Large Biotech Fund Sells Shares of Cogent Biosciences for Over $120M

Core Insights - A significant insider sale of 3,500,000 shares by Fairmount Funds Management LLC occurred despite Cogent Biosciences achieving its best annual performance in 2025, raising questions about the motivations behind the sale [1][6]. Transaction Summary - Fairmount Funds Management LLC sold 3,500,000 shares for approximately $127.4 million, reducing its indirect holdings by 38.87% to 5,503,418 shares [2][3]. - The shares were sold at a reported price of $36.40, which was lower than the closing price of $39.53 on the same day [3]. Company Overview - Cogent Biosciences, based in Massachusetts, is a clinical-stage biotechnology company focused on targeted therapies for rare, genetically driven diseases, with a market capitalization of $5.46 billion and a net income of -$294.37 million [4][5]. - The company's stock experienced a remarkable 286.13% price increase over the past year, with a notable rise of approximately 342% in 2025 [4][6]. Investor Implications - The sale of shares by Fairmount Funds Management, which generated over $120 million, may indicate profit-taking following substantial stock gains, although the specific motivations remain unclear [6]. - Fairmount Funds continues to hold approximately 67,414 units of Series A Convertible Preferred Stock, which could convert to about 16.85 million common shares, subject to ownership limits [7][8].