The Shifting Landscape of Vivo Capital Investments: Q3 2022 vs. Q4 2022

The third quarter of 2022 was notable for the many ups and downs in the stock market. Pre-existing political, economic, and social conditions were exacerbated by the continued presence of the COVID-19 pandemic. Among the companies who have felt the effects of this environment is Vivo Capital, LLC. This fund is a well-known player in the biotech and life sciences sectors and has accumulated significant gains over the years.

As we examine Vivo Capital's Q3 2022 versus Q4 2022 13F holdings comparison, we will explore the investments that the firm has made, the risks it has faced, and the changes it has implemented over the third and fourth quarters of 2022. The 13F filings are reports that must be submitted to the US Securities and Exchange Commission (SEC) by institutional investment managers who exercise discretion over $100 million or more in assets.

Harmony Biosciences Holdings Inc. (HRMY) has seen a downward trend in Vivo Capital's holdings, going from 3,400,261 shares in the third quarter to 2,606,247 shares in the fourth quarter. A similar trend can be observed with Ventyx Biosciences Inc. (VTYX), which has seen a decrease from 1,355,861 in the third quarter to 1,303,294 in the fourth quarter.

On the other hand, Terns Pharmaceuticals Inc. (TERN) saw an uptick in Vivo Capital's holdings, from 5,899,372 in the third quarter to 6,657,992 in the fourth quarter, an impressive 95.1% increase. Another beneficiary of Vivo Capital's increased investment is Vaxcyte Inc. (PCVX), which jumped from 404,508 shares in the third quarter to 579,508 shares in the fourth quarter, a whopping 186.2% increase.

In terms of value, the biggest movers were Chinook Therapeutics Inc. (KDNY), whose value increased from $17,146 in Q3 2022 to $22,850 in Q4 2022, a 33.3% increase; Compass Therapeutics Inc. (CMPX), which saw a value jump from $4,560 to $17,895, a 292.4% increase, and Impel NeuroPharma Inc. (IMPL), which saw its value increase by 208% from $14,049 to $43,272.

Many other companies saw little or no change in Vivo Capital's holdings and values. These include Genetron Holdings Ltd (GTH), Zai Lab Ltd ADR (ZLAB), and Legend Biotech Corp Sponsored (LEGN).

The most significant changes in holdings and value are indications of Vivo Capital's shift in investment strategy. The firm's move away from Harmony Biosciences Holdings Inc. and Ventyx Biosciences Inc. suggest that the biotech industry may face some difficulties in the coming quarters. However, the increased investment in Terns Pharmaceuticals Inc. and Vaxcyte Inc. indicates that Vivo Capital is optimistic about these companies' potential.

Investing always entails some risk, and the pharmaceutical industry is no exception. Market volatility resulting from unexpected events should not be a surprise to investors or the public. However, some investors may be hesitant to invest in biotech, given the volatile landscape of this industry.

In conclusion, the Q3 2022 versus Q4 2022 Vivio Capital, LLC 13F holdings comparison shows that the firm is moving away from some of its holdings and increasing investments in others. This shift represents a change in investment strategy and suggests that Vivo Capital is looking to create a diversified portfolio. Additionally, the changes highlight the volatility and unpredictability of the pharmaceutical market. Nevertheless, Vivo Capital's new investments indicate that biotech is still a promising and potentially profitable industry.