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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
TRANSKARYOTIC THERAPIES, INC.
-----------------------------
(Name of Issuer)
COMMON STOCK, PAR VALUE $.01 PER SHARE
--------------------------------------
(Title of Class of Securities)
893735-10-0
-----------
(CUSIP Number)
DR. ANDREAS BREMER
GRAFENAUWEG 4, 6301 ZUG CH/SWITZERLAND
011-41-41-724-5959
------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copy to:
Daniel L. Goelzer, Esq.
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006
JUNE 11, 1997
-------------
(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 which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box [ ].
Check the following box if a fee is being paid with the statement [ ].
(A fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent or less of
such class.) (See Rule 13d-7.)
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Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
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CUSIP No. 053762-10-0
- ---------------------
- --------------------------------------------------------------------------------
(1) Name of Reporting Persons
Biotech Target S.A.
S.S. or I.R.S. Identification No. of Above Persons
Not applicable : Foreign Corporation
- --------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) [ ]
of a Group* (b) [x]
- --------------------------------------------------------------------------------
(3) SEC Use Only
- --------------------------------------------------------------------------------
(4) Source of Funds*
AF
- --------------------------------------------------------------------------------
(5) Check box if disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Panama
- --------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned 0 by Biotech Target S.A.
by Each Reporting
Person With -------------------------------------
(8) Shared Voting Power
2,182,000 by Biotech Target,
S.A.(See Item 5)
-------------------------------------
(9) Sole Dispositive Power
0 by Biotech Target S.A.
-------------------------------------
(10) Shared Dispositive Power
2,182,000 by Biotech Target,
S.A.(See Item 5)
- --------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,000 shares of common stock, par value of $.01 per share
(See Item 5)
- --------------------------------------------------------------------------------
(12) Check Box if the Aggregate Amount in Row (9)
Excludes Certain Shares* [ ]
- --------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (9)
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11.9%
- --------------------------------------------------------------------------------
(14) Type of Reporting Person*
CO
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CUSIP No. 053762-10-0
- ---------------------
- --------------------------------------------------------------------------------
(1) Name of Reporting Persons
BB Biotech AG
S.S. or I.R.S. Identification No. of Above Persons
Not applicable: Foreign Corporation
- --------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) [ ]
of a Group* (b) [x]
- --------------------------------------------------------------------------------
(3) SEC Use Only
- --------------------------------------------------------------------------------
(4) Source of Funds*
AF
- --------------------------------------------------------------------------------
(5) Check box if disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
Switzerland
- --------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned 0 by BB Biotech AG
by Each Reporting
Person With -------------------------------------
(8) Shared Voting Power
2,182,000 by BB Biotech AG
(See Item 5)
-------------------------------------
(9) Sole Dispositive Power
0 by BB Biotech AG
-------------------------------------
(10) Shared Dispositive Power
2,182,000 by BB Biotech AG
(See Item 5)
- --------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,000 shares of common stock, par value of $.01 per share
(See Item 5)
- --------------------------------------------------------------------------------
(12) Check Box if the Aggregate Amount in Row (9)
Excludes Certain Shares* [ ]
- --------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (9)
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11.9%
- --------------------------------------------------------------------------------
(14) Type of Reporting Person*
HC, CO
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EXPLANATORY NOTE
On February 21, 1997, BB Biotech AG ("BB Biotech"), a Swiss
corporation, and Biotech Target S.A., a Panamanian corporation ("Biotech
Target") filed a Schedule 13G with the Securities and Exchange Commission to
disclose Biotech Target's beneficial ownership of 7.8 percent of the
outstanding shares of common stock, $.01 par value per share (the "Common
Stock") of Transkaryotic Therapies, Inc., a Delaware corporation ("TKT"). This
disclosure statement on Schedule 13D relates to the acquisition of an
additional 882,000 shares of Common Stock, for an aggregate consideration of
$24,709,575, as disclosed by Exhibit 5 which is attached hereto.
ITEM 1. SECURITY AND ISSUER
This statement relates to the Common Stock of TKT. TKT's principal
executive offices are located at 195 Albany Street, Cambridge MA 02139.
ITEM 2. IDENTITY AND BACKGROUND
This statement is filed jointly by BB Biotech AG and Biotech Target.
Biotech Target is a wholly-owned subsidiary of BB Biotech.
BB Biotech is a holding company incorporated in Switzerland. BB
Biotech's business address is Vordergasse 3, 8200 Schaffhausen, CH/Switzerland.
