Activist investor Sessa Capital has taken a sizeable stake in long-term, implantable CGM company Senseonics (NYSE: SENS), according to an SEC Schedule 13G filed today.
The SEC filing lists Sessa directly owning 4,437,532 shares of Senseonics common stock, with warrants to buy another 8,000,000 shares of stock subject to a 9.9% blocker provision that prevents investors from owning 10% or more without being subject to SEC “insider” rules.
According to the hedge fund’s quarterly reports, Sessa owned 1,766,093 shares of Senseonics as of March 31.
Senseonics media relations and Sessa Capital officials could not be immediately reached for comment.
According to Senseonics’ most recent proxy filing, its largest shareholder as of April 30 was PHC Holdings, which held 4,344,612 shares, or 10.4% of the company. Entities affiliated with Robert J. Smith of Energy Capital and Plato & Associates held 3,117,600 shares, or 7.5%.
Earlier this month, Senseonics reported second quarter results that CEO Tim Goodnow described as the strongest quarter in the company’s history. Revenue more than doubled year-over-year to $14.5 million, blowing past the Wall Street consensus, with the company upping its full-year revenue guidance.
BTIG analysts Marie Thibault, Alexandra Pang, and Sam Eiber noted at the time that the European commercial transition from Ascensia Diabetes Care closed in June across all four markets, bringing the full organization in-house at Senseonics. The company announced last year the end of its distribution agreement with Ascensia, fully taking over commercial activity for Eversense 365 products. (The Eversense 365 implantable CGM lasts for a full year; the sensor resides beneath the skin and sends glucose readings to an external device.)
The BTIG analysts were keeping their Neutral rating on SENS shares: “We continue to be encouraged by the positive commercial momentum from Eversense 365 and the company’s ability to consistently beat and raise, though we continue to await further clarity on the eventual path to profitability.”
SENS shares are up more than 55% to $7.93 apiece over the past month.
According to media reports, Sessa Capital has played an activist role at companies including Warner Bros. Discovery. In 2017, it settled a proxy fight with the REIT Ashford Hospitality Prime.
