Investor Steven Cohen (Trades, Portfolio) took notice of fast-growing biopharmaceutical company Radius Health (RDUS, Financial), boosting his holdings by 405.6% on Nov. 24, GuruFocus RealTime Picks reported.
Radius saw its first full quarter of recorded sales in the third quarter after the Food and Drug Administration approved its injection for postmenopausal women with osteoporosis and high risk of fracture on April 28. Since it reached wholesalers at the end of May, more than 200 million patients have used the treatment, called Tymlos.
Cohen, founder of Point72 Asset Management, held 2,260,668 shares of the company after the transaction, an increase from 447,100 shares owned at the end of the third quarter. His price range averaged $28.58 per share, roughly 2% lower than the price of $29.06 per share Tuesday afternoon.
For the third quarter, Radius’ Tymlos garnered $3.5 million in sales, versus no revenue in the comparable quarter last year before the FDA approved the treatment.
“Our No. 1 priority is to continue executing launch the launch of Tymlos in the U.S. and to establish Tymlos as the market leader in the osteoporosis sector,” Jesper Hoiland, president and CEO of Radius, said in a third-quarter call with analysts.
As part of the initiative, the company wants to expand its label, in part by partnering with the FDA to study male osteoporosis beginning in the first quarter of 2018. It also plans to develop a transdermal patch for osteoporosis in collaboration with 3M (MMM, Financial). The company has a meeting slated with the FDA to discuss the patch in January.
Radius also has an oncology franchise where it is developing two treatments for breast cancer, one of which the FDA awarded “Fast-Track” status in October to aid its speed to market.
At the end of September, Radius had $469.1 million in cash on its balance sheet after $305 million in convertible debt financing to strengthen its financial position.
Radius joins 231 health care stocks in Cohen’s portfolio, which is populated with 845 positions valued around $22.4 billion. Danaher Corp. (DHR, Financial), Biogen Inc. (BIIB, Financial) and Vertex Pharmaceuticals (VRTX, Financial) compose his largest positions.
Shares of Radius declined 23% year to date, closing at $29.19 a share Tuesday.
