Block & Leviton LLP Investigates Avanir Pharmaceuticals, Inc. for Possible Breaches of Fiduciary Duty in Connection with Their Proposed Acquisition by Otsuka Pharmaceutical Co., Ltd.
BOSTON, Dec. 2, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible breaches of fiduciary duty by the Board of Directors of Avanir Pharmaceuticals, Inc. ("Avanir" or the "Company") (NASDAQ: AVNR) concerning the proposed acquisition of the Company by Otsuka Pharmaceutical Co., Ltd. ("Otsuka"), a Japanese drug company.
Under the terms of the proposed consolidation transactions, shareholders of the Company will receive only $17 per share, representing a premium of just 13% to the previous day's closing price, a premium far below that received in recent similar industry transactions and below the consensus analyst price target of $17.71. The value of the transaction is approximately $3.5 billion. Avanir's stock price has been on an upward trajectory in the previous three months following positive phase II trial results for its Alzheimer's treatment.
The transaction will take place as a tender offer launched within the 10 days of the announcement of the agreement, and is expected to close within the first quarter of 2015. The timing appears to be designed to provide an immediate benefit to Otsuka by beefing up its product pipeline ahead of its looming so-called "patent cliff" after April 2015, when its U.S. patent for schizophrenia drug Abilify expires and opens the way to generic competition. Global sales of Abilify totaled approximately $5 billion in the previous fiscal year, around 40% of Otsuka's total sales. The U.S. is the largest single market for the drug.
Block & Leviton's investigation seeks to determine, among other things, whether directors of the Company breached their fiduciary duties by failing to maximize shareholder value in the potential acquisition and the process by which the directors considered and approved the transaction.
If you are a shareholder of Avanir and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at (617) 398-5600 or email him at [email protected].
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years. This notice may constitute attorney advertising.
Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
[email protected]
(617) 398-5600
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/block--leviton-llp-investigates-avanir-pharmaceuticals-inc-for-possible-breaches-of-fiduciary-duty-in-connection-with-their-proposed-acquisition-by-otsuka-pharmaceutical-co-ltd-300003413.html
SOURCE Block & Leviton LLP
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