Orphazyme Inc. (NASDAQ: ORPH) stock gained by 24.62% at last close while the ORPH stock price surged by 9.27% in the pre-market trading session. Orphazyme is a late-stage pharmaceutical business that is pioneering the use of heat shock proteins to cure uncommon illnesses. ORPH is using heat shock protein (HSP) amplification to discover and market new treatments for illnesses characterized by protein misfolding, aggregation, and lysosomal dysfunction.
What is happening?
Orphazyme has received notices from The Goldman Sachs Group, pursuant to Section 38 of the Danish Capital Markets Act, that Now the Goldman Sachs Group’s accumulated holding of shares and financial instruments boosted to 5.58 percent of Orphazyme’s share capital and voting rights as of June 16, 2021. The Goldman Sachs Group’s cumulative ownership of shares and financial instruments in Orphazyme has been decreased to less than 5% of the shares and voting rights as of June 17, 2021.
Orphazyme’s “important shareholder statement”, on the other hand, signifies almost nothing to investors.
It would be one thing if a big investment bank, such as Goldman Sachs, had grown its holdings in Orphazyme and kept them. That may have suggested that the modest pharmaceutical company’s chances were increasing. However, Goldman Sachs’ action was only temporary in this situation.
More crucially, Goldman Sachs momentarily raised its position in Orphazyme before the US Food and Drug Administration announced on June 18 that arimoclomol was not approved for the treatment of the uncommon illness Niemann-Pick Disease Type C. The FDA denial was a major blow for Orphazyme, and the biotech stock plummeted last week as a result.
Orphazyme is still hoping to get arimoclomol approved in Europe in early 2022. Orphazyme is also weighing whether it should continue to pursue FDA clearance for the experimental medication.