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BioScrip Inc (BIOS), Proteon Therapeutics Inc (PRTO): GAMCO Investors and Deerfield Management Are Bullish on These Companies

Mario Gabelli’s GAMCO Investors and James E. Flynn’s Deerfield Management seem bullish on BioScrip Inc (NASDAQ:BIOS) and Proteon Therapeutics Inc (NASDAQ:PRTO), respectively. According to two recent SEC filings, GAMCO boosted its stake in BioScrip Inc (NASDAQ:BIOS) by 13%, to 5.86 million shares of Common Stock, while Deerfield disclosed ownership of 1.25 million shares of the recently-public Proteon Therapeutics Inc (NASDAQ:PRTO).

Mario Gabelli

BioScrip Inc (NASDAQ:BIOS) is a $404.8 million market cap provider of pharmacy and home health services, which partners with patients, physicians, hospitals, healthcare payors and pharmaceutical manufacturers to provide clinical management solutions and the delivery of prescription medications and home health services. According to a recently amended 13D filing, the funds affiliated with Mr. Gabelli (GAMCO, Gabelli Funds, Teton Advisors, GSI, GBL) hold, in aggregate, 5.86 million shares of Common Stock, which account for 8.55% of the company’s shares outstanding. The funds disclosed ownership of 5.16 million shares in early-August, but barely 1.44 million by the end of the second quarter of the year.

This stake makes of GAMCO and its affiliates the largest institutional shareholder (amongst those we track) in BioScrip Inc (NASDAQ:BIOS), trailed by Mitchell Blutt’s Consonance Capital Management, which last acknowledged holding 3.95 million shares of Common Stock, and Glenn J. Krevlin’s Glenhill Advisors, which started a stake, with 2.48 million shares, worth more than $20 million, over the second quarter of 2014.

On the other hand, Deerfield Management disclosed today ownership of 1.25 million shares of Proteon Therapeutics Inc (NASDAQ:PRTO), which account for 8.37% of its outstanding stock. The fund had filed an Initial Statement of Beneficial Ownership of Securities just a few days ago. Deerfiled had disclosed ownership of 535,219 shares of Series D Preferred Stock*, and 428,175 Series D Purchase Rights**. Previous to the offering, the fund held a 10% stake in the company; the post-IPO wage accounts for approximately 6.7% of the company´s shares outstanding.

On top of Mr. Flynn’s fund, some of Proteon Therapeutics Inc (NASDAQ:PRTO)’s Board Directors also seem quite bullish on its future. Some important investors (insiders) are Hubert BirnerBrendan O’learyGordon John Freund and Timothy Haines. Each one of these Directors held, at least, 14% of the company’s pre-IPO stock, and own more than 9% of the post-IPO shares outstanding.

Proteon Therapeutics Inc (NASDAQ:PRTO) is a $148.9 million market cap United States-based biopharmaceutical company. It is currently developing pharmaceuticals to address the medical needs of patients with renal and vascular diseases.

I should highlight, these are not the only bullish moves that these funds have made recently. A few days ago, Deerfield boosted its exposure to Alimera Sciences Inc (NASDAQ:ALIM), while GAMCO augmented its –activist- stakes in Move Inc. (NASDAQ:MOVE), MOCON, Inc. (NASDAQ:MOCO), and Astec Industries, Inc. (NASDAQ:ASTE).

* Each share of Series D Preferred Stock is convertible at any time into 0.063 shares of the company’s common stock (on an adjusted basis, after giving effect to the 1-for-15.87 reverse stock split effected by the Issuer on October 6, 2014). These shares will be automatically converted into Common Stock upon the closing of the company’s initial public offering, and have no expiration date (SEC).

** The Series D Purchase Right entitles the holder to purchase shares of Series D Convertible Preferred Stock under the Series D Preferred Stock purchase agreement at a price of $0.588656 per share. The right to purchase is not currently exercisable and shall terminate upon the completion of the company’s initial public offering.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

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