This instablog is a follow-on to my 4/15/2015 post linked below.
The pair of Woodford investments in NWBO announced on April 2nd prompted the previous blog post. Since that time, the company has not announced any additional financing.
Woodford regularly (and promises monthly going forward) publishes detailed information about the holdings of his two funds (CF Woodford Equity Income with 6.14b Pounds of assets and Patient Capital Trust which launched in mid April with 800m Pounds of assets). The reporting of the June 30th holdings is the basis of this report.
The report would seem to confirm that the second tranche, which comprised 71.25% of the April $40m investment in NWBO came from Patient Capital. That would be ~3.85m shares. As of June 30th, I estimate that Patient Capital had 5.025m NWBO shares, indicating it had purchased 1.175m shares on the open market during the second quarter of 2015. Of note, NWBO was the 3rd largest holding of Patient Capital comprising 3.97% of the fund.
Woodford Equity Income Fund reported NWBO comprised 1.09% of its assets at the end of June (10.6m shares), up from .78% at the end of February (8.25m NWBO shares). It is the 26th largest holding in this fund. This fund added 1.55m shares in the first tranche of the April investment and I estimate added an additional 789,000 through open market purchases since the end of February.
I estimate that the two Woodford entities ended June with roughly 15.6m NWBO shares or 20.6% of the total shares outstanding (14.3% on a fully-diluted basis).
The additional open market purchase of more than 1.95m shares is certainly a good sign that Woodford continues to be happy with NWBO. Of additional interest, in the statement accompanying the release of the Patient Capital June 30th holdings, Neil Woodford devoted a paragraph to discussing his three US biotech holdings (Prothena and Alkermes in addition to NWBO). He described his investment as "...a very long-term strategy." After expressing caution he stated, "Nevertheless, the market does seem to be warming to the positive investment cases for these exciting businesses."
Here is a link to the quoted Woodford Report. Please take note of Prothena and Alkermes. I do not follow those companies but Mr. Woodford's endorsement makes them well worth investigating.
Disclosure: I am/we are long NWBO.