ADARx (ADRX) OrbiMed Advisors (10% Owner) Buys 950,000 Shares for $16.15M

What Happened

• OrbiMed Advisors LLC, reporting as a 10% owner (through affiliated funds), acquired common shares of ADARx Pharmaceuticals (ADRX) in two ways on 2026-09-28: (1) automatic conversion of preferred stock into common stock upon the issuer's IPO (a total of 23,255,789 shares converted at $0 consideration per the filing) and (2) cash purchases of 950,000 common shares at $17.00 each (three lots: 300,249; 61,516; 588,235) for a combined cash outlay of $16,150,000. The transactions were reported on Form 4 filed 2026-09-30.

Key Details

• Transaction date: 2026-09-28; Form 4 filed: 2026-09-30.
• Purchases: 950,000 shares at $17.00 — total $16,150,000.
• Conversions: 23,255,789 shares of Preferred → Common (automatic IPO conversion; no cash paid).
• Shares owned after transaction: not specified in the provided excerpt of the filing.
• Notable footnotes:
  • F1: Preferred stock automatically converted into common on a 1-for-1.1717 basis at IPO; share counts reflect that conversion.
  • F2: The purchased shares reflect allocations in the issuer’s initial public offering.
  • F3–F5/F6: Shares are held across OrbiMed funds (OrbiMed Private Investments VII, OrbiMed Israel Partners II, OrbiMed Genesis); OrbiMed Advisors may be deemed to have voting/investment power and filed jointly with related entities. Named individuals disclaim direct beneficial ownership except to the extent of pecuniary interest.
• Timeliness: Filing was made two days after the transactions (not indicated as late in the filing excerpt).

Context

• The large converted block reflects an automatic conversion of preferred securities into common stock at IPO terms — a procedural, non-cash event tied to the IPO, not a market purchase or sale.
• The 950,000-share purchase (IPO allocation / open-market/private purchase at $17) is a meaningful cash investment (~$16.15M) from an institutional owner, which retail investors often view as a positive signal because institutions are increasing common-stock exposure. However, conversions are routine corporate-change events and should not be interpreted alone as a directional endorsement.