Rigrodsky & Long, P.A. Investigates Abraxis BioScience Inc. Buyout
Rigrodsky & Long, P.A. announces that it is investigating potential claims against the board of directors of Abraxis BioScience Inc. (“Abraxis BioScience” or the “Company”) (Nasdaq: ABII) concerning possible breaches of fiduciary duty and other violations of law related to the Company’s entry into an agreement to be acquired by Celgene Corporation (“Celgene”) (Nasdaq: CELG) in a transaction valued at approximately $2.9 billion, net of cash. ( http://www.rigrodskylong.com/news/AbraxisBioScience-ABII).
Under the proposed agreement, each share of Abraxis BioScience common stock will be converted into the right to receive an upfront payment of $58.00 in cash and 0.2617 shares of Celgene common stock. Each share will also receive one tradeable Contingent Value Right (CVR), which entitles its holder to receive payments for future regulatory milestones and commercial royalties. The investigation concerns whether Abraxis BioScience’s board of directors failed to adequately shop the Company and obtain the best price possible for Abraxis BioScience’s shareholders before entering into the agreement with Celgene.
As recent as May 6, 2010, the Company reported its first quarter 2010 financial results wherein Abraxis BioScience reported net revenue for the first quarter of 2010 was $110.8 million compared with $72.6 million for the first quarter of 2009 and ABRAXANE ® revenue for the first quarter of 2010 increased to $87.9 million compared with $70.1 million for the first quarter of 2009. Indeed, Company Vice Chairman and CEO, Bruce Wendel commented: “Abraxis continues to achieve significant research and development, commercial and operations milestones. Our recently reported data in non-small cell lung cancer and pancreatic cancer combined with our broad line up for the American Society of Clinical Oncology Annual Meeting (ASCO) lay the groundwork for great progress in 2010[.] We anticipate our clinical activities and continued global expansion to generate additional value for shareholders.”
If you own the common stock of Abraxis BioScience and purchased your shares before June 30, 2010, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Seth D. Rigrodsky, Esquire or Noah R. Wortman, Case Development Director, of Rigrodsky & Long, P.A., 919 N. Market Street, Suite 980, Wilmington, Delaware, by telephone at (888) 969-4242, or by e-mail to firstname.lastname@example.org.Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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