A quick note to close out my adventures with Facet Biotech. Abbott purchased Facet today for $27 a share. I sold out last year at $17 for just under a three bagger. I thought Biogen had their tendrils in so deep with their partnering that no other offers would come.

Seth Klarman cleaned up, that extra $10 translates to an extra $35M for Baupost. Though on a percentage return basis I believe I did considerably better. It’s just a shame that percent returns don’t buy ski holidays to NZ! While I made over $10 a share, $20 would have been even nicer.

I was going to write about Biogen’s low ball $355 million, $14.50, offer for Facet, but this article by Ransdell Pierson at Reuters says it all. Biogen are playing a smart game and while they’re trying to steal Facet’s drug assets for a pittance, around $50M after cash, it is a win win for everyone, except maybe Facet’s management and board. The share price is now above the offer price, but I won’t be selling, as I see good odds of a higher offer. It’s very unlikely, but my perfect scenario …

What gives at Facet Biotech? Q1 Transcript, Chapman, leases and pipeline.

Seth Klarman reported on the 8th April than Baupost Group / SAK Corporation have upped their stake in Facet Biotech to 17.80%. Klarman then amended the filing on 27 April with The Reporting Persons intend to discuss with the management and board of directors of the Issuer potential changes to the composition of the board of Issuer, as well as aspects of its business, operations, governance, strategy, capitalization, ownership and future plans of the Issuer.

Facet Biotech has been on a tear, up almost 43% since I first posted. Q1 2009 results are now out and the company is in slightly better shape than I anticipated. Cash burn has been reduced, they are more focused and are progressing their oncology compounds.

I got up very early today so I could shuffle some deck chairs around on the Titanic, otherwise known as my portfolio. FWIW which is zero, I sold half of my largest position

I had assumed Klarman would quickly sell his holding in Facet for two reasons. In his ironically over valued classic Margin of Safety he highlighted the initial downwards share price path of spin-offs due to institutional selling creating a temporary supply-demand imbalance. I also thought he might be a tad gun shy of speculative biotech after his recent ACUS debacle. However, according to this recent filing Klarman has indeed upped his stake to 3,985,567 shares or 16.68% of Facet.