Steven Cohen's Biotech Investments Are Becoming More Ambitious Yet More Focused
Steven Cohen's Biotech Investments
Point72 Asset Management's New Stakes: Billionaire hedge fund manager Steven Cohen is making significant investments in small-cap biotech firms, particularly focusing on companies with promising genetic and antibody therapies. His firm has recently acquired stakes in Invivyd Inc. and Design Therapeutics Inc., capitalizing on their recent stock performance.
Invivyd Inc. Investment: Point72 disclosed a new position in Invivyd, purchasing 16.73 million shares for $17.23 million at an average price of $1.03. Invivyd's stock has surged 106% year-to-date, with a notable 22% increase in the past month. Despite being below its 52-week high of $2.74, the stock has rebounded from a low of 35 cents, driven by optimism surrounding its monoclonal antibody candidate VYD222.
Design Therapeutics Stake Increase: Cohen's firm increased its stake in Design Therapeutics by 62.8%, acquiring an additional 1.14 million shares. The current stake is valued at approximately $5.64 per share, reflecting a 24% increase from the initial entry price of $4.55. Design Therapeutics has seen its shares rise nearly 42% in the past month and 19.8% over the past year, with its GeneTACTM molecules targeting specific genetic diseases.
Market Trends and Future Outlook
Growing Hedge Fund Interest: Cohen's investments highlight a broader trend of hedge funds seeking high-risk, high-reward opportunities in the biotech sector. The market response to small-cap biotech stocks indicates a growing appetite for innovative therapies, particularly as these companies show potential for significant breakthroughs.
Performance of Other Biotech Stocks: Alongside Invivyd and Design Therapeutics, Cohen has also invested in Structure Therapeutics and Entrada, which are gaining traction in the market. The performance of these stocks in 2025 suggests that investors are increasingly optimistic about the future of small-cap biotech investments.
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Invivyd Initiates Phase 2 Trial for VYD2311 Targeting Long COVID Patients
- Trial Launch: Invivyd announced plans to initiate a Phase 2 clinical trial for VYD2311 targeting individuals with Long COVID and vaccine injury by mid-2026, addressing the urgent need for effective treatment options for millions suffering from persistent symptoms.
- Antibody Dose Design: The trial will utilize multiple high doses of monoclonal antibody VYD2311, which has demonstrated in vitro antiviral activity against all clinically recorded variants of SARS-CoV-2, potentially offering long-term therapeutic benefits for patients.
- Collaborative Research Group: Invivyd is partnering with the SPEAR Study Group to deepen the understanding of Long COVID biology and potential relief strategies, highlighting the focus on chronic infection and antigen persistence, which may open new avenues for treatment.
- Patient Recruitment Criteria: The trial will enroll patients with evidence of persistent infection or antigenemia, employing a double-blind placebo-controlled design to assess clinical efficacy and Patient-Reported Outcomes, ensuring scientific rigor and effectiveness of the study.
Invivyd Reports Q4 2025 Revenue of $17.2M, Up 25% Year-over-Year
- Revenue Growth: Invivyd reported preliminary Q4 2025 net product revenue of $17.2 million for PEMGARDA® (pemivibart), reflecting a 25% year-over-year increase and a 31% quarter-over-quarter rise, indicating strong market demand for monoclonal antibody prophylaxis.
- Strong Financial Position: After raising over $200 million in the second half of 2025, Invivyd anticipates ending 2025 with cash and cash equivalents of $226.7 million, providing ample funding for upcoming clinical trials and potential product launches.
- Clinical Trial Initiation: The company initiated the DECLARATION Phase 3 clinical trial in December 2025 to evaluate the safety and efficacy of VYD2311 in preventing COVID, with top-line data expected in mid-2026, which could significantly enhance the company's market position in COVID prevention.
- Pipeline Expansion: Invivyd nominated the potential best-in-class RSV antibody candidate VBY329 for preclinical development, aiming for IND readiness in 2H 2026, targeting a blockbuster market projected to reach $3-4 billion in annual revenues globally by 2030.
