UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
NOVOSTE CORPORATION
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
67010C100
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(CUSIP Number)
Robert L. Lawrence, Esq.
Kane Kessler, P.C.
1350 Avenue of the Americas,
26th Floor
New York, NY 10019
(212) 541-6222
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
September 24, 2002
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(Date of Event which requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box /X/.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
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CUSIP No. 67010C100 Page 2 of 11
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Larry N. Feinberg
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
0
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,587,105
OWNED BY ------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
WITH ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,587,105
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,587,105
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.7%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
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CUSIP No. 67010C100 Page 3 of 11
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Oracle Investment Management, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,581,105
OWNED BY -------------------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0
WITH -------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,581,105
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,581,105
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.7%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
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CUSIP No. 67010C100 Page 4 of 11
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Oracle Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
1,031,705
NUMBER OF -------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH -------------------------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,031,705
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10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,031,705
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.3%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
SCHEDULE 13D
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CUSIP No. 67010C100 Page 5 of 11
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Oracle Associates, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY -------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON 1,292,405
WITH -------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,292,405
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,292,405
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
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14 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 6 of 11
Item 1. Security and Issuer.
(i) Name of Issuer: Novoste Corporation (the "Company").
(ii) Address of the Principal Executive Offices of Issuer: 3890 Steve
Reynolds Blvd., Norcross, Georgia 30093.
(iii) Title of Class of Equity Securities to which this Statement
relates: Common Stock, $0.01 par value per share, of the Company
(the "Common Stock").
Item 2. Identity and Background.
(a) This Schedule 13D is being filed by:
(i) Oracle Investment Management, Inc., a Delaware corporation
(the "Investment Manager"), which serves as investment manager to and has
investment discretion over the securities held by Oracle Partners, L.P.,
a Delaware limited partnership ("Oracle Partners") (1,031,705 shares),
Oracle Institutional Partners, L.P., a Delaware limited partnership
("Oracle Institutional") (260,700 shares), SAM Oracle Investments Inc., a
British Virgin Islands corporation ("SAM Oracle") (92,600 shares),
Oracle Offshore Limited, a Cayman Islands corporation ("Oracle Offshore")
(182,100 shares) and Oracle Investment Management, Inc. Employees
Retirement Plan (the "Plan") (14,000 shares) (Oracle Partners, Oracle
Institutional, SAM Oracle, Oracle Offshore and the Plan are collectively
referred to as the "Managed Funds"), with respect to shares of Common
Stock directly owned the Managed Funds.
(ii) Oracle Associates, LLC, a Delaware limited liability
company ("Oracle Associates"), which serves as the general partner of
Oracle Partners and Oracle Institutional (collectively, the
"Partnerships"), with respect to shares of common stock directly owned by
the Partnerships.
(iii) Oracle Partners, with respect to the shares of Common
Stock directly owned by Oracle Partners.
(iv) Mr. Larry N. Feinberg ("Mr. Feinberg"), who serves as the
senior managing member of Oracle Associates, is the sole shareholder and
president of the Investment Manager and is the trustee of The Feinberg
Family Foundation (6,000 shares), with respect to shares of Common Stock
owned by virtue of the foregoing relationships.
The Investment Manager, Oracle Associates, Oracle Partners and
Mr. Feinberg are sometimes collectively referred to as the "Reporting
Persons."
(b) The business address of each of the Reporting Persons is:
Oracle Investment Management, Inc.
200 Greenwich Avenue
3rd Floor
Greenwich, CT 06830
Page 7 of 11
(c) (i) The principal business of the Investment Manager is to
serve as investment manager to, and have investment discretion over, the
securities held by the Managed Funds.
(ii) The principal business of Oracle Associates is to serve as
general partner of the Partnerships.
(iii) Oracle Partners is a private investment fund.
(iv) The present principal occupation of Mr. Feinberg is to
invest in securities through Oracle Associates, the Investment Manager
and certain other entities.
(d) None of the Reporting Persons has, during the last five years,
been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors).
(e) None of the Reporting Persons was, during the last five years, a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) Mr. Feinberg is a citizen of the United States. The Investment
Manager, Oracle Partners and Oracle Associates are organized under the laws of
the State of Delaware.
Item 3. Source and Amount of Funds or Other Consideration.
As of the date hereof, the Reporting Persons may be deemed to
beneficially own 1,587,105 shares of the Company's Common Stock (the "Shares").
The Shares are held by the Managed Funds and the Foundation and were purchased
for an aggregate purchase price of $12,671,750. The funds for the purchase of
the Shares came from the working capital of the Managed Funds and the
Foundation. Although none of the Managed Funds or the Foundation borrowed money
specifically to purchase the Shares, some of the Shares were purchased through
securities margin accounts.
Item 4. Purpose of Transaction.
