EFTA01193516.pdf

From: Jeffrey Epstein [email protected]> To: Tazia Smith Subject: Re: Biotech Sell-Off.... [I] Date: Tue, 25 Mar 2014 13:42:37 +0000 Inline-Images: unnamed; unnamed(1); unnamed(2); unnamed(3); unnamed(4); unnamed(5); unnamed(6); unnamed(7); unnamed(8); unnamed(9); unnamed(10); unnamed(I I); unnamed(I2) remind me tomorow remind On Tue, Mar 25, 2014 at 7:30 AM, Tazia Smith wrote: Classification: For internal use only Jeffrey - Biotech posted sharp declines. You are up $970,282 across your basket of names as of yesterday's (3/24) dose (detail below along with chart of Nasdaq Biotech Index and your holdings). Consider unwinding or hedging now and watching for entry point via total return swap or zero cost risk reversal as this negative momentum bottoms out. Note: Ariad an outlier (incrementally positive news on drug, Iclusig). The Financial Times features an article this morning suggesting that the sell-off in Biotech is a signal of a broader market peak. A letter from congressional representatives to Gilead questioning its plans to sell a hepatitis C drug (named Sovaldi) for $84,000 per dose has put the spotlight on Congress' concerns that the expense might saddle state Medicaid programs with steep costs. US is the only major health-care market remaining without any meaningful drug price controls — increased risk for the sector once the Congress gets involved, especially if focused primarily on pricing. Description Trade Date Quantity Last Price• Unit Cost Market Value Unrealized G/L SANGAMO BIOSCIENCES 05/2W2013 50,000.00 S 19.80 5 8.44 $ 990,000.00 $ 567,786.00 BIOGEN 02/14/2012 2,095.00 S 312.60 $ 119.55 5 654,897.00 $ 404,442.05 FOUNDATION MEDICINE 01/13/2014 25,000.00 $ 36.40 $ 27.51 910,000.00 $ 222,336.50 GILEAD SCIENCES INC 2/5/14,3/7/14 8,100.00 $ 72.13 $ 79.41 $ 584,253.00 $ (58,951.00) ARIAD PHARMACEUTICALS 2/14/12,1/24/13 16,535.00 $ 7.60 $ 17.60 $ 125,666.00 $ (165,331.40) Total Biotec 93,264,816.00 9 970,282.15 Nasdaq Biotech Index - lyr Price History EFTA01193516 INBI C 2499.44 -77.77 On 24 Mar C 2587.92 I- 2587.92 t 2434.16 Prey 2499.44 ActIonr•Wor97) Edit - 99 Ter" Line Chart >1:01‘ Last Pnce g M Th Campare Ir ser isity. stey minim ID 3C 1M 6M YTD lY SY Max Daily • • Evert 0 + Track " Annotate 2. News 0, Zoom .2800 ■ Last Price 2499.44 T- High on 02/25/14 2854.26 .2600 -. Average 2155.07 GEE! Low on 03/25/13'1619.16 . 2400 .2200 0-2000 .1800 . 1600 T:■ vs•ilume ;2(isi,8632:°4; 2 14 II .0 Jun Sep Dec Mar 2013 2014 Ariad - lyr Price History ARIA US 5 Market 7.86 7 .88 K 15>l0 .11 Prey 7.60 Vol 171,991 ARIA US -'Lai 99 Save As %Actions Editr 98 Table Line Chart 03/2512013 03/25/2014 Last Price Line DI Comore Mov A. Min VoLore NEW ID 30 6M YT: lY Max Da-ty • a C Securty/StuCy M Event O + Track z Annotate !_t! News 0, Zoom 7.60 4.20 T ELast Price T High on 09/10/13 22.52 . Average 12.8235 I Low on 10/31/13 2.20 -15 .10 El • Volume 0.172M 100M SMAVG (1S) 11A28M - Ania Likeirelibodowt Jun Sep Mar 2013 2014 Biogen - lyr Price History EFTA01193517 IBII6 US 5 Market `'-- _314.75 315.50_ 1 x1 'rev 312.60 Vol 715 r1: .3: 1s, Wal 93 Save—As //WIti IV 9Q Actions - 9)) Edit • 93 Table Last Price ▪ SY Max Lire Daity • A o Comore ' • IIIIIIIII It: Evc_• Volume tt-C: Line Chart m Event "SM O ± Track i Annciate Ut News Zoom 350 L-• Last Price 312.60 L T High on 03/18/14 351.94 -- Average 250.467 L 1 Low on 03/25/13 176.22 250 200 c• Volume 715 5M iz stievG ,(15), Ll.$06M Jun Sep Dec Mar 1.806K 2013 2014 Foundation Medical - lyr Price History FMI US $ Market _ P35.25 /38.78K 1x 1 Prey 36.40 Vol 543 200 FMI US ui irgrOgir msgrefinr g iThirrin5Tir Lines co/24/2on 03P.S/20 Lam Price ri Line 19 _ Comore ,:. =MIMI Volume "SD ID 3D IM OM Y7D It SY Max Daily • • ' Evarity/Staiy Event O ArTiaCk Mnotate 'News -, Zoom *45 . 40 -30 Last Price 36.40 0- 25 - T High on 03/13/14 43.62 --0- Average 30.1647 •20 I Low on 09/24/13 18.00 NI Volume 0.54311 . 