This $64 Million Biotech Exit Seemingly Missed a 77% One-Day Surge on Gilead Takeover Deal
Key Points
Cormorant Asset Management sold 775,000 Arcellx shares in the fourth quarter.
The fund’s quarter-end position value in Arcellx decreased by $63.63 million, reflecting a complete position sale during the period.
The position previously accounted for 4.4% of the fund’s AUM in the prior quarter, making this a notable exit.
On February 17, 2026, Cormorant Asset Management disclosed in a regulatory filing that it sold its entire stake in Arcellx (NASDAQ:ACLX), an estimated $63.63 million transaction based on last-disclosed position values.
What happened
According to an SEC filing dated February 17, 2026, Cormorant Asset Management sold 775,000 shares of Arcellx, fully liquidating its position. The quarter-end value of the fund’s Arcellx stake declined by $63.63 million as a result of the exit.
What else to know
- The fund’s sale of Arcellx reduced its position from 4.4% of 13F reportable AUM in the previous quarter to zero.
- Top holdings after the filing:
- NASDAQ:PRAX: $280.00 million (15.9% of AUM)
- NASDAQ:BBOT: $223.84 million (12.7% of AUM)
- NASDAQ:ABVX: $182.05 million (10.3% of AUM)
- NASDAQ:EYPT: $151.00 million (8.6% of AUM)
- NASDAQ:RAPP: $91.85 million (5.2% of AUM)
- As of Monday, Arcellx shares were priced at $114.51, up a staggering 60% over the past year and well outperforming the S&P 500’s roughly 19% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of Monday) | $114.51 |
| Market capitalization | $6.7 billion |
| Revenue (TTM) | $22.3 million |
| Net income (TTM) | ($228.9 million) |
Company snapshot
- Arcellx develops immunotherapies targeting cancer and incurable diseases, with lead candidates including CART-ddBCMA for multiple myeloma and pipeline assets for AML, MDS, and solid tumors.
- The company operates as a clinical-stage biotechnology company focused on research and development of cell-based therapies.
- It serves healthcare providers and research institutions seeking advanced oncology and hematology treatments for relapsed or refractory patient populations.
Arcellx is advancing proprietary ddCAR and ARC-T cell platforms to address high unmet medical needs in relapsed or refractory cancers. The company’s pipeline includes multiple candidates targeting both hematologic malignancies and solid tumors.
What this transaction means for investors
Arcellx shares are up 80% this year, and there’s one clear catalyst for that move. The company has been developing next-generation CAR-T cell therapies designed to treat cancers such as multiple myeloma. Its lead therapy, anitocabtagene autoleucel, has shown strong clinical responses and attracted the attention of larger pharmaceutical companies eager to expand their oncology pipelines.
That interest ultimately culminated in a takeover agreement from Gilead Sciences last month, valuing Arcellx at about $7.8 billion and offering shareholders $115 per share in cash plus a potential additional payment tied to future sales milestones. The deal builds on an existing 2022 collaboration between the two companies around the therapy and could accelerate development and commercialization if regulatory approvals move forward.
Still, it’s important to note this pop happened after Cormorant’s reported exit, a reminder that even smart investments can miss out due to timing flukes. What ultimately matters more is identifying companies building therapies that larger industry players ultimately want to own.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.