One of the largest shareholders of NeuroMetrix Inc. (NSDQ:NURO) stock, Deerfield Management, might be looking to dump its 20 percent stake in the company after NeuroMetrix put more than 4.4 million shares on the market.
NeuroMetrix registered the shares, which amount to 19.3 percent of its common stock, in a Dec. 18 filing with the Securities & Exchange Commission. Deerfield bought the stock for $2 apiece during a September private placement that brought in $19 million for the Waltham, Mass.-based nerve and spinal cord testing and treatment equipment maker.
The company’s stock has bounced between $0.52 and $3.60 per share over the past 12 months, according to the filing; NeuroMetrix shares were hovering around $2.50 during Dec. 21 trading.
Unlike the private placement, which concluded Sept. 11 and netted roughly $17 million for NeuroMetrix, none of the proceeds from the shares registered last week will go to NeuroMetrix. But if the company’s shares hold their value, Deerfield stands to make another tidy profit on a Massachusetts medical device maker.
The hedge fund, which invests solely in healthcare and biotech companies, pulled in more than $2.7 million in gross proceeds selling shares of NxStage Medical Inc. (NSDQ:NXTM) between Dec. 3 and Dec. 15.