In a recent turn of events, Amgen Inc (NASDAQ: AMGN ). has seen its stake in Neumora Therapeutics Inc. triple in value, despite an initial sell-off, according to the company's SEC 13D filing on Wednesday. The biotechnology giant had initially acquired a 23.2% stake (35.4 million shares) in Neumora Therapeutics for $140 million at a $17 IPO price. This stake has now surged to $414.2 million, notably outperforming the Dow Jones Industrial Average 's (DJIA) 20.9% run up during the same period.
Neumora Therapeutics, which saw its market capitalization diminish from its initial $2.6 billion IPO valuation to $1.8 billion, displayed positive signs with a 2% rise in premarket trading indications on Wednesday. Despite the reduction in market capitalization, Amgen's substantial stake in the company indicates a robust performance and potential upside.
The surge in the value of Amgen's stake is a notable development given the initial sell-off that followed Neumora's IPO. This performance underscores the volatility and potential rewards inherent in biotech investments, especially within the context of a broader market that has seen significant gains as demonstrated by DJIA's run-up.
It remains to be seen how this investment will continue to perform for Amgen and what impact it will have on the company's future strategic decisions. Meanwhile, investors and market watchers will likely keep a close eye on Neumora Therapeutics' performance and its influence on Amgen's portfolio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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