Steve Cohen, Peter Kolchinsky Disclose New Stakes In Micro-cap Pharmaceutical Stocks

Let’s now provide a brief introduction to the other hedge fund we are discussing in this article. RA Capital Management, an investment firm specializing in healthcare and life-sciences companies, was founded by Peter Kolchinsky in 2001. The firm provides private, IPO, and follow-on financing for its portfolio companies, enabling management teams to drive value creation without facing capital shortages from inception through product commercialization. According to its most recent 13F filing, RA Capital Management oversees a public equity portfolio worth $994.11 million.

Peter Kolchinsky
Peter Kolchinsky
RA Capital Management

Aquinox Pharmaceuticals Inc. (NASDAQ:AQXP) is a clinical-stage pharmaceutical company that engages in discovering and developing therapeutics for diseases in the areas of inflammation and immune-oncology. The company’s lead drug candidate is AQX-1125, which has demonstrated convincing preclinical activity in a broad range of relevant inflammatory studies. The recently-announced positive results from the company’s Phase 2 Leadership trial with AQX-1125 in patients with bladder pain syndrome/interstitial cystitis have pushed the stock to new highs. Specifically, the shares of Aquinox have returned 136% year-to-date and are highly likely to go even higher should the company’s lead drug candidate reach the market. However, it might be the case that the market initially overvalued the drug’s potential, as the stock has gradually dropped from a high of over $55 per share to a current share price of $17.70. In the meantime, the company’s AQX-1125 in BPS/IC is closer and closer to commercialization. Aquinox is believed to be working on finalizing its crucial trial designs in consultation with the U.S. FDA and the European Medicines Agency in setting the path for the potential approval of the drug. Julian Baker and Felix Baker’s Baker Bros. Advisors LP had amassed a 39.8% stake in Aquinox Pharmaceuticals Inc. (NASDAQ:AQXP) before the stock started rallying to unbelievable levels, making the brothers a great deal of money in the process.

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