Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Proteon Therapeutics Inc (PRTO): Deerfield Management Discloses Post-IPO 6.7% Stake

James E. Flynn’s Deerfield Management filed yesterday with the SEC an Initial Statement of Beneficial Ownership of Securities of Proteon Therapeutics Inc (NASDAQ:PRTO), a company that went public today. The fund disclosed ownership of 535,219 shares of Series D Preferred Stock*, and 428,175 Series D Purchase Rights**. Previous to the offering, the fund held a 10% stake in the company; the post-IPO wage accounts for approximately 6.7% of the company´s shares outstanding.

Deerfield Management is a non-activist, healthcare-focused investment company that specializes in funding R&D, managing hostile takeovers, corporate transitions and financial advisory services. It was founded in 1994, and has been based in New York City ever since. It has been managed by James E. Flynn since 2000, and currently oversees about $5 billion in assets. The fund seeks to advance healthcare through investment, information and philanthropy.


Proteon Therapeutics Inc (NASDAQ:PRTO), for its part, is a $141.7 million market cap biopharmaceutical company, currently developing pharmaceuticals to address the medical needs of patients with renal and vascular diseases. The initial public offering opened today for trading at $11.30, after the company had priced 6.11 million shares of its common stock at a public offering price of $10.00 per share. The proceeds of the IPO will be most likely allocated to fund research and development activities.

In addition to Deerfield Management, some of Proteon Therapeutics Inc (NASDAQ:PRTO)’s Board Directors held big chunks of stock before its IPO. Some noteworthy investors (insiders) are Hubert Birner, Brendan O’leary, Gordon John Freund and Timothy Haines. Each one of these Directors held, at least, 14% of the company’s pre-IPO stock, and will own more than 9% of the post-IPO shares outstanding.

As mentioned above, Deerfield Management has an eye for healthcare stocks. Its largest long equity position, Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL), another small-cap healthcare company, returned more than 48% year-to-date, outperforming all indexes and most of its industry peers.

* Each share of Series D Preferred Stock is convertible at any time into 0.063 shares of the company’s common stock (on an adjusted basis, after giving effect to the 1-for-15.87 reverse stock split effected by the Issuer on October 6, 2014). These shares will be automatically converted into Common Stock upon the closing of the company’s initial public offering, and have no expiration date (SEC).

** The Series D Purchase Right entitles the holder to purchase shares of Series D Convertible Preferred Stock under the Series D Preferred Stock purchase agreement at a price of $0.588656 per share. The right to purchase is not currently exercisable and shall terminate upon the completion of the company’s initial public offering.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!