This Fund Bet Nearly $40 Million on GRAIL Last Quarter. The Stock Just Plunged Over 50%

On February 17, 2026, Baker Bros. Advisors disclosed a purchase of 455,208 shares of GRAIL (NASDAQ:GRAL), an estimated $39.33 million trade based on quarterly average pricing.

What happened

According to a recent SEC filing dated February 17, 2026, Baker Bros. Advisors increased its position in GRAIL by 455,208 shares. The estimated transaction value, based on the average unadjusted closing price during the fourth quarter of 2025, was $39.33 million. The quarter-end value of the position rose by $82.09 million, reflecting the combined impact of additional shares and changes in the stock price. The position represents roughly 1% of assets.

What else to know

• Top five holdings after the quarter:
  • NASDAQ: INCY: $3.04 billion (17.8% of AUM)
  • NASDAQ: ONC: $2.67 billion (15.7% of AUM)
  • NASDAQ: MDGL: $1.25 billion (7.3% of AUM)
  • NASDAQ: INSM: $1.15 billion (6.7% of AUM)
  • NASDAQ: ACAD: $1.15 billion (6.7% of AUM)
• As of February 23, 2026, shares of GRAIL were priced at $42.22, up about 4% over the past year and underperforming the S&P 500’s roughly 13% gain in the same period.

Company overview

Company snapshot

• GRAIL develops early cancer detection technologies, with flagship products including the Galleri multi-cancer screening test and DAC diagnostic aid; expanding into minimal residual disease and post-diagnostic testing.
• The firm generates revenue primarily through the sale of diagnostic tests and screening services to healthcare providers, leveraging proprietary biotechnology platforms.
• It targets asymptomatic individuals over 50, healthcare systems, and clinicians seeking advanced cancer detection solutions.

GRAIL is a biotechnology company specializing in advanced diagnostics for early cancer detection. The company leverages proprietary technology to address significant unmet needs in oncology screening and diagnosis. With a focus on innovation and clinical utility, GRAIL aims to improve patient outcomes and establish a leadership position in the medical diagnostics market.

What this transaction means for investors

This is what real biotech volatility looks like. A company can grow revenue double digits, build nearly $1 billion in liquidity, and still see its stock cut in half because a trial fails to hit a statistical bar.

GRAIL’s fourth quarter revenue rose 14% to $43.6 million, while full-year revenue climbed 17% to $147.2 million. Meanwhile, U.S. Galleri revenue reached $136.8 million for the year, up 26%. The company sold more than 185,000 Galleri tests in 2025 and ended the year with $904.4 million in cash and marketable securities, which management says funds operations into 2030.

Still, the NHS-Galleri trial did not achieve a statistically significant reduction in Stage III to IV cancers, even as it showed improvements in earlier-stage detection. That nuance rarely protects a stock in the short term, and shares have fallen nearly 60% since the report on Thursday.

Within a portfolio dominated by large oncology and biotech names measured in billions, a roughly 1% allocation is still a calculated swing. Long-term investors should watch three variables: regulatory traction from the PMA submission, commercial adoption through digital health partnerships, and burn relative to cash runway. If Galleri becomes standard of care, today’s collapse may look like noise. If not, the risk is there.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BeOne Medicines Ag and Incyte. The Motley Fool recommends Grail. The Motley Fool has a disclosure policy.