Merck’s divestiture of Moderna stake brought ‘substantial’ return, but shares’ run continued afterward

Merck sold its shares in Moderna at a price at least three times their value at the beginning of 2020, although the biotech’s value has continued to rise since the divestiture’s completion as its COVID-19 vaccine nears a likely authorization.

Merck & Co. Inc. (NYSE:MRK) said Wednesday it had divested its direct holding in Moderna Inc. (NASDAQ:MRNA) during the first half of 4Q20. The sale will allow Merck to realize an undisclosed return on equity purchases of $50 million in 2015 and $125 million in 2018, both associated with the companies’ expanded partnership to develop vaccines and therapeutics for infectious diseases and cancer...