The primary interest of the Reporting Persons is to maximize the value
of the Managed Funds' and the Foundation's investment in the Company. In
furtherance of the foregoing, the Reporting Persons are seeking representation
on the Board of Directors of the Company. The Reporting Persons intend to
continually review the Company's business affairs, financial position, and
future prospects, as well as conditions in the securities markets and general
economic and industry conditions. Based on such evaluation, review, and other
factors, the Reporting Persons will continue to consider various alternative
courses of action and will in the future take such actions with respect
Page 8 of 11
to the Managed Funds' and the Foundation's investments in the Company as they
deem appropriate. Such actions may include, but are not limited to, the
following:
1. Seeking other changes to the Board of Directors, and/or
management of the Company;
2. Seeking changes to the Company's charter and bylaws to eliminate
the staggered Board of Directors and rights plan provisions;
3. Making recommendations to management concerning various business
strategies, including mergers, acquisitions, dispositions,
recapitalizations, sales or transfers of assets, reorganization,
liquidation or other extraordinary transactions; and
4. Recommending hiring an investment banker to evaluate strategies
to enhance shareholder value.
Such actions may also involve the purchase of additional shares of
Common Stock and, alternatively, may involve the sale of all or a portion of the
Shares held by the Managed Funds or the Foundation in the open market or in
privately negotiated transactions to one or more financial or strategic
purchasers. As a result of the foregoing, the Reporting Persons' position with
respect to the Company may not be considered solely that of passive investors.
There can be no assurance, however, that the Reporting Persons will take any of
the actions set forth above.
Item 5. Interest in Securities of the Issuer.
(a-b) (i) Mr. Feinberg
------------
(a) Amount beneficially owned: 1,587,105 (represents shares
beneficially owned by the Investment Manager, Oracle
Associates and the Foundation)
(b) Percent of class: 9.7%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,587,105
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
1,587,105
(ii) The Investment Manager
----------------------
(a) Amount beneficially owned: 1,581,105 (represents shares owned
by the Managed Funds)
(b) Percent of class: 9.7%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,581,105
(iii) Sole power to dispose or direct the disposition: -0-
Page 9 of 11
(iv) Shared power to dispose or direct the disposition:
1,581,105
(iii) Oracle Partners
---------------
(a) Amount beneficially owned: 1,031,705
(b) Percent of class: 6.3%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: 1,031,705
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition:
1,031,705
(iv) Shared power to dispose or direct the disposition: -0-
(iv) Oracle Associates
-----------------
(a) Amount beneficially owned: 1,292,405 (represents shares
beneficially owned by the Partnerships)
(b) Percent of class: 7.9%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,292,405
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
1,292,405
The percentage of Common Stock reported as beneficially owned is based
upon 16,346,173 shares outstanding as reported by the Company on Form 10-Q for
the quarter ended June 30, 2002.
(c) The Reporting Persons, the Managed Funds and the Foundation did
not effect any transactions in the Common Stock during the past 60 days, except
for the following:
# of Shares Date Purchase/Sale Average Cost Per Share
----------- ---- ------------- ----------------------
21,080 7/29/2002 Purchase $ 4.2882
20,000 7/29/2002 Purchase 4.7902
13,800 7/30/2002 Purchase 3.6202
5,100 7/30/2002 Purchase 4.05
13,100 7/31/2002 Purchase 4.4792
15,000 8/8/2002 Purchase 4.3619
20,000 8/19/2002 Purchase 3.8025
18,000 8/30/2002 Purchase 4.1234
2,000 9/3/2002 Sale 4.41
(d) No person, other than the Reporting Persons, the Managed Funds
and the Foundation, has the right to receive or the power to direct the receipt
of dividends from, or proceeds from the sale of the Common Stock reported by
this statement.
Page 10 of 11
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with respect to
Securities of the Issuer.
Not applicable.
Item 7. Material to be Filed as Exhibits.
Exhibit 1 - Joint Filing Agreement
Exhibit 2 - Letter dated September 24, 2002 from Kane Kessler, P.C.,
counsel to the Reporting Persons, to the Company
Page 11 of 11
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: September 24, 2002
/s/ Larry N. Feinberg
---------------------------------------
Larry N. Feinberg
ORACLE INVESTMENT MANAGEMENT, INC.
By: /s/ Larry N. Feinberg
-----------------------------------
Name: Larry N. Feinberg
Title: President
ORACLE PARTNERS, L.P.
By: Oracle Associates, LLC, its general
partner
By: /s/ Larry N. Feinberg
-----------------------------------
Name: Larry N. Feinberg
Title: Managing Member
ORACLE ASSOCIATES, LLC
By: /s/ Larry N. Feinberg
-----------------------------------
Name: Larry N. Feinberg
Title: Managing Member