Shares of biotech Sequenom (SQNM) were bucking the larger market declines earlier this afternoon, but have come under a bit of pressure, dropping 9 cents, or 1.5%, to $6.07, and are now flat at $6.16, after the company filed a form S3 with the Securities & Exchange Commission detailing how many shares were acquired in a private placement of roughly 12.4 million shares Sequenom announced May 12 and carried out on May 17.
Hence, today’s event is only new in that it gives details as to which funds ended up with what amount of shares following the offering.
Tang Capital Partners, for example, has�3.3 million shares, roughly 4.4% of the common oustanding, all of which can at some point be sold, or could be retained. Among other large holders, Visium Balanced Master Fund has 2.8 million shares, roughly 3.8% of the common, and Manning & Napier possesses 1.1 million shares, roughly 1.5% of the stock.
Other funds have holdings that represent an increase from their holdings prior to the private placement, including�Palo Alto Healthcare Master Fund, with a 1.6% position in the stock. If the firm were to sell all its shares obtained in the private placement, it would still retain 1.4% of the stock; likewise,�Redmile Capital Offshore Fund could sell upward of�550,000 of its total 896,000 shares, which represents 1.2% of the stock.
Correction: In a previous version of this post, I mistakenly asserted that the change in shares documented in the S3 represented an actual sale. In fact, the S3 describes the maximum amount of shares that the funds could sell at some point in future. But there haven’t actually been any shares sold, as the shares aren’t even fully registered at this point. Nor is there any promise to sell shares nor any obligation based solely on this prospectus. I apologize to readers, and to Sequenom, for mis-representing as actual sales what is in fact merely a disclosure of holdings.
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