This Biotech Investor’s Picks Returned 31% in Q1; Here Are Its New Bets

Solid Biosciences Inc (NASDAQ:SLDB) went public in January and RA Capital was one of the company’s early backers. Following the IPO, RA Capital disclosed a $20.17 million stake containing 2.69 million shares. RA Capital also has appointed its portfolio manager and managing director Rajeev Shah to the company’s board. The stock took a hit in March after the FDA suspended Solid Biosciences Inc (NASDAQ:SLDB)’s clinical trial of Duchenne muscular dystrophy candidate SGT-001 following the hospitalization of the first patient. However, the shares quickly regained ground and are currently 52% in the green since started trading. Solid Biosciences Inc (NASDAQ:SLDB) said that it addressed the issues leading to the hold.

RA Capital also purchased 1.53 million shares of Clearside Biomedical Inc (NASDAQ:CLSD) between January and March, the stake being valued at $16.36 million. At the beginning of March, Clearside Biomedical Inc (NASDAQ:CLSD) announced positive results from a Phase 3 study of suprachoroidal CLS-T in patients with macular edema associated with non-infectious uveitis. The study reached the primary endpoint, as 47% of the patients that received the treatment every 12 weeks saw an improvement in sight. The stock quickly jumped as investors cheered the positive results, but it took a hit a couple of months later on the back of underwhelming results from a Phase 2 study of CLS-TA in combination with EYLEA in patients with diabetic macular edema.

Catalyst Biosciences Inc (NASDAQ:CBIO) saw RA Capital buy 514,917 shares worth $13.29 million during the first quarter. The stock of the clinical-stage biopharmaceutical company focused on hematology indications has surged by 62% since the beginning of 2018. Catalyst Biosciences Inc (NASDAQ:CBIO) is currently conducting a number of studies involving the treatment of hemophilia. Its marzeptacog alfa (MarzAA) has orphan drug designation in the US for routine prohylaxis in hemophilia A or B and in January the company launched the Phase 2 portion of a Phase 2/3 trial evaluating the drug. The preliminary result from the study are expected next month.

Catalyst is followed by Iovance Biotherapeutics Inc (NASDAQ:IOVA) in RA Capital’s equity portfolio, as the fund acquired an $11.14 million position containing 659,059 shares. Iovance Biotherapeutics Inc (NASDAQ:IOVA) is focused on developing Tumor Infiltrating Lymphocyte Therapies (tumor infiltrating lymphocytes are extracted from the patient, expanded in a laboratory and then reinfused to attack and kill cancer cells) and it currently has three mid-stage studies that are examining the treatment of metastatic melanoma in head, neck and cervical cancer. Earlier this month, Iovance Biotherapeutics said that it the first patient had been dosed in a Phase 2 trial assessing the candidate LN-144 in metastatic melanoma patients. The primary endpoint of the study is objective response rate at the sixth month and the trial is expected to be completed by March 2019.

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