Activist investor Robert Chapman is betting big on
Nabi Biopharmaceuticals
(NDAQ:NABI) while pressuring the company to implement a three step plan
aimed at maximizing shareholder value. Chapman's hedge fund revealed a
9.4 percent stake in the company with several large purchases made
throughout the month of July. Investors are carefully watching this
situation as any successful initiative to maximize shareholder value
could pay some large dividends!
Chapman's proposed plan would
involve three steps: (1) Pursuing an FDA approval of Nabi's BLA for
Nabi-HB Intravenous, (2) distributing the proceeds from a sale of Nabi
Biologistics to shareholders, and (3) partnering/licensing Nabi's
vaccine pipeline. Recently, the company announced that it the second of
two planned strategic business units while eliminating 5 percent of its
workforce (resulting in a $3.3 million annual savings). Widespread
shareholder support and pressure ensure that the restructuring will
continue on schedule.
"These and other actions recently taken by
the company are designed to facilitate our strategic alternatives and
partnership process that maximize the value of Nabi and our pipeline,"
said CEO Leslie Hudson.
Robert Chapman was also satisfied,
commenting, "Unlike many of our activist targets, Nabi is not yet
worthy of our disdain or disgust. The company has taken the necessary
steps to prepare for its restructuring and recapitalization. Nabi has
bifurcated itself into two strategic business units that facilitate the
successful completion of its strategic alternatives process being
overseen by Bank of America Securities, and has committed to reduce
further its cost structure and cash burn. These developments give
Chapman Capital confidence that Nabi CEO Leslie Hudson is a man of his
word, with that word being "execution" and not the formerly insuperable
one of "vision" (talk)."
In the end, shareholders will have to
wait to see whether or not this turnaround is successful. However,
given the involvement of such large and successful activist investors
along with support of the company itself, NABI is certainly a
stock to watch during the next few months!
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