SAN DIEGO and ALISO VIEJO, Calif., Dec. 2, 2014 /PRNewswire/ -- Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the
proposed acquisition of Avanir Pharmaceuticals, Inc. (NASDAQ: AVNR)
by Otsuka Pharmaceutical Co., Ltd. On December 2, 2014, the two companies announced the
signing of a definitive merger agreement pursuant to which Otsuka
will acquire Avanir. Under the terms of the agreement, Avanir
shareholders will receive $17.00 for
each share of Avanir common stock they own.
View this information on the law firm's Shareholder Rights
Blog:
www.robbinsarroyo.com/shareholders-rights-blog/avanir-pharmaceuticals-inc
Is the Proposed Acquisition Best for Avanir and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Avanir is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $17.00
merger consideration represents a premium of only 31.4% based on
Avanir's closing price on October 31,
2014. This premium is significantly below the average
one-month premium of nearly 67.8% for comparable transactions
within the past year. Further, the $17.00 merger consideration is significantly
below the target price of $21.00 set
by an analyst at Piper Jaffray on October
14, 2014, and the target price of $20.00 set by an analyst at Cowen and Company on
December 1, 2014.
On August 5, 2014, Avanir released
its earnings results for its third quarter 2014, reporting strong
quarterly earnings. Total net revenues for the third quarter fiscal
2014 were $28.6 million, compared
with $19.8 million for the comparable
quarter in fiscal 2013, representing 45% year-over-year growth.
Total net revenues for the first nine months of fiscal 2014 totaled
$82.3 million, compared with
$53.7 million for the first nine
months of fiscal 2013. In commenting on these results, Avanir
President and Chief Executive Officer Keith
A. Katin remarked, "We had a great quarter across all
aspects of our business. I am delighted with the positive outcome
of our ANDA patent litigation, solid revenue growth of 45%
year-over-year, and the positive interim data from our open label
PRISM II study in PBA and COMPASS clinical trial in migraine. The
future looks very promising as we are in the midst of expanding the
sales force which should further accelerate revenue growth and we
will announce data from our agitation and levodopa-induced
dyskinesia trials later this year."
In light of these facts, Robbins Arroyo LLP is examining
Avanir's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Avanir 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.
Avanir 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
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP