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James Li
James Li
Articles (1482)  | Author's Website |

Primecap Management Dissolves Pfenex Holding, Boosts Biogen

The firm reports 2 real-time trades in health care

December 11, 2020 | About:

PRIMECAP Management (Trades, Portfolio), an independent investment company based in Pasadena, California, disclosed this week a few Real-Time Picks dated Nov. 30.

According to the Real-Time Picks page, a Premium feature of GuruFocus, the firm disclosed the dissolvement of its Pfenex Inc. (PFNX) holding and a small increase to its Biogen Inc. (NASDAQ:BIIB) position.

Firm dissolves Pfenex holding due to Ligand acquisition

San Diego, California-based Ligand Pharmaceuticals Inc. (NASDAQ:LGND) announced in October that it completed the tender offer for all outstanding shares of Pfenex for $437.5 million in cash plus a non-transferrable contingent value right amounting to $78 million upon the completion of a specified milestone.

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Ligand develops and acquires technologies that aid in creating medicine. GuruFocus ranks the company's profitability 6 out of 10: profit margins and returns are outperforming over 76% of global competitors despite three-year revenue growth rates outperforming just over 55% of global biotech companies.

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Firm makes slight boost to Biogen

Primecap purchased 190,675 shares of Biogen, increasing the stake 1.21% to 15,887,379 shares. The stock traded around $240.17 on the Nov. 30 transaction date; the stock is undervalued based on its current price-to-GF Value ratio of 0.70.

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GuruFocus ranks the Cambridge, Massachusetts-based drug manufacturer's profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased approximately 2.10% per year on average over the past five years and is outperforming over 98% of global competitors.

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Disclosure: Long Biogen.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


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