sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. )(1)
Axonyx Inc.
--------------------------------------------------------------------------------
(Name of issuer)
Common Stock, Par Value $0.001
--------------------------------------------------------------------------------
(Title of class of securities)
05461R101
--------------------------------------------------------------------------------
(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
PARK AVENUE TOWER
65 EAST 55TH STREET
New York, New York 10022
(212) 451-2300
--------------------------------------------------------------------------------
(Name, address and telephone number of person
authorized to receive notices and communications)
April 26, 2006
--------------------------------------------------------------------------------
(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 that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box /X/.
NOTE. The Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. SEE Rule 13d-7(b) for
other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 14 Pages)
--------
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, SEE the
NOTES).
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 2 of 14 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
William S. Fagan
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO, PF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 3,045,940 shares
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,045,940 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
3,045,940 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 3 of 14 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Fagan Capital, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,148,823 shares
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,148,823 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,148,823 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 4 of 14 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Laura A. Fagan
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,060,511 shares
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,060,511 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,060,511 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 5 of 14 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
James Dvorak
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 112,397 shares
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
112,397 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
112,397 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 6 of 14 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Lucrum Partners, LP
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 73,765 shares
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
73,765 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
73,765 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 7 of 14 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Lucrum Capital Management, LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 73,765 shares
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
73,765 shares
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
73,765 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 8 of 14 Pages
---------------------- ----------------------
The following constitutes the initial Schedule 13D filed by the undersigned
(the "Schedule 13D").
Item 1. SECURITY AND ISSUER.
This Schedule 13D relates to the shares of common stock, par value
$0.001 (the "Common Stock") of Axonyx Inc. (the "Issuer"). The address of the
principal executive offices of the Issuer is 500 Seventh Avenue, 10th Floor, New
York, New York 10018.
Item 2. IDENTITY AND BACKGROUND.
(a) (b) (c) and (f) This Schedule 13D is jointly filed by William S.
Fagan, Fagan Capital, Inc. ("Fagan Capital"), Laura A. Fagan, James Dvorak,
Lucrum Partners, LP ("Lucrum Partners") and Lucrum Capital Management, LLC
("Lucrum Management")(collectively, the "Reporting Persons"). The principal
business address of each Reporting Person is 5201 N. O'Connor Blvd., Suite 440,
Irving, Texas 75039.
Fagan Capital is a Texas corporation. The principal business of Fagan
Capital is private investment consulting and investing its own capital.
William S. Fagan is a citizen of the United States of America. Mr.
Fagan's principal occupation is serving as the President and sole director of
Fagan Capital.
Laura A. Fagan is a citizen of the United States of America. Mrs. Fagan
serves as a part-time controller for Fagan Capital, but does not otherwise have
a principal occupation.
James Dvorak is a citizen of the United States of America. The
principal occupation of Mr. Dvorak is serving as an employee of Fagan Capital
and also as the managing member of Lucrum Management.
Lucrum Management is a Delaware limited liability company. The
principal business of Lucrum Management is acting as the General Partner of
Lucrum Partners.
Lucrum Partners is a Delaware limited partnership. The principal
business of Lucrum Partners is investing in securities.
Because of each Reporting Person's relationship with Fagan Capital or
any of its affiliates, the Reporting Persons may be deemed a "group" for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.
Each of the Reporting Persons, however, disclaims beneficial ownership of the
shares of Common Stock beneficially owned by the other Reporting Persons, except
to the extent of his, her or its pecuniary interest therein.
(d) and (e) During the last five years, none of the Reporting Persons
has been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors). In addition, during the last five years, none of the
Reporting Persons has been a party to a civil proceeding of any judicial or
administrative body of competent jurisdiction as a result of which he, she or it
was or is subject to a judgment, decree, or final order enjoining future
violations 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.
The table below shows the amounts and sources of funds used by each of
the Reporting Persons to acquire the shares beneficially owned by them.
