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Healthcare-Focused Broadfin Capital’s Notable Moves Include Cardiovascular Systems, Nevro Corp & Others

Kevin Kotler‘s healthcare-focused fund Broadfin Capital held a 13F portfolio valued at about $1.04 billion at the end of the first quarter, according to its latest filing. Broadfin’s turnover ratio for this period stood at 40.85%, which suggests that the investor did reshuffle its picks quite significantly during the first three months of 2016. Considering that the healthcare sector has inched down by around 0.80% year-to-date, we decided to look for bargains among Broadfin’s most noteworthy moves during the first quarter.

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#5 Cardiovascular Systems Inc (NASDAQ:CSII)

– Shares Owned by Broadfin Capital (as of March 31): 1.46 Million

– Value of Holding (as of March 31): $15.17 Million

Broadfin’s newly initiated stake amassed about 4.47% of Cardiovascular Systems Inc (NASDAQ:CSII)’s outstanding shares at the end of March. Steve Cohen‘s family office Point72 Asset Management also took a position in the $560 million medical technology company with 102,200 shares during the same period. So far this year, the healthcare company’s stock price has rallied by almost 22% amid impressive second fiscal quarter results that saw the cost management taking effect and reducing operating expenses by 5% and increasing Cardiovascular Systems Inc (NASDAQ:CSII)’s gross margin to 80.4% from 77.8% year-on-year. Revenues in the March quarter rose by 7% on the year to $44.5 million.

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#4 Heron Therapeutics Inc (NASDAQ:HRTX)

– Shares Owned by Broadfin Capital (as of March 31): 1.47 Million

– Value of Holding (as of March 31): $27.83 Million

Broadfin cut its stake in Heron Therapeutics by 34% during the January-March period. Although Heron Therapeutics Inc (NASDAQ:HRTX)’s stock has cratered by almost 28% since the start of this year it has gained positive momentum recently, when the US Food and Drug Administration informed Heron Therapeutics that it sees no substantive deficiencies in its New Drug Application (NDA) seeking approval of SUSTOL Injection for the treatment of acute and delayed chemotherapy-induced nausea and vomiting. The company is now in the midst of labeling discussion with the regulatory body. Moreover, Heron’s first quarter loss of $0.92 per share was in line with analyst estimates. Christopher Medlock James‘ Partner Fund Management was bullish on the company during the first quarter and raised its Heron Therapeutics Inc (NASDAQ:HRTX) stake by 11% to 3.07 million shares.

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#3 Raptor Pharmaceutical Corp. (NASDAQ:RPTP)

– Shares Owned by Broadfin Capital (as of March 31): 7 Million

– Value of Holding (as of March 31): $32.2 Million

Broadfin’s Raptor Pharmaceutical Corp. (NASDAQ:RPTP) holding saw a 190% boost during the first three months of this year. Israel Englander‘s Millennium Management was on the same page and raised its stake in the Novato-based biopharmaceutical company by 17% to 2.48 million shares during the same period. On May 5, Raptor Pharmaceutical Corp. (NASDAQ:RPTP) reported its fiscal fourth quarter earnings, declaring a loss of $0.17 per share, which was in-line with the estimates, while revenue of $27.47 million, topped analysts’ expectations of $27.44 million.

#2 Nevro Corp (NYSE:NVRO)

– Shares Owned by Broadfin Capital (as of March 31): 667,900

– Value of Holding (as of March 31): $37.58 Million

On the other hand, Broadfin significantly cut its stake in Nevro Corp (NYSE:NVRO), by 44%, but also initiated a ‘Call’ position in the $2 billion medical device company underlying 300,000 shares. In its financial results for the first quarter the Redwood-based company delivered a loss of $0.33 per share, which bested estimates by $0.32. Quarterly revenue of $41.7 million was also ahead of expectations by $6.97 million.  With some 895,000 shares of Nevro Corp (NYSE:NVRO) valued at $50.35 million as of the end of March, Clifford Fox’s Columbus Circle Investors is the largest stockholder of the company within our database.

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#1 Novadaq Technologies Inc. (NASDAQ:NVDQ)

– Shares Owned by Broadfin Capital (as of March 31): 5.47 Million

– Value of Holding (as of March 31): $60.61 Million

Following a hike of 48%, Broadfin’s Novadaq Technologies Inc. (NASDAQ:NVDQ) holding accounted for over 9.7% of the medical imaging systems company’s outstanding stock. So far this year, Novadaq’s shares have suffered from a lack of investor enthusiasm and are down by 19% despite the company beating top and bottom line estimates in its financial results for the first quarter. The loss per share during this period stood at $0.14 while revenue amounted to $17.7 million and represented an increase of 51.3% on a year-over-year basis. Point72 Asset Management held 267,400 shares of Novadaq Technologies Inc. (NASDAQ:NVDQ) at the end of March.

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Disclosure: None

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