PTC Therapeutics Swings to a Profit on $211 Million in Revenue — Is This Why a Major Fund Just Invested $32 Million?

PTC Therapeutics (NASDAQ:PTCT) saw California-based Palo Alto Investors increase its position by 456,144 shares in the third quarter, adding approximately $33.1 million in value, according to a November 14 SEC filing.

What Happened

Palo Alto Investors disclosed a significant purchase of PTC Therapeutics in its quarterly Form 13-F filed with the Securities and Exchange Commission (SEC) on November 14. The fund boosted its position by 456,144 shares versus the previous quarter, bringing its total to 862,613 shares, with a reported market value of $52.9 million as of September 30.

What Else to Know

The purchase raises the fund's PTCT stake to 9.8% of its $540.4 million in reportable U.S. equity assets.

Top holdings after the filing:

• NASDAQ:INSM: $70.8 million (13.1% of AUM)
• NASDAQ:PTCT: $52.9 million (9.8% of AUM)
• NASDAQ:ACAD: $52.6 million (9.7% of AUM)
• NASDAQ:FOLD: $42.3 million (7.8% of AUM)
• NASDAQ:BMRN: $40.8 million (7.6% of AUM)

As of Wednesday, PTCT shares were priced at $74.72, up 49% over the past year and well outperforming the S&P 500's 13% gain in the same period.

Company Overview

Company Snapshot

• PTC Therapeutics commercializes rare disease therapies, including Translarna, Emflaza, Tegsedi, Waylivra, and Evrysdi, with a pipeline spanning clinical to pre-clinical stages.
• The company generates revenue primarily through the sale of proprietary biopharmaceutical products and regional licensing agreements.
• It serves patients with rare disorders, with a focus on markets in the United States, Europe, Latin America, and select international territories.

PTC Therapeutics is a biotechnology company specializing in the discovery, development, and commercialization of medicines for rare diseases. The company leverages a diversified portfolio of marketed products and late-stage pipeline candidates, supported by strategic collaborations with leading pharmaceutical partners.

Foolish Take

PTC Therapeutics’ recent surge doesn't seem just sentiment-driven—it’s now backed by a swing to profitability and a stronger commercial foundation. The company posted $211 million in third-quarter revenue and $15.9 million in net income, marking a sharp improvement from last year’s $106.7 million loss. Meanwhile, the launch of Sephience is emerging as a genuine growth catalyst rather than a one-off bump. The combination of accelerating royalty revenue, narrowing full-year guidance, and a reinforced cash position gives investors a firmer footing after years of volatility.

Palo Alto Investors’ move to increase its stake now places PTC among its top holdings—a sign that the fund sees durability in this momentum despite a pipeline still shaped by regulatory uncertainty. Sephience’s early traction is notable: $19.6 million in Q3 sales and 521 start forms in the U.S., plus 341 patients on therapy worldwide.

For long-term investors, the key question is whether Sephience and the late-stage pipeline can support sustained revenue growth as legacy products continue to step down. Cash reserves of $1.7 billion give PTC meaningful flexibility heading into multiple regulatory milestones.

Glossary

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

Form 13-F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the SEC.

Reportable assets: Investments that must be disclosed in regulatory filings, typically U.S. publicly traded securities.

Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.

Marketed products: Medicines or therapies that have received regulatory approval and are available for sale.

Pipeline: The portfolio of drug candidates a company is developing, from pre-clinical to late-stage trials.

Licensing agreements: Contracts allowing another company to market or sell a product in exchange for fees or royalties.

Net loss: When a company's total expenses exceed its total revenues during a specific period.

Biotechnology company: A business focused on developing products using biological processes, often for medical or pharmaceutical use.

Strategic collaborations: Partnerships between companies to share resources, expertise, or technology for mutual benefit.

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