Major Biotech Portfolio Expansion
Stonepine Capital Builds Multi-Million Dollar Stakes in Five Biotech and Pharma Companies
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Beyond Stonepine's 2Q purchase in Grace Therapeutics, other hedge funds significantly increased GRCE stakes in the period: Renaissance Technologies raised its holdings by 87.9% to 243,910 shares (worth about $1.13 million), and ADAR1 Capital Management lifted its position by 83.2% to 641,988 shares (about $2.22 million). Eversept Partners, Cerity Partners, and XTX Topco also opened or expanded positions in Grace Therapeutics.
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In Zentalis Pharmaceuticals, Stonepine's 2Q stake of 161,583 shares (~$783.68 million) occurred alongside broad fund activity: Seven Fleet Capital Management increased to 317,600 shares (about $1.45 million) after a roughly 188.7% rise; ADAR1 Capital bought a new stake; and 5AM Venture Management and Primecap Management Co. CA opened new positions worth notable sums (including an unusually large $19.15 billion for 5AM Venture).
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PMV Pharmaceuticals saw Stonepine’s 2Q entry of 536,086 shares (~$718.36 million). Other institutions also reshaped PMVP positions, with Vanguard Group increasing its stake in the 3rd quarter, Bridgeway Capital Management up 115.5% in the 3rd quarter to 320,653 shares, and additional new stakes from Shay Capital, Algert Global, and Boothbay Fund Management.
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NervGen Pharma saw Empery Asset Management open a position in 2Q valued at about $8.24 billion, a figure that dwarfs NervGen’s own market cap (about $188.7 million); Stonepine bought 271,678 shares for roughly $559.66 million.
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Phathom Pharmaceuticals attracted a substantial 2Q stake from Stonepine (85,010 shares ~ $922.36 million). The stock is widely held institutionally (about 99.01%), and analysts responded with mixed-to-positive notes, including Guggenheim trimming its price target to $22, Craig Hallum reiterating a Buy, HC Wainwright also Buy with a $26 target, and Barclays reducing its target to $14 while maintaining an overweight stance.
Stonepine Capital Management deployed hundreds of millions into five biotech firms during Q2, betting big on companies developing breakthrough treatments. The hedge fund acquired stakes in Grace Therapeutics, Zentalis Pharmaceuticals, PMV Pharmaceuticals, NervGen Pharma, and Phathom Pharmaceuticals—moves that signal confidence in their clinical pipelines even as the broader biotech sector faces scrutiny.
Stonepine wasn't alone. Other major investors—Renaissance Technologies, ADAR1 Capital, Seven Fleet Capital, and Empery Asset Management—simultaneously opened or expanded positions in the same names, creating a coordinated institutional bet on mid-cap pharma innovation.
Stonepine's Five-Company Biotech Blitz
Stonepine's largest new Q2 stake landed in Phathom Pharmaceuticals: 85,010 shares valued at $922.36 million TickerReport. The gastroenterology-focused biotech is heavily owned by institutions (99.01% of float), making Stonepine's entry a vote of confidence in its pipeline.
PMV Pharmaceuticals came next: Stonepine bought 536,086 shares for $718.36 million TickerReport. The oncology play focused on p53 mutations attracted similar moves from Vanguard and Bridgeway Capital Management in the third quarter, signaling sustained institutional appetite.
Zentalis Pharmaceuticals drew a $783.7 million stake (161,583 shares) from Stonepine TickerReport, as Seven Fleet Capital and 5AM Venture Management also opened positions. NervGen Pharma and Grace Therapeutics rounded out the portfolio, with positions valued at $559.66 million and $62.1 million respectively.
Renaissance and ADAR1 Capital Amplify Grace Bets
Grace Therapeutics saw multiple hedge funds pile in during Q2. Renaissance Technologies raised its GRCE stake by 87.9% to 243,910 shares (worth roughly $1.13 million), while ADAR1 Capital lifted its position by 83.2% to 641,988 shares worth about $2.22 million WatchlistNews.
Smaller funds joined the rush. Eversept Partners, Cerity Partners, and XTX Topco all opened or expanded Grace holdings in the quarter. The coordinated buying suggests these managers see value in the microfluidic implant developer's clinical roadmap.
NervGen Sees Empery's Outsize $8.24 Billion Bet
Empery Asset Management's Q2 move in NervGen Pharma was staggering: an $8.24 billion position that dwarfs NervGen's $188.7 million market cap WatchlistNews. The size-to-market mismatch suggests either an error in reporting or an unusually aggressive conviction bet on the spinal cord injury biotech's pipeline.
Stonepine's more measured $559.66 million stake in NervGen (271,678 shares) signals genuine institutional interest in the company's regenerative medicine approach, even if Empery's move raised eyebrows among analysts tracking the space WatchlistNews.
Analyst Reactions: Mixed Support for Phathom and PMV
Phathom's institutional ownership surge sparked analyst activity. Guggenheim trimmed its price target to $22, while Craig Hallum and HC Wainwright backed the stock with Buy ratings—Wainwright setting a $26 target. Barclays cut its price target to $14 but kept an overweight stance WatchlistNews.
PMV Pharmaceuticals has drawn less recent commentary, but the move by major asset managers signals confidence in its p53-focused oncology approach. The stock's Q2 and Q3 institutional accumulation suggests a longer-term institutional thesis beyond quarterly noise TickerReport.
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