What One Fund's Sale of Centessa Stock Signals About the Fast-Rising Biotech Company

San Francisco-based 5AM Venture Management reduced its stake in Centessa Pharmaceuticals (NASDAQ:CNTA) by 150,000 shares in the third quarter, according to a November 14 SEC filing.

What Happened

According to a filing published with the Securities and Exchange Commission on November 14, 5AM Venture Management disclosed a reduction in its Centessa Pharmaceuticals position. The fund reported holding 680,945 shares, down by 150,000 shares from the previous quarter. Despite the sale, the overall position value still increased given the stock's sharp rise last quarter of more than 80%. The revised stake was valued at approximately $16.5 million as of September 30, representing approximately 6.1% of the fund’s approximately $273 million in reportable assets.

What Else to Know

Top five holdings after the update:

• NASDAQ:SKYE: $38 million (13.9% of AUM)
• NASDAQ:TRDA: $24.7 million (9.0% of AUM)
• NASDAQ:PHVS: $19.9 million (7.3% of AUM)
• NASDAQ:CAMP: $17.6 million (6.4% of AUM)
• NASDAQ:CNTA: $16.5 million (6.0% of AUM)

As of Friday, Centessa shares were priced at $29.03, up a staggering 65% over the past year and far outperforming the S&P 500, which is up 14% in the same period.

Company Overview

Company Snapshot

Centessa Pharmaceuticals is a biotechnology company headquartered in the United Kingdom that is developing a pipeline of clinical-stage biopharmaceutical products, including Lixivaptan for autosomal dominant polycystic kidney disease and SerpinPC for hemophilia, as well as early-stage assets targeting rare diseases and immunological conditions. Centessa targets patients with rare and serious diseases, as evidenced by its clinical programs in conditions such as hemophilia, autosomal dominant polycystic kidney disease, alpha-1-antitrypsin deficiency, pulmonary arterial hypertension, and certain autoimmune diseases. The company serves a global base of patients, healthcare providers, and research institutions focused on rare and underserved medical conditions.

Foolish Take

Trimming a position after a major rally can be as telling as doubling down—especially when the underlying science is still early but showing real momentum. Centessa has become one of the sector’s standout performers, and the biotech-focused fund’s decision to reduce—not exit—its stake signals continued conviction even as the company’s valuation has surged on clinical progress.

Centessa’s orexin agonist platform remains the key driver. In its latest update, management reported Phase 2a data showing “statistically significant, clinically meaningful and dose-dependent” improvements across wakefulness measures for ORX750, with a favorable safety profile across cohorts. CEO Saurabh Saha called the data “significant progress” and highlighted plans to begin a registrational program in the first quarter of 2026. Financially, Centessa posted a third-quarter net loss of $54.9 million and ended the quarter with $349 million in cash, equivalents, and investments—enough to fund operations into mid-2027. The company also strengthened its balance sheet with an announced $250 million public offering at $21.50 per ADS.

For long-term investors, the takeaway is clear: The trimmed position likely reflects portfolio management, not diminishing confidence. The best evidennce is that the fund kept Centessa among its top holdings, underscoring the potential of a pipeline that could reshape treatment for multiple sleep-wake disorders.

Glossary

13F reportable AUM: Assets under management that must be disclosed in quarterly SEC filings by institutional investment managers in the U.S.

Stake: The ownership interest or investment a fund or individual holds in a particular company.

Position: The amount of a specific security or asset held by an investor or fund.

Clinical-stage: Refers to pharmaceutical products currently being tested in human clinical trials but not yet approved for sale.

Pipeline: The portfolio of drug candidates a pharmaceutical company is developing, often at various stages of research and testing.

Autosomal dominant polycystic kidney disease: A genetic disorder causing cysts in the kidneys, leading to kidney enlargement and impaired function.

Immunological conditions: Diseases or disorders related to the immune system's function or regulation.

Modular R&D model: A research and development approach where projects are managed independently to increase flexibility and speed.

Outperforming: Achieving better returns or results than a benchmark or comparable group.

Assets under management (AUM): The total market value of investments managed by a fund or investment firm.

TTM: The 12-month period ending with the most recent quarterly report.

Net value change: The difference in the value of an investment position after buying or selling securities.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Centessa Pharmaceuticals Plc. The Motley Fool has a disclosure policy.