Robbins LLP: Acquisition of Durata Therapeutics, Inc. (DRTX) by Actavis plc (ACT) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Durata Therapeutics, Inc. (NASDAQ: DRTX) by Actavis plc (NYSE: ACT). On October 6, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which Actavis will commence a tender offer to acquire all of the outstanding shares of Durata common stock for $23.00 per share in cash and contingent value rights to receive additional cash payments of up to $5.00 per share if certain regulatory or commercial milestones related to Durata’s lead product DALVANCE are achieved.
Is the Proposed Acquisition Best for Durata and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Durata is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, on August 7, 2014, Durata released its second quarter 2014 financial results in which the company reiterated its transformation from a development company to a commercial pharma company following the U.S. Food and Drug Administration’s approval of its principal product DALVANCE on May 23, 2014. Following FDA approval, Durata began distributing DALVANCE in the United States and entered into a licensing and supply agreement with a European pharmaceutical company worth up to $85.1 million.
In light of these facts, Robbins LLP is examining Durata’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Durata 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.
Durata shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
