Third Rock Ventures, a significant shareholder in Tango Therapeutics, Inc. (NASDAQ:TNGX), has recently sold a substantial number of shares in the company. The transactions, which took place over two consecutive days, resulted in the sale of 387,740 shares, generating over $3.79 million for the venture capital firm.
On July 22, 2024, Third Rock Ventures sold 262,740 shares at a weighted average price of $9.7819 per share. The sales were executed in multiple transactions ranging from $9.75 to $9.91 each. The following day, an additional 125,000 shares were sold at a weighted average price of $9.7868 per share, with individual sales prices varying from $9.75 to $9.90.
These transactions have adjusted Third Rock Ventures' holding in Tango Therapeutics, bringing their total ownership down to 18,072,074 shares after the sale. It's worth noting that the shares sold are directly held by Third Rock Ventures IV, L.P., with Third Rock Ventures GP IV, L.P. and TRV GP IV, LLC being part of the ownership structure and disclaiming beneficial ownership except to the extent of their pecuniary interest.
Kevin Gillis, the Chief Operating Officer of TRV GP IV, LLC, has signed off on the transactions on behalf of the entities involved. The sales are part of routine trading activities by shareholders and provide liquidity in the market for Tango Therapeutics' shares. Investors and analysts often monitor such sales to gauge insider sentiment and company health, although these transactions do not necessarily indicate any underlying change in the business or its prospects.
"In other recent news, Tango Therapeutics has seen significant developments in its drug pipeline. Following the cessation of development for its key drug candidate, TNG348, due to observed liver function abnormalities in trial participants, the company's financial outlook was revised. H.C. Wainwright reduced its price target for Tango Therapeutics from $16 to $13, while maintaining a Buy rating. Similarly, Jefferies rated the company's shares with a Buy, setting a price target of $19.00.
These adjustments have been influenced by Tango Therapeutics' strategic shift to focus on other therapeutic opportunities, particularly the PRMT5 program. The company's two lead assets, '908 and '462, are currently advancing through clinical trials, with Jefferies highlighting the potential of these assets in targeting MTAP-deleted cancers.
Despite the discontinuation of TNG348, Tango Therapeutics' cash runway is now projected to last into 2027, extending from the previous estimate of late 2026. These are recent developments that reflect the company's efforts to ensure its clinical programs stay on track and address a significant subset of the cancer patient population."
InvestingPro Insights
The recent sale of shares by Third Rock Ventures in Tango Therapeutics, Inc. (NASDAQ:TNGX) may prompt investors to take a closer look at the company's financial metrics and market performance. According to real-time data from InvestingPro, Tango Therapeutics holds a market capitalization of approximately $1.06 billion. Despite the company's noteworthy year-over-year revenue growth of 49.72% as of Q1 2024, it is important to highlight that analysts anticipate a sales decline in the current year, as per an InvestingPro Tip. This could be a factor for investors to consider when evaluating the company's future revenue streams.
Another InvestingPro Tip suggests that Tango Therapeutics has been struggling with weak gross profit margins, which is substantiated by a gross profit margin of -236.33% for the last twelve months as of Q1 2024. Additionally, the company's P/E ratio stands at -8.81, reflecting investor sentiment about its earnings potential.
While Tango Therapeutics has demonstrated a strong return over the past year, with a one-year price total return of 208.54%, it's important to note that analysts do not anticipate the company will be profitable this year. This information, coupled with the fact that the company does not pay a dividend to shareholders, could influence investment decisions.
For a deeper analysis and more InvestingPro Tips, interested readers can explore the full range of insights available on InvestingPro, including additional tips for Tango Therapeutics. Moreover, users can benefit from a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to a comprehensive suite of investment tools and data.
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