Disc Medicine Stock Is Swinging, but This Fund's New $52 Million Bet Shows Conviction

2026-02-26 06:54:38

On February 17, 2026, Hedge fund BVF disclosed a new position in Disc Medicine (IRON +1.47%), acquiring 650,000 shares.

What happened

According to a recent SEC filing dated February 17, 2026, BVF reported a new position in Disc Medicine, Inc. during the fourth quarter, acquiring 650,000 shares. The quarter-end value of the position stood at $51.62 million, reflecting both the purchase and share price movement over the period.

What else to know

This was a new position for BVF, with Disc Medicine representing approximately 1.74% of its 13F reportable AUM after the trade.
Top five holdings after the filing:
- NASDAQ: KYMR: $428.2 million (14.4% of AUM)
- NASDAQ: RVMD: $267.4 million (9.0% of AUM)
- NASDAQ: MLTX: $260.3 million (8.8% of AUM)
- NASDAQ:GPCR: $241.97 million (8.1% of AUM)
- NASDAQ: OLMA: $132.4 million (4.5% of AUM)
As of February 17, 2026, shares of Disc Medicine were priced at $65.57, up 20.0% over the past year.

Company overview

Metric	Value
Market capitalization	$2.48 billion
Price (as of market close 2/17/26)	$65.57
Net income (TTM)	($181.11 million)
One-year price change	20.03%

Company snapshot

Disc Medicine, Inc. develops novel therapeutics targeting red blood cell biology, focusing on heme biosynthesis and iron homeostasis for the treatment of serious hematologic diseases.
The company operates a clinical-stage biotechnology business model, investing in research and development to advance its pipeline of drug candidates toward commercialization.
Primary customers include healthcare providers and patients affected by hematologic disorders, with a target market spanning rare and underserved blood-related conditions.

Disc Medicine, Inc. is a clinical-stage biotechnology company based in Watertown, Massachusetts. The company leverages deep expertise in red blood cell biology to address unmet medical needs in hematology, positioning itself as an innovator in the development of therapies for rare blood diseases. Its strategic focus on fundamental biological pathways and targeted drug development provides a competitive edge within the biotechnology sector.

What this transaction means for investors

This 650,000-share position was established during the fourth quarter, before the FDA issued its Complete Response Letter in February and before the roughly 20% one-day selloff that followed. That timing matters. The investment case was likely built on the science and balance sheet, not on a rebound trade.

The FDA acknowledged that bitopertin lowered PPIX in EPP patients but concluded the existing data did not sufficiently demonstrate a correlation with clinical outcomes. The agency pointed to the ongoing Phase 3 APOLLO trial as the path forward, with topline data expected in the fourth quarter. Management expects a potential updated FDA decision by mid 2027 if results support approval. Importantly, Disc ended 2025 with approximately $791 million in cash and marketable securities and guides runway into 2029.

Within a portfolio anchored by high conviction biotech names like Kymera, Revolution Medicines, and MoonLake, this fits a familiar pattern of concentrated exposure to differentiated platforms with binary catalysts. Ultimately, it looks like the thesis timeline may have stretched for Disc Medicine, and the thesis now rests squarely on APOLLO data and capital durability.

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