SAN DIEGO, Feb. 11, 2014 /PRNewswire/ -- Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the
proposed acquisition of Cadence Pharmaceuticals, Inc. (NASDAQ:
CADX) by Mallinckrodt plc (NYSE:
MNK). On February 11, 2014, the
two companies announced the signing of a definitive agreement
pursuant to which a subsidiary of Mallinckrodt will commence a tender offer to
acquire all outstanding shares of Cadence stock for $14.00 per share in cash.
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Is the Proposed Merger Best for Cadence and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Cadence is undertaking a fair process to obtain
maximum value and adequately compensate Cadence shareholders.
As an initial matter, the $14.00
merger consideration represents a premium to shareholders of just
26.5% based on Cadence's closing price on February 10, 2014. This one day premium is
significantly below the average one day premium of over 36% for
comparable transactions in the last three years. Further, the
merger consideration is below the target price of $15.00 set by analysts at Guggenheim Securities,
LLC and Wedbush, Inc.
In addition, on November 5, 2013,
Cadence released its financial results for the third quarter ended
September 30, 2013, reporting
impressive increases in net product revenue, gross margin on sales
of OFIRMEV, and the number of unique end-user customer accounts
that ordered OFIRMEV. Specifically, Cadence reported that its
net product revenue increased 109%, or $15.1
million, over the comparable quarter 2012. Cadence
further reported that the number of unique end-user customer
accounts that ordered OFIRMEV increased 33% for the quarter while
the gross margin on sales of OFRIMEV rose to 66% compared with 56%
for the same period in 2012. In commenting on the these results,
Cadence's President and Chief Executive Officer, Ted Schroeder, remarked, "We maintained our
strong performance during the third quarter, with OFIRMEV
continuing to gain market share and posting year-over-year sales
growth of more than 100% in each quarter of 2013."
Given these facts, Robbins Arroyo LLP is examining the Cadence
board of directors' decision to sell the company to Mallinckrodt now rather than allow shareholders to
continue to participate in the company's continued success and
future growth prospects.
Cadence 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. Cadence shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, 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
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP