Facet Biotech (NASDAQ:FACT.DL)

CAPS Rating: No stars


Player Avatar AllStarPortfolio (< 20) Submitted: 5/18/2009 4:43:43 PM : Outperform Start Price: $9.07 FACT.DL Score: +74.89

On May 18, 2009 at 10:56 AM, portefeuille (99.97) wrote:
In a 13D filed after the close yesterday, Seth Klarman's Baupost Group has boosted their position and has now disclosed a 17.8% ownership stake in Facet Biotech (FACT) due to activity on April 8th, 2009. The aggregate amount of shares beneficially owned is now 4,374,407. When we covered their 13F filing,


we noted that as of December 31st, 2008, Baupost owned 2,772,092 shares of FACT. So, Baupost has boosted their position in FACT substantially.

(from here) http://seekingalpha.com/article/130401-baupost-group-boosts-facet-biotech-stake

Klarman knows what he is doing.

Read this http://seekingalpha.com/article/137388-facet-biotech-what-s-with-chapman-s-scripted-questions

and listen to the presentation tomorrow.

I am sorry, but I really don't know how to write research reports. When I do, I will replace this by a genuine report by me ...

Report this Post 22 Replies
Member Avatar portefeuille (99.66) Submitted: 5/19/2009 5:50:25 PM
Recs: 4

When Seth Klarman Speaks, You'd Better Listen

Member Avatar portefeuille (99.66) Submitted: 5/22/2009 10:12:30 AM
Recs: 4

for the chartists: the stock does not have a long history, but it is pretty obvious there is some kind of "resistance" in the area of $10 (and some kind of "support" in the area of $9) ...

Member Avatar portefeuille (99.66) Submitted: 5/28/2009 2:57:37 PM
Recs: 3

a great talk by klarman: http://www.bengrahaminvesting.ca/Resources/Video_Presentations/Klarman.htm.
The FACT/PDLI part starts at 00:26:30.

Member Avatar catoismymotor (< 20) Submitted: 6/4/2009 4:40:09 PM
Recs: 1

Thanks for entering this one on my blog for Micro and Small Caps. It is definitly worth further study.


Member Avatar portefeuille (99.66) Submitted: 6/17/2009 10:40:17 PM
Recs: 3

an old article on FACT/PDLI: http://www.updown.com/Facet-Biotech---A-Rewarding-Spinoff/stock-tip/25307

Member Avatar XMFWhatsmyoption (< 20) Submitted: 6/18/2009 9:37:50 AM
Recs: 3

I've been following Klarman's ownership of Facet for a few months. You mind find some value in reading these posts http://www.fusioninvesting.com/tag/fact/

Member Avatar portefeuille (99.66) Submitted: 7/1/2009 1:26:27 AM
Recs: 3

also see this analysis: http://www.scribd.com/doc/16179131/Facet-Biotech

Member Avatar portefeuille (99.66) Submitted: 7/2/2009 9:01:30 PM
Recs: 2

Just something that "crossed my mind". I guess it is not really that controversial to say that currently FACT is not trading for a lot more than "break-up value" (if at all it is). If it were "more liquid" (the trading) then it might quite effectively be used by biotech fund managers as a "safe haven". As I said, just a quick thought ...

Member Avatar portefeuille (99.66) Submitted: 7/27/2009 9:43:45 PM
Recs: 3


Value-Investor Klarman's Eclectic Picks Soared Higher in Q2

Though typically described as a value investor, Seth Klarman’s strategy - and his remarkable track record - are difficult to define. According to a December item in the Harvard Bulletin, Klarman’s Baupost Group has generated an annual compound return of 20% in the past 26 years.

The item also reported on Klarman’s willingness to move his assets into cash during challenging times. In the latter part of 2008, as markets crumbled, reportedly 40% to 50% of his $14 billion hedge fund’s portfolio was in cash. As 2009 got under way, Klarman was making moves among a variety of eclectic holdings. Some of these stocks moved sharply higher from the beginning of Q2.

