James Flynn, Deerfield Management Step Up Interest In Alphatec Holdings Inc (ATEC)

James E. Flynn, the manager of Deerfield Management, is bullish on Alphatec Holdings Inc (NASDAQ:ATEC). According to a recent filing with the Securities and Exchange Commission, Deerfield and Flynn have increased their stake in the company to 14.2 million shares, 3.98 million of which are shares and the rest are warrants to purchase 10.25 million shares of common stock. In aggregate, this position accounts for 9.98% of the total number of shares outstanding.

Ken Griffin is also very optimistic about the prospects of Alphatec Holdings Inc (NASDAQ:ATEC), having increased his fund’s stake by 556% during the previous quarter. Citadel Investment Group reported the ownership of approximately 35,100 shares valued at $70,000. Jim Simmons has, on the other hand, decided to reduce his fund’s exposure to this stock by 34%. As a result, Renaissance Technologies is left with 58,300 shares reportedly worth $117,000.

Alphatec Holdings Inc (NASDAQ:ATEC) engages in the production of products for surgical treatment of spine disorders. The company has a market cap of $146 million and does not pay a dividend. The stock has been trending sideways for a couple of years already and has fallen 25% so far in 2014 to a current price of $1.5 per share. For the three months ending December 31, 2013, Alphatec posted revenues of $53 million and a loss per share of $0.28, a significant widening from the loss of $0.06 reported for the same period of 2012. Analysts expect the company to register revenues of $51 million, for the current quarter, and a loss per share of $0.03. The stock is mainly touted as a Buy and Strong Buy.

Flynn is a big fan of healthcare companies, which occupy a significant chunk of its equity portfolio. During the fourth quarter of 2013, Deerfield Management has increased its holding of Auxilium Pharmaceuticals, Inc.(NASDAQ:AUXL) by 65% to 4.11 million shares valued at $85.2 million. Flynn has also massively increased his investment in Questcor Pharmaceuticals Inc (NASDAQ:QCOR) – up 544% to 1.5 million shares reportedly worth in excess of $82 million.

Disclosure: none.

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