Samuel Isaly‘s healthcare-focused fund Orbimed Advisors has disclosed a new position in Sientra Inc (NASDAQ:SIEN), a company that just has gone public. Orbimed revealed ownership of almost 3.19 million shares of the company, which represent around 22.51% of the company’s common stock. The fund also has nominated Rishi Gupta to serve as a director on Sientra’s Board of Directors.
Orbimed Advisors is known for its commitment to investing in healthcare companies across various stages from venture capital to public markets. The fund has an equity portfolio worth $8.5 billion as of the end of the second quarter. Last month, the fund sold 94,000 shares of Relypsa Inc (NASDAQ:RLYP), trimming its stake to 8.86 million shares. The company went public at the end of last year, and Orbimed disclosed a stake right after the IPO. Since the IPO, the stock of Relypsa gained around 58%, although since the beginning of the year it lost around 23% after a significant slump in April. Earlier this month, Orbimed disclosed a new stake in Affimed Therapeutics BV (NASDAQ:AFMD), which contains 5.81 million shares. Affimed went public in September and since the IPO, the stock lost around 15%.
In Sientra Inc (NASDAQ:SIEN), Orbimed was a major shareholder before the company went public and has been a shareholder for several years now, holding over 34% of the company before the IPO. Sientra is a company specialized in plastic surgery devices for cosmetic and reconstructive surgery such as breast implants, tissue expanders, and body contouring. The company went public today and was well received with its stock currently trading around 12% in green. Sientra Inc (NASDAQ:SIEN) registered for sale 5.75 million common shares, including 750,000 shares as over-allotment options, at a price of $15.00 per unit. The IPO is expected to end on November 3.
Aside from Orbimed, which is the largest shareholder so far, Abingworth Bioventures was also listed among Sientra Inc (NASDAQ:SIEN)’s stockholders in the S-1 filing with the SEC. Abingsworth holds around 1.70 million shares, which represent 12% of the company after the IPO.
With this in mind, since many companies backed by Orbimed Advisors perform nicely, and taking into account the stock price growth of Sientra Inc (NASDAQ:SIEN) on its IPO day, the stock is worth keeping on the radars. Moreover, the company is also in a high-growth industry of medical devices, which returned around 16% over the last year.
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