Elk Capital Makes Investment in Otonomy

Fintel reports that Elk Capital Markets UK LTD has filed a 13D form with the SEC disclosing ownership of 4,751,629 shares of Otonomy Inc (OTIC). This represents 8.3% of the company.

Elk Capital recently purchased Shares in Otonomy, believing that they represented a good investment opportunity. Elk Capital may decide to buy or sell more Shares in the future depending on market conditions, other investment opportunities, and the availability of Shares at attractive prices. Elk Capital also plans to speak with the Otonomy board about ways to increase stockholder value.

At present, Elk Capital does not have any specific plans or proposals that would involve the matters listed in Item 4 of Schedule 13D. However, Elk Capital may take various actions in the future with regards to its investment in Otonomy, including:

  • Engaging in discussions with Otonomy’s management and board
  • Talking with other stockholders of Otonomy about the company and Elk Capital’s investment
  • Making proposals to Otonomy regarding changes to capital allocation, capitalization, ownership structure, board structure, or operations
  • Buying more shares or selling some or all of their existing shares
  • Engaging in short selling or other hedging transactions with respect to the shares
  • Changing their intentions with respect to any of the matters listed in Item 4

Otonomy is a biopharmaceutical company dedicated to the development of innovative therapeutics for neurotology. The company pioneered the application of drug delivery technology to the ear in order to develop products that achieve sustained drug exposure from a single local administration. This approach is covered by a broad patent estate and is being utilized to develop a pipeline of products addressing important unmet medical needs including Ménière’s disease, hearing loss, and tinnitus.

What are other large shareholders doing?

Baker Bros. Advisors Lp holds 8,443,134 shares representing 14.77% ownership of the company. In it’s prior filing, the firm reported owning 8,412,634 shares, representing an increase of 0.36%. The firm decreased its portfolio allocation in OTIC by 83.57% over the last quarter.

Point72 Asset Management, L.P. holds 5,495,000 shares representing 9.61% ownership of the company. In it’s prior filing, the firm reported owning 0 shares, representing an increase of 100.00%.

Suvretta Capital Management, Llc holds 3,144,196 shares representing 5.50% ownership of the company. No change in the last quarter.

Lynx1 Capital Management LP holds 2,312,880 shares representing 4.05% ownership of the company. In it’s prior filing, the firm reported owning 30,000 shares, representing an increase of 98.70%. The firm increased its portfolio allocation in OTIC by 1,064.67% over the last quarter.

DAFNA Capital Management LLC holds 1,470,199 shares representing 2.57% ownership of the company. No change in the last quarter.

What is the overall Fund Sentiment?

There are 86 funds or institutions reporting positions in Otonomy Inc. This is a decrease of 8 owner(s) or 8.51%.

Average portfolio weight of all funds dedicated to Otonomy Inc is 0.0150%, a decrease of 67.3987%. Total shares owned by institutions decreased in the last three months by 22.66% to 29,433,979 shares.

Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe.

Click to see the Fintel Fund Sentiment Score for OTIC / Otonomy Inc.

This article originally appeared on Fintel

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