AxoGen and Blueprint Medicines Help Opaleye Return 91% Over the Last Year

In AxoGen, Inc (NASDAQ:AXGN), Opaleye held 1.97 million shares worth $55.75 million heading into 2018. Aside from Opaleye, there were 16 other funds long the company that provides products to improve surgical treatment algorithms for peripheral nerve injuries. Since the beginning of the year, AxoGen, Inc (NASDAQ:AXGN)‘s stock is up by 50% and it has surged by over 200% over the last 12 months. Opaleye has seen even more impressive returns from AxoGen, as it has held the stock since the first quarter of 2015 and has jumped tenfold over this period.

 

Over the last couple of years, Axogen, Inc (NASDAQ:AXGN) has seen its revenue climb consistently following increased interest in the company’s portfolio of products, which include Avance Nerve Graft, AxoGuard Nerve Connector, Avive Soft Tissue Membrane, and AxoGuard Nerve Protector, which generate the bulk of the revenue. In the first quarter of 2018, AxoGen, Inc (NASDAQ:AXGN) registered record revenue of $17.3 million, up by 41% on the year and beating the consensus estimate of $17.08, while the net loss of $0.11 per share was in line with expectations. The management also reiterated its 2018 guidance that includes revenue growth of at least 40% and gross margins above 80%.

Opaleye also held 735,000 shares of Blueprint Medicines Corp (NASDAQ:BPMC) valued at $1.97 million at the end of 2017. Over the last year, Blueprint Medicines Corp (NASDAQ:BPMC)’s stock has almost doubled and its 274% in the green since the third quarter of 2015 when the fund first acquired the stake. Blueprint Medicines Corp (NASDAQ:BPMC) is working on developing kinase medicines and has several products in various stages of trial. In April, the company disclosed its results from Phase 1 trial of BLU-667, a medicine for treating RET-altered solid tumors. The data from the dose-escalation part of the study showed treatment with once-daily BLU-667 reduced tumors in 84% of patients and the preliminary overall response rates in patients with non-small cell lung cancer and medullary thyroid cancer were 50% and 40%, respectively.

 

Among the funds tracked by Insider Monkey, 30 funds held shares of Blueprint Medicines Corp (NASDAQ:BPMC) at the end of December, up by eight over the quarter. For the first three months of 2018, Blueprint Medicines Corp (NASDAQ:BPMC) reported revenue from collaboration of just $900,000, down from $5.80 million a year ago, mainly due to the termination of an agreement with Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN). The company also said it had cash and cash equivalents of $621.10 million at the end of March and it expects that its existing cash, equivalents and investments will allow it to fund its operations into the middle of 2020.

The third largest position in Opaleye’s equity portfolio is represented by FibroGen Inc (NASDAQ:FGEN), in which the fund disclosed a $17.06 million stake containing 360,000 shares. The position in FibroGen Inc (NASDAQ:FGEN) amasses just 5.50% of Opaleye’s equity portfolio, significantly smaller than the previous two positions, which represent nearly 18% of the portfolio each. FibroGen Inc (NASDAQ:FGEN)’s stock has slid by 5% year-to-date, but is 76% in the green over the last 12 months. As a biopharmaceutical company, FibroGen Inc (NASDAQ:FGEN) generates most of its revenue from collaboration agreements. In collaboration with AstraZeneca plc (ADR) (NYSE:AZN), FibroGen is working on anemia drug Roxadustat, which is currently in Phase 3 trials. FibroGen Inc (NASDAQ:FGEN) is also developing Pamrevlumab for Idiopathic Pulmonary Fibrosis, Pancreatic Cancer and Duchenne Muscular Dystrophy. In March, the US FDA granted Fast Track designation for Pamrevlumab for the treatment of pancreatic cancer.

 

There were 22 smart money investors bullish on FibroGen Inc (NASDAQ:FGEN) at the end of 2017, versus 21 funds a quarter earlier.

Opaleye’s largest new position initiated during the fourth quarter was in ABLYNX NV/ADR (NASDAQ:ABLX). Opaleye acquired 420,000 shares valued at $10.50 million. Right at the beginning of 2018, ABLYNX NV/ADR (ASDAQ:ABLX)’s stock went through the roof after Novo Nordisk (NYSE:NVO) made a $3.1 billion offer. A couple of weeks later, Sanofi stepped in with a larger bid of $4.65 billion.

 

Last but not least, Opaleye also added Fennec Pharmaceuticals Inc (NASDAQ:FENC) to its equity portfolio during the fourth quarter, amassing 846,900 shares worth $8.49 million. Since the beginning of the year, Fennec Pharmaceuticals Inc (NASDAQ:FENC)’s stock is up by 14% on the back of some positive developments. In March, the US FDA designated for Fast Track review and later granted Breakthrough Therapy for Fennec Pharmaceuticals Inc (NASDAQ:FENC)’s PEDMARK (a formulation of sodium thiosulfate) for the treatment and prevention of cisplastin-related ototoxicity in pediatric patients with standard-risk hepatoblastoma, a rare liver tumor that primarily affects young children.

 

Disclosure: none