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Is Stevie Cohen's Magic Biotech "Touch" Up To Snuff In The New Year? We Are About To Find Out

Tyler Durden's picture


Earlier today, SAC Capital filed a 13G in which it disclosed an incremental 2.374 million share stake in Orexigen, or 5% of the total, which also happens to be the stock's 10 Day Average volume. Why is Orexigen special? The company is expected to announce a ruling by the FDA on whether its leading obesity drug candidate Contrave will be approved, just this afternoon. Of course, with old blue eyes indicating his last minute participation, we are 100% confident that the firm will pass with flying colors. We are also confident that i) Gerson Lehrman and other expert networks have quite a few experts on how Contrave is viewed by the regulators, and/or ii) that Sigma and SAC may well have retained the services of recent portfolio managers who in their previous life have had quite an extended facility with the nuances of the Contrave-focused metabolic processes. 

The chart of the firm's drug pipeline is presented below.


We are holding our breath to find out what the final ruling is. We urge readers to join us (that said, we would not be surprised if this is the first, maybe of many, red herrings thrown by the legendary hedge fund manager to indicate that he does not have a 100% batting average when it comes to predicting FDA outcomes).


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Mon, 01/31/2011 - 18:46 | 922060 TruthInSunshine
TruthInSunshine's picture

I'm 100% confident in the integrity of our markets in Amerika, and that if there was any insider trading of this or any other security, the SEC and other regulatory and law enforcement agencies will detect it and handle it competently and aggressively.














Mon, 01/31/2011 - 18:53 | 922067 Pee Wee
Pee Wee's picture

It's quite obvious it is time for cameras in all finance rest rooms.

I hear there is no privacy concern because the people watching the cameras don't know you (your privates are theirs for viewing only).

Mon, 01/31/2011 - 19:35 | 922172 whatz that smell
whatz that smell's picture


Mon, 01/31/2011 - 20:29 | 922300 No More Bubbles
No More Bubbles's picture

Absolutely.  Everything is on the "up & up" - except the future wastelines of those on this fine drug.  Eat all you want and get skinny. Yeah right.


Sure will be fun watching all these people die on this stuff.......

Mon, 01/31/2011 - 18:48 | 922065 unwashedmass
unwashedmass's picture

rolling with laughter. you're right, they couldn't possibly have any insider info......

and the SEC is soo effective.....

our markets are now so corrupted its no surprise that there is no volume in anything any more.

Mon, 01/31/2011 - 19:24 | 922154 TrihumpTheInsultDog
TrihumpTheInsultDog's picture

It's not insider info, Stevie is just excited about the prospects of loosing a few LBS, from beneath his chin, before it becomes mandatory to submit a zip code application for the expanding real estate.

Mon, 01/31/2011 - 18:49 | 922066 Misean
Misean's picture

With Bernutty's commodity bubble, deflation of the waste line will be the norm. Obesity drugs will be a tad redundant.

Mon, 01/31/2011 - 18:55 | 922076 TruthInSunshine
TruthInSunshine's picture

The 500 million dollar fine Goldman Sachs paid, in order to see no one criminally prosecuted or penalized, and to walk away with tens of billions in profits from their anti-capitalistic and corrupt activities, is the 'new' model.

Mon, 01/31/2011 - 19:07 | 922119 Misean
Misean's picture

I suspect the new model is gonna make "Heroine Chic" look positively voluptuous.

Mon, 01/31/2011 - 21:54 | 922441 StychoKiller
StychoKiller's picture

Shipping powders back and forth.
Singing black goes south and white comes north.
In a whole world full of petty wars.
Singing I got mine and you got yours.
And the current fashion sets the pace,
Lose your step, fall out of grace.
And the radical, he rant and rage,
Singing someone's got to turn the page.
And the rich man in his summer home,
Singing just leave well enough alone.
But his pants are down, his cover's blown...

And the politicians throwin' stones,
So the kids they dance
And shake their bones,
And it's all too clear we're on our own.
Singing ashes, ashes, all fall down.
Ashes, ashes, all fall down.

-- Grateful Dead, "Throwin' Stones"

Tue, 02/01/2011 - 09:20 | 923290 Titus
Titus's picture

I'm down for some heroin, stat! Might as well get the good stuff while the gettin' is still good. Who's down for a trip to the poppy fields of A'stan? Here I doubt things will change much after the crash. 

Mon, 01/31/2011 - 18:53 | 922080 ZeroPower
ZeroPower's picture

Quickly looking at today's action it doesn't look too convincing, but i guess youre never supposed to know simply from the tape on risky biotechs. 

How are the Feb options looking, any bias?

Mon, 01/31/2011 - 18:58 | 922093 alien-IQ
alien-IQ's picture

yet...look at todays volume on the OREX $6 & 7 Feb puts...hmmmm.

Mon, 01/31/2011 - 19:01 | 922103 Comrade de Chaos
Comrade de Chaos's picture

sniffed something interesting (from CR)


live update on riots , etc. directly from the source. 

Tue, 02/01/2011 - 10:30 | 923487 Absinthe Minded
Absinthe Minded's picture

That's amazing, what a great way to follow the uprising.

Mon, 01/31/2011 - 19:03 | 922106 Rainman
Rainman's picture

This is innovation. People can take pills to get skinny. Is this a great country or what ??

Mon, 01/31/2011 - 19:14 | 922134 Living_Stone
Living_Stone's picture

Thought this might be funny but the more I watched the sadder I got.  Who knew?

Mon, 01/31/2011 - 19:12 | 922131 Dr. Porkchop
Dr. Porkchop's picture

Get skinny and still eat my dollar menu and cheese doodles?

Mon, 01/31/2011 - 19:28 | 922160 gwar5
gwar5's picture

Wonder if the stock has priced the approval already. OREX doubled Dec 8 2010.

It will pass. This is not a market of chance and obesity is politicallly popular.

I had a large patient once who wrote on his medical history he also had "O.B.C.D. Disease"

I asked him what that was and he said, "I dunno, the doctor just said I had OBCD".

Say it fast -- it took me a second, too. Git R dun!  True story.

Mon, 01/31/2011 - 19:54 | 922207 gwar5
gwar5's picture

Is this the hero or the zero? Picture wouldn't copy so click and scroll down.

Anthony Mellone's SCAM ! Macada Holding / LyfeTec / Tri-Star Holdings (

Here is Steven Cohen.

Mon, 01/31/2011 - 21:21 | 922391 OMG
OMG's picture

I'm thinking before any approval or a priest on his knees approves this drug, HitLarry Clitwoman should try it out first my gawd if you was to put that woman in  courdaroy pants suit and she had to run for it, her thighs would burst into flames. I can here it now...wvvvt, wvvvvt, ...woosh. And gawd forbid whoever it is from HMS that has the pleasure of searching her crotch in an attempt to connect the incident to the underwear bomber.

Tue, 02/01/2011 - 02:08 | 922955 lineskis
lineskis's picture

SAC Capital filed a 13G in which it disclosed an incremental 2.374 million share stake in Orexigen

Looking at the 13G, it's 2.3704 millions, not 2.374 millions. But oh well...

Tue, 02/01/2011 - 02:14 | 922966 lolmaster
lolmaster's picture

hey from the lips of the FDA to the bank account of Friends of Chuck Schumer PAC, as they say. Stevie is just a bit player here, the true criminals are the ones with the guns (the feds)

Tue, 02/01/2011 - 07:34 | 923120 tom
tom's picture

Oh no Stevie's no bit player. If possession is nine tenths of the law, and force is the whole of the law, then guess who those guns are really working for.

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