Heron Therapeutics Inc (HRTX), La Jolla Pharmaceutical Company (LJPC), Salix Pharmaceuticals, Ltd. (SLXP) Are Tang Capital’s Largest Bets in Q4

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Next on the list comes La Jolla Pharmaceutical Company (NASDAQ:LJPC), a stock in which Tang raised its stake during the fourth quarter of 2014. The fund reported holding some 2.14 million shares of the company, up by 12% on the quarter, and the value of the position amounts to $39.56 million. Tang initiated a stake in the company during the third quarter and during the following months it substantially raised its stake from 11,200 shares it held initially. La Jolla is a $337 million biotech company that is involved in development of therapeutics for improvement of outcomes in patients with life-threatening diseases.  Moreover, as it was mentioned earlier, at the end of August, Mr. Tang was appointed to the board of directors of La Jolla Therapeutics.

Broadfin Capital is also a shareholder of La Jolla, holding around 1.11 million shares as of the end of September. Moreover, other healthcare-focused investors also bet on the company, such as Baker Bros and Visium Asset Management.

On the last spot in our top is Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), of which Tang Capital reported ownership of 300,000 shares, valued at $34.48 million. The stake remained unchanged during the fourth quarter, but it lost a significant portion of its value and slid to the third spot, from the first position it held in the previous quarter.

In comparison with the previous two positions, Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) is a much bigger company, boasting a market cap of $8.3 billion. In addition, Salix is a specialty pharmaceutical company that develops drugs for prevention and treatment of gastrointestinal disorders. Tang has been holding shares of Salix Pharmaceuticals since the first quarter of 2012 and has kept its position unchanged at 300,000 shares. The stock more than doubled in value since then, but in the last quarter it fell by around 26%.

Salix lost ground in November, mainly on the back of its financial results. The company reported a 49% increase in sales on the year to $354.7 million and EPS growth of 72% on the year to $1.53. However, the results came below the estimates of $392.9 million in revenue and EPS of $1.55. Moreover, the company’s guidance for the fourth quarter came below the consensus estimates.

Aside from Tang, another shareholder of Salix is Andreas Halvorsen‘s Viking Global, which owned 2.72 million shares at the end of September, followed by Jacob Gottlieb‘s Visium Asset Management with 2.30 million shares.

In addition, during the fourth quarter, Tang Capital initiated a stake in OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI), of which it owns 365,000 shares. The fund also closed its stakes in four other companies.

Disclosure: none

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