As the old saying goes, when it rains, it pours. The adage couldn't be more applicable to biotech billionaire Patrick Soon-Shiong, owner of the Los Angeles Times. With his paper losing an estimated $30 million per year and seemingly near imminent collapse, Soon-Shiong is about to face a far costlier issue.

The labor issues crushing the L.A. Times pale in comparison to the decline in value of Soon-Shiong's biotech company ImmunityBio (IBRX). Since the company's stock began trading publicly on March 10, 2021, it has fallen an incredible 91 percent.  

Putting the disaster in perspective makes it look even worse. $23.5 billion in IBRX market value — based on the company's current number of shares outstanding — has vanished. 

And Soon-Shiong's personal loss? $10.2 billion, based on the current number of shares in his name — 291.2 million — or 43.4 percent of the company. Moreover, the S&P 500 is up 24 percent over the same period. Bottom line: Soon-Shiong's stake in the company was valued at $11.3 billion on March 10, 2021, based on his current holding. It now stands at $1 billion.

It gets worse.

While ImmunityBio isn't in the S&P 500 or other major indices, it is held by some ETF (exchange-traded funds) providers, including major players like BlackRock and Vanguard. 

Here's more:

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.

So what's the deal with Patrick Soon-Shiong? Is he one of those people for whom everything eventually turns to crap, terribly unlucky, or someone in between? Dunno — but I do know this:

As a former CFP (Certified Financial Planner), I know from experience that any investment that can make you rich in a hurry can also make you poor in a hurry. 

As I researched ImmunityBio in preparation for writing this article, here's a bit of what I found out:

ImmunityBio Inc. is a late-clinical-stage immunotherapy company developing next-generation therapies that drive immunogenic mechanisms for defeating cancers and infectious diseases. The company's immunotherapy platform activates both the innate (natural killer cell and macrophage) and adaptive (T cell) immune systems to create long-term immunological memory.

Totally over my head, but this isn't: 

The company was "hit with a complete response letter (a snub) from the FDA for its bladder cancer prospect" in May 2023, causing its common stock to fall more than 50 percent in overnight trading.

The Bottom Line

As a CFP, I regularly advised my clients not to put all their eggs in one basket. That rationale applies to companies, big and small — or should — as well. Again, I know nothing about late-clinical-stage immunotherapy, but I do know quite a lot about the fundamentals of diversification and minimizing investment risk.

As for Patrick Soon-Shiong's views on investing — including the capital of other investors — I have no idea what the guy thinks. But I do know he has a knack for losing money on more than one major investment.

Special thanks to Daniel Guss for bringing the Investor's Business Daily piece to our attention!

SEE MORE:

L.A. Times Employees Go on Strike, Get Whiplash When the Consequences Arrive

L.A. Times Editor Pleads With Fleeing Californians to Please Stop Bashing State on the Way Out