The shares of Chiasma Inc (NASDAQ:CHMA) are up by 25% on its first day of trading at $20.02 per share as of the time of writing. The biopharmaceutical company announced an initial IPO price of $16.00 per share yesterday, before underwriting discounts, for 6.36 million shares. Further, the underwriters will have the option to purchase an additional 954,750 shares within one month at the same price, excluding underwriting discounts.
Chiasma Inc (NASDAQ:CHMA) is involved in the development of medicines for orphan diseases and its oral therapies are available by injection. The biopharmaceutical company completed a phase III clinical trial of oral octreotide, which has an inhibitory effect over human growth hormone. This drug is effective against acromegaly, which is caused by excessive secretion of human growth hormone by the pituitary gland. Chiasma Inc (NASDAQ:CHMA) submitted a new drug application to the FDA on June 15 for this medicine. The medical company will use funds generated from the IPO for the launch of oral octreotide in the United States.
In its S-1 form filed with the SEC on July 6, Chiasma Inc (NASDAQ:CHMA) reported revenues of $13.17 million for the year ending on March 31, 2014, with a net loss of $2.01 million. Its quarterly revenue for the quarter ending on March 31, 2014 was $4.57 million along with net income of $2.07 million. Chiasma Inc (NASDAQ:CHMA) didn’t release revenue for the quarter ending on March 31, 2015 but its net loss during the quarter stood at $4.24 million.
Prior to the IPO of Chiasma Inc, affiliates of MPM Capital were among the largest shareholders of the company with 39.4% of the shares owned before the IPO and 30.4% after it. Affiliates of Fidelity Securities came at number two in the list of the largest shareholders of the company with 15.9% of the shares owned before the IPO and 12.1% after it. Some of the major shareholders of the company include Abingworth Bioventures V LP, affiliates of 7 Med Health Ventures LP, and affiliates of F2 Capital.
According to the S-1 form of Chiasma Inc (NASDAQ:CHMA), Mark Leuchtenberger is the CEO, President and Director of the company, with Mark J. Fitzpatrick working as its Chief Financial Officer.
Before Chiasma Inc, Novartis AG (ADR) (NYSE:NVS) was the major player having a portfolio of oral therapy drugs for the treatment of Acromegaly including Sandostatin LAR and Signifor LAR. The Swiss company got approval from the FDA for Signifor LAR in December 2014 after receiving regulatory approval in Europe a month earlier. Both of these prescription drugs are used for the treatment of Acromegaly. Novartis AG (ADR) (NYSE:NVS) introduced Signifor LAR, which uses Sandostatin as its base, because Sandostatin was facing competition from generic medicines in countries where its patent expired in 2010. Further, its U.S. patent expired last year in June, making Signifor a crucial drug for Novartis AG (ADR) (NYSE:NVS) portfolio.
The hedge funds tracked by Insider Monkey were bearish on the stock of Novartis AG (ADR) (NYSE:NVS) in the first quarter, as only 33 hedge fund investors held aggregate investments of $930.85 million against previously held investments of $1.04 billion from 38 investment managers on December 31. Ken Fisher’s Fisher Asset Management was the largest shareholder of the company in our database with 5.99 million shares valued at $590.70 million on March 31. Renaissance Technologies, led by Jim Simons, and Osterweis Capital Management, led by John Osterweis, were among the other major investors of the company at the end of the first quarter.
We don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 139%, which is more than 80 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).
We’ll see in the coming days if any of the funds tracked by Insider Monkey, including many of the best healthcare funds in the world, show an interest in ownership of Chiasma Inc (NASDAQ:CHMA), and will keep you apprised should they do so.
Disclosure: None
