From this week’s Hedge Fund Solutions Catalyst Equity Research Report, we are highlighting the Biotechnology Value Fund’s investment in immunology and oncology research and drug manufacturer Facet Biotech Corporation (NASDAQ: FACT). The biotechnology hedge fund, a private investment partnership, currently holds 3,683,521 shares in FACT, or 14.9% of shares outstanding. Facet launched in December 2008 as a spin-off from PDL BioPharma, Inc.
Investment Catalyst:
On September 29 BVF changed their filing status with the SEC from “passive” investor to “active” investor and announced they do not intent to tender their shares in the proposed $14.50/share buyout offer recently submitted
by Biogen.
Research Comment:
Hedge Fund Solutions previously covered FACT in our September 9 and May 1 Catalyst Research Reports (when the stock was trading at $9.26/share), highlighting that on March 31 the Company received a notice from Roderick Wong of his intention to nominate five candidates for election to the five-person board. On April 30 two of Wong’s nominees withdrew themselves as nominees. Wong issued a press release calling for a substantial dividend followed by the sale of the company.
On April 27 Baupost Group (14% shareholder) announced their intentions to discuss with the management and board certain changes to the composition of the board, as well as aspects of its business, operations, governance, strategy, capitalization, ownership and future plans for the business.
On September 8 FACT’s board rejected the takeover bid. HFS estimates 40%+ of FACT shares are held by activist investors.
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