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Sally Jones
Sally Jones
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Seth Klarman - IDIX Mega Shares and New FDA 'Breakthrough' Track

March 29, 2013 | About:

As of Feb. 9, 2013, Guru Seth Klarman, legendary value investor of The Baupost Group, added 49.69% to his Idenix Pharmaceuticals Inc. (IDIX) mega position currently at 24,740,200 shares. The current share price is $3.54 with a change from average down 28%. Klarman first bought a new IDIX holding of 1,255,700 shares, in the quarter ending June 30, 2011.

With operations in the U.S. and Europe, Idenix Pharmaceuticals develops drugs for the treatment of human viral diseases, focusing on the treatment of hepatitis B and hepatitis C, called HCV, the cause of liver disease. The company’s product pipeline shows it is currently developing “inhibitors” to inhibit HCV replication and to treat HIV/AIDS.

The biopharmaceutical company has a market cap of $474.2 million and lists a P/E of 0, a P/B of 2.2 and P/S of 6.0. The company reported revenues of $69.7 million for the full-year 2012, compared to revenues of $7 million a year prior.

Seth Klarman’s holding history:

Idenix Pharmaceuticals Inc. competes in the HCV market with numerous pharmaceutical giants including Abbott Laboratories, Merck & Co. Inc. and Bristol-Myers Squibb Company, to name a few.

With the FDA's new designation of a "breakthrough" product category, new drugs and experimental medicines are subject to and can win approval after just a single round of testing instead of the standard three. The FDA defines a breakthrough drug as one that may offer important new benefits for patients with serious or life-threatening disease who are especially in need of new safe and effective treatments.

The new "breakthrough" designation will help Idenix Pharmaceuticals Inc. and other drug makers reduce costs and speed up the new drug approval process. Time-to-market is everything for the company that has a cure for autoimmune diseases. With so much red tape, and now possibly less red tape from the FDA, it’s hard to say when Idenix will have a new drug ready for market.

See the company’s 10-year financials.

Answering ongoing interference regarding one of its patents by Gilead Pharmassett LLC, concerning compounds useful in the treatment of hepatitis C virus, Idenix released this statement: “Idenix does not believe that the patent application at issue in the interference is relevant to any of the compounds currently under development, including IDX719, its NS5A inhibitor which is expected to begin phase II studies in the first half of 2013, or its uridine nucleoside for which the Company expects to file an investigational new drug application in the first half of 2013.”

See a breakout of Seth Klarman’s recent trades as of Dec. 31, 2012.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

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