Activist George Haywood Reveals New Biotech Target

"Reluctant activist" who brokered some very successful activist campaigns likes krill oil

"Reluctant activist" investor George Haywood has a new biotech target in his sights.

Sign Up For Our Free Newsletter

George Haywood has an unusual career and socially conscious approach to activism. After successfully brokering in the Sirius / XM satellite deal, where he sat on the board for a time, and engaging in activist maneuvers with Sarepta Therapeutics Inc ( SRPT), investing when the biotech firm had a mere $150 million valuation and watching it grow to over $1 billion in value as it helps solve a key medical problem, the investor now has his sights on krill oil.

Neptune Technologies, George Haywood’s latest activist target

George Haywood's latest activist target is Neptune Technologies & Bioressources ( NEPT), he revealed in a podcast interview on Wall Street Unfiltered. Haywood said there are two key developments to watch over the next month or so: a potential FDA approval on a medical use for krill oil and changes in the company's leadership.

The activist's core strategy is visible in the Neptune investment. He likes to look for corporations that own good technology but have a low stock price. "The reason the stock price is low with good technology is sometimes because the management isn't any good," he said in the podcast interview. "In a case like that you reluctantly have to take on the role of activist" to protect the investment.

"I'm a reluctant activist because I don't relish the role. I come at activist investing from a different angle" he said, discussed in light of the publicity seeking tactics of other activists who work to intimidate a company's board of directors to get their way. "I like to make money by finding an undervalued stock, then getting involved."

A perfect example is Sarepta Therapeutics Inc ( SRPT). The company recently experienced an FDA roadblock, which sent the stock down, but this could only be a temporary setback, as its core drug is said to solve a critical medical issue that afflicts people with Duchenne Muscular Dystrophy.

George Haywood: Neptune’s management sitting on a much needed technology

George Haywood identified the importance of the drug, its technology, early in the company's development. Soon after he realized that management was sitting on a much needed technology but was not properly managing the opportunity. Thus, the reluctant activist worked from behind the scenes to facilitate change. When this didn't work - "bad management is typically the hardest to remove," he said - he went for a board takeover and management was replaced and the stock ultimately soared to new heights.

It is research and development, an area many activists look to immediately cut, that George Haywood respects, making him an odd, socially conscious activist that has a unique history of delivering results.

To listen to the full interview, click here.

The post Activist George Haywood Reveals New Biotech Target appeared first on ValueWalk.

-By Mark Melin

More from Stocks

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Fornite Funko Pop Toys Will Be Huge: CEO

Fornite Funko Pop Toys Will Be Huge: CEO

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Stocks End Close to Home

Stocks End Close to Home