SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Furiex Pharmaceuticals (NASDAQ:FURX) breached their fiduciary duties in connection with the proposed buyout of the company by Forest Laboratories, Inc.
If you are a Furiex shareholder and would like additional information, please contact Johnson & Weaver’s lead analyst Jim Baker at firstname.lastname@example.org or 619-814-4471.
On April 28, 2014, Furiex and Forest Laboratories entered into a merger agreement. Under the transaction terms, Furiex shareholders will receive $95 per share, or approximately $1.1 billion in cash, and up to $30 per share (approximately $360 million in aggregate) in a Contingent Value Right (CVR) that may be payable based on the FDA status of eluxadoline. Furiex’s drug, eluxadoline, is used for treating symptoms of diarrhea-predominant irritable bowel syndrome.
Additionally, Forest announced that it has entered into an agreement with Royalty Pharma to sell Furiex’s royalties on alogliptin and Priligy® to Royalty Pharma for approximately $415 million. This deal will close upon completion of Forest’s acquisition of Furiex. Furiex’s shareholders will not receive the proceeds from this transaction.
Johnson & Weaver, a nationally recognized shareholder rights firm, is investigating whether Furiex’s board of directors agreed to sell the company for an inadequate price. The firm is also investigating whether the company’s directors adequately considered alternatives to the proposed merger, including continuing on as an independent company or pursuing a deal with another company. “Furiex prospects are substantial,” explained Johnson & Weaver attorney, Scott Holleman. “As a result, we’re concerned that the deal is not in the best interest of the shareholders. Furthermore, one analyst has a $140 price target for the stock.”
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.