market folly

Seth Klarman's investment firm Baupost Group has filed an amended 13D with the SEC regarding shares of Keryx Biopharmaceuticals (KERX).  Per the filing, Baupost now has ownership of 42.53% of Keryx with over 59.21 million shares.

The filing was made due to activity on May 27th.  At the end of the first quarter, Baupost previously disclosed a position of only 25.79 million shares.

In the purpose of transaction section of the 13D, Baupost notes that:

"On May 27, 2016, the Issuer announced that at the Issuer’s Annual Meeting of Stockholders held on May 25, 2016 its stockholders approved an amendment to the Issuer’s Certificate of Incorporation to increase its authorized share capital by 50,000,000 shares of Common Stock. As a result of the increase in the authorized share capital, the Notes became convertible only into shares of the Issuer’s Common Stock. Based on the initial conversion rate, the $125 million aggregate principal amount of Notes is now convertible into 33,422,459 shares of Common Stock."

For more from this firm, we've highlighted previous Baupost Group portfolio activity here.

Per Google Finance, Keryx Biopharmaceuticals "is a biopharmaceutical company. The Company is focused on the development of products for the treatment of renal diseases. The Company's product Auryxia (ferric citrate), also known as Riona in Japan and Fexeric in Europe, is an oral, absorbable iron-based compound, which is indicated for the control of serum phosphorus levels in patients with chronic kidney disease (CKD), on dialysis. The Company operates through the products segment. Auryxia can bind to phosphate in the gastrointestinal tract and form non-absorbable complexes to reduce intestinal absorption and aid in the management of hyperphosphatemia in patients with CKD. The adverse events for Auryxia treated patients were gastrointestinal-related, including diarrhea, nausea, constipation, vomiting and cough. The Company focuses on Keryx Patient Plus program to assist with patient accessibility to Auryxia. ."