Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Aegerion Pharmaceuticals, Inc. (AEGR) & The GEO Group Inc (GEO): Scopia Capital Bets On Biotech Recovery, Gets Out Of Real Estate

Scopia Capital Management has disclosed in a recent regulatory filing with the Security and Exchange Commission that it has acquired 4.2 million shares of Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR), a $900 million market cap biopharmaceutical company. The stake represents around 14.2% of the company’s outstanding shares and has a present market value of $150 million. In addition, the investor has sold 2 million shares valued at $76 million in real estate investment trust The GEO Group Inc (NYSE:GEO), decreasing its stake in the company to 0.85%.

Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)

The move may represent a portfolio shuffle, with the investor cashing in on a recovery in the US real estate market, and putting its funds to work in a bio-pharmaceutical company that may represent an opportunity because the stock is relatively cheap. The GEO Group Inc (NYSE:GEO) pays a quarterly dividend and rose by more than 100% since September, 2008, when Scopia Capital first disclosed a stake in the REIT. In contrast Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) stock fell 57% year-to-date on general market jitters about overvalued bio-technology companies.

In the most recent quarter, Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) which develops therapeutics to treat lipid disorders, has reported a net loss of 33 cents per share, which was less than the analysts’ expectations of 44 cents and the year-ago loss of 66 cents. Net product sales were up 29%, reaching $36 million. The bottom-line improvement, however, has not halted the stock’s free-fall, which was trading at around $95 per share a year ago and at only $30 per share now. Recently, the Cambridge-based US company announced its intention to sell $250 million worth of convertible notes in the open market.

Other investors that own Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) shares include Jerome Pfund’s  Sectoral Asset Management with 934,100 shares which have a current market value of $28 million, Sean Cullinan’s Point State Capital with 925,000 shares worth $27 million and Julian and Felix Baker’s Baker Bros. Advisors with 513,922 million shares valued at $15 million.

Disclosure: None

Loading Comments...