Form 4: Third Rock Ventures Sells Shares of Tango Therapeutics

Third Rock Ventures IV, L.P. sold a total of 235,000 shares of Tango Therapeutics (TNGX) between July 30, 2024, and August 1, 2024.

Summary

• Third Rock Ventures IV, L.P., a significant shareholder of Tango Therapeutics, Inc. (TNGX), has sold a portion of its holdings.
• The sales occurred over three days, from July 30, 2024, to August 1, 2024.
• On July 30, 2024, 95,000 shares were sold at a weighted average price of $9.8012 per share.
• On July 31, 2024, 100,000 shares were sold at a weighted average price of $9.9338 per share.
• On August 1, 2024, 40,000 shares were sold at a price of $9.8 per share.
• Following these transactions, Third Rock Ventures IV, L.P. directly holds 17,486,475 shares of Tango Therapeutics.
• Third Rock Ventures GP IV, L.P. and TRV GP IV, LLC, as general partners, disclaim beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the sale of shares by a major shareholder, which could indicate a lack of confidence or simply a portfolio rebalancing. However, it's a common practice for venture capital firms.

Negatives

• A major shareholder, Third Rock Ventures, is reducing its stake in Tango Therapeutics, which could be perceived negatively by the market.

Risks

• Continued selling pressure from Third Rock Ventures could further depress the stock price of Tango Therapeutics.
• The market may interpret the sale as a lack of confidence in the future prospects of Tango Therapeutics.

Industry Context

Venture capital firms like Third Rock Ventures often distribute shares to their limited partners or reduce their holdings in portfolio companies as funds mature. This is a common practice and doesn't necessarily reflect a negative view of Tango Therapeutics' prospects.

Comparison to Industry Standards

• It's common for venture capital firms to distribute shares or reduce holdings after a company goes public.
• The size and timing of the sale are typical for a fund of Third Rock Ventures' size and stage.
• Comparable companies that have seen similar venture capital exits include Relay Therapeutics and Black Diamond Therapeutics.

Stakeholder Impact

• Shareholders may react negatively to the news of Third Rock Ventures selling shares.
• The sale could create selling pressure on the stock price in the short term.

Key Dates