Hyperion Therapeutics, Inc.
Robbins Arroyo LLP: Acquisition of Hyperion Therapeutics, Inc. (HPTX) by Horizon Pharma plc (HZNP) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Hyperion Therapeutics, Inc. (NASDAQ: HPTX) by Horizon Pharma plc (NASDAQ: HZNP). On March 30, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Horizon will acquire Hyperion. Under the terms of the agreement, Hyperion shareholders will receive $46.00 in cash for each share of Hyperion common stock.
Is the Proposed Acquisition Best for Hyperion Therapeutics, Inc. and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Hyperion is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $46.00 merger consideration represents a premium of only 7.6% based on Hyperion’s closing price on March 27, 2015. This premium is significantly below the average one day premium of nearly 67.8% for comparable transactions within the past year. In addition, the $46.00 merger consideration is significantly below the $52.00 target price set by an analyst at Wedbush on March 23, 2015, the $51.00 target price set by an analyst at Brean Capital LLC on March 25, 2015, and the $50.00 target price set by an analyst at Roth Capital Partners on March 18, 2015.
On February 26, 2015, Hyperion reported strong quarterly earnings results for its fourth quarter and full year 2014. Hyperion reported net product revenue from sales for the fourth quarter fiscal 2014 of $30.8 million, compared with $18.6 million for the comparable quarter in fiscal 2013, representing a 65% increase. Also, Hyperion reported adjusted net income of $10.3 million, or $0.47 per diluted share, for the three months ended December 31, 2014, compared to adjusted net earnings of $4.1 million, or $0.19 per diluted share, for the same period of 2013. In commenting on these results, Hyperion President and Chief Executive Officer Donald J. Santel remarked, “2014 was another momentous year of growth for us as we continued to make great inroads toward increasing the number of UCD patients treated with RAVICTI. We have delivered strong quarter over quarter financial results, and importantly, we have contributed to the body of knowledge regarding the optimal treatment of UCDs via publication of data from our clinical trials.”
In light of these facts, Robbins Arroyo LLP is examining Hyperion’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.
Hyperion 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.
Hyperion shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.