Baupost Group Buys Over 16 Mln Shares of Idenix Pharmaceuticals Inc (IDIX)

Baupost Group, a fund managed by Seth Klarman, is a large shareholder of Idenix Pharmaceuticals Inc (NASDAQ:IDIX). The fund disclosed, in a new filing with the Securities and Exchange Commission, revealed that it holds 53.33 million shares of Idenix Pharmaceuticals Inc (NASDAQ:IDIX), equivalent to 35.38% of the common stock.

At the end of January, Idenix Pharmaceuticals Inc (NASDAQ:IDIX)  entered into a subscription agreement with certain entities managed by The Baupost Group, L.L.C. The agreement related to the issuance and sale of an aggregate of 16.42 million shares of the company’s common stock at $6.50 per share. Thereafter, Baupost Group is entitled to 35% of the company’s common stock upon completion of the offering closed on January 31. Earlier, the fund had raised its stake to 36.91 million shares from 26.8 million.

The company received $106.7 million of net proceeds from the offering and will use the offering for  general corporate purposes, including clinical trial costs and ongoing and future patent litigation expenses.

Baupost has also been granted observer rights, with respect to meetings of the board of directors of the company and the committees of the company’s board of directors. Baupost Group, acquired the common stock to invest in the ordinary course of business.

Of all the hedge funds we track, Bain Capital’s Brookside Capital is another hedge fund which stands on the second spot, amassing 12.66 million shares of Idenix Pharmaceuticals Inc (NASDAQ:IDIX), at the end of the third quarter of 2013. 12 West Capital Management, led by Joel Ramin, initiated a stake in the company in the third quarter, and holds 1.78 million shares.

Baupost Group is the 11th largest hedge fund in the world.

Last month, Seth Klarman trimmed his stake in Enzon Pharmaceuticals Inc (NASDAQ:ENZN) to 4.34 million shares from over 7.69 million shares. On the same day the fund revealed in a separate filing that it initiated a stake in Kindred Biosciences Inc (NASDAQ:KIN) and owns 2.9 million shares of the company.

Disclosure: none

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