Opus Point Partners was founded by Michael S. Weiss and Dr. Lindsay A. Rosenwald in 2009. Prior to launching Opus Point Partners, Mr. Weiss and Dr. Rosenwald had worked together between 1993 and 1999 on managing a biotech investment firm, Paramount Capital/Aries Funds, but in 1999, Mr. Weiss left to create his own biotech company, ACCESS Oncology (which would be acquired in 2004 by Keryx Biopharmaceuticals (NASDAQ:KERX)).
In the meantime, Dr. Rosenwald continued to work at Aries, which became one of the most prolific incubators of new biotech start-up up until the financial crisis of 2007-2008. As Weiss also left Keryx Biopharmaceuticals, where he had worked after the acquisition of ACCESS Oncology, in 2009, both decided to join their forces to create a new hedge fund, which benefited from over two decades of experience of both partners in the biotech space.
Due to the biotech-focused background of both of its founders, Opus Point Partners is mainly invested in the biotech industry, which accounts for over 90% of its equity portfolio. In addition, because of Mr. Weiss’s and Dr. Rosenwald’s expertise in the field, they take an activist approach, i.e. they serve on the board of directors of several companies, such as Avenue Therapeutics Inc (ATXI), where Dr. Rosenwald is the Executive Chairman, Mustang Bio, Inc. (MBIO), where Mr. Weiss serves as Chairman of the Board, and Checkpoint Therapeutics Inc (CKPT), where Mr. Weiss is the Executive Chairman. In addition, Dr. Rosenwald is the Chairman and CEO of Fortress Biotech Inc (FBIO), and Mr. Weiss serves as the Executive Chairman and CEO of TG Therapeutics Inc (TGTX).
In addition to investments in healthcare, Opus Point Partners was also in the spotlight in 2010 relating to its investment in a financial company, National Holdings Corporation (NASDAQ:NHLD). The fund invested around $3.0 million in National Holdings Corporation, a broker-dealer, and Michael Weiss was appointed as the company’s Chairman of the Board. In 2016, the aforementioned Fortress Biotech conducted a tender offer to buy National Holdings Corporation, but failed to acquire enough shares to take the company private.
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Following funds like Opus Point Partners can be useful, because these funds have more skills at picking stocks and can take advantage of resources that are not always available for the retail investors. In this case, given the expertise of Mr. Weiss and Dr. Roswald and their decades of experience in the biotech space, following its investments can unveil some interesting investing opportunities, especially since many biotech companies are in early stages and have the potential to skyrocket if their research pays off. Another strategy that involves following large hedge funds that can minimize risks is to look for the stocks that many hedge funds are collectively bullish on. This is what we do at Insider Monkey through analyzing 13F filings of over 600 hedge funds. We identify certain investments that enjoy strong support from these funds and share them with our premium subscribers (see more details here).
Opus Point Partners holds an equity portfolio worth $108 million as of the end of June, according to its latest 13F filing with the Securities and Exchange Commission. As the fund cut 48 holdings during the second quarter, and closed seven positions, the value of the portfolio declined from $134.73 million at the end of March. Even though almost the entire portfolio consists of biotech and healthcare stocks, it is fairly diversified across companies, containing over 60 long positions. In this article, we are going to take a look at some of Opus Point Partners’ top holdings, as well as several companies in which the fund acquired new stakes during the second quarter.
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1. Merck & Co., Inc. (NYSE:MRK)
Merck & Co., Inc. (NYSE:MRK) is represented in Opus Point Partners’ equity portfolio by a $5.36 million position that contains 83,700 shares as of the end of June, unchanged over the quarter. Other investors with more substantial stakes in Merck & Co., Inc. (NYSE:MRK) include billionaire Ken Fisher’s Fisher Asset Management, and Samuel Isaly’s OrbiMed Advisors, which hold 7.10 million shares and 6.28 million shares, respectively.
For the second quarter, Merck & Co., Inc. (NYSE:MRK) posted revenue of $9.93 billion, which topped the consensus estimate by $180.0 million, while EPS of $1.01 was higher than the expected $0.87. The company also updated its full-year guidance and currently expects revenue between $39.40 billion and $40.40 billion and EPS in the range of $3.76 to $3.88.
