Unconventional Capital Wisdom
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Revisiting Idenix: Continues To Have Big Potential With Low Risk/High Reward

In July of last year we wrote a report on Idenix Pharmaceuticals (NASDAQ:IDIX) indicating that a small chance of a potential buyout, at historic HCV takeover multiples, could send Idenix shares at least 146% higher. We liked that at that time the conservative and highly successful investor Seth Klarman's Baupost owned 18.48% of Idenix, the market was pessimistic on IDIX's nucleotide development and that Idenix's management was focusing on the long-term development of all oral pan genotypic treatments for HCV.

Since July, the shares have risen 91% and numerous significant events have occurred and as a result we have modified our thesis. We believe that although a buyout is still not out of the realm of possibility, we...

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