Guru Steven Cohen (Trades, Portfolio) is the founder of SAC Capital Advisors, a Stamford, Connecticut based hedge fund which he continues to manage. The portfolio has a total value of $14,251 Mil and is composed of 644 stocks.
After his buy of Trillium Therapeutics Inc (TRIL) he bought another stock in the biotechnology industry; he increased his stake of Sarepta Therapeutics Inc (SRPT, Financial) by 41.40% (an impact of 0.05% on his portfolio) and is now holding a total of 2,193,600 shares.
He started to buy SRPT during the Q3 of 2010 and now hold this stock with an average price of $30.64/share and an average loss of 14%.
The company discovers and develops RNA-based therapeutics for the treatment of rare and infectious diseases. Its product candidate is eteplirsen, an antisense PMO-based therapeutic, which is in Phase IIb clinical development for the treatment of individuals with Duchenne muscular dystrophy. The company is also involved in developing treatments that are in Phase I clinical trials for infectious diseases, including AVI-7288 for Marburg virus; and AVI-7100 for H1N1 influenza virus.
SRPT has poor profitability rated 1 out of 10 and with deep negative ratios (-51.83% of ROE, -44.72% of ROA, -452.66% of ROC). Despite this, these ratios are performing much better compared to the company’s history and even compared to the SRPT’s industry, they are ranked higher than 63% of competitors.
Financial situation is few better, rated 4/10: with a cash to debt of 33.24 that is at the same level of the industry median (34.92) but ranked higher than 72% of its competitors. On 2016 the company was out of debts.
Growth rate over the last 5 years is positive, with EBITDA +28.70%, EPS +31.10% and free cash flow +36.80%. Just revenue declined by 29.20%
CFO Sandy Mahatme, talking about the year 2014, confirmed the reduction of revenue and cash, giving explanations of the reasons:
Revenue for the full-year 2014 was $9.8 million, down from $14.2 million in the prior year primarily due to the July 2014 expiration of the Marburg portion of the Ebola Marburg US government contract. Adjusted research and development expenses were $86 million for the full-year 2014 compared to $68.6 million for the prior year which is an increase of $17.4 million.
Adjusted general and administrative expenses were $37.2 million for the full-year 2014 compared to $24.0 million for the prior year which is an increase of $13.2 million. The balance of our cash, cash equivalents and investments was $211.1 million as of December 31, 2014 compared to $264.9 million as of December 31, 2013 and a decrease of $53.8 million. The decrease is primarily driven by the use of cash to fund our ongoing operations, offset by the net proceeds we received from the exercise of warrants and stock options as well as the company's public offering in April 2014.
