That was George Farmer, senior biotech ANALyst at Cannacord, who slashed his PT to 10 back in 2010, and then again when SGEN hit the 20's. He's been pretty quiet since.
It's all conjecture and since they are not beneficial owners of 5% they don't have to file the forms that will tell us exactly. I believe it is a very reasonable assumption that even though their quarter ending holdings on Dec 31 and filed yesterday indicate they have sold some shares, I would guess they also exercised an amount of warrants after the 31st which brought their holdings back up to 4.99%. This assumption is based on the fact that the 341k and some odd shares is exactly 4.99% of the new shares being offered under the recent prospectus which they have indicated an interest in acquiring.
After the close where their request is filled they would continue to be 4.99% owners and obtain a very bullish interest in 2+M more prefunded warrants at 4. The cost of further investment keeps increasing yet they are still buying. It's what they do when they believe in a company. They are still buying SGEN at prices 40x greater than when they first began. When the time is right they will be 19.99% owners upon exercise of the warrants but that's a few years down the road and a much higher stock price.
Your not reading that form correctly. It's a 13G amendment. They have 45 days from year end to amend their holdings on companies which they own more than 5 %. They actually sold some shares and brought their ownership level down. There are reams of 13G amendments being filed now as funds took some year end profits.
Didn't we gat rid of you when " 10 is 10". LOL. I guess now that we are at 51 you think people will be so delusional to want your investment ideas. I'm with Red, I think Maui is your other alias. Small time swing trader, nothing more , nothing less.
I'm sure Julien and Felix are just devastated especially since their largest holding Seattle Genetics, of which they own well over 20M shares made them gains of well over 100M on this very same day. Of course these are only paper gains and losses you'll are obsessing over.
They started accumulating SGEN way back when it was just a low single digit startup with a promising future. Thing is they are still not selling and bought more in the mid 40's a couple weeks ago. Sound familiar, they are in for the long term on most everything they own. Are they perfect, no, but they are damn good but do your own DD.
why anyone would have been down about SGEN after the PR and conf call. Sure there may not have been some blockbuster announcement but it was clear that this company has a strategy and is getting it done. 30 Adcetris trials underway. Some potentially big results coming from the pipeline. It was clear that this year was going to be a time where SGEN had a lot to report on. I'm very interested to read about the multiple CR's with 19 in the NHL study during a Ph 1 dose escalation trial. Can't wait to hear about 33 and the new PBD smart bomb. This is clearly a biotech that has it's act together and if there is going to be another start up that makes it to a MKT Cap of 25B, why not this one. I always thought that when we get the second pipeline drug in line behind Adcetris is when this would take off, but I guess we don't have to wait that long.
Even the Adcetris worldwide sales are great for the limited current indications and from Takeda's report their sales team is making great strides in a very short time frame without many countries on board yet. While I wish we had exclusive rights, Sgen cut a deal they had to make and actually the royalty payouts ranging from the high teens to mid twenties is not bad with Takeda picking up a huge chunk of the developement costs.
While I wasn't expecting a day like today, This company is getting noticed and we are in for a ride.
Is this a short squeeze, I don't know. We don't have the usual cast of charachters with inane ID's bashing away. Or is this the big boys simply unwinding their hedge after realizing this company has it together and it's time to let it ride.
Good luck all
The Vanguard Group has upped their stake in SG to become a beneficial owner of more than 5%. If my calculation is correct they added approx 444k+ new shares to their huge portfolio. They now own 5.31% of SGEN stock.
The timing of the executive promotions, many of which are sales related, seems a bit odd unless the sales numbers have exceeded expectations.
Or it could just be nothing
Does it mean that ? Millennium is a 4.4 % owner now but they were a 5.1% owner in December. My reading is that this is an amended 13G filing which is required within 45 days of year end if there is any change in a 5% owner.
While it does appear that Mill. Did dispose of about 50k shares, the reason for the drop from 5.1 to 4.4% is that the outstanding shares are increased.
While the offering is closed and the shares are now in someone's hands, I don't read this filing to mean that Mill. Is the buyer . They may have bought more or not, we just don't know yet. This is an end of year 13G amendment.
It tells me that since the Company initiated the steps to convert that it was more advantageous to the company to get out from under the preferred shares as they typically convey a higher obligation based on earnings or priority to assets. I wouldn't think that too many investors in the common stock such as the Bakers would want to see some other group with more rights than their shares convey.
