Broadfin Capital Initiates Stake in Newly Public Recro Pharma Inc (REPH)

Broadfin Capital, managed by Kevin Kotler, has disclosed in a new filing with the U.S. Securities and Exchange Commission holding shares of Recro Pharma Inc (NASDAQ:REPH), a company that went public a couple of days ago. The passive stake held by Broadfin, contains 580,000 shares, equal to 8.1% of the outstanding stock.

Kevin Kotler

Recro is a clinical-stage pharmaceutical company that is engaged in development of non-opioid therapeutics for the treatment of pain. It began trading on NASDAQ on March 7, and just yesterday closed its initial public offering during which it sold 3.75 million shares, at a public offering price of $8.00 per share. The offering included 562,500 shares that have been sold as under-allotment options. The gross proceeds amounted to some $34.5 million.

Prior to the IPO the company conducted a reverse stock split, under a 1-for-2.5 ratio. According to the company’s S-1 filing with the SEC, the largest shareholder, prior to the IPO, was SCP Vitalife Partners II, L.P., which after the offering held almost 2.0 million common shares, equal to over 36% of the stock.

Kevin Kotler has been very active in the post-IPO companies sector, during the past couple of weeks. Since the beginning of the year, Broadfin reported new positions in four companies, two of which being recently public companies. Eleven Biotherapeutics, Inc. (NASDAQ:EBIO), is one of these companies, in which Broadfin disclosed a 5.55% stake. Also, a couple of days ago, the fund reported a new stake in Pernix Therapeutics (NASDAQ:PTX), which amasses over 9% of the outstanding shares.

Broadfin has a $758.1 equity portfolio heavily concentrated in the healthcare industry. In its latest 13F, the fund revealed its largest holding in Depomed Inc (NASDAQ:DEPO), followed by Lannett Company, Inc. (NYSE:LCI), in which the fund disclosed holding over 4.7 million and 1.3 million shares, worth $50.2 million and $44.4 million respectively.

Disclosure: none

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