Deerfield Management Company, L.P. has reported a series of stock sales involving ARS Pharmaceuticals, Inc. (NASDAQ:SPRY). The transactions, disclosed in a recent filing, show that Deerfield Management sold a total of 591,417 shares over two days, November 11 and 12, 2024. The sales were executed at prices ranging from $17.16 to $18.15 per share, totaling approximately $10.14 million.
The transactions involved several entities associated with Deerfield Management, including Deerfield Private Design Fund III, L.P. and Deerfield Private Design Fund IV, L.P. After the sales, these funds continue to hold significant positions in ARS Pharmaceuticals, with shares held indirectly through various Deerfield entities.
James E. Flynn, who is listed as a ten percent owner in the filing, is associated with these transactions through his roles in the management and operation of the Deerfield entities involved. The sales represent a strategic move by Deerfield Management, which remains a substantial investor in ARS Pharmaceuticals.
In other recent news, ARS Pharmaceuticals, Inc. has made significant strides in expanding its global reach and product line. The company entered a definitive agreement with ALK-Abelló A/S, granting ALK an exclusive license to develop, manufacture, and commercialize its epinephrine nasal spray, EURneffy, in multiple global markets, excluding the United States and several other regions. The agreement includes an upfront payment of $145 million from ALK, with potential regulatory and commercial milestones that could total an additional $20 million and sales-based milestones that could reach up to $300 million.
ARS Pharmaceuticals also secured a supply agreement with Nuova Ompi S.r.l., a Stevanato Group subsidiary, ensuring the provision of glass microvials for their emergency medication, neffy®. The company further extended its manufacturing agreement with Renaissance Lakewood, LLC for the production of neffy nasal unit dose sprays.
The FDA has approved neffy, a needle-free epinephrine treatment for Type I Allergic Reactions, and the company is seeking FDA approval for neffy 1 mg, targeting younger children with severe allergies. The European Commission also approved EURneffy, a needle-free adrenaline nasal spray.
In the financial sector, analyst firm Cantor Fitzgerald initiated coverage of ARS Pharmaceuticals with an Overweight rating. These are recent developments, shedding light on the company's continuous efforts to innovate and grow in the pharmaceutical industry.
InvestingPro Insights
To provide additional context to Deerfield Management's recent stock sales of ARS Pharmaceuticals, Inc. (NASDAQ:SPRY), it's worth examining some key financial metrics and insights from InvestingPro.
Despite the recent sales by a major investor, SPRY has demonstrated impressive market performance. The stock has seen a substantial 232.86% price return over the past year, and a 56.79% return in the last six months. This strong performance aligns with an InvestingPro Tip indicating that SPRY has enjoyed a "high return over the last year."
However, investors should note that SPRY's stock has taken a significant hit recently, with a 12.76% decline in the past week. This short-term dip could be related to the insider sales reported in the article.
From a financial standpoint, SPRY holds more cash than debt on its balance sheet, which is a positive sign for the company's liquidity. This is further supported by another InvestingPro Tip stating that SPRY's liquid assets exceed short-term obligations.
It's important to note that while SPRY has shown strong market performance, the company is not currently profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This aligns with the reported operating income of -$56.74 million for the last twelve months as of Q2 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for SPRY, providing a deeper understanding of the company's financial health and market position.
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