511 ■ SMAVG (15) 0.26511 al Sep Oct Nov Dec Jan Feb Mar 2013 I 2014 Gilead - lyr Price History EFTA01193518  GILD US S Market Va."— P72.64 /72.82K 1 x1 Prey 72.13 Vol 29,340 GILD US -iUi 99 Save As 919 Actions 97) Edit - 98 Tabtr er Line Chart 33/33/II`la caiis,vae Last Price Line PI Co—Pre Min VoIurne 11.[Er l 11) 3D D4 dl YID IV SY max Calty 'Or a te Secunty/Sorn "I Event Track t Annotate = News , Zoom 85 80 I • Last Price 72.13 T High on 02/25/14 83.95 7S Average 64.4132 I Low on 03/25/13 44.98 65 60 55 50 45 c• ■ Volume 29340 • SM~~i81S)tji X4.756 14.75611 Jun Sep Dec Mar 2013 2014 Sangamo - lyr Price History SGMO US $ S Market ti K19.85 /21.40Q 2 x2 Prey 19.80 Vol 2 907 036 SGMO US ui n save xtliglifrAttltrflrV'—‘nreSPIIIIPIX7517r Line Chart 03/25/2013 03/B/2014 Last Price ^ L Compare Mop. 4,:- Volume m USD PI 1D 3D 1/I Y- ) 1Y SY Max Daily • e Sectrity/St.dy 0 4. Track c Annotate = News O, Zoom 24.00 22.00 I -0-• Last Price 19.80 T High on 03/19/14 23.86 Average 12.1209 Cl Low on 06/26/13 7.31 18.00 16.00 14.00 12.00 10.00 8.00 E:, • Volume 2.907M 10M L • SMAVG (15) 2.74I3M i4owitama irlowiair.....bakaWill ilitiaramarairshowcakapa s adaliAl Jun Sep Dec Mar 2013 2014 Healthcare sector has outperformed S&P500 last 4 years and has been the best-performing sector YTD Improving R&D returns Ongoing efficiency gains due to various 'self-help' measures More supportive regulatory and payor environment Increasing number of financings and IPOs in Q1 Frequent upward revisions lately to sales estimates at the largest biotechnology companies Nasdaq Biotech Index (ISLB1)strstpped 4.4% Friday EFTA01193519  Sharpest decline since Oct-11 • Triggered by a letter from congressional representatives to a biotech company Gilead Sciences, questioning its plans to sell a hepatitis C drug (named Sovaldi) for $84,000 per dose Gilead required to give briefing by 03-Apr Sovaldi expected to generate >$4bn in sales this year The drug's expense might saddle state Medicaid programs with steep costs The whole sector is as risk US is the only major health-care market remaining without any meaningful drug price controls Risk for the whole sector once the Congress gets involved, especially if focused primarily on pricing The biggest NBI firms sold-off significantly 1d chg (%) Index Wt (%) BIOGEN IDEC INC -8.2 7.9 AMGEN INC -3.2 7.8 GILEAD SCIENCES INC -4.6 7.0 REGENERON PHARMACEUTICALS -5.4 6.9 CELGENE CORP -3.7 6.5 ALEXION PHARMACEUTICALS INC -8.0 4.6 ILLUMINA INC -5.4 4.6 MYLAN INC -0.9 4.3 VERTEX PHARMACEUTICALS INC -5.1 3.8 BIOMARIN PHARMACEUTICAL INC -5.9 2.5 Ways to hedge exposure to the US biotech sector • ProShares UltraShort Nasdaq Biotech Fund (BIS US Equity): designed to be 2x short the NBI • Options on iSharesNasdaq Biotech ETF (IBB US Equity) NBI — last 5 years 3000 2577.2_ 2000 1500 1000 500 2009 2010 2011 2012 2013 201• NBI Index (Nasdaq Biotechnology Index) CopyrightE 2014 Kocenberg Finance L.G. 23.4u-2014 14.35:20 NBI vs S&P500 — last 1 year EFTA01193520  Normalized As Of 03/23/2013 Hi: 57.370A m• NBI Index - SPX Index 38.8807 NBI — last 1 year 2S77.21 2500 2400 2300 2200 2100 2000 Sep Oct Nov Dec Jan Feb Mar 2013 2014 PIBI Wei (Nasdaq Biotechnology Index) Daily 23W2013-21WA2014 Oaprighl0 2014 Bloomberg Finance L.0. 23.iter-b314 14:35:52 KCP Capital Markets This e-mail may contain conklential and/or privileged information. If you are not the intended recipient (or have received this e-mail in arra) please notify the sender immediately and destroy this e-mai. My unauthorized copying, disclosure or distribution of the material ki this e-mail is strictly forbidden. Tazia Smith Director I Key dent Patiers - US Deutsche Bank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue. 26th Floor New York. NY 10154 Pereernit (This communication may contain confidential and/or privileged information. EFTA01193521  If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation®gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA01193522