Why This Fund Made a $66 Million Bet on Damora Therapeutics Amid a 700% Surge

FCPM III Services B.V. disclosed a new position in Damora Therapeutics (NASDAQ:DMRA) as of March 31, 2026, acquiring 2,441,000 shares for an estimated $65.63 million based on quarterly average pricing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, FCPM III Services B.V. initiated a new position in Damora Therapeutics by purchasing 2,441,000 shares. The estimated value of this transaction was $65.63 million, calculated using the quarterly average price for the period from January 1 to March 31, 2026. The quarter-end position value was $63.22 million.

What else to know

• This is a new position for the fund and represents 8.75% of 13F reportable assets under management as of March 31, 2026.
• Top holdings after the filing:
  • NASDAQ: NAMS: $294.46 million (41.2% of AUM)
  • NASDAQ: DYN: $84.20 million (11.8% of AUM)
  • NASDAQ: VOR: $73.45 million (10.3% of AUM)
  • NASDAQ: ENGN: $65.60 million (9.2% of AUM)
  • NASDAQ: MPLT: $65.59 million (9.2% of AUM)
• As of Friday, shares of Damora Therapeutics were priced at $24.88, up nearly 700% this past year.

Company overview

Company snapshot

• Damora Therapeutics develops small-molecule therapeutics targeting cancer and fibrotic diseases, with a focus on galectin-3 and LOXL2 inhibitors.
• The firm operates as a clinical-stage biotechnology company developing novel small-molecule therapeutics.
• It serves the biopharmaceutical market, with a focus on advancing therapies for patients with unmet needs in oncology and fibrotic disorders.

Galecto, Inc. is a clinical-stage biotechnology company headquartered in Boston, MA. The company’s strategy centers on developing novel therapeutics that address unmet medical needs in oncology and fibrotic disorders. Galecto’s competitive edge lies in its proprietary small molecule inhibitors, positioning it as an innovator within the pharmaceutical development landscape.

What this transaction means for investors

This purchase ultimately looks like a bet on a freshly recapitalized biotech with a long runway and several meaningful catalysts still ahead. FCPM's decision to make Damora nearly 9% of reportable assets suggests conviction that the company's transformation is only beginning, despite a stock gain of roughly 700% over the past year.

The story changed a lot in recent months. Formerly known as Galecto, the company rebranded as Damora Therapeutics following the acquisition of a portfolio of mutant calreticulin-targeted therapies aimed at treating rare blood cancers. Management believes its lead candidate, DMR-001, has best-in-class potential, with a regulatory submission expected in mid-2026 and initial clinical proof-of-concept data anticipated beginning in mid-2027.

New CEO Jennifer Jarrett earlier this month said the company is "well positioned" to maintain or potentially shorten the timeline to market relative to competitors. Damora has also revamped its leadership team with executives from Blueprint Medicines, Arcus Biosciences, and Medivation.

Most importantly, the balance sheet gives management room to execute. Damora ended the first quarter with $532.9 million in cash and expects that capital to fund operations into 2029. While first-quarter net loss widened to $27.8 million as research spending accelerated, investors are clearly focused on future clinical milestones rather than current earnings.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.