Alumis: Another Biotech Bubble?

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So, BML Capital Management decided to dump 1,210,415 shares of Alumis (ALMS +0.19%). About $4.83 million worth. Oh, the humanity! Or, you know, the predictable behavior of folks realizing they’re playing hopscotch in a minefield. They exited stage left just before Alumis decided to stage a full-blown rocket launch. Timing, folks, is everything. Especially when you’re dealing with companies that spend more on PowerPoints than actual products.

What Happened? (Or, “The Ballad of the Departing Fund”)

According to the SEC – those lovely folks who keep track of everything except common sense – BML Capital cleared house on their Alumis stake on February 2nd. Gone. Kaput. They now own precisely zero shares. Zero! It’s like they were auditioning for a minimalist art installation. The fund’s coffers are $4.83 million lighter, but hey, at least they can sleep at night. Probably. Unless they’re haunted by visions of 255.1% gains. Which, let’s be honest, is entirely possible.

What Else To Know? (A Peek Inside the Fund’s Ark)

While BML was busy bailing out of Alumis, they were apparently all-in on these gems:

  • NASDAQ: ACRS: $42.89 million (38.0% of AUM) – Sounds… stable.
  • NASDAQ: AVIR: $26.74 million (23.7% of AUM) – I’m picturing a lot of very nervous analysts.
  • NASDAQ: ORMP: $9.03 million (8.0% of AUM) – Is that a typo? Or a cry for help?
  • NASDAQ: TIL: $7.10 million (6.3% of AUM) – Tilting towards disaster, perhaps?
  • NASDAQ: PMVP: $6.62 million (5.9% of AUM) – I suspect a lot of people are hoping for a miracle.

And speaking of miracles, Alumis shares were trading at $26.42 on February 2nd. Up 255.1% year-over-year! The S&P 500? A mere 15%. Honestly, if I had a nickel for every biotech stock that defied gravity for a few months… I’d be funding my own space program. And probably losing money on that too.

Company Overview (Or, “The Story of a Dream…and a Lot of Debt”)

Metric Value
Market capitalization $3.3 billion
Revenue (TTM) $22.12 million
Net income (TTM) ($245.15 million)
Price (as of February 3) $26.42

Company Snapshot (Or, “The Plot Thickens”)

  • Alumis is developing therapies for autoimmune and neuroinflammatory disorders. Sounds impressive, doesn’t it?
  • They operate a biopharmaceutical business model. Which means they spend a lot of money trying to convince people they have a breakthrough.
  • They target diseases like plaque psoriasis and lupus. Good luck with that. Seriously.

Alumis, in essence, is a company that’s betting the farm on TYK2 inhibition. Which, as far as I can tell, sounds like a medieval torture device. But hey, maybe that’s just me. They’re hoping to turn science into profit. A noble goal, really. But let’s be honest, most biotech companies are just hoping to avoid bankruptcy.

What This Transaction Means for Investors (Or, “Don’t Blame the Fund, Blame the Market”)

BML’s exit wasn’t necessarily a sign of panic. It was a pragmatic decision. Alumis was a clinical-stage biotech with no approved products and a penchant for burning cash. They had $377.7 million in the bank, but developing drugs is expensive. Very expensive. For a fund focused on early-stage biotech, trimming risk before a potential financing event made sense. It’s like getting off the roller coaster before it goes upside down.

But then, Alumis announced a public offering. Suddenly, the balance sheet looked a lot healthier. The market went wild. The stock soared. And BML Capital? Well, they’re probably kicking themselves. Or, more likely, they’re already looking for the next bubble to ride. Because in the world of biotech, capital events can reset sentiment faster than you can say “clinical trial.” And sometimes, the biggest moves happen after you’ve managed the risk. It’s a cruel, cruel world, folks. A cruel, cruel world.

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2026-02-03 17:52