Why Tyson Foods, Fitbit, and Three Other Stocks Are Down As Major Indices Are in Green

Mirati Plummets On Phase 1b Glesatinib Data

Shares of Mirati Therapeutics, Inc. (NASDAQ:MRTX) have plunged by some 40% on Monday, after the small-cap reported results from its Phase 1b study assessing its lead product, glesatinib, for the treatment of non-small cell lung cancer. According to the data, side effects looked excessive, leading the company to implement a spray-dried dispersion formulation of the tyrosine kinase inhibitor in the Phase 2 study. Mirati Therapeutics, Inc. (NASDAQ:MRTX) counted 14 hedge fund supporters in our database at the end of the first quarter. Notably, their combined stakes accounted for almost 40% of the company’s total shares outstanding. In fact, Julian and Felix Baker’s Baker Bros. Advisors alone held almost 17% of the float, or 3.26 million shares, by March 31.

Hercules Meets Hades, Files For Bankruptcy

Another decliner on Monday is Hercules Offshore, Inc. (NASDAQ:HERO), which has dropped by 7.8% after filing for Chapter 11 bankruptcy protection for the second time in just eight months. Unlike the previous occasion, Hercules plans to sell all of its assets to pay off investors and lenders, the company’s management said. According to the company, 99.7% of its first-lien lenders voted in favor of the bankruptcy plan. Among the funds that we track, 11 held long stakes in Hercules Offshore, Inc. (NASDAQ:HERO) at the end of the first quarter. Their stakes, which accounted for roughly 4.2% of the float, were not very large, though. Notable investors included George Soros’ Soros Fund Management, which held 1.4 million shares, and Mark T. Gallogly’s Centerbridge Partners, which owned the largest stake among institutional investors, containing 2.6 million shares.

Ariad Slips Despite Promising Data

Finally, there’s Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), whose stock has lost 1.2% on Monday afternoon, even though data presented at the American Society of Clinical Oncology this morning suggested that the company’s experimental drug for the treatment of non-small cell lung cancer (especially for patients who no longer benefit from Pfizer’s Xalkori) could work longer that other options available and could be better at treating tumors spreading to the brain. Among the 26 funds in our database long Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) on March 31, the largest stake was held by Alex Denner’s Sarissa Capital Management, which last disclosed ownership of 12.85 million shares, or about 6.7% of the total shares outstanding, by the end of the first quarter.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.