Robbins Arroyo LLP: Acquisition of Raptor Pharmaceutical Corp. (RPTP) by Horizon Pharma plc (HZNP) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is 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.
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 Pharmaceuticals 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, or you can complete the form below and we will contact you directly.
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