5AM Venture Management, based in San Francisco, sold 150,000 shares of Centessa Pharmaceuticals in Q3, but saw its net position value increase by $5.6 million due to the stock’s rally. The fund still holds 680,945 shares valued at $16.5 million, making it their fifth-largest position.

Centessa Pharmaceuticals, a UK biotech company, is developing clinical-stage biopharmaceutical products targeting rare diseases and immunological conditions. Despite a third-quarter net loss of $54.9 million, the company ended the quarter with $349 million in cash, enough to fund operations into mid-2027.

Centessa’s orexin agonist platform has shown significant progress, leading to plans for a registrational program in early 2026. The company recently posted a third-quarter net loss of $54.9 million but has enough cash to fund operations into mid-2027. Their balance sheet was also strengthened with a $250 million public offering.

5AM’s decision to trim its stake in Centessa after a major rally signals continued conviction in the company’s potential. The fund kept Centessa among its top holdings, highlighting the pipeline’s promise in reshaping treatment for sleep-wake disorders. The company’s modular R&D model and outperforming stock price are key factors in their strategy.

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Read more at Yahoo Finance: What One Fund’s Sale of Centessa Stock Signals About the Fast-Rising Biotech Company