Novartis' agreement to acquire gene therapy firm AveXis proved financially beneficial for hedge fund Adage Capital Management, reports Bloomberg.
Swiss drugmaker Novartis revealed the $8.7 billion offer April 9. After the announcement, Adage, a Boston-based, $30 billion hedge fund, initially gained about $130 million, according to the report.
That was as AveXis saw its stock price rise. The gene therapy firm's price per share increased from $115.88 at 3:55 p.m. April 6 in New York trading to $207.93 at 9:30 a.m. April 9.
Adage owned about 1.4 million AveXis shares as of Dec. 31, 2017, and if that is still the case, the hedge fund saw an initial gain of about $130 million on the acquisition announcement, Bloomberg reports.
Read the full Bloomberg report here.
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