Deerfield Management

Deerfield Management

Company type	Private
Industry	Investment management, Healthcare, Biotechnology
Founded	1994
Founder	Arnold Snider
Headquarters	New York City , United States
Key people	James Flynn (CEO)
Products	Hedge funds, Venture capital, Private equity, Private credit

Deerfield Management is a privately held investment company based in New York City, focusing on both public and private investments within the healthcare and biotechnology industries. It stands as one of the largest investment firms worldwide dedicated exclusively to healthcare.

Background

Established in 1994 by Arnold Snider with an initial equity of $17 million, Deerfield has built a robust investment approach centered on the healthcare sector. Snider, who previously worked as a pharmaceutical analyst at Kidder Peabody and served as managing director at Tiger Management, founded Deerfield as part of the prominent Tiger Cubs group—funds initiated by former Tiger Management leaders.

James Flynn became part of Deerfield in 2000 and eventually took on the CEO position, steering the company through significant growth phases. Snider officially stepped down in 2005.

By 2019, Deerfield had maintained steady profitability for five straight years, achieving double-digit returns in four of those years, including an 11% gain in 2018. In May 2019, the firm broadened its international footprint by moving into 345 Park Avenue South as its new headquarters, enhancing its organizational capabilities and market standing.

Deerfield’s offerings encompass hedge funds, venture capital, private equity, and private credit investments, all aimed at companies driving innovation within its targeted sectors.

Noteworthy transactions

In August 2015, Deerfield took ownership of IMRIS following its Chapter 11 bankruptcy proceedings.

In April 2017, Deerfield acquired Adeptus Health after it filed for Chapter 11 bankruptcy protection.

October 2017 saw Deerfield committing $50 million to the Broad Institute to support advancements in drug research.

In March 2019, Deerfield entered a strategic alliance with Harvard University, pledging $100 million via a new entity named Lab1636 to finance drug discovery and medical treatment development.

In April 2020, after Melinta Therapeutics filed for Chapter 11 bankruptcy, Deerfield converted $140 million of secured debt into full ownership equity.

Insider trading incidents

In May 2017, federal authorities charged four individuals—including two traders from Deerfield—with insider trading related to confidential information about government funding for cancer therapies and kidney dialysis from 2012 through 2014. These trades produced profits exceeding $7 million. A third trader from Deerfield admitted guilt and testified against others. As a result of the scandal, Deerfield experienced a 15% reduction in assets under management.

By August 2017, Deerfield settled SEC allegations by agreeing to pay $4.6 million due to insufficient internal controls that failed to prevent insider trading activities.

In September 2018, the two traders received prison sentences of three years each and were ordered to pay fines totaling over $1.3 million.

In June 2021, legal representatives petitioned a federal appeals court in New York for reconsideration of these convictions after the Supreme Court called for further review.

Ultimately, in December 2022, the federal appeals court reversed the insider trading convictions by a 2-1 vote, dismissing all fraud and theft charges against the defendants.