Spanish Biotech’s Stock Surges After Decision to Move out of Barcelona
Oryzon Genomics announced it will move its headquarters from Barcelona to Madrid days after the Catalonian independence vote, making its stock grow by 30%.
Oryzon Genomics, a Spanish biotech leveraging epigenetics to treat cancer, announced on Tuesday its decision to move out of Barcelona and establish its new headquarters in Madrid, citing the “optimization of operations and investor relationships” as the reasons. The company’s shares on the Madrid Stock Exchange rapidly rose, reaching a 33% increase on Wednesday. Today, their growth since the announcement is holding steady, at 30%.
The news came just two days after an independence referendum proclaimed illegal by the Spanish government took place in Catalonia, which was met with a strong police response. The current situation has raised uncertainties about the future of the region, and investors seem to think being based in Madrid will be safer for the company.
Oryzon’s stock has been accumulating a 58% drop in the past year, without many expectations of recovering after its partner Roche decided to terminate their license agreement, leaving Oryzon in the difficult position of choosing between assuming the risks of developing its lead candidate on its own or searching for a new partner.
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