Ed Lin

A big biotech investment fund plowed more money into shares of two small companies as 2024 was coming to an end and the new year was just starting.

EcoR1 Capital of San Francisco paid nearly $26 million to increase its stakes in Zymeworks, which has cancer and tumor treatments in its pipeline, and AnaptysBio, which is focused on autoimmune and inflammatory diseases. It remains the largest shareholder of both companies.

The stocks are coming off 2024 with markedly different outcomes. Shares of Zymeworks, which has a market capitalization of just under $1 billion, surged 41%, trouncing the 23% rise in the S&P 500. Stock of AnaptysBio, with a market cap of less than $500 million, fell 38%. The new year has seen a change with Zymeworks stock down 9.7% so far in January, and AnaptysBio stock up 7.3%.

EcoR1 paid $24.7 million from Dec. 19 through Jan. 2 for a total of 1.75 million Zymeworks shares, an average price of $14.15 each. The fund now owns 15.2 million shares, according to a form it filed with the Securities and Exchange Commission. EcoR1 owns a stake of more than 19%, and has one representative on the company's board.

EcoR1 didn't respond to a request for comment on its stock purchases. As of Sept. 30, it had U.S.-traded assets of $2.9 billion.

The fund paid $1.1 million from Dec. 30 through Jan. 2 for 85,100 AnaptysBio shares, an average price of $12.92 each. EcoR1 now owns 7.9 million shares, a stake of more than 27%, and the fund's founder and portfolio manager Oleg Nodelman sits on AnaptysBio's board.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

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January 17, 2025 21:30 ET (02:30 GMT)

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