<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 13F
Form 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: June 30, 1999
Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [ ] is a restatement.
[ ] adds new holdings
entries.
Institutional Investment Manager Filing this Report:
Name: Deerfield Management Company
Address: 450 Lexington Avenue
Suite 1450
New York, New York 10017
Form 13F File Number: 28-
The institutional investment manager filing this report and the
person by whom it is signed hereby represent that the person
signing the report is authorized to submit it, that all
information contained herein is true, correct and complete, and
that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of
this form.
Person Signing this Report on Behalf of Reporting Manager:
Name: Arnold H. Snider
Title: President
Phone: (212) 551-1600
Signature, Place, and Date of Signing:
/s/ Arnold H. Snider New York, New York August 3, 1999
________________________ ____________________ ______________
[Signature] [City, State] [Date]
<PAGE>
Report Type (Check only one.):
[X ] 13F HOLDINGS REPORT. (Check here if all holdings of
this reporting manager are reported in this report.)
[ ] 13F NOTICE. (Check here if no holdings reported are in
this report, and all holdings are reported by other
reporting manger(s).)
[ ] 13F COMBINATION REPORT. (Check here if a portion of the
holdings for this reporting manager are reported in this
report and a portion are reported by other reporting
manager(s).)
List of Other Managers Reporting for this Manager:
[If there are no entries in this list, omit this section.]
Form 13F File Number Name
28-
[Repeat as necessary.]
<PAGE>
Form 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 0
Form 13F Information Table Entry Total: 57
Form 13F Information Table Value Total: $665,309
[thousands]
List of Other Included Managers: None.
Provide a numbered list of the name(s) and Form 13F file
number(s) of all institutional investment managers with respect
to which this report is filed, other than the manager filing this
report.
[If there are no entries in this list, state "NONE" and omit the
column headings and list entries.]
No. Form 13F File Number Name
28-
[Repeat as necessary.]
<PAGE>
<TABLE>
Form 13F INFORMATION TABLE
<CAPTION>
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
- -------------------- ----------- --------- ------------ ------------- ----------- ---------- ----------------------
TITLE FAIR MARKET SHRS OR SH/ PUT/ INVESTMENT VOTING AUTHORITY
NAME OF ISSUER OF CLASS CUSIP VALUE PRN AMT PRN CALL DISCRETION MANAGERS SOLE SHARED NONE
- ------------------- --------- --------- ------------ ------------------- ----------- ---------- -------- ------ ----
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADAC LABS CS 005313200 3,262,500 450,000 X Sole X
APRIA HEALTHCARE
GROUP INC CS 037933108 10,200,000 600,000 X Sole X
AMERICAN HOME
PRODUCTS COR CS 026609107 28,687,500 500,000 X Sole X
ADVANCED TISSUE
SCIENCES I CS 00755F103 1,332,500 410,000 X Sole X
BERGEN BRUNSWIG CS 083739102 17,250,000 1,000,000 X Sole X
C.R. BARD CS 067383109 33,468,750 700,000 X Sole X
BAUSCH & LOMB INC CS 071707103 30,600,000 400,000 X Sole X
BARR LABS INC CS 068306109 9,968,750 250,000 X Sole X
CARDINAL HEALTH INC CS 14149Y108 38,475,000 600,000 X Sole X
COLLAGEN AESTHETIC CS 194194106 3,437,500 250,000 X Sole X
CHIRON CORP CS 170040109 9,337,500 450,000 X Sole X
CENTOCOR CS 152324101 25,643,750 550,000 X Sole X
CORIXA CS 21887F100 2,003,906 112,500 X Sole X
COVANCE INC CS 222816100 16,756,250 700,000 X Sole X
COUNSEL CORP CS 22226R102 2,550,000 400,000 X Sole X
CYGNUS CS 232564101 15,080,000 1,160,000 X Sole X
DENTSPLY INTL INC. CS 249030107 12,271,875 425,000 X Sole X
DURA PHARMACEUTICAL
INC CS 26632S109 10,146,875 850,000 X Sole X
ENTREMED INC CS 29382F103 5,922,000 263,200 X Sole X
ENZON INC CS 293904108 17,584,375 850,000 X Sole X
ENDOSONICS CORP CS 29264K105 2,100,000 300,000 X Sole X
FISHER IMAGING CORP CS 337719108 700,000 400,000 X Sole X
FOREST LABS INC. CS 345838106 34,687,500 750,000 X Sole X
GUILFORD PHARMACEUTICAL CS 401829106 10,837,500 850,000 X Sole X
HEALTHSOUTH CORP CS 421924101 14,875,000 1,000,000 X Sole X
HEALTH SYSTEMS DESIGN CS 421964107 340,000 80,000 X Sole X
INCYTE PHARMACEUTICALS CS 45337c102 10,575,000 400,000 X Sole X
KENDLE INTL CS 48880L107 5,600,000 350,000 X Sole X
LIGAND PHARM CS 53220K108 6,675,000 600,000 X Sole X
MAXXIM MEDICAL CS 57777G105 7,576,563 325,000 X Sole X
MAGELLAN HEALTH
SERVICES CS 559079108 3,000,000 300,000 X Sole X
MERCK & CO CS 589331107 29,450,000 400,000 X Sole X
MYLAN CS 628530107 5,300,000 200,000 X Sole X
NABI INC CS 628716102 6,792,188 2,415,000 X Sole X
<PAGE>
NCS HEALTHCARE CS 628874109 1,903,125 350,000 X Sole X
NOVOSTE CORP CS 67010C100 10,500,000 500,000 X Sole X
NEOPATH INC CS 640517108 2,325,000 600,000 X Sole X
OWENS & MINOR INC CS 690732102 4,400,000 400,000 X Sole X
PERCLOSE INC. CS 71361C107 28,837,500 600,000 X Sole X
PHYCOR INC CS 71940F100 10,942,734 1,477,500 X Sole X
PAREXEL INTL CORP CS 699462107 3,993,750 300,000 X Sole X
QLT PHOTOTHERAPEUTICS CS 746927102 49,500,000 900,000 X Sole X
QUEST DIAGNOSTICS CS 7483L100 6,022,500 220,000 X Sole X
RENAL CARE CS 759930100 6,468,750 250,000 X Sole X
RESPIRONICS INC. CS 761230101 10,587,500 700,000 X Sole X
ROBERTS PHARMACEUTICAL CS 770491108 14,400,000 600,000 X Sole X
SYNCOR INTL. CS 87157J106 10,440,000 290,000 X Sole X
STRATEGIC CAPITAL
RESOURCE CS 825846108 2,762,500 650,000 X Sole X
SHARE MEDICAL SYSTEMS CS 819486101 5,180,850 79,400 X Sole X
SYNETIC INC. CS 87160F109 3,437,500 50,000 X Sole X
TEVA PHARMACEUTICAL CS 881624209 7,350,000 150,000 X Sole X
TRIGON HEALTHCARE INC CS 89618L100 3,921,225 107,800 X Sole X
TOTAL RENAL CARE CS 89151A107 17,118,750 1,100,000 X Sole X
U.S. ONCOLOGY CS 90338W103 7,200,000 600,000 X Sole X
VISION TWENTY ONE INC CS 92831N101 581,875 70,000 X Sole X
WELLPOINT HEALTH
NETWORKS CS 94973H108 14,428,750 170,000 X Sole X
WATSON PHARMACEUTICALS CS 942683103 10,518,750 300,000 X Sole X
Total 665,308,841
</TABLE>
[Repeat as necessary]
00871001.AQ4
