Durus Bails Out of Various Medical Holdings

Three months later, Durus had cut its stake to 1.49 million shares, or 9.3%, and was then the fourth-largest institutional shareholder. By Aug. 20, according to the latest available data, Durus' holdings dropped to 633,000 shares, or 3.8%. SEC records don't reveal whether Durus made a profit or a loss, but Novoste's stock is down 39% for the year.

At Cardiac Science(DFIB Quote), Durus emerged as the largest institutional shareholder by March 31 with 3.29 million shares, or 4.9%, of the Irvine, Calif.-based maker of defibrillators -- the devices that monitor and correct potentially fatal irregular heartbeats.

Durus raised its stake to 4.3 million shares, or 6.4%, by June 30. Then, it started selling. By Aug. 19, according to the latest data available, Durus had cut its stake to 675,000 shares, or 1%. Cardiac Science's stock is up 88% this year.

Durus also was the largest institutional shareholder of Vicuron Pharmaceuticals(MICU Quote) by March 31, owning 2.3 million shares, or 4.9%, of the developer of antifungal medications and antibiotics. By June 30, Durus had raised its stake in the King Of Prussia, Pa. company to 2.81 million shares, or 5.2%.

In July, Vicuron completed a secondary offering of stock. By Aug. 19, according to the latest available data, Durus' involvement had dropped to 700,000 shares, or 1%, of a company whose stock price has gained 64% since the beginning of the year.

And last among Durus' larger holdings of March 31 is Guilford Pharmaceuticals(GLFD Quote), a Baltimore-based developer of drugs for cancerous brain tumors. It's now also the least. Durus owned 1.25 million shares, or 4.2%, by March 31, down from 2.98 million shares in December 2002. By June 30, Durus had sold all of its Guilford stock. The company's shares are up 56% this year.

Absent the Sept. 30 financial statement, it is not possible to determine the extent of Durus' other trading during the third quarter. But thanks to the size of one investment, SEC records show there's at least one instance where Durus bought a big piece of another company. Between March 31 and June 30, the hedge fund bought 3.98 million shares of Incyte (INCY Quote), bringing its total holdings in the Palo Alto, Calif.-based company to 4.94 million shares. That's 6.9% of a company trying to develop cancer and anti-inflammatory drugs. And that's good enough to make Durus the second-largest institutional investor in Incyte, whose shares are up 2% for the year.

--Matthew Goldstein contributed to this report.