Adage Capital Management Ups Stake in Five Prime Therapeutics Inc (FPRX)

Five Prime Therapeutics Inc (NASDAQ:FPRX) is a $633 million clinical-stage biotechnology company focused on discovering and developing novel protein therapeutics for cancer and inflammatory diseases. On Jan. 22, Five Prime Therapeutics Inc (NASDAQ:FPRX) reported closing its public offering of 3.83 million shares of common stock, including 419,994 shares sold upon the partial exercise of the underwriters’ option to purchase additional shares. The offering was priced at $22.00 per share and resulted in aggregate gross proceeds of $84.3 million.

On Friday, Five Prime Therapeutics Inc (NASDAQ:FPRX) stock is trading at around $25.54. During the last year, the company’s stock moved up by over 30%. Over the last month alone, the share price grew by over 17%. The stock has a 52 week high of $28.47, and a 52 week low of $10.50. Analysts set the average target price of Five Prime Therapeutics Inc (NASDAQ:FPRX) at $26.67, while the consensus average recommendation is ‘Buy.’

For nine months ended September 30, 2014, Five Prime Therapeutics Inc (NASDAQ:FPRX) reported collaboration revenue of $14.6 million, up from $10.0 million in the same period in 2013. Net loss for nine months was $25.6 million, compared to a net loss of $21.6 million in 2013. Per share net loss was $1.24, compared to $12.60 in the same period in 2013.

In November last year, Five Prime Therapeutics Inc (NASDAQ:FPRX) President and CEO Lewis Williams unloaded 20,702 shares in two different transactions at an average price of around $13 per share. In October, Mr. Williams also sold 19,564 shares of the company in multiple transactions. Following the sales, Mr. Williams owns 356,503 shares.

On Sept. 15, Five Prime Therapeutics Inc (NASDAQ:FPRX) announced that GlaxoSmithKline (GSK) exercised its option to obtain an exclusive, worldwide license to products containing or directed to an undisclosed muscle disease target that Five Prime Therapeutics Inc (NASDAQ:FPRX) discovered using its proprietary library of human extracellular proteins and target screening and discovery capabilities. GSK will receive exclusive rights to develop and commercialize products globally that incorporate or are directed to the selected target. On the other hand, Five Prime Therapeutics Inc (NASDAQ:FPRX) will receive a payment of $1.5 million and is entitled to receive up to $122.5 million in preclinical, development and commercial-related milestone payments and royalties in the low- to mid-single-digit range on net sales of products related to the target.

Disclosure: none