Nabi Biopharmaceuticals (NDAQ: NABI) is engaged in the development and marketing of products that target medical conditions in the areas of transplantation, infectious disease, nicotine addiction, and hematology/oncology. The pharmaceutical company has been an activist target for some time now and recent developments have increased the likelihood that something may happen to unlock value for shareholders. As a result, this company is one that is definitely worth putting on the radar.

Nabi recently announced its fourth quarter and full year earnings in its most recent 10-K filing, which it indicated a momentous year culminating with the sale of their biologics business unit in December. This was a move that Third Point pushed for with much gusto in the past. The company also reported positive data on its up-and-coming NicVAX clinical trial, aggressively reduced operating costs and cash utilization rates, initiated a share repurchase program and significantly reduced their debt. Combined, these moves will not only improve the company’s EPS but also increase their growth prospects in the coming quarters.

Nabi also announced that it would explore strategic alternatives on January 22, 2008 amid pressure from Daniel Loeb’s Third Point LLC – one of the most famous activist hedge funds on Wall Street that produces a rumored annualized return of 22%. Recently, DellaCamera joined the cause by initiating a 5.1% stake and supported the decision to explore strategic alternatives, according to a Schedule 13D/A filing with the SEC. Many believe the the successful drug trials and strong pipeline may make this company an attractive buyout target by a larger firm with an aging pipeline.

Nabi now finds itself in a much stronger financial position with a focused pipeline of high value vaccine programs and well-positioned to pursue their strategic alternatives process – their self-proclaimed key financial goal for this year. With Third Point on the board, shareholders can be assured that something will come from this process. Combined, these factors make NABI a stock that is definitely worth watching!

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