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Neuroderm Ltd (NDRM)’s Shares Skyrocket After Secondary Public Offering Announcement

The shares of Neuroderm Ltd (NASDAQ:NDRM) surged 7.86% after the company announced a secondary public offering of its shares. The pharmaceutical company is offering 3.93 million common shares at a price of $17.00 per share, before underwriting discounts. Its underwriters will get a 30-day period to purchase an additional 590,178 shares at the same price. Neuroderm Ltd (NASDAQ:NDRM) is hoping to raise $66.9 million out of this offering. The clinical-stage pharmaceutical company will use this money for the funding of its product candidates including ND0612H and ND0612L through clinical trials and regulatory approvals in the U.S. and Europe. The biotech company is primarily engaged in the development of treatments involving the central nervous system, including Parkinson’s Disease, including a novel liquid formulation of levodopa/carbidopa (LD/CD) that can be continually administered through a pump.


The shares of Neuroderm Ltd (NASDAQ:NDRM) have grown by 3.58% year-to-date and the company has a market cap of $261.62 million. The company has an average trading volume of 129,346 shares per day; however, the announcement triggered a large volume trading, with 3.14 million shares traded throughout the day. Smart money had a somewhat bearish outlook of the company in the first quarter, with four hedge fund managers investing $18.81 million in the company at the end of the first quarter against holdings of $19.82 million from five hedge fund investors one quarter earlier. However, given that shares declined by over 4% during the quarter, the decrease in capital was mostly due to share price volatility.

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Adage Capital Management led by Phill Gross and Robert Atchinson is the largest stockholder of Neuroderm Ltd (NASDAQ:NDRM). Its position in the pharmaceutical company at the end of the first quarter included 750,000 shares valued at $10.06 million. Adage Capital Management held 4.41% of the available common shares of the company. Julian Baker & Felix Baker’s Baker Bros. Advisors is another major stockholder of the company, as it held 250,000 shares of Neuroderm Ltd at the end of the first quarter, valued at $3.36 million. Anand Parekh’s self-named fund is another investor that had a position in the pharmaceutical company at the end of the first quarter. His position included 52,041 shares of Neuroderm with market value of $698,000. Ken Griffin’s Citadel Advisors was the one fund that closed its position in the company in the first quarter, selling off the entirety of its previously held stake of 13,538 shares.

With shares up by nearly 40% since the end of the first quarter, this is one company that many funds appear to have missed out on.

Disclosure: None

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