In a Schedule 13G filing, Andreas Halvorsen’s Viking Global reported owning 2.44 million shares of Kite Pharma Inc. (NASDAQ:KITE), which constitute 5.0% of the company’s outstanding shares. This represents an increase from the stake of 2.21 million shares disclosed in the fund’s 13F filing for the October-to-December period. The clinical-stage biopharmaceutical company that develops engineered autologous cell therapy products for the treatment of cancer has seen its shares decline by 23% since the beginning of the year, so Halvorsen’s firm has taken the opportunity to beef up its holding.
Kite Pharma’s engineered autologous cell therapy, simply known as eACT, is a transformational approach to the treatment of cancer. This therapy involves the genetic engineering of T-cells, which are designed to identify and destroy cancer cells. In December 2015, Kite Pharma Inc. (NASDAQ:KITE) received breakthrough therapy designation status for its lead product candidate, called KTE-C19, for the treatment of patients with refractory diffuse large B cell lymphoma (DLBCL), primary mediastinal B cell lymphoma (PMBCL), and transformed follicular lymphoma (TFL). Nonetheless, there are mounting safety concerns around this engineered autologous cell therapy among investors, which has put significant weight on Kite’s shares. The number of hedge funds in our system with stakes in the company increased to 27 from 22 during the December quarter. Ken Griffin’s Citadel Advisors LLC owns 559,319 shares of Kite Pharma Inc. (NASDAQ:KITE) as of the end of 2015.
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As revealed by a separate Form 4 filing, Eric Semler’s TCS Capital Management purchased 369,686 class A shares of Central European Media Enterprises Ltd. (NASDAQ:CETV) last week at prices of between $2.39 and $2.56 per share. After the recent purchases, TCS Capital owns 16.92 million class A shares of the media and entertainment company, representing 12.46% of its outstanding common stock. The company primarily operates in Central and Eastern Europe and has broadcast operations in six countries in the region, broadcasting 36 television channels. Central European Media Enterprises Ltd. (NASDAQ:CETV)’s consolidated net revenue reached $605.84 million in 2015, down from $680.79 million reported for 2014. However, its consolidated net revenue grew by 6% year-over-year at constant exchange rates, primarily due to an increase in television advertising revenue. In November 2015, Eric Semler sent a letter to the company’s Chairman and Board, urging the Board to hire a financial advisor to explore a possible sale. TCS Capital said that the company’s disappointing stock performance has been linked to Time Warner Inc. (NYSE:TWX)’s equity and debt ownership in the company, and Central European Media’s failure to refinance its debt. However, the television broadcaster recently entered into a new multi-million dollar term loan to repay and discharge its 15.0% Senior Notes due 2017. The stock is down by 10% over the past 52 weeks, after having declined by 6% year-to-date. Rob Citrone’s Discovery Capital Management reported owning 4.70 million shares of Central European Media Enterprises Ltd. (NASDAQ:CETV) through the latest round of 13F filings.
