Nan Fung Group Sells $4.3 Million in Oculis Shares As Lead Drug Stumbles

What happened

According to a recent SEC filing, Nan Fung Group Holdings Ltd reduced its position in Oculis (NASDAQ:OCS) by 163,957 shares during the first quarter of 2026. The estimated value of the trade was $4.3 million, based on the quarter’s average closing price.

What else to know

• Nan Fung's remaining Oculis stake of 350,745 shares was valued at $9.3 million at quarter-end, representing 7.7% of the fund's total AUM and ranking as its fourth-largest holding.
• Top holdings after the filing:
  • NYSE: EVMN: $33.1 million (27.3% of AUM)
  • NASDAQ: MPLT: $19.7 million (16.3% of AUM)
  • NASDAQ: LBRX: $15.6 million (12.8% of AUM)
  • NASDAQ: OCS: $9.3 million (7.7% of AUM)
  • NASDAQ: INCY: $5.1 million (4.2% of AUM)
• As of June 5, 2026, Oculis shares were trading at $11.21 -- down about 43% over the past year, and underperforming the S&P 500 by roughly 67 percentage points.

Company overview

Company snapshot

Oculis Holding AG is a clinical-stage biopharmaceutical company developing novel topical therapies for ophthalmic and neuro-ophthalmic diseases.

• Oculis targets ophthalmologists and healthcare providers treating patients with diabetic eye disease, dry eye, and neuro-ophthalmic disorders in global markets.
• Following the late-May 2026 failure of its Phase 3 DIAMOND trials, Oculis is no longer pursuing FDA approval for OCS-01 in diabetic macular edema. The company is now concentrating its pipeline on two remaining registrational programs: Privosegtor (PIONEER-1, Phase 3 for optic neuropathies, which holds FDA Breakthrough Therapy Designation) and Licaminlimab (PREDICT-1, Phase 2b for dry eye disease).
• As of March 31, 2026, the company reported $277.6 million in cash, cash equivalents, and short-term investments, providing a funding runway into the second half of 2029.

What this transaction means for investors

Nan Fung's Q1 trim of its Oculis stake looks less like a vote of no confidence and more like routine portfolio rebalancing. But the context around Oculis has grown considerably more complicated since the end of Q1.

On May 29, 2026, Oculis announced that its two Phase 3 DIAMOND trials of OCS-01 -- a topical eye drop for diabetic macular edema -- failed to meet their primary vision endpoints. The company will not pursue FDA approval for that indication and has pivoted its resources toward its two remaining programs: Privosegtor, which holds an FDA Breakthrough Therapy Designation for optic neuritis, and Licaminlimab for dry eye disease. That late-May setback explains much of the dramatic stock slide that has pushed OCS down roughly 43% over the past year. From that perspective, Nan Fung's Q1 sale -- near the $26 range based on quarterly average pricing, much higher than today’s share price of $11-and-change -- predated the bad news and looks relatively well timed.

For retail investors, the key question now isn't what Nan Fung did -- it's whether the remaining pipeline justifies the current share price. Oculis is essentially a pre-revenue company that’s burning through roughly $30 to $37 million per quarter in operating expenses. On that front, there is some reason for cautious optimism: Oculis exited Q1 2026 with $277.6 million in cash, with management claiming this provides a runway into the second half of 2029 -- though at recent burn rates, that math requires a meaningful reduction in spending going forward. Provided that happens, this balance sheet cushion gives management time to advance Privosegtor through PIONEER-1 without the immediate pressure of a dilutive capital raise. Still, losing a lead late-stage asset is a significant setback for a company of this size, and investors should watch closely for Privosegtor data updates as the primary near-term catalyst.

Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Incyte. The Motley Fool has a disclosure policy.