Business · Markets · 4 hrs ago
Biomm shares nearly doubled as Vorcaro-linked coverage appeared
Biomm, a Brazilian insulin supplier, saw its shares rise 98.12% in five trading days in February 2024.
The climb began on the day business site Brazil Journal published a story about the company and its founder, Walfrido dos Mares Guia.
Messages revealed by Estadão indicate that Banco Master owner Daniel Vorcaro had suggested the story's angle and asked for changes to mention the bank's role in a capital increase.
Vorcaro later said he had a stock-market strategy tied to the story's publication and wanted coverage to boost the share price.
The company gained R$726.8 million in market value during the period, with no major strategic announcement from Biomm reported then.
The unusual share movement drew attention from Brazil's securities regulator, the CVM, which asked Biomm for information on February 23.
The available account does not give the company's full response or say that regulators reached a conclusion about possible share manipulation.
Biomm shares rose 98.12% from February 20 to 26, 2024, nearly doubling in value.
The increase coincided with Brazil Journal coverage of the Brazilian pharmaceutical company, according to a NeoFeed report cited by Estadão.
Messages attributed to Banco Master owner Daniel Vorcaro indicated he wanted to influence the coverage and said he had a stock-market strategy tied to its publication.
Vorcaro also said he wanted to make Biomm shares “bombar” and raise the company’s value through reports.
Brazil’s securities regulator sent Biomm a letter requesting information on February 23, during the share-price surge.
- Who
- Biomm, a Brazilian pharmaceutical company, and Banco Master owner Daniel Vorcaro.
- What
- Biomm shares nearly doubled amid coverage that Vorcaro sought to influence, raising suspicions of stock manipulation.
- When
- The shares rose between February 20 and 26, 2024. The regulator sent a letter on February 23.
- Where
- Brazil.
- Why
- Messages cited by the articles indicate Vorcaro wanted to influence the coverage and said he had a stock-market strategy tied to its timing.
This story does not have two clearly opposing sides.
Vorcaro told businessman Flávio Carneiro he had a favorable Biomm story idea and described a proposed focus.
Brazil Journal published a report about Biomm’s insulin production plans, the day the share-price surge began.
Vorcaro told Carneiro he had a stock-market strategy for the day the Biomm article was published.
Brazil’s securities regulator sent Biomm a letter requesting information amid the share-price surge.
Vorcaro said he wanted to make Biomm shares rise and raise the company’s value through reports.
Biomm shares gained 98.12%, rising from R$5.84 to R$11.57.
- Share-price gain
- 98.12% between February 20 and 26, 2024
- Share price
- Rose from R$5.84 to R$11.57
- Market value
- Increased from R$740.7 million to R$1.46 billion
- Market-value increase
- R$726.8 million over five trading sessions
- Regulator
- Brazil’s CVM sent Biomm a request for information on February 23, 2024
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What people are saying
Quero fazer bombar essa ação
No da Biomm, por exemplo, eu tinha uma estratégia pra fazer em bolsa no dia que fosse sair. Saiu sem eu ver
Essa empresa está hoje por 600 milhões, eu acho que em três anos ela vai valer 50 bi. No mínimo. Já quero puxar pra 3 bi agora só nas reportagens