Seth Klarman (Trades, Portfolio) added to his existing stake in Keryx Biopharmaceuticals Inc. (KERX, Financial), a New York City-based biopharmaceutical company, with the purchase of 16,224,598 shares for a price of $3.74 per share on Oct. 14.
The purchased increased Klarman’s position by nearly 63%. He now holds 42,016,276 shares in the company. It is the second-largest stake in his portfolio by volume and the ninth-most valuable.
On Oct. 16 Keryx confirmed that it intends to raise $125 million through the private placement of Convertible Senior Notes, due 2020, with funds managed by The Baupost Group, L.L.C. With the funds, Keryx will increase the number of directors on its board to eight, and Baupost will have the right to appoint a director to Keryx’s board before the end of the year. Baupost also will appoint an observer to Keryx’s board.
Keryx is engaged in pharmaceutical products that bring new therapies to market for people with renal disease.
Keryx has a market cap of $479.58 million and an enterprise value of $348.3 million. It has a forward P/E of 31.2, a P/B of 3.3 and a P/S of 98.3. GuruFocus has given Keryx a Financial Strength rating of 6/10 and a Profitability and Growth rating of 3/10.
Klarman is Keryx’s leading shareholder among the gurus. Jim Simons (Trades, Portfolio) also has shares of Keryx in his portfolio.
Keryx stock sold for $4.59 per share Wednesday afternoon.
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