Bullish indicating open at $55-$60, IPO prices at $37
Third Rock Ventures, a prominent investment firm, recently acquired a significant stake in Septerna, Inc. (NASDAQ:SEPN), purchasing shares valued at approximately $6.17 million. The investment comes as InvestingPro data shows the stock trading near $5.73, down over 70% year-to-date, with analysts setting price targets ranging from $14 to $38. The transactions, executed over two consecutive days, involved the acquisition of 612,674 shares on February 20 at a weighted average price of $5.92 and 427,668 shares on February 21 at a weighted average price of $5.94. These purchases were made at prices ranging from $5.39 to $6.00 per share. According to InvestingPro, the stock’s RSI indicates oversold conditions, while the company maintains a strong liquidity position with a current ratio of 10.08.
The shares are held directly by Third Rock Ventures VI, L.P. and Third Rock Ventures V, L.P., with both entities being significant stakeholders in Septerna. Following these transactions, Third Rock Ventures VI, L.P. holds a total of 4,192,798 shares, while Third Rock Ventures V, L.P. holds 6,215,591 shares indirectly. The acquisitions demonstrate Third Rock Ventures’ continued interest and investment in Septerna’s growth and development within the pharmaceutical sector. Unlock 14 additional exclusive InvestingPro Tips and comprehensive financial analysis by subscribing to InvestingPro.
In other recent news, Septerna Inc . has reported a significant development in its clinical trial for SEP-786, a candidate for treating hypoparathyroidism. The company decided to halt the Phase 1 trial after observing severe elevated bilirubin levels in two participants, although no liver injury or serious adverse events were reported. Despite this setback, Septerna remains committed to advancing its pipeline, with plans to select a next-generation candidate from its portfolio of PTH1R agonists for future clinical trials. Analysts at JPMorgan have maintained an Overweight rating on Septerna, with a price target of $38, noting that the trial halt is expected to have limited impact on the company’s operational timelines. Similarly, Cantor Fitzgerald reaffirmed its Overweight rating with a $50 price target, citing the company’s significant growth potential in the hypoparathyroidism treatment market. In financial updates, Septerna reported $137.5 million in cash and marketable securities as of September 30, 2024, with additional proceeds from its IPO expected to fund operations into the second half of 2027. The company also announced the appointment of Gil Labrucherie as its new Chief Financial Officer, aiming to enhance its financial and capital strategy. Septerna continues to focus on its broader strategy of developing treatments for endocrine disorders with unmet medical needs.
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