Mark H. Rachesky, M.D. purchased 33.4% (over 40 Million) shares of Lions Gate stock one week prior to the scheduled opening of Michael Moore's controversial film "Sicko" which happens to be distributed by Lions Gate and the Weinstein Co. (SEC filing can be found here). The exact day of purchase was June 30, 2007. Sicko debuted in the U.S. on June 22, 2007, earning $4.6 million in 441 theatres and achieving the 4th highest opening weekend for a documentary, after Farienhiet 9/11.
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, Lion’s Gate 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 Lions Gate stock. Could this be pure coincidence?
The debut of SICKO was the fourth-highest grossing documentary since record keeping began in 1982. If it was such a success why would Lionsgate reduce the amount to be released? When SICKO was shown at the Cannes Film Festival a month prior on May 19th the film was loudly applauded and hailed by critics. The movie has practically disappeared from sight. Can someone please tell me why?
Did Dr Rachesky purchase the stock for controlling interests in Lions Gate? Controlling Interest is when the parent company owns a majority of the common stock that allows the shareholder major influence on the company. Normally for one to obtain controlling interests in a company one would purchase at least 51% of all shares however, in some cases a single entity can essentially maintain control with only 33.4% of the outstanding shares. Ironically, this is the exact percentage of shares purchased by Dr. Rachesky.
In the film SICKO Michael Moore turns his attentions toward the topic of health care in the
If Dr Rachesky purchased Lions Gate shares for controlling power is it safe to ask why? There are many debates and arguments as the the accuracy of
Article By: Leslie Hayes
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Preview of "SICKO"