Carl Icahn sees large returns on Biogen Idec and Genzyme bets

May 15th, 2011
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Carl Icahn, founder of hedge fund Icahn Associates, has made two very large investments in biotech since 2008. The first, Biogen Idec (NASDAQ: BIIB), began in 2008, when Icahn Associates bought about 12.9 million shares of Biogen Idec at $50.45 per share, or about a $650 million stake. Biogen Idec has advanced 46% year to date, and most recently was trading at around $98.10. This represents a $614 million gain on Mr. Icahn’s investment, or a 94% return.

According to the Boston Globe, when compared to the S&P 500, which has lost 8.3% in the same period, his investment seems like a stroke of genius. However, when compared to a benchmark biotech stock index tracking 20 leading biotech companies which has returned 90% in the period, Mr. Icahn’s returns seem much less impressive.

The story is the same with Genzyme (NASDAQ: GENZ). Mr. Icahn spent about $562 million to purchase around 10.5 million shares of Genzyme. When Genzyme sold itself to Sanofi-Aventis for $20.1 billion, or $76.25 per share, Mr. Icahn profited about $237 million, a gain of 42%. However, when compared to the biotech index, which gained 47.5% in the period, Mr. Icahn’s trades seem relatively pedestrian.
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For Detailed Investor Profiles on these Investors, click below:
Icahn Associates (Carl Icahn)
Related People: Alexander J. Denner; Brett Icahn; Carl Icahn; Keith A. Meister*
Related Entities: High River Limited Partnership; Icahn Partners; Icahn & Co Inc; Icahn Associates; Icahn Enterprises (formerly American Real Estate Partners); Icahn Fund Ltd; Icahn Partners LP
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News

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