Third Rock Ventures has recently sold a substantial number of shares in Tango Therapeutics, Inc. (NASDAQ:TNGX), a company known for its focus on pharmaceutical preparations. According to the latest filings, the sales occurred over two consecutive days, resulting in nearly $3 million in total transactions.
On July 24, 2024, the investment firm sold 200,000 shares of Tango Therapeutics at a weighted average price of $9.8158 per share, with prices ranging from $9.78 to $10.025. The following day, on July 25, an additional 100,599 shares were sold at an average price of $9.8686, with individual transactions ranging from $9.75 to $10.005. The total value of these sales amounted to approximately $2,955,931.
These transactions have adjusted Third Rock Ventures IV, L.P.'s holdings in Tango Therapeutics to 17,771,475 shares. It's worth noting that the shares are directly held by Third Rock Ventures IV, L.P., with its general partner being Third Rock Ventures GP IV, L.P., and the latter's general partner being TRV GP IV, LLC. The entities involved have disclaimed beneficial ownership of the shares except to the extent of their pecuniary interest therein.
Investors and followers of Tango Therapeutics will be keeping a keen eye on the market's response to these transactions. The sales were signed off by Kevin Gillis, Chief Operating Officer of TRV GP IV, LLC, demonstrating a significant move by the investment firm in their holdings of Tango Therapeutics' stock.
In other recent news, Tango Therapeutics has experienced several noteworthy developments. The company received a Buy rating from Jefferies, highlighting the potential of Tango's lead assets, '908 and '462. Both are selective PRMT5-MTA inhibitors targeting MTAP-deleted cancers. The firm also set a price target of $19.00, signaling their anticipation of Tango's growth potential.
Concurrently, Tango Therapeutics has halted the development of its key drug candidate, TNG348, due to observed Grade 3/4 liver function abnormalities in trial participants. This decision has led to a revised financial outlook from H.C. Wainwright, reducing their price target for Tango Therapeutics from $16 to $13, while maintaining a Buy rating.
Despite the discontinuation of TNG348, Tango Therapeutics' cash runway is now projected to last into 2027, extending from the previous estimate of late 2026. The company's focus remains on advancing its portfolio, particularly the PRMT5 program. Tango Therapeutics is poised for a critical period as it prepares for the data update on its clinical programs, which Jefferies points to as a significant de-risking event for the company.
InvestingPro Insights
In light of recent share sales by Third Rock Ventures in Tango Therapeutics, Inc. (NASDAQ:TNGX), investors may benefit from a deeper dive into the company's financial health and market performance. According to InvestingPro data, Tango Therapeutics currently holds a market capitalization of approximately $1.04 billion USD. Despite the company's significant revenue growth over the last twelve months, amounting to 49.72%, it has reported a negative gross profit margin of -236.33% for the same period, indicating substantial costs relative to its revenue.
InvestingPro Tips reveal a mixed outlook for Tango Therapeutics. On the positive side, the company holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations, suggesting financial stability in the near term. However, analysts have raised concerns, expecting a sales decline in the current year and predicting that Tango Therapeutics will not be profitable this year. Additionally, the company is trading at a high revenue valuation multiple, which could suggest that the stock is priced optimistically relative to its actual revenue generation.
For those looking into Tango Therapeutics' stock, the company's recent strong return over the last three months, with a 32.39% price total return, may be of interest. Yet, it's important to consider the broader picture, including the anticipated drop in net income and the lack of dividends for shareholders. For a more comprehensive analysis and additional insights, there are 10 more InvestingPro Tips available for Tango Therapeutics at InvestingPro. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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