ARTICLE | Finance

Playing NewLink

Why NewLink's $150 million Genentech deal only added $58 million in market cap

October 27, 2014 7:00 AM UTC

Profit-taking on a 60% run-up earlier in October could explain why shares of NewLink Genetics Corp. (NASDAQ:NLNK) added only $58.4 million in market cap on Oct. 20, after the company got $150 million up front in a deal with Genentech Inc. But mounting short interest in the stock could also be weighing on the shares.

NewLink shot up $11.22 (62%) on the week ended Oct. 17 to close at $29.35 after the company started a Phase I trial of VSV-EBOV (BPSC-1001), an Ebola vaccine NewLink licensed exclusively from Canada's Public Health Agency...