Billionaire Chris Rokos is Selling These 5 Stocks in 2023

4. Prometheus Biosciences, Inc. (NASDAQ:RXDX)

Number of Hedge Fund Holders: 37

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a clinical-stage biotech company focused on precision medicine for immune-mediated diseases. Their Prometheus360 platform uses machine learning and a vast gastrointestinal bioinformatics database to discover therapeutic targets and develop treatment candidates.

Prometheus Biosciences, Inc. (NASDAQ:RXDX) received a downgrade from Jefferies analyst Michael Yee, shifting its rating from ‘Buy’ to ‘Hold,’ with a price objective of $200. According to an analyst’s research note, Merck (MRK) plans to acquire Prometheus by Q3. The agreement is anticipated to be finalized according to the planned timeline.

Rokos Capital Management bought 20,000 shares in Prometheus Biosciences, Inc. (NASDAQ:RXDX) in Q4 2022 but offloaded its entire stake in the first quarter of 2023.

As of the first quarter of 2023, 37 hedge funds in Insider Monkey’s database held stakes in Prometheus Biosciences, Inc. (NASDAQ:RXDX). The most prominent shareholder in Prometheus Biosciences, Inc. (NASDAQ:RXDX) is Steve Cohen’s, 72 Investment Holdings, with 1.85 million shares valued at $198.33 million.

In its Q1 2023 investor letter, Baron Funds provided its assessment of Prometheus Biosciences, Inc. (NASDAQ: RXDX) with the following comment:

“We added to our position in Prometheus Biosciences, Inc. (NASDAQ:RXDX), a clinical stage biotechnology company. Prometheus’ lead product candidate, PRA023, is a monoclonal antibody that has been shown to block a target called TL1A that is associated with intestinal inflammation and fibrosis. In December 2022, the company reported promising Phase 2 clinical trial results, suggesting potential for PRA023 to be a novel treatment for ulcerative colitis and Crohn’s disease. The company plans to advance PRA023 into Phase 3 clinical trials for ulcerative colitis and Crohn’s disease in 2023. The company is also studying PRA023 as a treatment for Systemic-Sclerosis-associated Interstitial Lung Disease and plans to announce a fourth potential indication for PRA023 in 2023. We believe PRA023 has blockbuster potential. Prometheus also has a pipeline of earlier stage product candidates. On April 16, Merck issued a press release announcing its agreement to acquire Prometheus for $200 per share in cash.”