Armistice Capital 13F: Charting a Course in Femtech and Ocular Innovations
The investment landscape has witnessed a notable shift in recent years, with a growing focus on technology-driven women’s health products, colloquially known as the femtech market. Despite attracting only a modest 2% of the $41.2 billion allocated to healthcare innovators in 2023, this sector has shown remarkable resilience and potential for growth.
Deloitte’s research paints an intriguing picture of the market dynamics. While the broader health tech sector experienced a 27% decline in venture funding between 2022 and 2023, investments in women’s health companies defied this trend, registering a 5% increase. This upward trajectory is further corroborated by data from FemHealth Insights, which reveals that over 60% of the current roster of women’s health startups were established between 2018 and 2022.
The femtech market has expanded its scope beyond its initial focus on pregnancy and fertility. As reported by Business Mole, the sector now encompasses a broader range of issues, including menopause, pelvic health, and mental well-being. This diversification has attracted the attention of several prominent investors, with Armistice Capital emerging as a critical player in this arena.
Armistice Capital, a global value-oriented and event-driven hedge fund, has made significant strides in the femtech investment landscape. The fund’s strategic moves exemplify its position as the top investor in Aspira Women’s Health Inc. According to Fintel, Armistice Capital’s 13F-HR form filed in May disclosed ownership of 1,157,000 shares valued at $3,586,700 as of March 31, 2024.
Aspire Women’s Health has been at the forefront of developing AI-powered, non-invasive tests for gynecologic diseases. Their flagship products, OvaWatch and Ova1Plus, are designed to revolutionize ovarian cancer risk assessment and diagnosis. The company is also making headway in creating a non-invasive test for endometriosis, which affects millions of women worldwide.
Armistice Capital’s investment strategy extends beyond femtech to companies tackling other critical health issues. In 2023, the fund participated in a private placement for Spruce Biosciences, a late-stage biopharmaceutical company. Spruce’s tildacerfont, a novel oral antagonist, shows promise in addressing polycystic ovary syndrome (PCOS) symptoms by potentially reducing adrenal androgen production.
The fund has also shown interest in companies working on bone health solutions. Armistice Capital’s May 15, 2024, 13F-HR form filing revealed the addition of 37,000 Bone Biologics Corporation stock to its portfolio. Bone Biologics’ technology could have significant implications for treating osteoporosis, a condition that disproportionately affects women.
Beyond women’s health, Armistice Capital has demonstrated a growing interest in ocular research and treatments. The fund has strategically invested in companies like Eyenovia, which is developing innovative ophthalmic drug delivery systems. According to MarketBeat, Armistice Capital’s Form 13F filing showed the purchase of 3,087,021 shares of Eyenovia in the third quarter of 2023, representing about 8.08% ownership.
Armistice Capital has also participated in a private placement for Outlook Therapeutics, a biopharmaceutical company developing a formulation to treat retinal diseases. The deal, which included other investors like Great Point Partners and Woodline Partners, generated approximately $60 million in upfront gross proceeds.
Similarly, Armistice Capital took part in a private placement for GenSight Biologics, a biotech company developing gene therapies for retinal neurodegenerative diseases and central nervous system disorders. GenSight’s gene therapy product targets Leber hereditary optic neuropathy (LHON), a rare genetic disease affecting the optic nerves.
These strategic investments, as revealed through Armistice Capital’s 13F filings and other disclosures, reflect the fund’s nuanced understanding of the healthcare sector’s evolving needs and the potential for technology to address long-standing medical challenges. By focusing on areas such as women’s health and ocular research, Armistice seeks financial returns and supports developing potentially life-changing medical technologies.
As the femtech market continues to expand and diversify, and as ocular research advances, Armistice Capital appears well-positioned to capitalize on these trends while contributing to meaningful progress in healthcare innovation. The fund’s investment choices, as documented in its 13F filings, demonstrate a commitment to supporting groundbreaking research in diverse areas of medical science, potentially shaping the future of healthcare delivery and patient outcomes.