Oruka Therapeutics Shares Drop After Hours After Fairmount Unloads 3.55 Million Shares

Oruka Therapeutics Inc. (NASDAQ: ORKA ) shares fell in after-hours trading on Wednesday after SEC filings showed major shareholder Fairmount Healthcare Fund II sold a large block of shares worth about $300 million.

ORKA closed Wednesday’s regular session at $93.29, down 1.98%.

In after-hours trading, the stock fell to $86.07, down 7.74%.

Oruka is a clinical-stage biotechnology company focused on developing therapies for chronic skin diseases, including psoriasis and other inflammatory conditions.

Fairmount Sells Multi-Million Share Block A Schedule 13D amendment and Form 144 filing showed Fairmount Healthcare Fund II, a major institutional investor and existing Oruka shareholder, converted 42,641 shares of Series B non-voting preferred stock.

The conversion was completed for no cash consideration under the company’s Series B preferred stock terms.

Shortly after the conversion, Fairmount sold all 3,553,410 shares in a block trade at $84.43 per share, generating aggregate proceeds of approximately $300 million.

The filings indicate Fairmount remains a major shareholder despite the sale.

Following the transaction, Fairmount and affiliated entities still beneficially owned approximately 14.55 million shares, representing about 19.47% of Oruka’s outstanding common stock, including common shares, pre-funded warrants and convertible preferred holdings.

Separately, Chief Operating Officer Laura Sandler also reported selling 5,000 shares under a previously adopted Rule 10b5-1 trading plan, though that sale was much smaller than Fairmount’s block transaction.

Read Also: Gary Black Sees 'Renewed Optimism' for Tesla, Rivian as Q2 Deliveries Loom, Gene Munster Says FSD Is Key Trading Metrics Oruka Therapeutics has a market capitalization of approximately $5.63 billion.

The stock has traded between a 52-week high of $97.78 and a 52-week low of $11.82.

Over the past 12 months, ORKA shares are up approximately 639.81%.

Edge Stock Rankings indicate positive short-term, medium-term and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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