Steven Mandel’s hedge fund, Lone Pine Capital, on July 27 initiated a position in Horizon Pharma Plc (HZNP, Financial), according to GuruFocus Real Time Picks.
The purchase was for 8,353,668 shares, which represent 5.4% of the drug company.
Horizon Pharma, which has acquired four other companies in the past two years, is in the process of attempting to merge with Depomed Inc. (DEPO, Financial), a maker of neurology treatments. The July 7 proposal offered $29.25 per share for Depomed, a 42% premium to its closing share price the previous day. Horizon raised its offer price to $33 on July 21 after resistance from Depomed’s management. Depomed also rejected the second proposal.
Horizon Pharma last week announced that it expects record net sales in the range of $170 million to $172 million for the second quarter, a 160% increase from second quarter 2014. It increased its net sales guidance for full-year 2015 to a range of $660 million to $680 million from a previously expected $590 million to $610 million.
Horizon has a P/B ratio of 6.99 and P/S ratio of 10.2, near a two-year high.
Mandel had placed 12.9% of his long portfolio into Healthcare stocks, the third largest sector represented. He held three other drug manufacturers as of first quarter-end: Endo International Plc (ENDP, Financial), Allergan Plc (AGN, Financial) and Valeant Pharmaceuticals International Inc. (VRX, Financial).
See more of his stocks at his portfolio here.
For more stock trades of gurus in real time, visit GuruFocus’ Real Time Picks, a Premium Feature. Not a Premium Member of GuruFocus? Try it free for 7 days here.
