Capital's Big Pharma Play
Spruce Street Capital Makes Multi-Million Dollar Investments Across Several Life Science Companies
Key Points
For LB Pharmaceuticals (LBRX), Spruce Street Capital LP bought 1,005,593 shares worth about $22.384 million, with the stock making up 7.4% of its holdings and becoming its 3rd-largest position. JPMorgan Chase & Co. also increased its LBRX stake by 56.1% in the 4th quarter, adding 578,879 shares to reach 1,611,482 shares valued at $35.872 million.
Relay Therapeutics (RLAY) included a detailed insider transaction: CFO Thomas Catinazzo sold 17,717 shares at an average price of $12.86 for a total of $227,840.62, and after the sale directly owned 195,178 shares (valued at about $2.51 million).
In Alto Neuroscience (ANRO), Spruce Street disclosed a new position of 222,844 shares valued at approximately $3.967 million; the holding represented about 0.72% ownership of the company and was Spruce Street’s 21st-largest position. The filing context also showed Vivo Capital LLC initiating a new ANRO stake worth about $18.433 million in the 4th quarter.
For Sutro Biopharma (STRO), Spruce Street bought 75,594 shares worth about $875,000, and the company noted it owned 0.89% of STRO. Analyst coverage also included specific calls: Leerink Partners set a $43.00 price objective and rated the stock “outperform,” while Wall Street Zen downgraded STRO from “hold” to “sell.”
In Minerva Neurosciences (NERV), Spruce Street purchased 1,655,500 shares valued at roughly $6.655 million and reported ownership of 3.83% of the company. The broader institutional activity included Federated Hermes increasing its stake by 297.5%, adding 4,020,500 shares to reach 5,371,775 shares worth $21.595 million.
Spruce Street Capital LP has deployed roughly $22.4 million into LB Pharmaceuticals (LBRX), picking up 1,005,593 shares and making it the firm's 3rd-largest position at 7.4% of its portfolio, according to Ticker Report. The move is part of a broader $60-million-plus push by the fund into five neuropsychiatry and oncology stocks, all disclosed in its latest SEC filings.
The buys come as LB Pharmaceuticals presses ahead with its pivotal Phase 3 NOVA-2 trial for LB-102, a treatment for schizophrenia. Institutions now hold roughly 96% or more of the shares in each company Spruce Street targeted.
JPMorgan and Spruce Street Pile Into LBRX
Spruce Street was not alone in LBRX. JPMorgan Chase added 578,879 shares of LB Pharmaceuticals in the fourth quarter — a 56.1% increase — bringing its total to 1,611,482 shares worth $35.9 million, per Ticker Report. That kind of "bulge-bracket" buying alongside a specialist fund like Spruce Street signals strong institutional conviction ahead of a major clinical milestone.
LB-102 is designed to be the first benzamide antipsychotic approved in the U.S. It is a refined version of amisulpride, a drug already sold in Europe. LB Pharmaceuticals raised $100 million in a private placement in February 2026 to fund development, extending its cash runway well into 2027.
Spruce Street Bets Big on Minerva and Alto Neuroscience
Beyond LBRX, Spruce Street bought 1,655,500 shares of Minerva Neurosciences (NERV) for about $6.7 million, giving it a 3.83% ownership stake, according to Ticker Report. Federated Hermes made an even larger move in NERV, growing its position by 297.5% — adding over 4 million shares to reach 5.37 million shares worth $21.6 million.
In Alto Neuroscience (ANRO), Spruce Street opened a new 222,844-share position worth about $4.0 million. Vivo Capital went bigger, initiating a fresh $18.4 million stake in the same quarter. Alto is running a Phase 3 trial for its depression drug ALTO-207, backed by a $120 million private placement it closed in March 2026.
Relay CFO Sells Shares Amid Overvaluation Concerns
Not all the news was bullish. Relay Therapeutics CFO Thomas Catinazzo sold 17,717 shares at $12.86 each on May 14, 2026, collecting $227,840. The sale was part of a pre-arranged Rule 10b5-1 plan, a legal structure executives use to sell stock on a set schedule. After the transaction, Catinazzo still directly owned 195,178 shares worth about $2.5 million.
Despite the planned nature of the sale, some analysts flagged concern. Relay's stock had surged roughly 361% over the prior year, and InvestingPro analysis described it as "significantly overvalued." Spruce Street still holds about 1.72% of Relay, a stake valued at approximately $25.2 million.
Sutro Biopharma Gets Split Verdict From Analysts
Spruce Street made its smallest bet in Sutro Biopharma (STRO), buying 75,594 shares for about $875,000 and gaining a 0.89% ownership stake, per Ticker Report. Analyst views on the stock were sharply divided. Leerink Partners rated STRO "outperform" with a $43.00 price target. Truist Securities went further, launching coverage with a "Buy" rating and a $50.00 target, citing Sutro's antibody-drug conjugate platform.
Wall Street Zen took the opposite view, downgrading STRO from "hold" to "sell." The concern: high cash burn rates at clinical-stage biotechs can eat through capital faster than drug approvals arrive. That tension — strong science versus financial pressure — runs through every name on Spruce Street's new shopping list.
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