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Inside Baker Bros.’ Q1 2025 Biotech Portfolio: Massive Adds, Smart Trims, and Conviction Plays
When Baker Bros. Advisors — one of biotech’s most successful hedge funds — reveals its quarterly trades, serious healthcare investors pay attention. The firm’s track record is built on deep scientific research, disciplined capital allocation, and patience for true clinical breakthroughs.
Their Q1 2025 13F filing confirms what the street already knows: Baker Bros. is still 100% committed to healthcare, but their latest moves show a mix of aggressive adds, strategic trims, and unwavering confidence in long-held winners. Here’s the breakdown.
Big Dogs Stay on the Leash (Mostly)
ONC – 25.35% of portfolio, –7.69% trim
Baker’s largest position by far remains ONC, an oncology powerhouse whose share price has more than doubled from their cost basis. The modest trim looks like profit-taking after a huge run, not a shift in conviction.
INCY (Incyte) – 19.70%, unchanged
Longtime holding with durable Jakafi cash flows and oncology/dermatology pipeline upside. No change here says it all: full confidence.
ACAD (Acadia) – 7.54%, unchanged
Since 2010, Baker is holding their neuropsychiatric franchise through near-term catalysts. Steady as she goes.
Conviction Holds in Growth Stories
MDGL (Madrigal Pharmaceuticals) – 6.92%, unchanged
Lead NASH therapy is entering commercialization. Baker’s not selling a share — they’re betting on strong uptake despite competition.
SMMT (Summit Therapeutics) – 4.99%, unchanged
Still a solid mid-cap position with unique oncology and infectious disease assets.
Swinging for the Fences
CELC (Celcuity) – +81.9% add
One of the quarter’s boldest moves. Late-stage oncology play with upcoming catalysts — clearly on Baker’s radar for big upside.
IMVT (Immunovant) – +219.6% add
Huge increase in an autoimmune drug developer. Likely driven by fresh market validation of its drug class from competitor data.
IMCR (Immunocore) – +53.3% add
T-cell receptor oncology therapeutics with positive trial momentum. Baker’s leaning into novel cancer modalities.
A Couple of Strategic Trims
RYTM (Rhythm Pharmaceuticals) – –7.89% trim
Small reduction, likely simple profit-taking. Rhythm’s rare disease obesity focus is still a strong theme.
ARGX (argenx) – –30.5% trim
Larger cut, potentially to reallocate capital to higher-conviction smaller caps. Argenx remains a leader in autoimmune biologics.
Industry-Level Signals from Q1 2025
- Zero Style Drift – Still 100% life sciences.
- Core + Satellite Structure – Large, long-term winners at the core; smaller, high-upside catalyst plays on the edges.
- Oncology & Immunology Focus – Nearly all top positions fall in these two high-value therapeutic areas.
- Late-Stage Tilt – Preference for Phase 2/3 or newly approved drugs over early-stage binaries.
- Aggression When It Counts – Triple-digit adds in smaller names show Baker isn’t shy when conviction spikes.
The Baker Bros. Playbook
- Trim massive winners to control risk, but keep the thesis intact.
- Hold long-term leaders through volatility when the science is sound.
- Make big, concentrated bets in late-stage names ahead of catalysts.
- Never stray outside healthcare, where their edge is strongest.
Bottom Line
Baker Bros.’ Q1 2025 portfolio isn’t a defensive crouch — it’s a high-conviction, catalyst-loaded biotech strategy. The trims in ONC and ARGX show disciplined capital management. The aggressive adds in CELC, IMVT, and IMCR show boldness where the upside is real.
For biotech investors, the message is clear: when Baker moves big in a name, it’s worth putting on your radar — because they rarely swing without a strong read on the science and the setup.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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