--------------------------------- ------------------------- -----------------------------
REPORTING PERSON AMOUNT OF FUNDS SOURCE
--------------------------------- ------------------------- -----------------------------
William S. Fagan $4,819,519* Personal Funds and Other
--------------------------------- ------------------------- -----------------------------
Fagan Capital $1,951,536 Other
--------------------------------- ------------------------- -----------------------------
Laura A. Fagan $3,168,547 Personal Funds
--------------------------------- ------------------------- -----------------------------
James Dvorak $156,451** Personal Funds and Other
--------------------------------- ------------------------- -----------------------------
Lucrum Partners $106,038 Working Capital
--------------------------------- ------------------------- -----------------------------
Lucrum Management $106,038*** Other
--------------------------------- ------------------------- -----------------------------
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 9 of 14 Pages
---------------------- ----------------------
---------------
* Consists of (a) $2,867,983 of personal funds of Mr. Fagan used to
purchase shares held directly by Mr. Fagan, and (b) $1,951,536 of
working capital of the record holder of the shares reported herein as
beneficially owned by Fagan Capital pursuant to the Management
Agreement (defined in Item 5) which may be deemed to be beneficially
owned by Mr. Fagan by virtue of his relationship with Fagan Capital.
** Consists of (a) $50,413 of personal funds of Mr. Dvorak used to
purchase shares held directly by Mr. Dvorak, and (b) $106,038 of
working capital of Lucrum Partners used to purchase shares held
directly by Lucrum Partners and which may be deemed to be beneficially
owned by Mr. Dvorak by virtue of his relationship with Lucrum Partners.
*** Consists of $106,038 of working capital of Lucrum Partners used to
purchase shares held directly by Lucrum Partners and which may be
deemed to be beneficially owned by Lucrum Management by virtue of its
relationship with Lucrum Partners.
Item 4. PURPOSE OF TRANSACTION.
The Reporting Persons purchased the Common Stock based on the Reporting
Persons' belief that the Common Stock, when purchased, was undervalued and
represented an attractive investment opportunity. Depending upon overall market
conditions, other investment opportunities available to the Reporting Persons,
and the availability of Common Stock at prices that would make the purchase of
additional Common Stock desirable, the Reporting Persons may endeavor to
increase their position in the Issuer through, among other things, the purchase
of Common Stock on the open market or in private transactions or otherwise, on
such terms and at such times as the Reporting Persons may deem advisable.
The Reporting Persons intend to contact the Board of Directors and
management of the Issuer concerning the Issuer's operations, pipeline of
products, research and development efforts, capital structure and financial
results. The Reporting Persons presently believe that the Issuer's current
pipeline holds great potential value and that the Issuer's Common Stock is
substantially undervalued. The Reporting Persons presently believe the Issuer
should focus on: (a) completing out-licensing arrangements for its late-stage
drug Phenserine, and (b) moving its other key drugs Posiphen and BNC through
Phase II trials, and (c) communicating more effectively with shareholders, all
in an effort to cause its stock price to more accurately reflect its inherent
value. The Reporting Persons believe that the Issuer should not issue any Common
Stock or equity-linked securities in connection with any acquisitions or
in-licensing, until the Common Stock price is more reflective of its inherent
value. In the meantime, the Reporting Persons also believe the Issuer should
strongly consider an aggressive buy back program for the Issuer's Common Stock
as long as the Common Stock is substantially undervalued.
No Reporting Person has any present plan or proposal which would relate
to or result in any of the matters set forth in subparagraphs (a) - (j) of Item
4 of Schedule 13D except as set forth herein or such as would occur upon
completion of any of the actions discussed above. The Reporting Persons intend
to review their investment in the Issuer on a continuing basis and engage in
discussions with management and the Board of Directors of the Issuer concerning
the business, operations and future plans of the Issuer. Depending on various
factors including, without limitation, the Issuer's financial position and
investment strategy, the price levels of the Common Stock, conditions in the
securities markets and general economic and industry conditions, the Reporting
Persons may in the future take such actions with respect to their investment in
the Issuer as they deem appropriate including, without limitation, seeking Board
representation, making proposals to the Issuer concerning changes to the
capitalization, ownership structure or operations of the Issuer, purchasing
additional Common Stock, selling some or all of their Common Stock, engaging in
short selling of or any hedging or similar transaction with respect to the
Common Stock or changing their intention with respect to any and all matters
referred to in Item 4.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As of the date of this Schedule 13D, William S. Fagan, Laura A.
Fagan and Fagan Capital may each be deemed to be the beneficial owner of
3,045,940, 2,060,511 and 1,148,823 shares of Common Stock, respectively,
constituting approximately 5.7%, 3.8% and 2.1%, respectively, of the 53,680,721
shares of Common Stock outstanding as of March 15, 2006, as reported in the
Issuer's Annual Report on Form 10-K for the year ended December 31, 2005 (the
"Outstanding Shares") and filed with the Securities and Exchange Commission on
March 16, 2006.