2. Bristol-Myers Squibb Co (NYSE:BMY)
In Bristol-Myers Squibb Co (NYSE:BMY), Opus Point owns 90,000 shares worth $5.02 million as of the end of the second quarter, also unchanged from the end of March. Billionaire Jim Simons’ Renaissance Technologies more than doubled its position in Bristol-Myers Squibb Co (NYSE:BMY) to 13.49 million shares during the second quarter.
Since the beginning of the year, Bristol-Myers Squibb Co (NYSE:BMY)’s stock has inched up by 0.30% amid an 18% drop registered in the second half of January, following the company’s announcement that it would not pursue accelerated approval of Opdivo and Yervoy combination for treatment of lung cancer. Earlier this month, the company announced mixed results for the same combination of drugs for the treatment of kidney cancer.
3. AstraZeneca plc (ADR) (NYSE:AZN)
Opus Point also held 120,000 shares of AstraZeneca plc (ADR) (NYSE:AZN) heading into the third quarter; the value of the stake was $4.09 million at the end of June. Another investor bullish on AstraZeneca plc (ADR) (NYSE:AZN) is Fisher Asset Management, which boosted its stake more than fourfold during the second quarter and holds 11.08 million shares.
The company’s stock jumped in May following positive late-stage results from its Phase 3 study of durvalumab for the treatment of non-small cell lung cancer, but it plunged at the end of July on the back of disappointing second-quarter results. In this way, AstraZeneca plc (ADR) (NYSE:AZN)’s stock is around 7% in the green year-to-date and sports a dividend yield of 4.80%.
4. Ignyta Inc (NASDAQ:RXDX)
In Ignyta Inc (NASDAQ:RXDX), Opus Point Partners initiated a stake containing 170,500 shares worth $1.77 million as of the end of June. Bihua Chen’s Cormorant Asset Management also added Ignyta Inc (NASDAQ:RXDX) to its 13F portfolio during the second quarter, having amassed 1.50 million shares.
Ignyta Inc (NASDAQ:RXDX) is a small-cap company that is engaged in developing an integrated therapeutic and companion diagnostic strategy for cancer patients. In May, the company’s entrectinib received Breakthrough Therapy designation for the treatment of certain solid tumors. For the second quarter, Ignyta Inc (NASDAQ:RXDX) posted a net loss of $0.56 per share, which was slightly better than the analysts’ consensus estimate of a loss of $0.61 per share.
5. Loxo Oncology Inc (NASDAQ:LOXO)
Loxo Oncology Inc (NASDAQ:LOXO) is another new position in Opus Point Partners’ equity portfolio. Between April and June, Opus Point Partners acquired 13,800 shares worth $1.11 million. Other investors bullish on Loxo Oncology Inc (NASDAQ:LOXO) include Dennis Purcell’s Aisling Capital, OrbiMed Advisors, and Phil Gross and Robert Atchinson’s Adage Capital Management.
Loxo Oncology Inc (NASDAQ:LOXO)’s stock has surged by over 130% since the beginning of the year, boosted at the beginning of June by an announcement of positive interim results from three cliniacl trials of larotrectinib for the treatment of tumors that harbor tropomyosin receptor kinase (TRK) fusions.
6. Karyopharm Therapeutics Inc (NASDAQ:KPTI)
Opus Point Partners also added Karyopharm Therapeutics Inc (NASDAQ:KPTI) to its equity portfolio during the second quarter and reported a $905,000 stake that contained 100,000 shares in its latest 13F filing. William Leland Edwards’ Palo Alto Investors is another shareholder of Karyopharm Therapeutics, which owns 3.47 million shares as of the end of June.
Karyopharm Therapeutics Inc (NASDAQ:KPTI) is a clinical-stage pharmaceutical company that develops drugs against nuclear transport and related targets for the treatment of cancer. It last reported a loss of $0.64 per share for the second quarter, which beat the consensus estimate, but its revenue amounted to just around $3,000 and was $117,000 lower than expected.
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