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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!