James E. Flynn’s Deerfield Management entered a new position in Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) this week. According to the 13G Form filed with the U.S. Securities and Exchange Commission, the investment firm now owns 1.36 million shares, representing around 8.7% of the company’s outstanding common shares. In addition, John W. Rogers’ Ariel Investments revealed it had acquired a new stake in Manning and Napier Inc (NYSE:MN). The hedge fund initially acquired a holding of 1.1 million shares, before bringing its stake in the company to 1.3 million common shares. Although both 13G Forms were filed on the same date, the first transaction took place a month before the latter.
Deerfield Management is a New York City-based hedge fund that was founded in 1994 and has been under James E. Flynn’s management since 2000. The fund’s main focus lies in equities from the healthcare sector and it has displayed extensive knowledge and a comprehensive understanding of the factors at play in that sector. Furthermore, the investment firm has specialized in corporate transitions, managing hostile takeovers, funding research and development, and providing financial advisory services to invested companies. Deerfield Management’s equity portfolio had a market value of $2.7 billion on September 30, with its position in Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) accounting for 6.8% of that value. In addition, the hedge fund recently increased its stake in Auspex Pharmaceuticals Inc (NASDAQ:ASPX). Deerfield Management entered a new position in the company at the beginning of last year and has been augmenting its exposure to the stock gradually.
Following the recent acquisition of a new holding in Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), the New York-based hedge fund has become the company’s largest shareholder among institutional investors we track, though other investment firms have been betting on the stock for some time now. Mark Kingdon’s Kingdon Capital for example increased its position in Tonix Pharmaceuticals by 91% during the third quarter of 2014 and currently owns 525,000 shares of common stock. Kevin Kotler’s Broadfin Capital has been involved with the company for even longer, acquiring an initial stake in 2013. Although Mr. Kotler’s firm recently decreased its exposure to the pharmaceutical company, it continues to own approximately 276,400 shares.
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP)’s $28.7 million public offering of common stock, which closed this Monday, allowed Deerfield Management to acquire its newest position at $5.85 per share. This presented a great opportunity for the hedge fund to invest in the company, since the stock lost around 61% relative to its February, 2014 value. Hence, it seems Mr. Flynn’s firm has taken a bullish stance towards Tonix Pharmaceuticals considering it as a good time to enter a position in the undervalued company.