Why did the US MEGA hedge fund SAC Capital Advisors recently...

Why did the US MEGA hedge fund SAC Capital Advisors recently offload ~90% of their Genentech (NYSE:DNA) stock holding?

……and why did SAC at the same time increase their holding in Progen (Nasdaq:PGLAF)?

Could the answer have something to do with Progen’s leading PI-88 compound and the expected negative impact this compound, once approved by FDA, could have on DNA’s revenue stream from Avastin.

Is PI-88 the next Avastin?

Also, could it be SAC who are behind the current ongoing buying on Progen’s home exchange – AX:PGL.

Consider these reporting numbers by SAC on 06/30/2006

Company: DNA
Owner Name: SAC CAPITAL ADVISORS
Date: 6/30/2006
Shares Held: 19,500
Change (Shares):(172,700)
% Change (Shares): (89.85%) - SELL
Value ($1000): $1,626

Company: PGLAF
Owner Name: SAC CAPITAL ADVISORS
Date: 6/30/2006
Shares Held: 506,000
Change (Shares):68,104 - BUY
% Change (Shares): 15.55%
Value ($1000): $1,052

Note the above numbers are SAC’s PGLAF holdings in US only and do not include any SAC holdings in PGL on ASX.

Source:
PGLAF
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&symbol=pglaf&symbol=PGLAF&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=PGLAF

DNA
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&symbol=pglaf&symbol=PGLAF&symbol=DNA&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=DNA


Facts about Progen and the current activities:
http://www.progen.com.au/in/Aug06FactSheet.pdf