Hedge fund BVF fully exited its position in Protagonist Therapeutics (PTGX), selling 2.56 million shares worth $170.12 million. Despite the stock rallying 120% over the past year, the fund's exit reflects a disciplined capital rotation strategy following the company's New Drug Application submission for rusfertide in polycythemia vera, marking a shift from clinical-stage risk to regulatory execution risk.

Hedge fund BVF invested $52 million in Disc Medicine (IRON) by acquiring 650,000 shares in Q4, demonstrating conviction in the clinical-stage biotech company despite recent FDA setbacks. The investment was made before the FDA's Complete Response Letter in February and a subsequent 20% stock decline. With $791 million in cash runway through 2029, Disc Medicine's investment thesis now hinges on Phase 3 APOLLO trial data expected in Q4 and a potential FDA decision by mid-2027.

Breakthru Medicine, a cancer-focused biotech startup founded by industry veterans Steve Potts, Mark Mulvihill, and Brian Barnett, has closed a $60M Series A financing round. The company is developing disruptive therapeutic modalities including small molecules, next-generation ADC payloads, and molecular glues to address unmet cancer treatment needs. The founding team has collectively been involved in over a dozen approved or late-stage therapies, many with FDA Breakthrough Therapy Designation.

Revolution Medicines stock dropped nearly 17% after The Wall Street Journal reported that Merck withdrew from acquisition discussions with the biotech company. The two companies failed to agree on the buyout price, though talks could potentially resume. Other pharmaceutical companies including AbbVie have also been reported as interested acquirers.

Natural gas surged over 30% to above $6/MMBtu due to Winter Storm Fern, marking the largest weekly gain ever for a Nymex contract. Silver jumped 13% to $116/oz, its best day since 2008, while gold rose 2.2% to $5,100. U.S. equities gained modestly with the S&P 500 and Nasdaq up 0.7%, driven by technology and mining stocks. Dollar weakness supported the commodity rally.

Erasca (ERAS) stock declined 7.33% on Monday following news that Merck ended acquisition discussions with competitor Revolution Medicines over valuation disagreements. The deal would have valued Revolution Medicines at approximately $30 billion. Both companies develop RAS-pathway cancer therapies, and the failed deal sparked investor concerns about the sector's valuation environment.

Merck & Co. has ended acquisition discussions with Revolution Medicines after the two companies disagreed on valuation. The deal was reportedly valued between $28-32 billion, with talks centered around $30 billion. Revolution Medicines shares plummeted 22.74% in premarket trading following the news. Despite the setback, talks could potentially restart or another bidder may emerge, with clinical trial data expected in the first half of 2026.

Ten large-cap stocks surged last week driven by defense spending increases, AI infrastructure deals, and acquisition speculation. Top performers included Regencell Bioscience (89.45% gain), Revolution Medicines (51.38% on Merck acquisition talks), Kratos Defense (36.12% on military budget expansion), AeroVironment (35.86% on Army partnership), Karman Holdings (33.91% on acquisition deal), SanDisk (33.15% on pricing strategy), Bloom Energy (30.55% on credit facility), Oklo (29.04% on Meta power deal), Applied Digital (29.48% on earnings beat), and Figure Technology (29.33% on analyst upgrade).

Merck & Co. is in advanced talks to acquire cancer drug-maker Revolution Medicines for $28-32 billion, marking potentially the largest biotech M&A deal since Pfizer's $43 billion Seagen acquisition in 2023. Revolution Medicines' stock surged 15.14% overnight on the news. The deal reflects Merck's acquisition strategy amid an industry patent cliff, following recent purchases of Cidara Therapeutics and Verona Pharma.

Revolution Medicines (RVMD) shares tumbled 11.5% in after-hours trading on Wednesday after AbbVie (ABBV) denied reports of acquisition talks. The stock had surged nearly 29% earlier in the day following Wall Street Journal reports that AbbVie was in advanced negotiations to acquire the cancer-drug developer. AbbVie confirmed to Reuters it was not in discussions with Revolution Medicines, causing the rally to reverse.

Revolution Medicines appointed Alan Sandler, M.D. as chief development officer and added regional general managers in the U.S. and Europe to support potential approvals of RAS-targeted cancer therapies.

Tango Therapeutics' CEO Barbara Weber will participate in a fireside chat at the 2025 Cantor Global Healthcare Conference, presenting a live webcast about the company's precision medicine cancer research.