Labor issues at the Los Angeles Times are testing the mettle of its owner, billionaire Patrick Soon-Shiong. But Soon-Shiong and fellow fund investors in his ImmunityBio are facing a much costlier issue.
The value of the biotechnology company crashed 91% since trading started on March 10, 2021. The S&P 500 is up 24% in that time. That's wiped out $23.5 billion in market value based on the company's current number of shares outstanding.
And that's costing Soon-Shiong a pretty penny — to the tune of $10.2 billion based on his current number of shares in his name, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. But here's the trouble: Big fund companies are losing on it, too.
While ImmunityBio isn't in the S&P 500 or other major indexes like the S&P 1500, it's still a holding for some ETF providers. Vanguard Group and BlackRock are the fourth- and fifth-largest owners of the stock.
Losses Are Mounting
There's no question that Soon-Shiong himself is suffering the most from his company's woes. Just in his name, he owns 291.2 million shares, or 43.4%, of the company. That's a larger stake than any other investor. It's important to note, however, that he owns an additional 5.6 million, or 0.8%, in the form of the Chan Soon-Shiong Family Foundation, Endowment Arm.
His personal stake in the company was valued at $11.3 billion back on March 10, 2021, based on his current holding. But that's down to $1 billion now.
The San Diego-based company, working on therapies and vaccines to fight cancer and infections, is struggling to get traction. ImmunityBio is expected to lose money on an official accounting method basis until 2027. Revenue, too, remains tiny for the company's market value. Analysts think it will only report having generated half a million dollars in revenue in 2023.
But other big investors are getting dragged in, too. The stock is in the smaller indexes like the S&P Biotechnology Select Industry Index and Biotechnology & Life Sciences Index.
All told, Vanguard Group owns 14.7 million shares, or 2.2%, of the company. The value of this stake is down $52.8 million since it started trading in March 2021. And BlackRock owns 10.8 million shares, or 1.6%. That means Vanguard and BlackRock are down $515.1 million and $379.5 million since March 2021.
Looks like newspapers aren't the only way billionaires lose money.
Largest Owners Of ImmunityBio
| Holder | Common shares (millions) | % outstanding shares | Value lost since March 2021 (billions) |
|---|---|---|---|
| Patrick Soon-Shiong | 291.2 | 43.4% | $10.2 |
| California Capital Equity | 137.2 | 20.4 | 4.8 |
| NantWorks | 98.5 | 14.6 | 3.5 |
| Vanguard Group | 14.7 | 2.1 | 0.5 |
| BlackRock | 10.8 | 1.6 | 0.4 |
| Chan Soon-Shiong Family Foundation, Endowment Arm | 5.6 | 0.8 | 0.2 |
| Armistice Capital | 3.5 | 0.5 | 0.1 |
| Simon M.D., Barry J. | 3.1 | 0.4 | 0.1 |
| Geode Capital Management | 2.8 | 0.4 | 0.09 |
| State Street Global Advisors | 2.7 | 0.4 | 0.09 |