As of the date of this Schedule 13D, James Dvorak, Lucrum Partners and
Lucrum Management may each be deemed to be the beneficial owner of 112,397,
73,765 and 73,765 shares of Common Stock, respectively, each constituting less
than one percent of the Outstanding Shares.
Each of the Reporting Persons disclaims beneficial ownership of the
shares held by the other Reporting Persons, except to the extent of his, her or
its pecuniary interest therein.
(b) William S. Fagan is the beneficial owner of 3,045,940 shares of
Common Stock, constituting approximately 5.7% of the Outstanding Shares,
consisting of 1,148,823 shares of Common Stock beneficially owned by Fagan
Capital and 1,897,117 shares owned directly by Mr. Fagan. Mr. Fagan has the sole
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 10 of 14 Pages
---------------------- ----------------------
power to vote and to dispose of the 1,148,823 shares of Common Stock
beneficially owned by Fagan Capital by virtue of his position with Fagan
Capital. Fagan Capital is a party to a management agreement with a customer (the
"Client") for which Fagan Capital provides investment advisory services that is
the record holder of the 1,148,823 shares reported as beneficially owned by
Fagan Capital (the "Management Agreement"). The Management Agreement provides
that Fagan Capital has the right to make investment and voting decisions with
respect to the shares purchased by Fagan Capital on the Client's behalf.
Accordingly, Mr. Fagan and Fagan Capital have sole voting and dispositive power
with respect to the 1,148,823 shares of Common Stock of the Issuer reported as
beneficially owned by Fagan Capital. Mr. Fagan also has the sole power to vote
and to dispose of the 1,897,117 shares of Common Stock he directly owns. Mr.
Fagan's beneficial ownership reported herein does not include shares of Common
Stock held by Laura A. Fagan, spouse of Mr. Fagan.
Laura A. Fagan has the sole power to vote and to dispose of 2,060,511
shares of Common Stock, constituting approximately 3.8% of the Outstanding
Shares. Mrs. Fagan's beneficial ownership reported herein does not include
shares of Common Stock held by William S. Fagan, spouse of Mrs. Fagan.
Lucrum Partners is the beneficial owner of 73,765 shares of Common
Stock, constituting less than one percent of the Outstanding Shares. As the
General Partner of Lucrum Partners, Lucrum Management may be deemed to
beneficially own the 73,765 shares owned by Lucrum Partners. As the Managing
Member of Lucrum Management, which in turn is the General Partner of Lucrum
Partners, Mr. Dvorak may be deemed to beneficially own the 73,765 Shares owned
by Lucrum Partners. Mr. Dvorak has the sole power to vote and to dispose of the
73,765 shares of Common Stock owned by Lucrum Partners by virtue of his position
with Lucrum Management. Mr. Dvorak also has the sole power to vote and to
dispose of an additional 38,632 shares of Common Stock which, together with the
shares of Common Stock owned by Lucrum Partners, constitutes less than one
percent of the Outstanding Shares.
For purposes of clarification, the Reporting Persons beneficially own
an aggregate of 5,218,848 shares of Common Stock, constituting approximately
9.7% of the Outstanding Shares. This reflects direct ownership as follows:
James Dvorak 38,632 shares
Lucrum Partners 73,765 shares
Lucrum Management -
Client of Fagan Capital 1,148,823 shares
William S. Fagan 1,897,117 shares
Laura A. Fagan 2,060,511 shares
Total direct ownership of Reporting Persons 5,218,848 shares
(c) Schedule A annexed hereto lists the transactions effected by each
of the Reporting Persons during the past 60 days. All the transactions were
effected in the open market.
(d) Pursuant to the Management Agreement, the Client which is the
record holder of the 1,148,823 shares of Common Stock beneficially owned by
Fagan Capital and Mr. Fagan has the right to receive and the power to direct the
receipt of dividends from, or the proceeds from the sale of, such shares.
(e) Not Applicable
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER.
The Client is presently a party to certain equity swap arrangements
(the "Swap Arrangements") with Morgan Stanley & Co. Incorporated as
counterparty. Pursuant to these Swap Arrangements, the Client has agreed to pay
to or receive from such counterparty, an amount of cash equal to the change in
price on a total of 2,642,285 shares of Common Stock. The Swap Arrangements
require cash settlement. The Client has no right to physical settlement. Neither
the Client nor any of the Reporting Persons has voting or dispositive power with
respect to any Common Stock, if any, that may be actually owned by Morgan
Stanley to hedge its position in the Swap Arrangements.
