Faruqi & Faruqi, LLP, a leading New York securities firm, is investigating the Board of Directors of Abraxis BioSciences Inc. (“Abraxis” or the “Company”) (NasdaqGS: ABII) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Celgene Corporation ("Celgene") (NasdaqGS: CELG). Under the terms of the transaction, Abraxis shareholders will only receive $58 in cash and 0.2617 shares of Celgene stock for each Abraxis share they own. The transaction has an upfront value of $2.9 billion. Abraxis shareholders will also receive one tradeable Contingent Value Right (CVR), which entitles its holder to receive payments for future regulatory milestones and commercial royalties. Based on the prior closing price of Celgene shares, the transaction values Abraxis stock at approximately $71.93 per share.
The investigation focuses on whether the sales process leading up to the transaction was adequate and fair and whether the transaction undervalues the Company to the detriment of Abraxis shareholders. In particular, Abraxis earned $110.8 million in the first three months of 2010, compared to $72.6 million in the first three months of 2009. Furthermore, Abraxis’ drug, ABRAXANE
, is expected to earn $1 billion by 2015 upon its approval to treat other cancers. One analyst describes ABRAXANE
as an asset "with significant unrealized upside opportunity."
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If you own common stock in Abraxis and wish to obtain additional information, please visit us at
or contact Juan E. Monteverde, Esq. either via email at
or by telephone at (877) 247-4292 or (212) 983-9330.
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