Shares of Aptinyx (APTX), a clinical-stage biotech focused on the brain and nervous system, rose about 27% on Friday.
The double-digit jump appears to be linked to the filing of an SEC document that shows that Adams Street Partners -- an investment management company with $40 billion in assets -- has acquired more than 5 million shares of Aptinyx's stock. That position represents more than 11% of shares outstanding.
Traders bid up the share price in response to the big vote of confidence from Adams Street Partners.
Aptinyx's pipeline boasts three drugs that are in phase 2 development as possible treatments for diabetic neuropathy, fibromyalgia, post-traumatic stress disorder, and Parkinson's disease. These are all big indications with huge unmet medical needs, so success in any of them would be a financial windfall for Aptinyx. Adams Street Partners clearly believes that Aptinyx's pipeline holds a lot promise.
It's still unclear whether any of Aptinyx's drugs will make it to market, which is exactly why investing in clinical-stage biotechnology stocks is so difficult. Given the risks, my plan is to follow Aptinyx with great interest from the safety of the sidelines.