In a recent stock transaction, Boxer Capital Management, LLC, an investment firm led by Aaron I. Davis, sold a significant portion of its holdings in Tango Therapeutics, Inc. (NASDAQ:TNGX). The sale, reported on November 6, involved 3,080,000 shares of common stock at a weighted average price of $3.14 per share, amounting to a total transaction value of approximately $9.67 million.
Following the sale, Boxer Capital retains ownership of 3,610,642 shares indirectly. The transaction reflects a strategic move by the investment firm, which holds these shares indirectly as the investment manager for an account. Aaron I. Davis, the managing member of Boxer Capital, has voting and dispositive power over the securities, although he disclaims beneficial ownership except to the extent of his pecuniary interest.
Additionally, Davis is associated with other entities holding Tango Therapeutics shares, including MVA Investors, LLC and BCTG Holdings, LLC, where he holds voting and dispositive power but also disclaims beneficial ownership except for his pecuniary interest.
These transactions are part of the broader investment activities of Boxer Capital, which may be seen as a strategic adjustment in its portfolio concerning Tango Therapeutics.
In other recent news, Tango Therapeutics has made significant strides in its drug development pipeline. The biotech company has advanced its cancer drug, TNG462, into full development following positive early trial results. The drug exhibited promising activity in treating multiple tumor types, including non-small cell lung cancer and pancreatic cancer.
Tango Therapeutics has also chosen to halt the enrollment for TNG908 to allocate resources to TNG462 and TNG456, a next-generation treatment expected to enter clinical trials in 2025. In collaboration with Revolution Medicines, the company will evaluate TNG462 in combination with RAS(ON) inhibitors for treating MTAP-deleted cancers.
Analysts from H.C. Wainwright, Leerink Partners, and Piper Sandler have maintained positive ratings for the company, with price targets ranging from $13 to $19. Despite halting the development of TNG348, Tango Therapeutics' cash runway is projected to last until 2027, allowing the company to continue exploring other therapeutic opportunities. Significant data updates for both TNG908 and TNG462 programs are anticipated in the second half of 2024.
InvestingPro Insights
The recent sale of Tango Therapeutics (NASDAQ:TNGX) shares by Boxer Capital Management aligns with several key metrics and trends highlighted by InvestingPro. According to InvestingPro data, TNGX's stock has experienced significant declines across multiple timeframes, with a 45.05% drop in the past week and a 68.24% fall over the last three months. This downward trajectory is further emphasized by the stock trading near its 52-week low, with its current price at just 21.75% of its 52-week high.
InvestingPro Tips reveal that TNGX is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may have influenced Boxer Capital's decision to reduce its position. The company's financial health is further underscored by its negative gross profit of -$71.81 million in the last twelve months as of Q3 2023, with a concerning gross profit margin of -165.54%.
Despite these challenges, TNGX maintains a strong liquidity position. An InvestingPro Tip notes that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." This financial cushion could provide some stability as the company navigates its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for TNGX, providing deeper insights into the company's financial position and market performance.
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