Steve Cohen Just Lost $23 Million In 30 Minutes

Steve Cohen’s SAC Capital is taking a hit after the FDA rejected Orexigen’s proposed diet drug this morning.

Orexigen had an anti-obesity drug in the works, Contrave, but the FDA ruled that there were heart safety concerns and requested a clinical trial.

Yesterday, SAC Capital disclosed a new 7.2% stake ($31.14 million) in Orexigen.¬†And now the stock is plunging this morning after the news. Orexigen’s only drugs in the works are anti-obesity drugs, and everything was riding on Contrave, according to Reuters.

It’s down 73% so far and it’s only been half an hour since the news was announced. That puts Cohen out about $23 million, if he didn’t hedge it.

For those who are interested in the drug – it combined an antidepressant (bupropion, which also boosts metabolism) and a drug that fights addiction (naltrexone). Trials showed that 35% of people lost 5% of their bodyweight. But it also showed that people who took it experienced a slight rise in blood pressure and pulse rates.

Click here for a guide what hedge funds have been up to recently >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.