Biotechnology equities’ extended run towards year-end was helped by positive news-flow in December
Value inflection in biotech: Karuna Therapeutics acquired for USD 14 billion, and Cytokinetics announces clinical trial success in heart dysfunction.
Karuna Therapeutics, an Arctic Aurora LifeScience and Arctic Aurora Biotech Select portfolio company, that on December 22 announced an agreement with Bristol-Myers Squibb to be acquired for USD 14 billion in equity value. The deal corresponded to an approximate 53% premium on the previous closing price of Karuna.
In September this year, Karuna submitted a drug approval application to the US Food and Drug Administration (FDA) for its leading drug candidate for treating schizophrenia. The application comes after two successful Phase 3 trials where Karuna was able show competitive drug profile versus standard-of-care schizophrenia drugs available today. The drug both had a compelling efficacy profile, and importantly, a benign side effect profile which otherwise is an obstacle for the drugs currently used for this disease. The medical need in schizophrenia is profound with an estimated 24 million patients worldwide and relatively little innovation in the field for the past decades.
On December 27, Cytokinetics announced positive Phase 3 results with their lead candidate drug aficamten in obstructive hypertrophic cardiomyopathy (HCM). Measured by patient’s oxygen uptake during exercise, aficamten offered a statistically significant improvement over placebo. But more importantly, the drug profile appears competitive compared to a drug already approved for this patient group. When comparing safety measures, the aficamten also appears to offer a more compelling profile.
HCM is a rare hereditary heart condition whereby the heart muscle walls are thickened, and blood flow becomes restricted. Aficamten work by inhibiting the activity of myosin, a motor protein that makes the heart muscle contract. By relaxing the heart muscle relative to its untreated state this drug class has now shown to increase blood flow through the heart. Like Karuna, Cytokinetics is also held by both Arctic Aurora LifeScience and Arctic Aurora Biotech Select. As a consequence of the positive trial results, Cytokinetics share prices rocketed up 83% on the day of the news release.
Latest news
Arctic Asset Management - Arctic Midt i Måneden - Sterke rapporter og nye markedsmuligheter
Rapporteringssesongen i Norden har gitt flere positive overraskelser, med solide resultater på tvers av både industri, bank og råvarerelaterte selskaper. Samtidig vurderer markedet utsiktene for renter, inflasjon og videre vekst i en verden preget av økt usikkerhet.
I denne episoden av Arctic Midt i Måneden møter Albert Collett forvalterne Vegard Kjølhamar og Alexander Larstedt Lager til en samtale om de viktigste trendene fra rapporteringssesongen, utviklingen i rente- og kredittmarkedene og hvordan fondene er posisjonert for månedene fremover.
Arctic Asset Management - Markedskommentar april 2026
April ble en måned der markedene forsøkte å prise konsekvensene av det kraftige råvare- og energisjokket fra Midtøsten. Den kraftig reduserte skipstrafikken gjennom Hormuz-stredet skapte fortsatt betydelig usikkerhet rundt olje, gass og flere andre råvarer. Markedet priset fortsatt inn en gradvis normalisering, men risikoen for en mer langvarig forstyrrelse økte etter hvert som skipstrafikken forble kraftig redusert og buffere i form av lagre og allerede lastede skip gradvis ble brukt opp. Utfallet fremstår derfor fortsatt binært: enten en gradvis gjenåpning og lavere energipriser, eller en mer akutt fase dersom blokaden vedvarer inn i sommermånedene.
Arctic Asset Management - Revolution Medicines announced unprecedented Phase 3 results in pancreatic cancer
Arctic Aurora LifeScience holding, Revolution Medicines announced outstanding overall survival benefit in metastatic pancreatic cancer, one of the most lethal tumors.
Arctic Asset Management - Markedskommentar mars 2026
Markedene i mars ble påvirket av krigen i Iran som har spredt seg til store deler av Midtøsten og skapt betydelige globale ringvirkninger. Etter at USA og Israel angrep Iran på den siste dagen i februar, har regionen vært preget av krigshandlinger, med påfølgende avbrudd i råvareproduksjon og forsyningskjeder som har gitt økt markedsvolatilitet.
Arctic Asset Management - No slowing down of Biotech M&A: Soleno to be acquired by Neurocrine
On April 6, Arctic Aurora LifeScience holdings Soleno Therapeutics and Neurocrine Biosciences announced an agreement in which the mid-cap commercial biotech Neurocrine acquires Soleno for USD 2.9 billion or USD 53 per share - a 34% premium over the last closing price.
Arctic Asset Management - Apellis to be acquired by Biogen for 140% premium
On March 31, Arctic Aurora LifeScience portfolio company Apellis Pharmaceuticals announced that the company had agreed to be acquired by Biogen for an upfront cash consideration of USD 5.6 billion, representing a 140% premium on the latest closing price.