In a new filing, Mark Rachesky‘s MHR Fund Management revealed a massive stake in nano cap company Emisphere Technologies, Inc. (OTCBB:EMIS). The position amasses over 74.0 million shares of the company, equal to 63.7% of the stock. The holding is activist by nature. Mark Rachesky also serves as a board director at the company.
Emisphere Technologies, Inc. (OTCBB:EMIS) is a small biopharmaceutical company engaged in production of therapeutic molecules or nutritional supplements using its Eligen Technology. For the last year, the company reported a net loss of $20.9 million, equal to $0.35 per share, down from a loss of $1.9 million, or $0.03 per share posted for the previous year. The stock of the company gained 37% since the beginning of the year, and rose by over 70% over the past 52 weeks.
Moreover, the company is conducting further development of its Eligen Oral B12 Rx, looking for new partnerships and trying to find new uses for the Eligen Technology. The technology is also used by Novo Nordisk A/S (ADR) (NYSE:NVO), which is developing and selling oral formulations of insulin. At the same time, Emisphere Technologies, Inc. (OTCBB:EMIS) is further working on several pre-clinical programs trying to increase the oral absorption of selected molecules under the Eligen Technology.
MHR revealed last month that Mark Rachesky, together with Michael Sirignano, a principal of the fund, were elected to the board of Navistar International Corp (NYSE:NAV), in which MHR owns over 16.0 million shares, equal to 16% of the outstanding stock.
MHR’s $3.5 billion equity portfolio is heavily invested in Technology and Services sectors. Lions Gate Entertainment Corp. (USA) (NYSE:LGF) represents the largest stake in the equity portfolio, in which the fund held 51.26 million shares, valued at $1.62 billion as at the end of last year. In Loral Space & Communications Ltd. (NASDAQ:LORL), MHR also owns a significant position, with 8.13 million shares, worth $658.35 million.