Looking at Baupost’s top-15, U.S.-listed, equity holdings from the start of Q2, the top performer has been financial services firm CapitalSource (CSE), which has more than tripled over that period. Meanwhile, long-time holding News Corp. (NWSA), made-for-TV movie producer RHI Entertainment (RHIE), independent oil and gas company Linn Energy (LINE), and cosmetic laser company Syneron Medical (ELOS) have all jumped by 30% or more.

The primary laggards among Baupost’s top, end-of-Q1 holdings have been biotechs Theravance (THRX) and Facet Biotech (FACT).

Member Avatar portefeuille (99.66) Submitted: 8/4/2009 10:55:50 PM
Recs: 3

Facet Biotech Reports Second Quarter 2009 Financial Results


In connection with our 2009 restructuring activities, wevacated and ceased use of approximately 85% of one of our two leased buildings in Redwood City (the Administration Building) and consolidated our operations into the other building (the Lab Building) during the second quarter of 2009. In connection with vacating this space within the Administration Building, we recognized lease-related restructuring charges of $17.0 million in the second quarter of 2009. The total estimated obligations under the lease for the Administration Building, as of June 30, 2009, are summarized below:

Payments Due by Period
Less Than More than
(in thousands) 1 Year 1-3 Years 4-5 Years 5 Years Total
Lease payments(1) $ 3,226 $ 6,453 $ 10,846 $ 59,854 $ 80,379
Other lease related
obligations(2) 3,679 7,540 7,797 31,789 50,805

(1) Lease payments represent actual and estimated contractual rental payments under our lease for the Administration Building. These lease obligations reflect our estimates of future lease payments, which are subject to potential escalations based on market conditions after the year 2014 and, therefore, could be lower or higher than amounts included in the table.
(2) Other lease-related obligations reflect estimated amounts that we are contractually required to pay over the term of the Administration Building lease, including insurance, property taxes and common area maintenance fees. Such amounts are estimated based on historical costs that we have incurred since the inception of the lease.

Table of Contents

The lease-related restructuring charges of $17.0 million are comprised of (i) a $23.0 million Lease Restructuring Liability, which represents the present value of the estimated future facility costs for which we will obtain no future economic benefit offset by estimated future sublease income, and (ii) a $6.0 million credit for an existing deferred rent liability associated with the vacated area of the Administration Building. The Lease Restructuring Liability incorporates our estimated contractual lease costs related to the vacated space of the building over the term of our lease as well as the estimated costs to sublease the vacant portions of the building (broker commissions, tenant improvements, etc.).
We derived our estimates for the $23.0 million Lease Restructuring Liability, which involved significant assumptions regarding the time required to contract with subtenants, the amount of idle space we are able to sublease and potential future sublease rates, based on discussions with our brokers and negotiations currently in process with potential subtenants. The present value factor, which also affects the level of accretion expense that we will recognize as additional restructuring charges over the term of the lease, is based on our estimate of Facet Biotech's current credit-risk adjusted borrowing rate.
We have established a number of potential scenarios with differing assumptions and have calculated the present value of and applied probability weighting to each scenario based on management's judgment. Changes in the assumptions underlying these scenarios, as well as the relative likelihood applied to each scenario, could have a material impact on our restructuring charge and Lease Restructuring Liability. For example, using a set of assumptions of contracting the entire property with a single subtenant within one year for 100% of our lease costs would result in a favorable adjustment of approximately $5.2 million to our Lease Restructuring Liability. However, a scenario in which we would contract with several subtenants over a period of five years at lease rates approximating 75% of our costs, and assuming an average vacancy rate of 40% over the remaining term of our lease, would result in an unfavorable adjustment of $13.6 million to our Lease Restructuring Liability.
We are required to update our estimate of the Lease Restructuring Liability in future periods as conditions warrant, and we expect to revise our estimate over the next several quarters as we continue our discussions with potential subtenants.
In addition, in connection with our sublease efforts for the Administration Building, we are also pursuing sublease arrangements under which we could potentially contract with subtenants for both the Administration Building and the Lab Building (which we currently occupy). If we sublease the Lab Building for rates that are not significantly in excess of our costs, we would not likely recover the carrying value of the building and tenant improvement assets associated with the Lab Building, which was approximately $80 million as of June 30, 2009. As such, we could potentially recognize a substantial asset impairment charge, as much as the carrying value of such assets, if we were to sublease the Lab Building.


