SAN DIEGO, Calif. and NES-ZIONA, Israel, April 24, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of PROLOR Biotech, Inc. (NYSE MKT: PBTH) by OPKO Health, Inc. (NYSE: OPK). On April 24, 2013, PROLOR and OPKO announced the signing of a definitive merger agreement whereby PROLOR shareholders will receive 0.9951 shares of OPKO common stock for each share of PROLOR common stock owned, a value of approximately $7.00 per PROLOR share. The transaction is expected to close during the second half of 2013.
The Board of Director's Actions May Prevent PROLOR Shareholders from Receiving Maximum Value for Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board of directors at PROLOR is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves. Notably, Dr. Philip Frost is both Chairman of the Board of PROLOR and CEO and the Chairman of OPKO. Given this fact, the firm is investigating whether the merger was motivated by conflicts of interest in light of Dr. Frost's significant position in both companies.
Is the Acquisition Best for PROLOR and Its Shareholders?
Moreover, PROLOR is currently in the process of developing multiple products, all of which could lead to be very financially successful for the company. Specifically, PROLOR's Human Growth Hormone, used for the long-term treatment of children and adults with growth failure, is scheduled for Phase III trials and has a claimed potential market opportunity of $3 billion. Further, PROLOR also has two products currently in Phase I testing, both of which have claimed potential market opportunities of $2 billion: GLP-1, used in the treatment for Type II Diabetes which is believed to have a dramatically better weight-loss profile than GLP-1 therapies currently available, and Factor VIIa and Factor IX, both used in the treatment of Hemophilia.
The firm is examining the board of directors' decision to sell PROLOR now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
PROLOR shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner. PROLOR shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/prolor-biotech-inc/
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SOURCE Robbins Arroyo LLP