Also since Pillars 1m or so shares of preferred is convertable into over 6m shares of common, this secondary offering minus the shares the Bakers took to remain at 4.99% seems to be an additional amount that would keep Pillar at their 19.99% ownership level. While the 6m or so converted shares does give Pillar more flexibility to cash in on their investment , a right we all have. I see this as a good move by the company to attract more institutional investment without being burdened by one particular institutions potential undue control over the companies direction.
The Bakers are long term buyers and holders and the fact they are throwing in an additional 10+m dollars behind IDRA without upsetting the balance of ownership is a good thing.
I was referring to idra and that is in the companies SEC filing this afternoon. Without going back myself to look they had conveyed an intent to buy approx 350k shares of the offering, which would have returned them to exactly 4.99% ownership! as well more than 2M of pre funded warrants. If you want to read it go to sec Edgar site and put idra in the Cik search. I believe the other 6.5m shares in the offering are not only to raise cash but to keep their other large investor Pillar at 19.99% ownership as the company elected to convert their preferred stock to 6+m of common by February 9th.
And when you buy back in with your 100 shares I'm sure you'll be paraphrasing some goofy analyst with a strong buy. So predictable which side of the trade your on.
With two secondary offerings on the same day Halo and Idra. Wasn't so concerned with Halo as I'm in at half the secondary offering price. Not so with IDRA but was relieved to see it pretty fairly priced this morning so I went in pretty big for a bit under the secondary pricing. Turns out the Baker Bros are picking up another large chunk via common and pre funded warrants. It won't surprise me to see them taking another large stake in Halo this go round as that appears to be the way they operate. We will be back on the rise shortly.
Do I have this right ? These warrants for 2M plus shares are completely paid for at 4 dollars per share and the company has full access to those funds, yet since the warrants aren't excercised for a penny per share it does not affect a companies ownership % whereby the company while getting the benefit of much appreciated cash does not give up control of operations to an outside group. And if I'm correct, wouldn't this allow other interested institutions to feel more comfortable investing in a company that isn't unduly influenced by outside forces other than their own. This investment indication by the Bakers seem very bullish to me.
I fully expect another 4.99 % owner + warrants to be revealed in the upcoming days.
My guess Baille Gifford, or Blackrock.
The prospectus has their ownership of outstanding shares at 4.99%. If all warrants were exercised it would be much higher than that. Pillar and BB would own 80% of the company. But if my reading is correct, they are prohibited from exercising any warrants above the 4.99% ownership level of outstanding shares unless giving 60 days notice requesting a higher ownership level.
I'm leaving warrants out and only looking at outstanding common.
They are taking 5% of the shares being offered now as that will maintain their 5% ownership interest in the outstanding common. I don't see why they would go higher as they have boatloads of warrants they could petition to exercise at some future date.
Pillars preferred stock is being converted to over 6 million shares of common by the 9th. Unless over 6M shares of common were issued now, Pillars ownership interest would jump up much higher than the 19.99% they currently own and I don't get the impression that mgmt or maybe even the BB want them to have much more influence on the co. than that. They already have appointed 2 Bd members.
That is just my take as I try to fit the info in the prospectus with this offering and the odd number of common shares the BB took.
so it seems like the Baker Bros are looking to maintain their 5% ownership level by taking 5% of the offering. That leaves about 6.5M still to go. It appears that these additional shares had to be offered due to the conversion of Pillar Investments conversion of preferred stock which is supposed to take place before the 9th. The sale of these additional shares will keep Pillars ownership at 19.99% upon conversion and buttress our cash position.
At least that is my take from the prospectus.
Adcetris was by far Takeda's biggest % sales increase for the 9 month period ending 12/31/13 as cpmpared to the same 9 mos ending 2012. Adcetris sales were up 243.7% over that time frame, and this was primarily just on sales in Europe. Japan and Singapore just approved in January, and I think Australia. Approval filings are still pending in such markets as China, Taiwan, Thailand, Israel, Israel, Argentina, Hong Kong.
If my conversion of the yen is correct, Takeda made almost all of that 100M sales milestone in the last 9 months of 2013.
Not a bad start for a drug whose indications are just beginning to grow.