SAN DIEGO and MORRISVILLE,
N.C., April 28, 2014
/PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP
are investigating the proposed acquisition of Furiex
Pharmaceuticals, Inc. (NASDAQ: FURX) by Forest Laboratories, Inc.
(NYSE: FRX). On April 28, 2014,
Furiex and Forest Labs announced the
signing of a definitive merger agreement pursuant to which Furiex
shareholders will receive $95 in cash
for each share of Furiex common stock and up to $30 per share in a Contingent Value Right ("CVR")
that may be payable based on the pending approval of the
eluxadoline drug.
Is the Proposed Acquisition Best for Furiex and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Furiex is undertaking a fair process to obtain
maximum value and adequately compensate Furiex shareholders.
As an initial matter, the $95
merger consideration represents a premium of just 18.5% based on
Furiex's closing price of $80.15 on
April 25, 2014, assuming no CVR
payout is made. This premium is significantly below the average one
day premium of 64% for comparable transactions in the last year.
Further, at least two analysts have set a target price higher than
both the cash consideration of $95
and the possible full $125 merger
consideration, including the possible CVR payout. Notably, Cowen
and Company has had a target price of $140 since March 12,
2014, and Landenburg Thalmann & Co. has a target price
of $137 since February 4, 2014.
In addition, on March 11, 2014,
Furiex released its financial results for the fourth quarter and
fiscal year 2013, reporting a 75% increase in total revenues from
$30.5 million in 2012 to $71 million in 2013. Royalty revenues also
increased for both the fourth quarter, up 47% from the third
quarter 2013 and for the year, up 27% from 2012.
Given these facts, Robbins Arroyo LLP is examining the Furiex
board of directors' decision to sell the company to Forest Labs. Furiex shareholders have the option
to file a class action lawsuit to ensure the board of directors
obtains the best possible price for shareholders and the disclosure
of material information. Furiex shareholders interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
SOURCE Robbins Arroyo LLP