Centessa Stock Has Surged 77% Over the Past Year — But a Top Biotech Fund Is Still Buying

California-based TCG Crossover Management added 245,664 shares of Centessa Pharmaceuticals (NASDAQ:CNTA), increasing its position by an estimated $38.1 million in the third quarter, according to an SEC filing released on Friday.

What Happened

According to a filing with the U.S. Securities and Exchange Commission released Friday, TCG Crossover Management bought 245,664 additional shares of Centessa Pharmaceuticals (NASDAQ:CNTA). The fund’s total CNTA position rose to 3.1 million shares following the transaction, with a quarter-end market value of $76.1 million. The transaction accounted for a 0.2% shift in the fund’s $2 billion in reportable U.S. equity AUM.

What Else to Know

TCG Crossover Management’s CNTA holding now represents 3.7% of its 13F AUM, ranking as the fund’s fifth-largest position out of 40 total holdings.

Top holdings after the filing:

• NASDAQ:ABVX: $603.8 million (29.7% of AUM)
• NASDAQ:CGON: $147.8 million (7.3% of AUM)
• NASDAQ:COGT: $97.6 million (4.8% of AUM)
• NASDAQ:AMLX: $84.9 million (4.2% of AUM)
• NASDAQ:CNTA: $76.1 million (3.7% of AUM)

As of Monday morning, CNTA shares were priced at $28.38, up 77% over the past year and outperforming the S&P 500's nearly 15% gain in the same period.

Company Overview

Company Snapshot

Centessa Pharmaceuticals is a healthcare company specializing in the discovery and development of novel therapies for complex and underserved diseases. Its portfolio includes late-stage clinical assets such as Lixivaptan (Phase III for autosomal dominant polycystic kidney disease) and SerpinPC (Phase IIa for hemophilia), alongside a diversified pipeline targeting rare diseases, oncology, and autoimmune disorders. The firm's strategy focuses on advancing multiple assets through clinical development to diversify risk and maximize potential impact. Its competitive advantage lies in its robust pipeline and focus on high-value, first-in-class or best-in-class medicines addressing significant unmet medical needs.

Centessa targets healthcare providers, research institutions, and biopharmaceutical partners, focusing on patients with unmet medical needs in nephrology, hematology, immunology, and rare disease markets.

Foolish Take

TCG Crossover is known for backing breakthrough biology early and supporting companies across the entire development cycle. Increasing its Centessa stake suggests the firm sees Centessa’s orexin agonist platform as a truly differentiated opportunity within its broader portfolio of transformative science.

The timing makes sense. Centessa’s latest update highlighted robust Phase 2a data for drug candidate ORX750 across narcolepsy types 1 and 2 and idiopathic hypersomnia, with statistically significant improvements in wakefulness, cataplexy, and sleepiness scales. ORX142 and ORX489 are also advancing rapidly toward patient studies in early 2026, broadening the platform’s potential. Financially, the company reported a $54.9 million Q3 loss, driven by increased R&D investment, but it's on track to strengthen its balance sheet through a $250 million public offering that would extend its cash runway into mid-2027.

Within TCGX’s $2 billion reported AUM, Centessa is now a top-five position—clearly signaling it's not a trade, but a conviction call. Ultimately, the firm's value will hinge on whether its orexin agonists become best-in-class therapies. But with promising early results and a derisked balance sheet, the long-term setup remains compelling.

Glossary

13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets Under Management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Reportable Assets: Investments that must be disclosed in regulatory filings, such as those required by the SEC.
Quarter-end: The last day of a financial quarter, used for reporting and valuation purposes.
Clinical-stage: Refers to a company developing drugs that are currently being tested in human clinical trials.
Phase III: The final stage of clinical trials before regulatory approval, testing a drug's effectiveness and safety in large groups.
Phase IIa: An early phase of clinical trials focused on assessing a drug's efficacy and side effects in patients.
Pipeline: The portfolio of drug candidates a pharmaceutical company is developing, often at various stages of research and testing.
First-in-class: Describes a drug that uses a new and unique mechanism of action for treating a condition.
Best-in-class: A drug considered superior to others in its category based on effectiveness, safety, or other factors.
Unmet medical needs: Health conditions lacking adequate treatment options, representing opportunities for new therapies.
TTM: The 12-month period ending with the most recent quarterly report.

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.