Seth Klarman Purchases 18% Stake in Targacept

Seth Klarman Purchases 18% Stake in Targacept

In a 13-D just filled with the SEC, Baupost has disclosed a 9% stake in Targacept. What is very unusual is that Seth Klarman personally also bought a 9% stake as well. After years of following Seth Klarman’s Baupost, we have never seen him buy a personal stake in a company.

This is a usual Klarman buy, an esoteric bio-tech company, which is hard to value or understand.

Below is a brief description:

Targacept, Inc., a biopharmaceutical company, engages in the design, discovery, and development of novel Neuronal Nicotinic Receptors (NNR) Therapeutics for the treatment of diseases and disorders of the nervous system. Its lead program, TC-5214, a nicotinic channel modulator, is in Phase 3 clinical trials as an adjunct treatment for major depressive disorder (MDD) and in Phase 2b clinical trial for switch monotherapy in patients with MDD. The company?s novel small molecule product candidates under Phase 2 clinical development include TC-5619 for treating negative symptoms and cognitive dysfunction in schizophrenia, attention deficit/hyperactivity disorder, and Alzheimer?s disease; AZD3480 as a treatment for mild to moderate Alzheimer?s disease; AZD1446 as a treatment for Alzheimer?s disease; and TC-6987 for the treatment of inflammatory disorders, including asthma and Type 2 diabetes. It has a collaborative research and license agreement with AstraZeneca AB for the development and commercialization of AZD3480, TC-5214, and TC-5619; and a product development and commercialization agreement with SmithKline Beecham Corporation to discover, develop, and market product candidates that selectively target specified NNR subtypes in specified therapeutic focus areas. The company was founded in 1997 and is based in Winston-Salem, North Carolina.

The company has a market cap of $200million.

More details to follow.

Full filling-


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  • Ili

    Dear Arbguy, I wonder when the Tronox stock that Seth Klarman purchased:
    was bought ? It’s no shown in the Q4 2011 SEC filling, but on this report, it’s only written that the filling was submited on 10 Feb 2012, but the stock amount was some 1.3 m as of 31 12 2011, then why it;s not in q4 filling of Baupost? Could you help please.

  • Arbguy

    Jacob I believe you missed a couple of points here.  First of all, the filing was an amended 13-G filing, not a 13-D.  Secondly, Klarman is listed as a beneficial owner due to his ownership interests in Baupost management company.  Thus Klarman didn’t personally purchase these  6MM shares, they are owned by several funds which Baupost manages and since Klarman owns the majority of the management company, he is listed as a beneficial owner.