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Jeffrey Ray’s Great Point Partners Trims Its Stake In Alcobra Ltd (ADHD)

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Jeffrey Jay and David Kroin’s healthcare-focused fund, Great Point Partners, decreased its passive stake in the Israel based biopharmaceutical company, Alcobra Ltd (NASDAQ:ADHD), according to a recent filing with the SEC. The new stake comprises of 1.12 million ordinary shares, which represents 5.56% of the total outstanding stock and is owned through five of Great Point’s funds. Earlier in January, the fund had initiated a stake in the company amounting to some 1.13 million shares.

Jeffrey Ray - Great Point Partners


Alcobra Ltd (NASDAQ:ADHD) is aiming to treat Attention Deficit Hyperactivity Disorder, or ADHD with its oral drug candidate MDX, which, unlike other prevalent treatments, is not a stimulant that works by increasing brain chemicals dopamine and norepinephrine. The company is planning to initiate a second phase 3 clinical trial for MDX, following discussions with the FDA. Among other investors of Alcobra Ltd (NASDAQ:ADHD) are Kevin Kotler‘s Broadfin Capital and James Flynn’s Deerfield Management, both of which initiated passive stakes in January.

Great Point Partners’ team of about 25 professionals provides its expertise and industry contacts to help the healthcare companies with clearly defined business models to grow. With regards to this, the fund doesn’t actively involve itself with the everyday operations of their target companies, instead it takes the role of being active on its board and advises the company’s management. Founded in 2003, Great Point has been investing in both public and private companies. While the fund has nearly $800 million under its management, the market value of its equity portfolio stood at $207.76 million at the end of 2014. Besides Alcobra Ltd (NASDAQ:ADHD) some of the other Great Point’s most valuable healthcare bets include Connecture Inc (NASDAQ:CNXR), Hyperion Therapeutics Inc (NASDAQ:HPTX), Alimera Sciences Inc (NASDAQ:ALIM) and Ocera Therapeutics Inc (NASDAQ:OCRX).

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Great Point held some 5.50 million shares valued at $49.58 million in its largest holding represented by Connecture Inc (NASDAQ:CNXR), at the end of the fourth quarter. The newly initiated stake represents 23.86% of the fund’s equity portfolio. Since its IPO in mid December last year, the stock of the provider of an online platform for the distribution of health insurance has been up by about 41%. The company delivered record revenues of $84.6 million in 2014, an increase of 45% from the previous year. Adjusted EBITDA stood at $1.3 million as compared to a loss of $17.3 million in 2013. Besides adding eight new customers during the last calendar year, Connecture Inc (NASDAQ:CNXR) introduced its cloud-based broker private exchange solution, On Ramp, which will significantly help its customers streamline their operations. Jeremy Green‘s Redmile Group and Deerfield Management are two other prominent stockholders of Connecture Inc (NASDAQ:CNXR).

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