Other than the Swap Arrangements and the Management Agreement, there
are no contracts, arrangements, understandings or relationships among the
Reporting Persons, or between the Reporting Persons and any other person, with
respect to the securities of the Issuer.
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 11 of 14 Pages
---------------------- ----------------------
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 - Agreement to File Joint Schedule 13D, dated April 26, 2006.
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 12 of 14 Pages
---------------------- ----------------------
[SIGNATURE PAGE TO THE SCHEDULE 13D]
SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: April 26, 2006
Fagan Capital, Inc.
By: /s/ William S. Fagan
-------------------------
Name: William S. Fagan
Title: President
/s/ William S. Fagan
-----------------------------
William S. Fagan
/s/ Laura A. Fagan
-----------------------------
Laura A. Fagan
/s/ James Dvorak
-----------------------------
James Dvorak
Lucrum Partners, LP
By: Lucrum Capital Management, LLC,
its General Partner
By: /s/ James Dvorak
--------------------------
Name: James Dvorak
Title: Managing Member
Lucrum Capital Management, LLC
By: /s/ James Dvorak
--------------------------
Name: James Dvorak
Title: Managing Member
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 13 of 14 Pages
---------------------- ----------------------
SCHEDULE A
TRANSACTIONS IN THE SHARES OF COMMON STOCK DURING THE PAST 60 DAYS
WILLIAM S. FAGAN
--------------------------------------------------------------------------------
Shares of Common Stock
Purchased/(sold) Price Per Share ($) Date of Purchase/(sale)
---------------- ------------------- -----------------------
--------------------------------------------------------------------------------
(25,200) 1.21 (3/21/06)
--------------------------------------------------------------------------------
(9,968) 1.20 (3/22/06)
--------------------------------------------------------------------------------
FAGAN CAPITAL, INC.
--------------------------------------------------------------------------------
Shares of Common Stock
Purchased/(sold) Price Per Share ($) Date of Purchase/(sale)
---------------- ------------------- -----------------------
--------------------------------------------------------------------------------
(50,190) 1.21 (3/21/06)
--------------------------------------------------------------------------------
(19,852) 1.21 (3/22/06)
--------------------------------------------------------------------------------
LAURA A. FAGAN
--------------------------------------------------------------------------------
Shares of Common Stock
Purchased/(sold) Price Per Share ($) Date of Purchase/(sale)
---------------- ------------------- -----------------------
--------------------------------------------------------------------------------
(27,282) 1.21 (3/21/06)
--------------------------------------------------------------------------------
(10,790) 1.20 (3/22/06)
--------------------------------------------------------------------------------
LUCRUM PARTNERS, LP
--------------------------------------------------------------------------------
Shares of Common Stock
Purchased/(sold) Price Per Share ($) Date of Purchase/(sale)
---------------- ------------------- -----------------------
--------------------------------------------------------------------------------
(1,458) 1.21 (3/21/06)
--------------------------------------------------------------------------------
(577) 1.20 (3/22/06)
--------------------------------------------------------------------------------
---------------------- ----------------------
CUSIP No. 05461R101 13D Page 14 of 14 Pages
---------------------- ----------------------
EXHIBIT 1
AGREEMENT TO FILE JOINT SCHEDULE 13D
Pursuant to Rule 13d-1(k)(1) promulgated under the Securities Exchange
Act of 1934, as amended, the undersigned hereby agree that only one statement
containing the information required on this Schedule 13D, and all amendments
thereto, need be filed with respect to beneficial ownership by each of the
undersigned of the shares of common stock of Axonyx Inc., and that such
statement shall be filed on behalf of each of them.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.
Dated: April 26, 2006
Fagan Capital, Inc.
By: /s/ William S. Fagan
-------------------------
Name: William S. Fagan
Title: President
/s/ William S. Fagan
-----------------------------
William S. Fagan
/s/ Laura A. Fagan
-----------------------------
Laura A. Fagan
/s/ James Dvorak
-----------------------------
James Dvorak
Lucrum Partners, LP
By: Lucrum Capital Management, LLC,
its General Partner
By: /s/ James Dvorak
--------------------------
Name: James Dvorak
Title: Managing Member
Lucrum Capital Management, LLC
By: /s/ James Dvorak
--------------------------
Name: James Dvorak
Title: Managing Member