Danish Meme Stock Plunges as Failed FDA Bid Triggers Panic
- Orphazyme didn’t win FDA clearance to market key treatment
- Tiny Danish biotech was dubbed a meme stock just one week ago
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Orphazyme A/S, a small Danish biotech firm that morphed into a meme stock last week, was dumped by investors on Friday after it failed to get a clear stamp of approval from U.S. authorities for its only viable treatment.
The company’s American depositary shares lost almost half their value once trading started in the U.S., matching a selloff in Copenhagen earlier in the day. The move brings its market cap to about $300 million, compared with $560 million less than 24 hours ago.