<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: March 31, 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: 28-5366
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 May 10, 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.]
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Form 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 0
Form 13F Information Table Entry Total: 56
Form 13F Information Table Value Total: $651,130
[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.]
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<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 INVESTMENT VOTING AUTHORITY
NAME OF ISSUER OF CLASS CUSIP VALUE PRN AMT DISCRETION MANAGERS SOLE SHARED NONE
- ------------------- --------- --------- ------------ -------------- ----------- ---------- -------- ------ ----
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADAC LABS CS 005313200 6,131,250 450,000 Sole 450,000
APRIA HEALTHCARE
GROUP INCG CS 037933108 8,906,250 750,000 Sole 750,000
AMERICAN HOME
PRODUCTS COR CS 026609107 26,100,000 400,000 Sole 400,000
BERGEN BRUNSWIG CS 083739102 16,000,000 800,000 Sole 800,000
BAUSCH & LOMB INC CS 071707103 26,000,000 400,000 Sole 400,000
BIORELIANCE CS 090951104 1,332,500 205,000 Sole 205,000
BARR LABS INC CS 068306109 6,100,000 200,000 Sole 200,000
BOSTON SCIENTIFIC CS 101137107 29,453,125 725,000 Sole 725,000
CARDINAL HEALTH INC CS 14149Y108 33,000,000 500,000 Sole 500,000
CEPHALON INC CS 156708109 3,500,000 400,000 Sole 400,000
COLLAGEN AESTHETIC CS 194194106 3,359,375 250,000 Sole 250,000
CENTOCOR CS 152324101 22,162,500 600,000 Sole 600,000
COVANCE INC CS 222816100 15,037,500 600,000 Sole 600,000
COUNSEL CORP CS 22226R102 2,650,000 400,000 Sole 400,000
C.R. BARD CS 067383109 27,740,625 550,000 Sole 550,000
CYGNUS CS 232564101 8,700,000 1,160,000 Sole 1,160,000
DENTSPLY INTL INC. CS 249030107 9,881,250 425,000 Sole 425,000
DURA pHARMACEUTICAL
INC CS 26632S109 12,006,250 850,000 Sole 850,000
ENTREMED INC CS 29382F103 11,084,288 524,700 Sole 524,700
ENZON INC CS 293904108 1,327,500 90,000 Sole 90,000
ENDOSONICS CORP CS 29264K108 1,950,000 300,000 Sole 300,000
FISHER IMAGING CORP CS 337719108 525,000 400,000 Sole 400,000
FOREST LABS INC. CS 345838106 36,643,750 650,000 Sole 650,000
GUILFORD PHARMACEUTICAL CS 401829106 6,825,000 600,000 Sole 600,000
GENETECH INC CS 368710307 8,862,500 100,000 Sole 100,000
GENSIA INC. CS 372450106 196,875 70,000 Sole 70,000
HEALTHSOUTH CORP CS 421924101 5,187,500 500,000 Sole 500,000
HEALTH SYSTEMS DESIGN CS 421964107 470,000 80,000 Sole 80,000
IMMUNEX CS 452528102 31,468,500 378,000 Sole 378,000
INCYTE PHARMACEUTICALS CS 45337c102 10,532,8130 525,000 Sole 525,000
KENDLE INTL CS 48880L107 6,037,500 300,000 Sole 300,000
LIGAND PHARM CS 53220K108 4,912,500 600,000 Sole 600,000
MAXXIM MEDICAL CS 57777G105 5,662,500 300,000 Sole 300,000
<PAGE>
MAGELLAN HEALTH
SERVICES CS 559079108 956,006 228,300 Sole 228,300
MERCK & CO CS 589331107 48,075,000 600,000 Sole 600,000
NABI INC CS 628716102 7,515,625 2,405,000 Sole 2,405,000
NOVOSTE CORP CS 67010C100 12,000,000 500,000 Sole 500,000
NEOPATH INC CS 640517108 2,400,000 600,000 Sole 600,000
OWENS & MINOR INC CS 690732102 4,050,000 400,000 Sole 400,000
PERCLOSE INC. CS 71361C107 18,600,000 600,000 Sole 600,000
PHYCOR INC CS 71940F100 7,018,125 1,477,500 Sole 1,477,500
PAREXEL INTL CORP CS 699462107 7,240,625 350,000 Sole 350,000
QUORUM HEALTH GROUP CS 749084109 750,000 75,000 Sole 75,000
QLT PHOTOTHERAPEUTICS CS 746927102 36,675,000 900,000 Sole 900,000
QUEST DIAGNOSTICS CS 74834L100 3,827,000 172,000 Sole 172,000
RESPIRONICS INC. CS 761230101 9,231,250 700,000 Sole 700,000
ROBERTS PHARMACEUTICAL CS 770491108 12,450,000 600,000 Sole 600,000
SYNCOR INTL. CS 87157J106 8,362,500 300,000 Sole 300,000
SEROLOGICALS CORP CS 817523103 6,103,125 450,000 Sole 450,000
SHIRE PHARMACEUTICAL
GROUP CS 82481R106 8,896,875 390,000 Sole 390,000
SYNETIC INC. CS 87160F109 2,346,750 42,000 Sole 42,000
TEVA PHARMACEUTICAL
GROUP CS 881624209 16,603,125 350,000 Sole 350,000
TOTAL RENAL CARE CS 89151S107 11,000,000 1,000,000 Sole 1,000,000
WARNER LAMBERT
COMPANY CS 934488107 26,500,000 400,000 Sole 400,000
WATSON PHARMACEUTICALS CS 942683103 9,707,500 220,000 Sole 220,000
ZONAGEN INC CS 98975L108 1,075,000 50,000 Sole 50,000
Total 651,130,356
</TABLE>
[Repeat as necessary]
00871001.AQ3
