Hedge Fund Adage Reaps Big Initial Gain on Health-Care Takeover
- Firm’s stake soars by $130 million on Novartis Buying AveXis
- Boston fund has owned shares in AveXis since early 2016
Novartis to Pay $8.7 Billion for AveXis
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Adage Capital Management, a $30 billion hedge fund founded by two former money mangers from Harvard University’s endowment, reaped an initial gain of more than $100 million Monday after Swiss drugmaker Novartis AG agreed to acquire AveXis Inc.
AveXis, which has a promising drug to treat a rare disease that afflicts infants, rose 80 percent to $208.05 a share at 9:32 am in New York trading. Novartis’ $8.7 billion offer represented an 88 percent premium to AveXis’ Friday closing price.