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Bioverativ Inc. (BIVV) Is Too Rich For My Blood But Activist Jeff Ubben Likes It

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Bioverativ Inc. (NASDAQ:BIVV) was spun off by Biogen (BIIB) about a month ago at a valuation of about $4.7 billion. The shares quickly appreciated and the company is now valued at $5.7 billion. Its two drugs brought in about $850 in sales in 2016. So, Biogen’s hemophilia unit is now valued at 7 times sales. I like spinoffs but I like value stocks more. I don’t think Bioverativ Inc. is a value investment at this valuation.

Jeff Ubben’s Valueact Capital doesn’t agree with me. I should note that Valueact is one of my favorite hedge funds and it has a solid track record. It was successful in turning around Microsoft, an elusive target for other activist hedge fund managers like David Einhorn and Curtis Macnguyen. Ubben has more than $400 million riding on Bioverativ Inc. at the moment and increased its stake by more than 400K shares over the past few weeks.

The details of this transaction can be seen below:

VALUEACT CAPITAL

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
S.S. OR 0 0 8,132,880 8,132,880 7.5%
S.S. OR 0 0 8,132,880 8,132,880 7.5%
S.S. OR 0 0 8,132,880 8,132,880 7.5%
S.S. OR 0 0 8,132,880 8,132,880 7.5%
S.S. OR 0 0 8,132,880 8,132,880 7.5%
S.S. OR 0 0 8,132,880 8,132,880 7.5%

Page 1 of 11 – SEC Filing

=============================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities and Exchange Act of 1934

(Amendment No. 1)

Bioverativ Inc.
————————————————
(Name of Issuer)

Common Stock
————————————————
(Title of Class of Securities)

09075E100
————————————————
(CUSIP Number)

Allison Bennington, Esq.
ValueAct Capital
One Letterman Drive, Building D, Fourth Floor
San Francisco, CA 94129
(415) 362-3700
————————————————
(Name, address and telephone number of Person
Authorized to Receive Notices and Communications)

Allison Bennington, Esq.
ValueAct Capital
One Letterman Drive, Building D, Fourth Floor
San Francisco, CA 94129
(415) 362-3700

February 28, 2017
————————————————
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].

Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person’s
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

This information required on the remainder of this cover page shall not be
deemed to be “filed” for the purpose of Section 18 of the Securities Exchange
Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
=============================================================================

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