A bad investment?

Healthcare investor bought 33.4% of Lionsgate Films one week before the release of SICKO

By Leslie Hayes

Mark H. Rachesky, M.D. purchased 33.4% (over 40 Million) shares of Lionsgate stock one week prior to the scheduled opening of Michael Moore’s controversial film “Sicko” which happens to be distributed by Lionsgate and the Weinstein Co. (SEC filing can be found here). Interestingly, a pre-screening of the film was held on the same day in New Hampshire for over 600 people including doctors, health care lobbyists, nurses, political figures and pharmaceutical companies all from the health care industry.

Dr. Rachesky is the founder and President of MHR Fund Management LLC and affiliates who are investment managers of various private funds. Dr. Rachesky is currently on the Board of Directors of Keryx Biopharmaceuticals, Inc. who focus on the acquisition, development and commercialization of medically important, novel pharmaceutical products for the treatment of life-threatening diseases, including diabetes and cancer. He is also an investment broker for NovaDel Pharma Inc. (AMEX: NVD), a specialty pharmaceutical company who targets candidates suffering from nausea, insomnia, migraine headaches and disorders of the central nervous system (CNS). In addition DR. Rachesky is the beneficial owner of Medical Nutrition USA, Inc. owning approximately 29% of the company with 3,786,799 shares. He is also the Director of Neose Technologies, Inc. (NASDAQ: NTEC) which is a clinical-stage biopharmaceutical company focused on the development of next-generation therapeutic proteins that are competitive with best in class protein drugs currently on the market. In 2003, the market for therapeutic proteins grew by almost 19% to $37 billion, and is predicted to achieve sales of over $90 billion by 2010. Recently the Doctor also has invested in Emisphere Technologies, Inc. another bio pharmaceutical company charting new frontiers in drug delivery. Emisphere has strategic alliances with world-leading pharmaceutical companies.

Originally, Lionsgate had planned a wide release of SICKO in over 1,600 theaters nationwide June 29, 2007 but one week prior to the release the number was reduced to a mere 400. This decision was made the same week Dr. Rachesky purchased Lionsgate stock. Could this be pure coincidence?

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0 thoughts on “A bad investment?”

  1. First, Mark Rachesky did not purchase 33.4% of Lionsgate a week before Sicko came out, He purchased about 3%. At the time he made that purchase, he had in the past already accumulated 8% of the company, before the movie Sicko was ever thought up or even acquired by Lionsgate. Rachesky runs a private equity/hedge fund, and used to work for Carl Icahn for 6 years. He may have Dr. in front of his name, but he does not practice medicine at all. He is simply a money man who is an activist investor who tries to make a profit. Sicko is one of Lionsgates smaller movies. And just to show you how it didnt even come to thought in his investment, he has since purchased another 3 percent of Lionsgate, starting in August, October and now December. He thinks the company is undervalued and could care less about Sicko. Get your facts straight. 33.4% come on, what SEC filing did you read.

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