Tuesday, January 15, 2013

Life-Science Maven Investor Isaly, Others Add To Merck Positions

Market Watch notes that -- as of the end of Q3, 2012, the legendary Sam Isaly and his OrbiMed entities had more than doubled down on Merck. That trend-line is telling. Isaly has long held a large Pfizer stake, but has been an aggressive buyer of Merck throughout 2012 -- will that continue in 2013?

We will have to wait a few weeks to see. We should have his year end 2012 holdings before Valentines Day. Here's a bit of the Market Watch story I mentioned:
. . . .Orbimed reported a position of 4.6 million shares in Merck, a 33% increase from three months earlier.

Point State Capital, which is managed by Sean Cullinan and other former portfolio managers at billionaire Stanley Druckenmiller's Duquesne Capital, was also a heavy buyer of Merck. Merck, similarly to Pfizer, carries trailing and forward P/E multiples of 19 and 12 respectively. Its financial performance has been steady. . . .

Anyone who has been around life sciences investing for a bit knows what a sharp operator Isaly is. I'll report where his holdings stand when he files his latest Section 13 reports at the SEC in the second week of February -- but I'd not bet against him -- not in life sciences, anyway.

Merck and Pfizer are now over 12 percent of his entire managed fund's dollar value. Wow.


Anonymous said...

Why is MRK shuttering buildings all over RY???

Condor said...

I hear you Anon. . . .

If you mean Raway, I think the answer is that New Merck announced it is -- in 2013/2014 -- consolidating some research and some corporate HQ functions formerly at Raway and Whitehouse Station, respectively, into the legacy Schering-Ploough facilities.

That's my bet -- anyone out there have a differing/more refined take on it?


-- Condor

Anonymous said...

I would not be surprised if MRK shutters the entire Rahway site.