BB Biotech invests in companies involved in the development, production, and
distribution of pharmaceuticals and other products based on biotechnology. BB
Biotech is publicly traded on the Zurich Stock Exchange.
Biotech Target is a wholly-owned subsidiary of BB Biotech
incorporated in the Republic of Panama. Biotech Target's business address is
Swiss Bank Tower, Panama 1, Republic of Panama. The principal business of
Biotech Target is to invest in companies in the biotechnology sector.
The name, business address, present principal occupation, and
citizenship of each executive officer and director of BB Biotech and Biotech
Target are set forth on Appendix A hereto, which is incorporated herein by
reference.
During the last five (5) years, neither BB Biotech nor Biotech Target,
nor to the best of their knowledge, any of their executive officers or
directors, has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) or has been a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction as a result of
which he was or is subject to a judgment, decree or final order enjoining
future violations
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of, or prohibiting or mandating activities subject to, federal or state
securities laws or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Biotech Target purchased 882,000 shares of Common Stock Common Stock
for an aggregate consideration of $24,709,575. Biotech Target used capital to
purchase the shares of TKT Common Stock, which, in turn, was working capital
supplied by BB Biotech. BB Biotech is publicly traded on the Zurich Stock
Exchange, and its shareholders are both private and institutional investors.
ITEM 4. PURPOSE OF TRANSACTION
The shares of Common Stock are being held for investment purposes
only. However, Biotech Target may, from time to time, either increase or
decrease its holdings of the Common Stock, subject to applicable laws and
limitations contained in the Agreement. Any such decision will depend,
however, on numerous factors, including, without limitation, the market price
of shares of the Common Stock, the terms and conditions related to their
purchase and sale, the prospects and profitability of TKT, other business and
investment alternatives of Biotech Target and general economic and market
conditions.
It is Biotech Target's general policy not to interfere with the
management of companies in which it holds portfolio investments. Neither
Biotech Target nor BB Biotech have an intention to influence or direct TKT's
affairs, modify its corporate structure or interfere with the business
decisions of its management. Except as set forth above, neither Biotech Target
nor BB Biotech, nor to the best knowledge of such persons, any executive
officer or director of either BB Biotech or Biotech Target, has any plans or
proposals which relate to or would result in: (a) the acquisition by any
person of additional securities of TKT or the disposition of securities of TKT;
(b) an extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving TKT; (c) a sale or transfer or a material amount of
assets of TKT; (d) any change in the present board of directors or management
of TKT, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board; (e) any material
change in the present capitalization or dividend policy of TKT; (f) any other
material change in TKT's business or corporate structure; (g) changes in TKT's
charter, bylaws or instruments corresponding thereto or other actions which may
impede the acquisition of control of TKT by any person; (h) causing a class of
securities of TKT to be delisted from a national securities exchange or to
cease to be authorized to be quoted in an interdealer quotation system of a
registered national securities association; (i) a class of equity securities
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<PAGE> 9
of TKT to become eligible for termination of registration pursuant to Section
12(g)(4) of the Securities Exchange Act of 1934 ("Exchange Act"); or (j) any
action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) BB Biotech may be deemed to be the indirect beneficial owner
of the 2,182,000 shares of Common Stock held directly by Biotech Target as of
September 23, 1997, which represents approximately 18.08% of TKT's outstanding
shares of Common Stock. None of the shares of TKT Common Stock held by Biotech
Target are directly owned by BB Biotech. To the best knowledge of BB Biotech
and Biotech Target, no director or executive officer of BB Biotech or Biotech
Target owns any shares of TKT Common Stock.
(b) The number of shares of TKT Common Stock to which there is sole
power to vote or to direct the vote, shared power to vote or to direct the
vote, sole power to dispose or to direct the disposition, or shared power to
dispose or direct the disposition, is set forth in the cover pages hereof and
such information is incorporated herein by reference. BB Biotech, through its
ownership of Biotech Target, may be deemed to beneficially own the shares of
TKT Common Stock within the meaning of Regulation 13D under the Exchange Act,
and may be deemed to share with Biotech Target the power to vote, or direct the
vote of, and the power to dispose of or direct the disposition of, the
aggregate 2,182,000 shares of TKT Common Stock held by Biotech Target. BB
Biotech hereby expressly declares that the filing of this statement shall not
be construed as an admission that it is, for purposes of Section 13(d) of the
Exchange Act, the beneficial owner of the shares of TKT Common Stock held by
Biotech Target.
(c) A summary of the transactions completed by Biotech Target with
respect to the Common Stock of TKT is attached hereto as
Exhibit 5.
