Broadfin Capital, led by Kevin Kotler, has initiated a new position in QLT Inc. (USA) (NASDAQ:QLTI). In a new filing with the U.S. Securities and Exchange Commission, the fund has disclosed ownership of 4.45 million shares of QLT Inc. (USA) (NASDAQ:QLTI). The passive stake represents 8.7% of the company’s outstanding common stock. QLT Inc. (USA) (NASDAQ:QLTI) is a $219.40 million market cap biotechnology company engaged in the development and commercialization of ocular products.
New York City-based Broadfin Capital is a global equity healthcare fund that was founded in 2005. The fund uses a fundamental, value-oriented investment strategy, and likes to invest in all the major subsectors of the healthcare industry. In its latest 13F with the SEC, Broadfin Capital revealed a public equity portfolio mainly consisting of healthcare stocks (over 85% of its value was in these stocks). The value of the funds’ public portfolio totaled $1.28 billion. As of March 31, Broadfin Capital’s top holdings, in terms of value, were Horizon Pharma PLC (NASDAQ:HZNP), Flamel Technologies S.A. (ADR) (NASDAQ:FLML), and Retrophin Inc (NASDAQ:RTRX), which we’ll also look at later.
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Canada-based QLT Inc. (USA) (NASDAQ:QLTI) is a maker of ocular products. The company, headquartered in Vancouver, British Columbia, develops a synthetic retinoid program for the treatment of certain inherited retinal diseases. In the second week of June, QLT Inc. (USA) (NASDAQ:QLTI) announced that it signed multiple agreements which would allow the company to return capital to its shareholders. QLT Inc. (USA) (NASDAQ:QLTI) inked a deal to acquire InSite Vision Inc. in an all-share transaction for $0.178 per share. This transaction, according to the company, will create a pure-play, late-stage ophthalmic pharmaceutical company to advance QLT’s existing Phase III-ready Retinoid Program. In addition, QLT agreed to a $45 million equity investment in Aralez Pharmaceuticals plc. Under the agreement, QLT will receive ordinary shares in Aralez representing about a 9% ownership stake. Further, QLT Inc. announced that it plans to issue redeemable convertible notes, returning an additional $25 million to its shareholders. The notes are expected to be issued by way of a reduction of the paid-up capital on the company’s common shares, and will provide QLT’s shareholders with an additional option of near-term liquidity or the potential for future capital investment in the company, according to a statement. Shares of QLT’s stock have declined 17.86% during the past year. Mark Lampert’s Biotechnology Value Fund is one of the largest shareholders of QLT Inc. (USA) (NASDAQ:QLTI), with ownership of 4.15 million shares.
Now, let’s take a look at Broadfin Capital’s top holdings as of March 31. On the top position is Horizon Pharma PLC, a $5.16 billion market cap specialty biopharmaceutical company. During the first quarter, Broadfin Capital decreased its stake in the company by 21% to 7.05 million shares, valued at $183.2 million. Horizon Pharma PLC posted impressive financial results for the first quarter of 2015, with its total sales increasing by 118% to $113.1 million, compared to the same quarter last year. The company was able to narrow its net loss to $19.6 million, a significant reduction from the loss of $206.3 million it suffered in the first quarter last year. Horizon Pharma PLC’s stock performance has been strong alongside that improved performance, growing by 157.87% year-to-date (YTD). Other investors that see value in the company include James E. Flynn’s Deerfield Management, and Arthur B Cohen and Joseph Healey’s Healthcor Management LP, with ownership of 12.79 million shares and 4.0 million shares, respectively.
Next on our list is Flamel Technologies S.A. (ADR) (NASDAQ:FLML), in which Broadfin Capital cut its stake by 9% to 4.72 million shares, valued at $84.87 million. France-based Flamel Technologies S.A. (ADR) (NASDAQ:FLML) is an $872.28 million market cap pharmaceutical company. Flamel Technologies S.A. (ADR) (NASDAQ:FLML) improved its financial situation in the first quarter, as its total revenues increased to $32.7 million, a $28.1 million increase compared to the same period last year. The company reported net income from continuing operations of $11.6 million, versus a loss of $26.9 million in the same quarter a year ago. Shares of Flamel Technologies S.A. (ADR) (NASDAQ:FLML) have been performing well, moving up by 20.9% year-to-date. Among other investors we track is Israel Englander’s Millennium Management, which held 1.83 million shares of the company as of March 31.
Lastly is Retrophin Inc, in which Broadfin Capital upped its stake by 12% to 2.96 million shares, worth about $71.0 million. The $1.14 billion market cap biopharmaceutical company is engaged in the development of therapies for debilitating and often life-threatening diseases. Recently, Retrophin Inc announced that it received ‘Fast Track’ designation for its novel investigational phosphopantothenate replacement therapy (RE-024) for the treatment of pantothenate kinase-associated neurodegeneration (PKAN). Currently, there is no available treatment for PKAN, a rare and lethal autosomal recessive neurodegenerative disorder. The company is now conducting its Phase 1 clinical trial of RE-024. Retrophin Inc’s stock performance is incredible, with its value increasing by 172.69% during the past year. Mitchell Blutt’s Consonance Capital Management was bullish on Retrophin Inc during the last quarter, upping its position by 22% to 3.11 million shares.
