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Baker Brothers Makes $730 Million in One Day on Its Biotech Bet

Photographer: Adam Glanzman/Bloomberg

As Seattle Genetics Inc. rallies on a successful breast cancer study Monday, the biotech’s largest holder, Baker Bros. Advisors LP, stands to gain nearly $730 million on the day from its stake.

The investment firm founded by Felix and Julian Baker made a big bet in the company, their biggest in fact, with a 29% stake, as of June 30, according to data compiled by Bloomberg. That stake is worth roughly $5 billion today after tucatinib -- an experimental therapy Seattle Genetics acquired for more than $400 million last year -- surprised investors by slowing the spread of cancer and extending patients’ lives. Even more surprisingly, it had an effect on patients whose cancer had spread to their brains.