(d) Not applicable.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS
WITH RESPECT TO SECURITIES OF THE ISSUER
Neither BB Biotech nor Biotech Target nor, to the best of their
knowledge, any of the executive officers or directors of either BB Biotech or
Biotech Target, is a party to any contract, arrangement, understanding, or
relationship (legal or otherwise) with any person with respect to any
securities of TKT (including the shares of Common Stock), finder's fees, joint
ventures, loan or option arrangements, puts or calls, guarantees of profits,
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<PAGE> 10
divisions of profits or loss, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit 1: Translation of minutes of the October 18, 1995, Board of
Directors Meeting of Biotech Target (evidencing a power of
attorney in favor of Dr. Andreas Bremer).*
Exhibit 2: Translation of minutes of the January 3, 1997 Board of
Directors Meeting of Biotech Target (evidencing a power of
attorney in favor of Dr. Anders Hove).*
Exhibit 3: Translation of evidence of a power of attorney in favor of
Victor Bischoff and Hans-Joerg Graf on behalf of BB Biotech.**
Exhibit 4: Agreement by and between BB Biotech and Biotech Target with
respect to the filing of this disclosure statement.
Exhibit 5: Summary of the transactions completed by Biotech Target with
respect to the Common Stock of TKT from April 10, 1997 to
September 2, 1997.
- ----------------
* See Powers of Attorney, attached as Exhibits 1 and 2 to the Schedule 13D
related to Alexion Pharmaceuticals, Inc. filed with the Securities and Exchange
Commission on September 18, 1997, which Exhibit is incorporated by reference
herein.
** See Power of Attorney, attached as an Exhibit 99.E to the Schedule 13D
relating to Biogen, Inc. filed with the Securities and Exchange Commission on
June 2, 1994, which Exhibit is incorporated by reference herein.
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<PAGE> 11
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
BB BIOTECH AG
Date: October 16, 1997 By: /s/ Hans-Joerg Graf
-------------------------
Name: Hans-Joerg Graf
Date: October 16, 1997 By: /s/ Dr. Victor Bischoff
-------------------------
Name: Dr. Victor Bischoff
BIOTECH TARGET, S.A.
Date: October 16, 1997 By: /s/ Dr. Andreas Bremer
-------------------------
Name: Dr. Andreas Bremer
Date: October 16, 1997 By: /s/ Dr. Anders Hove
-------------------------
Name: Dr. Anders Hove
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<PAGE> 12
APPENDIX A TO ITEM 2
<TABLE>
<CAPTION>
PRESENT
NAME AND POSITION RESIDENCE OR PRINCIPAL
WITH COMPANY BUSINESS ADDRESS OCCUPATION
- ------------ ---------------- ----------
<S> <C> <C>
BB BIOTECH
Dr. Ernst Thomke Vordergasse 3, Chairman
(Swiss citizen) 8200 Schaffhausen, and Director
CH/Switzerland
Dr. Victor Bischoff Vordergasse 3, Vice-
(Swiss citizen) 8200 Schaffhausen, Chairman
CH/Switzerland and Director
Dr. David Baltimore Rockefeller University Professor
(U.S. citizen) 1239 York Avenue and Director
New York, NY 19921
BIOTECH TARGET
Dr. Andreas Bremer Grafenauweg 4, signatory
(German citizen) 6301 Zug authority
CH/Switzerland
Dr. Anders Hove Grafenauweg 4, signatory
(Danish citizen) 6301 Zug authority
CH/Switzerland
Hans-Joerg Graf Grafenauweg 4, signatory
(Swiss citizen) 6301 Zug authority
CH/Switzerland
Pablo Javier Espino Swiss Bank Tower, President
(Panamanian citizen) Panama 1, and Director
Republic of Panama
Adelina M. de Estribi Swiss Bank Tower, Director
(Panamanian citizen) Panama 1,
Republic of Panama
</TABLE>
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<PAGE> 13
EXHIBIT 4
JOINT FILING AGREEMENT
We, the undersigned, hereby express our agreement that the attached
Schedule 13D (including all amendments thereto) is filed on behalf of each of
the undersigned.
Date: October 16, 1997
BB BIOTECH AG
By: /s/ Hans-Joerg Graf
--------------------------
Name: Hans-Joerg Graf
By: /s/ Dr. Victor Bischoff
--------------------------
Name: Dr. Victor Bischoff
BIOTECH TARGET, S.A.
By: /s/ Dr. Andreas Bremer
--------------------------
Name: Dr. Andreas Bremer
By: /s/ Dr. Anders Hove
--------------------------
Name: Dr. Anders Hove
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<PAGE> 14
EXHIBIT 5
Summary of the transactions completed by Biotech Target with respect
to the Common Stock of TKT from April 10, 1997 to September 2, 1997.
