Stocks Not Having A Good Day: Catalent, Alexion Pharmaceuticals, DryShips, More

DryShips May Go Out of Business

DryShips Inc. (NASDAQ:DRYS) has plunged by more than 44% today after the company disclosed in a filing that it defaulted on three bank loans, worth approximately $213 million, more than its current capital of around $146 million. The Greece-based dry shipping company said that it has “substantial doubt” about its ability to stay in business. The company cited prolonged downturn in commodity prices and low charter rates for the bad performance. Only 4 hedge funds in our database had stakes in DryShips Inc. (NASDAQ:DRYS) as of the end of the first quarter. James Dondero’s Highland Capital Management owned 380,958 shares of the company at that time.

Alexion Pharmaceuticals’ Soliris Fails to Meet Goals

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) has plummeted by more than 11% today after the company announced yesterday that Soliris, its drug for the treatment of a rare neuromuscular disease, failed to achieve its primary goal in a late-stage clinical trial. In a statement, the Connecticut-based drugmaker said that the Phase III study of Soliris didn’t improve the symptoms of people with refractory generalized myasthenia gravis, a muscle weakness condition.

Julian Baker and Felix Baker’s Baker Bros. Advisors was one of 37 hedge funds in our database which owned stakes in Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) as of the end of March.

Michaels Companies Posts Disappointing Results

Shares of Michaels Companies Inc (NASDAQ:MIK) are trading more than 9% in the red today after the company posted its financial results for its first quarter of fiscal year 2016 ended April 30. The Arts and Crafts retailer posted EPS of $0.36, beating analysts’ consensus estimate by $0.01. However, revenue for the quarter came in at $1.16 billion, missing estimates by $10 million. For the fiscal second quarter, Michaels Companies expects its EPS to be between $0.16 and $0.18, while analysts had been expecting $0.21.

36 hedge funds that we track were shareholders of Michaels Companies Inc (NASDAQ:MIK) as of the end of the first quarter. Jonathon Jacobson’s Highfields Capital Management had the biggest stake among those hedge funds, owning more than 10.2 million shares of the company.

Disclosure: None