Many leading funds filed forms 13-D and 13-G (and form 4) with the SEC on Monday, indicating that they had amended their ownership in U.S. traded public companies. The following are the most notable filings on Monday in the healthcare sector (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):
Cel-sci Corp. (CVM): CVM is a developer of immunotherapeutic agents and peptides to treat cancer and bacterial, viral and parasitic infections. Its lead product, Multikine, is under phase 3 clinical trial for the treatment of head and neck cancer. On Monday, Illinois-based hedge fund Cranshire Capital Advisors filed SEC Form SC 13G indicating that it holds 16.8 million or 6.8% of outstanding shares, an increase from an earlier SC 13G filing in October 2011, when it disclosed holding 13.5 million shares. Cranshire is by far the largest institutional holder of CVM, ahead of second place Vanguard Corp. that holds 5.0 million shares.
Boston Scientific Corp. (BSX): BSX is a developer of medical devices used in cardiology, endoscopy, oncology, neuromodulation and other interventional procedures. On Monday, Atlanta-based investment powerhouse INVESCO Ltd., with over $650 billion in assets under management, filed SEC Form SC 13G/A indicating that it holds 19.6 million or 1.3% of outstanding shares, a decrease from the 33.3 million shares it reported holding at the end of Q3. BSX trades at 12-13 forward P/E and 0.8 P/B compared to averages of 29.3 and 3.9 for its peers in the medical products group.
Besides BSX, INVESCO on Monday filed Forms 13D/G on several other companies, including DCT Industrial Trust Inc. (DCT), a publicly owned REIT that owns, acquires, develops and manages high-quality bulk distribution and light industrial properties in high volume distribution markets in the U.S. and Mexico, in which it indicated holding 14.8 million shares, an increase from the 10.1 million shares it reported holding at the end of Q3.
Orexigen Therapeutics (OREX): OREX develops pharmaceuticals by combining various generic drugs to treat central nervous system disorders, including obesity. On Monday, New York-based investment management company First Manhattan Co., with over $11.3 billion in 13-F assets per its latest Q3 filing, filed SEC Form SC 13G indicating that it holds 6.0 million or 11.1% of outstanding shares, a new position for it since its last Q3 13-F report. OREX shares received a lift earlier this week after the company announced that it reached an agreement with the FDA on details about the design and planned analysis of its trial for Contrave; however, shares still trade at their lows after a huge 72% drop last February when the company announced that the FDA issued a Complete Response to their New Drug Application [NDA] for Contrave for the management of obesity.
Omnicare Inc. (OCR): OCR provides pharmacy distribution and consulting services to long-term care centers and hospitals in 47 states and D.C. On Monday, Westport, CT-based Iridian Asset Management, with $5.1 billion in 13-F assets per its latest Q4 filing, filed SEC Form SC 13G/A indicating that it hold 9.3 million or 8.1% of outstanding shares, an increase from the 8.1 million shares it indicated holding at the end of Q4. With the additional purchase, Iridian remains the second largest institutional holder of OCR, behind Fidelity Investments that hold 16.7 million shares. OCR trades at a current 16 P/E on a TTM basis, and at 1.0 P/B, compared to averages of 17.9 and 2.0 for its peers in the medical services group.
Besides OCR, Iridian on Monday filed SEC Forms 13D/G on several other companies, including in vacation ownership property management and resort company Wyndham Worldwide Corp. (WYN), in which it reported holding 9.1 million shares, an increase from the 8.4 million shares it reported at the end of Q4; and chemicals, plastics and fibers manufacturer Eastman Chemical Co. (EMN), in which it reported holding 7.4 million shares, an increase from the 2.7 million shares it reported holding at the end of Q4.
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our 'opinions' and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.