Each of the listed transactions, unless otherwise noted, was completed
on the open market.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENT
TYPE OF TRANSACTION, NUMBER, CLASS AND PRICE BENEFICIALLY TOTAL SHARES OF OUTSTANDING
DATE OF SHARES OWNED SHARES OUTSTANDING OWNED
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
April 10, 1997 Purchase by Biotech 1,310,000 16,649,460 7.88%
Target of 10,000 shares of shares of
Common Stock at an average price per share of Common
$20.50. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
May 2, 1997 Purchase by Biotech 1,360,000 16,649,460 8.17%
Target of 50,000 shares of shares of
Common Stock at an average price per share of Common
$14.29. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
May 7, 1997 Purchase by Biotech 1,375,000 16,649,460 8.26%
Target of 15,000 shares of shares of
Common Stock at an average price per share of Common
$16.81. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
May 8, 1997 Purchase by Biotech 1,395,000 16,649,460 8.38%
Target of 20,000 shares of shares of
Common Stock at an average price per share of Common
$17.12. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
May 13, 1997 Purchase by Biotech 1,405,000 16,649,460 8.44%
Target of 10,000 shares of shares of
Common Stock at an average price per share of Common
$18.30. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
May 12, 1997 Purchase by Biotech 1,417,000 16,649,460 8.51%
Target of 12,500 shares of shares of
Common Stock at an average price per share of Common
$17.90. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
May 16, 1997 Purchase by Biotech 1,447,500 16,664,400 8.67%
Target of 30,000 shares of shares of
Common Stock at an average price per share of Common
$19.80. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENT
TYPE OF TRANSACTION, NUMBER, CLASS AND PRICE BENEFICIALLY TOTAL SHARES OF OUTSTANDING
DATE OF SHARES OWNED SHARES OUTSTANDING OWNED
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
May 27, 1997 Purchase by Biotech 1,450,000 16,664,400 8.70%
Target of 2,500 shares of shares of
Common Stock at an average price per share of Common
$20.43. Stock
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May 28, 1997 Purchase by Biotech 1,460,000 16,664,400 8.76%
Target of 10,000 shares of shares of
Common Stock at an average price per share of Common
$20.80. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 11, 1997 Purchase by Biotech 1,505,000 16,664,400 9.03%
Target of 45,000 shares of shares of
Common Stock at an average price per share of Common
$23.53. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 12, 1997 Purchase by Biotech 1,565,000 16,664,400 9.39%
Target of 60,000 shares of shares of
Common Stock at an average price per share of Common
$24.00. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 18, 1997 Purchase by Biotech 1,595,000 16,664,400 9.57%
Target of 30,000 shares of shares of
Common Stock at an average price per share of Common
$23.63. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 20, 1997 Purchase by Biotech 1,607,500 16,664,400 9.65%
Target of 12,500 shares of shares of
Common Stock at an average price per share of Common
$24.00. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 23, 1997 Purchase by Biotech 1,612,500 1,664,400 9.68%
Target of 5000 shares of shares of
Common Stock at an average price per share of Common
$24.00. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 27, 1997 Purchase by Biotech 1,617,000 16,664,400 9.71%
Target of 5,000 shares of shares of
Common Stock at an average price per share of Common
$29.63. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 1997 Purchase by Biotech 1,632,500 16,664,400 9.80%
Target of 15,000 shares of shares of
Common Stock at an average price per share of Common
$29.13. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENT
TYPE OF TRANSACTION, NUMBER, CLASS AND PRICE BENEFICIALLY TOTAL SHARES OF OUTSTANDING
DATE OF SHARES OWNED SHARES OUTSTANDING OWNED
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
June 30, 1997 Purchase by Biotech 1,677,500 16,664,400 10.07%
Target of 45,000 shares of shares of
Common Stock at an average price per share of Common
$29.63. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
August 4, 1997 Purchase by Biotech 2,177,500 16,664,400 13.07%
Target of 500,000 shares of shares of
Common Stock at an average price per share of Common
$32.50, pursuant to a private placement. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
September 4, 1997 Purchase by Biotech 2,180,000 18,395,854 11.90%
Target of 2,500 shares of shares of
Common Stock at an average price per share of Common
$31.00. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
September 2, 1997 Purchase by Biotech 2,182,500 18,395,854 11.86%
Target of 2,000 shares of shares of
Common Stock at an average price per share of Common
$31.00. Stock
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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