Home Hedge Funds Altium Capital Management in 2018: A Review

Altium Capital Management in 2018: A Review

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Altium Capital Management, LP is a high profile investment firm that focuses on growth companies in the healthcare sector. Based in New York City, the company specifically targets enterprises whose missions and visions revolve around meaningful health and medical treatment advances. It does so with an emphasis on deep fundamental research and a focus on creating positive expected-value trades as it exploits asymmetric risk-reward opportunities.

Altium was founded by a buzzing name in the investment sector – Jacob Gottlieb, MD, CFA, PRMIA, who is the company’s Managing Partner and Chief Executive Officer. Often referred to as the titan in healthcare investing, Gottlieb is a seasoned investment professional who has a sharp eye for fruitful investment options.

With Altium, Gottlieb strives for efficient and accurate operational performance by means of robust technology platforms with a flexible and adjustable infrastructure that can be scaled and enhanced to meet future needs.

Altium Capital’s Budding Portfolio

Gottlieb founded Altium in 2017, and already, the year 2018 has been successful and eventful for the company. The launch was marked by powerful and strategic investments that Gottlieb plans to expand as he broadens Altium’s portfolio.

Oramed Pharmaceuticals

Altium beat various healthcare-focused investors that were interested in the registered direct offering for Oramed Pharmaceuticals, Inc. with a 5.61% stake that also marked the firm’s first investment. This was heavily driven by Oramed’s potential to profoundly improve the lives of millions of diabetics all over the world.

Oramed’s aims are to revolutionize administration of insulin among diabetics who have so far had to needle prick themselves in order to receive the needed insulin. The company has effectively tested and released an insulin capsule that may be taken orally, representing a breakthrough in the way insulin has traditionally been administered, while also making treatments more accessible and less costly for more patients.

Oramed is based in Jerusalem and takes great pride in its experienced management team that combines a wealth of business experience and pharmaceutical knowledge. This is in addition to the support of scientific experts and leaders from around the world. While the company is still awaiting FDA approval for the insulin capsule in the United States, investments and licensing deals with foreign companies have been plentiful.

Sellas Life Sciences

Altium’s second investment and addition to its portfolio was a 9.81% investment in Sellas Life Sciences that is another established pharmaceutical company that has developed an innovative technology with a potential to transform medical care for cancer patients.

Specifically, the late-stage biopharmaceutical’s focus revolves around establishing cancer immunotherapies that may be applied to a wide range of signals indicating the presence of cancer. Immunotherapy is a type of biological cancer treatment that pushes the immune system to fight the disease. Sellas’ Phase 2 and 3 studies yielded extremely encouraging results, earning the company a fast track designation for approval by the FDA.

Amarin

Headquartered in Dublin, Ireland and with offices in Bedminster, New Jersey, Amarin is yet another innovative and rapidly expanding pharmaceutical company. Its focus revolves around the therapeutic effects of polyunsaturated fatty acids. Specifically, Amarin aims to develop medications for cardiovascular health by relying on said beneficial effects. In fact, the company has developed an effective, prescription-grade omega-3 fatty acid called Vascepa that received FDA approval in 2012.

Oragenics

Oragenics, based on the concept of Replacement therapy – or simply put, the replacing of bad bacteria with the good kind for the purpose of achieving a therapeutic or beneficial outcome – was founded in 1996 by two physicians.

The company collaborates with Intrexon Corporation, Inc. to develop proprietary technologies and novel antibiotics that combat infectious disease and accelerate treatment development of biotherapeutics for several diseases and conditions. These include oral mucositis as well as other diseases and conditions affecting the oral cavity, throat, and esophagus.

Altium Capital Has Grown in Every Sense

Altium’s portfolio is not the only growth the company has seen in 2018. Its financial growth reports have consistently been positive – growth reports indicate that one of Altium’s products, Altium Growth Fund, LP, has had year to date returns of 6.7% during the last six months of 2018, namely from June (when it was established) to December that year.

When put into perspective – or next to other indicators of market performance over the same period of time – the aforementioned gains are even more impressive and point to Altium’s successful 2018 that is nothing short of a superb performance. Broad market indices such as the S&P 500 that reflect the performance of the 500 largest U.S. publicly traded companies by market value reported a loss (-7.3%).

Add to that the other indices that point to the performances of biotech and healthcare specifically have also reported negative numbers. The Nasdaq Biotech ETF IBB, an index of 225 biotech companies, and the SPDR S&P Biotech EFT XBI, representing performance of 120 companies, had negative final numbers, namely -9.2% and -24.8%, respectively.

Altium Capital’s Bright Future

Add to the aforementioned the positive implications of Gottlieb and Stuart Weisbrod, another titan in the investment sector, being under the same roof.

Does this imply the possibility of a future collaboration? Maybe so. During a Q&A with Gottlieb, the entrepreneur comments on the prospect of working with Stuart Weisbrod, “We will see how things evolve. I think it’s clear that we all benefit from having smart people doing quality research and the possibility of the whole being greater than the sum of its parts. Also, companies like to come in since there is a lot of expertise and capital in healthcare under one roof.”

Given Altium Capital’s investments, its growth as well as a sharing a work space with another titan of healthcare investing, Altium Capital is looking at a great opportunity to not only grow, but to prosper.

Jacob Gottlieb 

Altium Capital is one of Gottlieb’s several entrepreneurial ventures. He also founded Visium Asset Management, LLC in 2005 that peaked in 2016 with an $8 billion hedge fund and with over 200 employees in global offices in New York City, San Francisco and London. Before Visium, Gottlieb was a founding member at Balyasny Asset Management, L.P. (BAM), where he became a top earner thanks to his large portfolio gains.

Before his tenure at BAM, Gottlieb was a successful investment portfolio manager at Merlin Financial in London, England. Gottlieb obtained his Chartered Financial Analyst (CFA) charter from the Association for Investment Management and Research (AIMR) in 2001 and his PRM designation from the Professional Risk Managers’ International Association in 2010. Gottlieb obtained his BA in Economics (magna cum laude) from Brown University and his MD from New York University Medical School.

Related: Altium Capital Moves In, Jacob Gottlieb and Stuart Weisbrod to Share an Office Space Once Again

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