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Sydnee Gatewood
Sydnee Gatewood
Articles (758) 

Steven Cohen Takes Stake in Karyopharm Therapeutics

Guru increases position in health care space

Point72 Asset Management founder Steven Cohen (Trades, Portfolio) established a holding in Karyopharm Therapeutics Inc. (NASDAQ:KPTI) on Nov. 3, further expanding his large positioning in the health care space.

Managing a portfolio of 809 stocks, Cohen uses a bottom-up approach to identify discretionary long-short equities. The health care and consumer cyclical sectors compose the largest percentage of his portfolio.

Having previously exited a position in Karyopharm in the fourth quarter of 2014, Cohen purchased a 3.5 million-share stake for an average price of $11.23 per share. The trade had an impact of 0.22% on the portfolio.

The Massachusetts-based, clinical-stage pharmaceutical company has a market cap of $538.79 million; its shares were trading around $11.43 on Tuesday with a price-book (P/B) ratio of 3.24 and a price-sales (P/S) ratio of 2,857.50.

According to the Peter Lynch chart below, the stock is trading below its fair value.

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The company focuses on developing drugs that treat cancer and other major diseases. In its third-quarter earnings report, which was released Nov. 2, Karyopharm recorded a net loss of $30.6 million, or 65 cents per share, missing estimates of a loss of 64 cents.

GuruFocus ranked Karyopharm’s financial strength 10 of 10 and its profitability and growth 2 of 10.

With his purchase, Cohen became the company’s largest guru shareholder with 7.36% of outstanding shares. Paul Tudor Jones (Trades, Portfolio) also owns the stock.

According to GuruFocus data, the stock has gained 22% year to date.

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According to GuruFocus real-time picks, other health care stocks Cohen has invested in recently include Adamas Pharmaceuticals Inc. (NASDAQ:ADMS), OncoSec Medical Inc. (NASDAQ:ONCS), Global Blood Therapeutics Inc. (NASDAQ:GBT), Array Biopharma Inc. (NASDAQ:ARRY), Pacira Pharmaceuticals Inc. (NASDAQ:PCRX) and Achaogen Inc. (AKAO).

Disclosure: I do not own any stocks mentioned.

About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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