Robbins Umeda LLP Announces An Investigation Of The Acquisition Of Abraxis BioScience Inc. By Celgene Corporation
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors of Abraxis BioScience Inc. ("Abraxis" or the "Company") (NASDAQ:ABII) in connection with their actions in causing Abraxis to enter into a definitive merger agreement to be acquired by Celgene Corporation ("Celgene") (NASDAQ:CELG). If the transaction is completed, Abraxis shareholders will receive $58.00 in cash and 0.2617 shares of Celgene common stock for each share of Abraxis they hold, for an implied value of approximately $71.93 per Abraxis share. Each share will also receive one tradeable Contingent Value Right, which entitles its holder to receive payments for future regulatory milestones and commercial royalties. If approved, the transaction is expected to close in the fourth quarter of 2010.
Robbins Umeda LLP's investigation concerns whether the Board of Directors of Abraxis undertook a fair process to obtain fair consideration for all shareholders of Abraxis. Notably, Abraxis has developed a drug, Abraxane, which has shown very positive response rate data in non-small cell lung cancer. According to WedBush Securities analyst Michael King, Jr., Abraxane should generate nearly $400 million in revenue in 2010. This analyst also stated, "Abraxane has also shown intriguing activity in pancreatic cancer and melanoma, two very difficult to treat tumor types. Should these trials read out positively, Abraxane would open up important new markets for itself." Despite this promising drug, the Company's fiduciaries are attempting to sell Abraxis at a premium of only 17.32%.
If you are a shareholder of Abraxis, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.
Robbins Umeda LLP is a California-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please go to http://www.robbinsumeda.com.Advertisement
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