Steven Cohen (Trades, Portfolio) of Point72 Asset Management initiated a new holding in Summit Therapeutics (SMMT, Financial) on March 10, according to GuruFocus’ Real Time Picks. He purchased 3,856,105 shares of the company for $11.48 per share.
Point72 is a rebranding of Cohen’s SAC Capital Advisors, the hedge fund that pled guilty to insider trading and agreed to stop managing money for outside investors. The Point 72 investing firm operates as a family office.
The firm, which generated a gross profit of $2.5-3 billion last year according to The New York Times, placed a bet on Summit, a British biopharmaceutical company that focuses on developing therapies for conditions where there are no existing or only inadequate treatments. The areas of focus are Duchenne muscular dystrophy, a genetic muscle wasting disease, and an infectious disease caused by the bacteria C. difficile.
Summit launched its IPO on March 4 on the NASDAQ for $9.90 per share, and is currently trading at $10.24. The company is also listed on the London Stock Exchange (LSE:SUMM, Financial) and currently trades at ÂŁ1.48.
The company has not yet turned a profit, but its utrophin modulator, SMT C1100, is advancing through clinical trials to test if it can treat Duchenne. The FDA and European Medicines Agency has granted SMT C1100 orphan drug status, which allows for a period of market exclusivity after approval and additional regulatory support.
Summit’s book value per share in FY 2014 was $0.32. Over the past five years, the growth trendline shows the figure has declined by about 34%.
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