Biotech Exit: $26 Million Arcellx Sale Follows Tepid Stock Performance and Kelonia Competition
Key Points
First Turn Management sold 313,733 shares of Arcellx in the fourth quarter.
The quarter-end position value decreased by $25.76 million, reflecting both trading activity and stock price movement.
First Turn Management now holds zero shares in Arcellx.
The position was previously 3.9% of the fund's AUM as of the prior quarter.
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On February 13, 2026, First Turn Management, LLC disclosed in an SEC filing that it sold out of Arcellx (NASDAQ:ACLX), selling all 313,733 shares in an estimated $25.76 million transaction.
What happened
According to a recent SEC filing dated February 13, 2026, First Turn Management reported selling its entire stake of 313,733 shares in Arcellx. The fund’s quarter-end position in Arcellx declined by $25.76 million, a change that reflects both the sale and movement in the underlying share price.
What else to know
- Top holdings after the filing:
- NASDAQ:ABVX: $51.41 million (5.9% of AUM)
- NASDAQ:RVMD: $50.85 million (5.8% of AUM)
- NASDAQ:INSM: $46.00 million (5.3% of AUM)
- NASDAQ:BBIO: $45.55 million (5.2% of AUM)
- NASDAQ:MIRM: $38.04 million (4.3% of AUM)
- As of February 13, 2026, shares of Arcellx were priced at $68.50, up 7.5% over the past year, underperforming the S&P 500 by 4.3 percentage points.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $3.96 billion |
| Revenue (TTM) | $35.90 million |
| Net income (TTM) | ($217.90 million) |
| Price (as of market close February 13, 2026) | $68.50 |
Company snapshot
- Arcellx develops cell-based immunotherapies targeting cancer and other incurable diseases
- Its pipeline includes therapies for acute myeloid leukemia, myelodysplastic syndrome, and solid tumors
Arcellx is a clinical-stage biotechnology company focused on developing novel cell-based immunotherapies for cancer treatment. With a diversified pipeline targeting both hematologic malignancies and solid tumors, it leverages proprietary technology platforms to address significant unmet medical needs. Its strategy emphasizes innovation in cell therapy design to advance its product candidates through clinical development.
What this transaction means for investors
Capital rotation tells you more than any single trade. In a biotech-heavy portfolio where top holdings like Abivax, Revolution Medicines, and Insmed each hover around 5% to 6% of assets, exiting a smaller oncology name suggests conviction is being consolidated, not reduced.
Arcellx shares were up about 7.5% over the past year as of mid-February, lagging the broader market. That is hardly catastrophic performance, but it is also not the kind of relative strength you expect to command space in a concentrated, high-risk biotech strategy. The stock also faced pressure late last year after concerns emerged around competitive CAR-T data from privately held Kelonia Therapeutics, though some analysts argued the reaction was overdone.
For long-term investors, this looks less like a judgment on the science and more like portfolio triage. Clinical-stage oncology remains binary by nature. When capital is finite, managers tend to double down on perceived category leaders and trim positions where timelines, differentiation, or competitive positioning feel less certain.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mirum Pharmaceuticals. The Motley Fool recommends BridgeBio Pharma. The Motley Fool has a disclosure policy.
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