Stonepine Capital Management, LLC Acquires New Stake in Alimera Sciences Inc
Stonepine Capital Management, LLC, a prominent investment firm, recently acquired a significant stake in Alimera Sciences Inc. This article aims to provide an in-depth analysis of this transaction, the investment philosophy of Stonepine Capital, and the financial health of Alimera Sciences Inc.
Transaction Overview
On August 2, 2023, Stonepine Capital Management, LLC purchased 880,119 shares of Alimera Sciences Inc (NASDAQ:ALIM), marking a new holding in their portfolio. The shares were acquired at a price of $3.1 per share, making the total value of the transaction approximately $2.73 million. This acquisition has a 0.91% impact on Stonepine's portfolio, and the firm now holds a 9.99% stake in Alimera Sciences Inc.
Stonepine Capital Management, LLC Profile
Stonepine Capital Management, LLC is a well-established investment firm based in Bend, Oregon. The firm currently manages 22 stocks with a total equity of $298 million. Stonepine's top holdings include ADMA Biologics Inc (NASDAQ:ADMA), CTI BioPharma Corp (CTIC), Galapagos NV (NASDAQ:GLPG), QuidelOrtho Corp (NASDAQ:QDEL), and Amryt Pharma PLC (AMYT). The acquisition of Alimera Sciences Inc aligns with Stonepine's investment philosophy, which focuses on value investing in the healthcare sector.
Alimera Sciences Inc Overview
Alimera Sciences Inc (NASDAQ:ALIM), a US-based pharmaceutical company, specializes in the development and commercialization of ILUVIEN for the treatment of diabetic macular edema (DME) and non-infectious uveitis affecting the posterior segment of the eye (NIU-PS). The company, which operates in a single segment, went public on April 22, 2010, and currently has a market cap of $29.499 million. As of the date of this article, the stock is trading at $3.35 per share.
Financial Health and Performance of Alimera Sciences Inc
Alimera Sciences Inc's financial health and performance are crucial factors to consider. The company's GF Score is 55/100, indicating a moderate future performance potential. The company's financial strength and profitability rank are both 2/10, suggesting room for improvement. The growth rank is also 2/10, indicating slow growth. However, the GF Value Rank is 8/10, suggesting the stock is undervalued.
Stock Performance and Rankings
Alimera Sciences Inc's stock performance and rankings provide valuable insights into the company's financial health. The company's Piotroski F-Score is 2, indicating poor business operations. The Altman Z score is -10.49, suggesting potential financial distress. The company's operating margin growth is 42.20%, indicating an improvement in profitability. However, the company's momentum rank is 4/10, suggesting a slow price movement.
Conclusion
In conclusion, Stonepine Capital Management, LLC's acquisition of a new stake in Alimera Sciences Inc is a significant move that aligns with the firm's investment philosophy. Despite Alimera Sciences Inc's moderate GF Score and low financial strength and profitability rank, the company's undervalued status and improving operating margin growth present potential opportunities for value investors. However, investors should also consider the company's low momentum rank and potential financial distress, as indicated by the negative Altman Z score. As always, thorough research and careful consideration are essential when making investment decisions.
This article first appeared on GuruFocus.
