Deerfield Management Buys More And More Imprivata Inc. (IMPR) Shares

Imprivata completed an important acquisition earlier this year, which has significantly boosted the growth of the company. To be more detailed, Imprivata acquired HT Systems at the end of April, which was the leading provider of palm-vein based biometric patient identification systems at the time of acquisition. Thus, the deal enabled Imprivata to penetrate the emerging patient identification market, which is estimated to be a $2.0 billion market globally. The strong add-on to the company’s businesses has already been reflected in the company’s second quarter financial results. Imprivata paid $19.1 million in cash for its acquisition and is expected to pay up to $1.9 million in retention-based payments plus up to $5 million based on reaching certain sales targets over the next two years following the transaction. Unquestionably, the recently-completed acquisition of HT Systems and its PatientSecure biometric patient identification technology supports Imprivata’s long-term vision of being the leading provider of healthcare IT security solutions. Considering the company’s desire and success towards becoming a leader in its industry, the stock might actually represent a great buying opportunity despite trading at an all-time high, which the experts at Deerfield Management clearly believe.

As already mentioned, Imprivata has delivered a very strong financial performance for the second quarter of this year. The healthcare company posted record revenues of $30.0 million, which marks an increase of 29% year-over-year. At the same time, the company’s net loss came to $5.4 million or $0.22 per basic and diluted share, compared to a loss of $4.8 million or $1.08 per share reported a year ago. Imprivata’s adjusted EBITDA for the quarter was a loss of $2.2 million, compared to a loss of $2.8 million reported a year ago.

Given that its systems for secure patient identification and access are believed to be crucial to the development of the healthcare industry, it would certainly sugest there is more upside potential for Imprivata. Justin John Ferayorni’s Tamarack Capital Management is among the largest shareholders in Imprivata Inc. (NYSE:IMPR), holding an ownership stake of nearly 1.03 million shares as of June 30.

Disclosure: None