Fairmount Healthcare Fund II L.P., a significant shareholder in Oruka Therapeutics, Inc. (NASDAQ:ORKA), reduced its position by selling 3,553,410 shares of common stock on July 1, 2026. The transaction was executed at a price of $84.43 per share, resulting in total proceeds of $300,014,406. This sale occurred on the same day the fund converted 42,641 shares of its Series B Preferred Stock into 3,553,410 common shares, a conversion executed for no cash consideration in accordance with the terms of the Series B Convertible Preferred Stock.
Following the transaction, Fairmount Healthcare Fund II L.P. retains a holding of 1,131,954 common shares and 94,497 Series B Preferred shares. Fairmount Healthcare Co-Invest III L.P., managed by the same investment manager, holds 2,573,308 common shares. Fairmount Funds Management LLC serves as the investment manager for both funds, with Peter Harwin and Tomas Kiselak listed as managers. Mr. Harwin also serves on Oruka Therapeutics’ board of directors.
The divestment comes as Oruka’s stock has appreciated significantly, climbing to $93.29 and trading near its 52-week high of $97.78. The stock has recorded a 640% gain over the past year. Despite this momentum, InvestingPro data indicates the stock may be overvalued at current levels, appearing on the platform’s list of most overvalued shares.
Oruka Therapeutics has recently been the subject of multiple analyst updates and strategic developments. UBS increased its price target for the company to $130, maintaining a Buy rating, citing positive expectations for upcoming 28-week efficacy data. H.C. Wainwright also reiterated a Buy rating with a $120 price target, following the announcement of AbbVie’s acquisition of Apogee Therapeutics. This acquisition involves a pipeline of candidates in inflammatory and immunological diseases, which could impact Oruka’s market environment.
Additionally, Oruka amended its IL-23 license agreement with Paragon Therapeutics, as detailed in a recent 8-K filing. The amendment allows for expanded development opportunities in previously restricted areas, according to Piper Sandler, which reaffirmed an Overweight rating and a $180 price target. The company’s EVERLAST-A trial results in moderate-to-severe psoriasis were also highlighted, with significant percentages of participants achieving key endpoints.