from here -> http://biz.yahoo.com/e/090804/fact10-q.html

Member Avatar portefeuille (99.66) Submitted: 8/5/2009 11:51:15 AM
Recs: 3

archived conference call
FACET BIOTECH CORP Earnings Conference Call (Q2 2009)
Tue, Aug 4, 2009, 4:30 pm Eastern

Member Avatar portefeuille (99.66) Submitted: 8/5/2009 11:59:51 AM
Recs: 3

Facet Biotech Announces Daclizumab Program in Multiple Sclerosis to Advance

Member Avatar portefeuille (99.66) Submitted: 8/5/2009 12:13:17 PM
Recs: 3


Member Avatar portefeuille (99.66) Submitted: 8/5/2009 12:22:16 PM
Recs: 3

so to sum it up.
DAC HYP -> phase 3 (1H 2010, ...), milestone payment, cost sharing, profit sharing/royalties, bla bla bla ...
cancer R&D pipeline -> acquisitions maybe

Member Avatar BravoBevo (99.97) Submitted: 9/4/2009 5:08:05 PM
Recs: 3

Rarely do I board a train simply because the crowd is getting on, except "when in Rome, do as the Romans do." So last weekend I caught up on some of my reading of these AllStarPortfolio pitches and decided to add Facet Biotech to my CAPS game portfolio (making it my only ASP selection other than my personal current contribution to ASP).

This afternoon after coming back from a meeting and getting on the internet, I learned that I didn't merely board a train but that I stepped into a wormhole that has transported everyone onboard Facet Biotech from a range-bound single-digit existence across a space-time continuum into another dimension - the dimension of "target in play around the mid-teens."


So as to give credit where credit is due, kudos to portefeuille and his various alter egos: portefeuille2, portefeuille3, portefeuille4, portefeuille5, portefeuille6, portefeuille7, portefeuille8, portefeuille9, portefeuille10 and portefeuille11. Keep up the good work!

Member Avatar portefeuille (99.66) Submitted: 9/4/2009 8:08:17 PM
Recs: 2

thanks for the laugh! and thank you!

Member Avatar BravoBevo (99.97) Submitted: 9/5/2009 12:19:24 PM
Recs: 2

portefeuille: It just occurred to me that (even though I earlier gave a +1 rec to the ASP pitch) you don't get any credit through that for having written the pitch.

So I've come back this morning to give +1 recs to each of your comments/replies here. That should give you a rather nice boost in numbers of recommendations. Thanks again.

Member Avatar portefeuille (99.66) Submitted: 12/3/2009 4:58:52 PM
Recs: 0

Biogen Idec Increases Offer to Acquire Facet Biotech to $17.50 Per Share in Cash; Sends Letter to Facet Biotech Stockholders Describing Its Best-and-Final Offer -> http://finance.yahoo.com/news/Biogen-Idec-Increases-Offer-bw-2837688338.html?x=0&.v=1.

Member Avatar portefeuille8 (98.51) Submitted: 12/4/2009 9:17:16 AM
Recs: 0

Facet Biotech Advises Stockholders to Take No Action in Response to Revised Biogen Idec Tender Offer -> http://finance.yahoo.com/news/Facet-Biotech-Advises-iw-878447893.html?x=0&.v=1.

Member Avatar portefeuille (99.66) Submitted: 12/10/2009 10:23:10 AM
Recs: 0

Facet Biotech's Board of Directors Unanimously Rejects Biogen Idec's Revised, Unsolicited Tender Offer as Inadequate -> http://finance.yahoo.com/news/Facet-Biotechs-Board-of-iw-1679983963.html?x=0&.v=1.

Member Avatar portefeuille (99.66) Submitted: 3/10/2010 4:51:07 AM
Recs: 0

Abbott Enhances Pharmaceutical Pipeline with Acquisition of Facet Biotech -> http://finance.yahoo.com/news/Abbott-Enhances-prnews-347453553.html?x=0&.v=1.

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