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Santarus, Inc. And Salix Pharmaceuticals, Ltd. Merger May Not Be In Santarus, Inc. Shareholders' Best Interests

SAN DIEGO, Nov. 8, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Santarus, Inc. (NASDAQ: SNTS) by Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP).  Santarus and Salix announced the signing of a definitive merger agreement pursuant to which Salix will acquire Santarus.  Under the terms of the agreement, holders of Santarus will receive $32.00 in cash for each share owned.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Merger Best for Santarus and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Santarus is undertaking a fair process to obtain maximum value and adequately compensate Santarus shareholders in the merger.  Notably, Santarus is currently experiencing success and growth in its business prospects, as indicated in its November 7, 2013 press release announcing the company's financial results for its third quarter 2013.  In particular, Santarus reported substantial increases in:

  • Total revenue growth of 81% to $98.8 million, compared to 54.7% million for the same quarter 2012;
  • Net income growth of 236% to $30.3 million, compared to $9.0 million for the same quarter 2012; and
  • Cash, cash equivalents, and short-term investments growth of 78% to $168.7 million as of September 30, 2013, compared with $94.7 million at December 31, 2012.

Additionally, the officers and directors, who collectively own 12% of the outstanding shares of the company, have agreed to vote in favor of the merger and vote against any alternative transaction. 

Given these facts, Robbins Arroyo LLP is examining the Santarus board of directors' decision to sell the company to Salix now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.

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