The positive phase 2 study results for OHR-102 have propelled the shares of OHR Pharmaceutical Inc (NASDAQ:OHRP) higher, now up by 45.81% on the day. OHR-102 is used in combination with other medicines for the treatment of central retinal vein occlusion (CRVO) and branch retinal vein occlusion (BRVO). According to the study, patients receiving a combination of OHR-102 and Lucentis had better visual response at the end of the 38-week period. While discussing the positive results of OHR-102 on patients, Dr. Jason Slakter, Chief Medical Officer at OHR Pharmaceutical Inc (NASDAQ:OHRP), said, “The positive results of this Phase II study demonstrates the role of OHR-102 combination therapy in RVO and represent an important milestone for the development of OHR-102 in the treatment of this disease.” What is even more important is that this is the second time that OHR-102, combined with other medicines, has delivered positive results in a retinal vascular disorder, he further added.
Despite the big boost today, the shares of OHR Pharmaceutical Inc (NASDAQ:OHRP) are still down by 60.19% year-to-date and are trading at $3.39. A huge dip for the stock occurred on March 27 when OHR-102 failed to meet its primary goal in a separate study. The hedge fund managers tracked by Insider Monkey clearly had a bearish outlook on the company at the end of the first quarter following those results, with holdings valued at $8.14 million from eight managers against prior investments of $20.08 million held by six hedge fund investors at the end of 2014.
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Notably, the insiders at OHR Pharmaceutical Inc (NASDAQ:OHRP) are bullish on the stock, with five insider purchases in 2015. Mr. Slakter was among the insiders purchasing shares of the company, as he bought 29,630 shares on February 6, 2015. The most important factor at play here is the positive result announcement from the company, as these results are known to drastically turn the fortunes of medical companies.
With all of these factors under consideration, let’s find out the recent investor activity surrounding OHR Pharmaceutical Inc (NASDAQ:OHRP).
What does smart money think about OHR Pharmaceutical Inc?
Heading into the second quarter, a total of eight of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from the close of the fourth quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their stakes substantially.
Among the largest stockholders of OHR Pharmaceutical Inc at the end of the first quarter, Kevin Kotler’s Broadfin Capital was on top. The fund manager owned 1.78 million shares of the medical research company, with a market value of $4.50 million. Julian Baker & Felix Baker of Baker Bros. Advisors was the second largest investor of the company, owning 370,370 shares of the company valued at $941,000. Some of the other major investors of the company included Fred Knoll’s Knoll Capital Management, and Hal Mintz’s Sabby Capital.
Despite a slightly bearish outlook from hedge fund managers, we believe that positive medical results can turn the tide in favor of the company and we recommend a buy for the shares of OHR Pharmaceutical as a result.
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