SCHEDULE: Cormorant Funds Reduce Biomea Fusion Stake Below 5%

Cormorant Asset Management and its affiliated funds have significantly reduced their beneficial ownership in Biomea Fusion, Inc., falling below the 5% threshold.

Summary

• Cormorant Global Healthcare Master Fund, LP, Cormorant Global Healthcare GP, LLC, Cormorant Private Healthcare Fund III, LP, Cormorant Private Healthcare GP III, LLC, Cormorant Asset Management, LP, and Bihua Chen (collectively, the "Reporting Persons") filed Amendment No. 4 to their Schedule 13D.
• The Reporting Persons ceased to be beneficial owners of more than five percent of Biomea Fusion, Inc.'s outstanding Common Stock as of October 22, 2025.
• On October 22, 2025, the Reporting Persons sold an aggregate of 820,872 shares of Common Stock in open-market transactions at a weighted-average price of $1.48 per share (ranging from $1.42 to $1.58).
• On October 23, 2025, the Reporting Persons sold an aggregate of 1,800,000 shares of Common Stock in open-market transactions at a weighted-average price of $1.41 per share (ranging from $1.35 to $1.51).
• Current beneficial ownership percentages are: Cormorant Global Healthcare Master Fund, LP (0.69%), Cormorant Global Healthcare GP, LLC (0.69%), Cormorant Private Healthcare Fund III LP (0.66%), Cormorant Private Healthcare GP III, LLC (0.66%), Cormorant Asset Management, LP (1.37%), and Bihua Chen (1.53%).
• The percentages are calculated based on 69,322,377 shares of Common Stock outstanding following a public offering, as stated in the Issuer's Prospectus and Form 8-K filed on October 7, 2025.
• Bihua Chen's reported shares include 110,792 shares she has the right to receive within 60 days upon the exercise of stock options granted to her as a director of the Issuer.

Sentiment

Score: 3

Explanation: The significant reduction in beneficial ownership by a major institutional investor indicates a decreased stake and potentially reduced confidence in the company's near-term prospects or a strategic reallocation of capital.

Negatives

• Significant reduction in beneficial ownership by a major institutional investor (Cormorant Asset Management and its affiliates) below the 5% threshold.
• The Reporting Persons sold a total of 2,620,872 shares of Common Stock over two days (October 22 and 23, 2025).

Future Outlook

NA

Industry Context

Cormorant Asset Management is a healthcare-focused investment firm. Their reduction in stake in Biomea Fusion, a biotechnology company, reflects a specific investment decision rather than a broad industry trend, though it could signal a re-evaluation of the company's prospects within the competitive biotech landscape.

Stakeholder Impact

• Shareholders may perceive the significant selling by a major institutional investor as a negative signal, potentially leading to downward pressure on the company's stock price.

Key Dates

Recommendation

Cormorant Asset Management and its affiliates, significant institutional investors, have substantially reduced their stake in Biomea Fusion, Inc., falling below the 5% beneficial ownership threshold. This divestment, involving the sale of over 2.6 million shares in two days, signals a potential loss of conviction or a strategic reallocation of capital away from the company. Such a move by a sophisticated investor often precedes or accompanies downward pressure on the stock price, suggesting a 'sell' recommendation for other investors.

Keywords

Biomea Fusion, Cormorant Asset Management, Schedule 13D, beneficial ownership, stock sales, institutional investor, healthcare, biotechnology