Soleus Adds a Significant Number of Celcuity Shares

On Feb. 12, Soleus Capital Management, L.P. disclosed a buy of 629,398 shares of Celcuity (CELC +0.61%)in a Securities and Exchange Commission (SEC) filing

• Soleus increased its Celcuity stake by 629,398 shares.
• After the trade, it held more than 1.8 million shares valued at $180.36 million.
• Celcuity now accounts for 6.7% of the fund’s AUM.

What else to know

• Top five fund holdings at quarter end:
  • NYSEMKT: XBI: $354.6 million (13% of AUM)
  • NASDAQ:KRYS: $232.0 million (8.6% of AUM)
  • NASDAQ: CELC: $180.4 million (6.7% of AUM)
  • NASDAQ:NVCR: $110.3 million (4.1% of AUM)
  • NASDAQ:PRAX: $107.0 million (3.9% of AUM)

Company overview

Company snapshot

Celcuity is a clinical-stage biotechnology firm focused on innovative cancer diagnostics and targeted therapies, leveraging its CELsignia platform to identify and address specific cellular drivers of cancer. The company’s strategy centers on advancing Gedatolisib and companion diagnostics to address unmet needs in breast and ovarian cancer treatment.

• Celcuity develops molecularly targeted therapies and diagnostic platforms for cancer treatment, including its lead drug candidate Gedatolisib and the CELsignia MP test for breast and ovarian cancers.
• The company operates a clinical-stage biotechnology model, generating value through the development and potential commercialization of proprietary therapies and diagnostic tests, with future revenue expected from licensing, partnerships, and product sales.
• Celcuity primarily targets oncologists, healthcare providers, and biopharmaceutical partners serving patients with hormone receptor positive, HER2-negative, and advanced or metastatic breast cancer.

What this transaction means for investors

Soleus Capital Management sent a bullish signal to the market with its significant purchase of Celcuity shares. Owning 1.2 million shares on Sept. 30, the firm boosted its position to over 1.8 million shares by the end of the year.

Previously, its holding represented the firm’s ninth-largest position. As of Dec. 31, it became the third-largest holding among its 95 positions revealed in its 13F filing. Its shares had a value of $180.4 million, with total holdings worth $2.7 billion.

Celcuity shares have had a remarkable run over the last year. The price increased a remarkable 745% over the last year through Feb. 12. By comparison, the S&P 500 index returned 14.4%, and the NASDAQ Composite had a total return of 15.7%.

Currently, Celcuity doesn’t produce any revenue. Hence, investors should note the stock’s inherent risk, with the stock trading on the promise of drug approvals and potential revenue and profitability.