According to two recent filings with the Securities and Exchange Commission, Kevin Kotler‘s (pictured) Broadfin Capital and Roberto Mignone‘s Bridger Management have disclosed stakes amounting to 900,304 shares and 618,684 shares respectively in SeaSpine Holdings Corp (NASDAQ:SPNE), a recent tax-free spin-off of Integra Lifesciences Holdings Corp (NASDAQ:IART)‘s orthobiologics and spinal fusion hardware business. The holdings amass about 8.18% and 5.6% of SeaSpine’s outstanding shares respectively. SeaSpine is down by over 15% since its IPO in the middle of June, which may have prompted the two funds to take positions.
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SeaSpine Holdings Corp (NASDAQ:SPNE) operates in two segments, one is orthobiologics, which consists of products used as bone graft substitutes to improve bone fusion rates after orthopedic surgeries. Sales from this segment account for 50% of the company’s revenues. The other half of the top line is represented by the spinal fusion hardware portfolio, which consists of products that help in spinal fusion following minimally invasive surgery (MIS), or complex spine, deformity and degenerative procedures. The company has a strong balance sheet according to its Chief Executive Officer Keith Valentine, with $47 million in cash and no debt post spin-off. Moreover, SeaSpine Holdings Corp (NASDAQ:SPNE) is also growing its portfolio faster in order to capture greater market share. While about two to three new products have been introduced into the market previously on an annual basis, the company is expecting to release eight products this year.
Piper Jaffray initiated coverage on SeaSpine Holdings Corp (NASDAQ:SPNE) recently with an ‘Overweight’ rating and a price target of $24, which provides more than 40% upside to the current trading levels.