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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!