In a new filing with the U.S. Securities and Exchange Commission, Adage Capital Management, managed by Phill Gross and Robert Atchinson, has disclosed a passive stake in Five Prime Therapeutics Inc (NASDAQ:FPRX). According to the filing, Adage Capital Management holds 1.52 million Five Prime Therapeutics Inc (NASDAQ:FPRX) shares, which represents a significant increase from 500,000 shares the hedge fund reported in its 13F filing. The new stake is equivalent to 6.09% of the company’s common stock.
Adage Capital Management is a Boston-based hedge fund founded by Phill Gross and Robert Atchinson in 2001. Previously, Gross was a healthcare and retail analyst at Jane Mendillo’s Harvard Management Company (HMC). Later, Gross became a partner at HMC, where he spent 18 years. Atchinson also worked at the Harvard Management Company from 1991 to 2001.
Adage Capital Management has a highly diversified equity portfolio, worth more than $40 billion. The fund’s three most favorite holdings include Puma Biotechnology Inc (NYSE:PBYI), Apple Inc. (NASDAQ:AAPL), and Shire PLC (ADR)(NASDAQ:SHPG). As of the end of the third quarter, the fund revealed ownership of 5.69 million shares of Puma Biotechnology Inc (NYSE:PBYI), equal to 3.35% of the fund’s portfolio. Adage Capital Management reported owning 9.12 million Apple Inc. (NASDAQ:AAPL) shares, the stake represents 3% decrease over the quarter. The fund’s third most valuable is represented by Shire PLC (ADR)(NASDAQ:SHPG) a new position, in which the fund disclosed holding 3.27 million of Shire PLC (ADR)(NASDAQ:SHPG).
Last month, Adage Capital Management reported upping its exposure to Pacific Drilling SA (NYSE:PACD) by more than 12%. In a new filing, the fund disclosed owing 11.45 million common shares, accounting for 5.27% of the company’s outstanding stock. In November, Adage Capital Partners reported upping its stake in Rexnord Corp (NYSE:RXN), holding 5.37 million shares of the company, the passive stake amasses 5.28% of common stock. Earlier, the fund held 2.52 million shares of the company.
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.
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