Baker Bros. Advisors Ups Stake in Seattle Genetics Inc. (SGEN)

Published May 19, 2014 at 2:14 pm EDT

Baker Bros. Advisors, managed by Julian Baker and Felix Baker, have disclosed raising its stake in Seattle Genetics Inc. (NASDAQ:SGEN). In a new filing with the U.S. Securities and Exchange Commission, Baker Bros. Advisors revealed that it brought the stake to 21.63 million shares, which represent 17.5% of common stock outstanding. In another filing, Baker Bros reported acquiring around 231,100 shares in market transactions and following conversion of stock options.

Felix J. Baker entered into a proceeds agreement with the fund on May 12, 2014, pursuant to the which he agreed that, with respect to the exercised stock options and the common stock received as a result of the exercise of the exercised stock options, the fund will have dispositive power as well as the ability to control the timing of exercise of the exercised stock options and that any proceeds from the sale of the common stock will be remitted to the fund net of brokerage commissions. Other than through their control of the fund, Baker and Julian C. Baker have neither voting nor dispositive power and have no direct pecuniary interest in the exercised stock options or the common stock.

Aside from Baker Bros, Jim Simons‘ Renaissance Technologies is another hedge fund bullish on Seattle Genetics. According to the fund’s latest 13F filing, Renaissance currently owns around 268,700 shares of the company, up by 142,700 shares in comparison to the previous filing. On the other hand, Israel Englander‘s Millennium Management significantly cut its stake in the company, by over 70%, to some 42,200 shares.

Baker Bros. Advisors focuses mainly on biotechnology companies. At the beginning of the year, the fund decreased its stake in MEI Pharma Inc (NASDAQ:MEIP) to 746,521 shares from 1,130,317 shares revealed as held earlier.

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