Steve Cohen Just Made $7 Million Betting On A Drug Company That Just Got Bought Out

Steve Cohen Breakdancing

Photo: Business Insider

Of course Cohen made out like a bandit in today’s sale of Genoptix to Novartis. Remember SAC Capital’s epic Dendreon trade? The firm made between $65 million and $100 million when the FDA approved a new prostate cancer drug.

This time, SAC bought 1,148,244 shares of Genoptix (a company that specialises in diagnosing cancers and disorders in bone marrow, blood, and lymph nodes), or 6.5% of the company at an opportune time –about three weeks before the company was acquired by Novartis. And they just made at least a few million.

We’re guessing SAC made somewhere around $7 million, because Cohen acquired the stake at some point between December 31 and January 10, according to a 13G form SAC Capital filed on January 10th. (13Gs are filed within 10 days after someone takes a stake over 5%.)

So best case scenario, Cohen could have made out with around $7 million. 

1,148,244 X $6.25 = $7,176,525

Worst case scenario, he bought at $21.80 and only made $3,674,380.

Also interesting: Street Insider has a run down of the five other pharmaceutical companies Cohen owns: Emergency Medical Services, Amylin, Dendreon, Genzyme, and Celera. 


Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.