Acquisition of Furiex Pharmaceuticals, Inc. by Forest Laboratories, Inc. May Not Be in Shareholders' Best Interests

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, [email protected], 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
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

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SOURCE Robbins Arroyo LLP

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