Robbins Arroyo LLP: Acquisition of Raptor Pharmaceutical Corp. (RPTP) by Horizon Pharma plc (HZNP) May Not Be in Shareholders...
September 12 2016 - 3:46PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Raptor Pharmaceutical
Corp. (NASDAQ: RPTP) by Horizon Pharma plc (NASDAQ: HZNP). On
September 12, 2016, the two companies announced the signing of a
definitive merger agreement pursuant to which Horizon Pharma will
acquire Raptor Pharmaceutical. Under the terms of the agreement,
Raptor Pharmaceutical shareholders will receive $9.00 for each
share of Raptor Pharmaceutical common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/raptor-pharmaceutical-corp
Is the Proposed Acquisition Best for Raptor Pharmaceutical
and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Raptor Pharmaceutical is undertaking a fair process
to obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $9.00 merger consideration represents
a premium of only 21.00% based on Raptor Pharmaceutical's seven day
average closing price for the period ending on September 9, 2016.
This premium is significantly below the average one-week premium of
nearly 53.89% for comparable transactions within the past three
years. Further, the $9.00 merger consideration is significantly
below the target price of $10.00 set by an analyst at FBR Capital
Markets on August 22, 2016. In the last three years, Raptor
Pharmaceutical traded as high as $17.72 on February 20, 2014, and
most recently traded above the merger consideration – at $9.06 – on
September 14, 2015.
On August 4, 2016, Raptor Pharmaceutical reported strong
earnings results for its second quarter 2016. Raptor Pharmaceutical
reported global net product revenue of $32 million for the three
months ended June 30, 2016, a 37.3% increase from the same period
of the prior year. Additionally, Raptor Pharmaceutical has beaten
analyst estimates for revenue in three of the past four consecutive
quarters. In commenting on these results, Raptor Pharmaceutical
President and Chief Executive Officer Julie Anne Smith remarked,
"I’m delighted that we delivered another record quarter for sales…
Based on our outstanding commercial performance, we are pleased to
raise our 2016 revenue guidance. We look forward to continued
growth from both products and supporting patients living with rare
diseases and with limited options."
In light of these facts, Robbins Arroyo LLP is examining Raptor
Pharmaceutical'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.
Raptor Pharmaceutical 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. Raptor Pharmaceutical 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160912006417/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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