalyst behind a move this size, but with a short base this large, shorts scrambling to cover are adding fuel and can keep driving the price higher.”
The company’s shares rallied to hit $163 before pulling back slightly to trade at $148.3.
Short interest in Moderna’s shares stood at 13.5% of its free-float as of Wednesday, making it one of the most-shorted large-cap stocks, ORTEX estimates.
Moderna shares were set for a record one-day percentage gain after its personalized mRNA cancer therapy, developed with Merck, reduced the risk of skin cancer recurrence and spread in a late-stage trial when combined with Keytruda.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Sriraj Kalluvila)
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