Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Retrophin Raises Offer to Acquire Transcept Pharmaceuticals to $4 Per Share

By  +Follow September 19, 2013 8:51AM
Tickers Mentioned:

Retrophin, Inc. (RTRX) is not giving up on its pursuit to acquire the shares of specialty drug maker Transcept Pharmaceuticals, Inc. (TSPT) that it does not already own.  Last week, Retrophin delivered a letter to the board of directors of Transcept offering to buy the remaining shares for $3.50 each in cash.  The offer was rejected. 

To defend itself from a hostile takeover, Transcept has adopted a shareholder rights plan, often called a “poison pill,” which keeps a shareholder from acquiring more than 4.99 percent of the company.

On Wednesday, Retrophin bumped the offer up to $4.00 per share, with Retrophin chief executive Martin Shkreli sending a letter to the board members of Transcept.

Transcept is focused on development of neuroscience drugs with its only FDA approval being the oral sleep aid Intermezzo (zolpidem tartrate).  Purdue Pharma holds commercialization and development right for Intermezzo in the U.S.  Royalty revenue for Transcept from Intermezzo in the first six months of 2013 was $1.0 million, up from $500,000 in the year prior period. 

Net loss for the six months ended June 30, 2013 was approximately $17.2 million, or $0.92 per share, versus a net loss of approximately $10.3 million, or $0.67 per share, for the six months of 2012.

Retrophin has four drugs in its pipeline with RE-021 the only one in the clinical stage, being researched in a mid-stage trial for Focal Segmental Glomerulosclerosis, a disease that can cause nephrotic syndrome in children and kidney failure in adults.  The company’s other compounds are targeting hard-to-treat diseases like Pantothenate Kinase-Associated Neurodegeneration (PKAN) and Duchenne Muscular Dystrophy.

In recent weeks, three major shareholders of Transcept have publicly stated their disapproval of Transcept’s current strategy.  Activist investor Peter Collery of SC Fundamental LLC, which owns a 6.7-percent stake in Transcept, sent a letter to Transcept chief executive, president and director Glenn Oclassen (read the SEC filing) saying that the company needs to use $60 million of its cash to conduct a share repurchase to build value, not pursue “simply wrongheaded,” (but unnamed) projects.

Collery didn’t hold back much in expressing his feelings toward Transept management.  Such as:

“I should note how troubled we are by your presumption that the company’s money is yours to do with as you see fit. You and your fellow directors have a fiduciary duty to company shareholders.”


“I’d like, in closing, also to express my displeasure with the company’s recent grant of nearly 600,000 management stock options with a strike price of $2.93 per share. As described above, the company’s shares may have a current realizable value of $5 or so. Were Transcept to implement a buyback program, that value might rise to $6. Essentially no management skill would be required to realize these values. That the shares trade for less than $3 is a function of shareholders’ distrust of management. It is incredible that management should be granted undervalued stock options as a “reward” for having created that distrust and I would expect that an inquiry into the deliberations surrounding this recent option grant, and particularly, the suitability of the strike price would be quite interesting.”

Roumell Asset Management, LLC, the largest Transcept shareholder at 12.3 percent of the company, has also filed a 13D with the SEC criticizing the management and demanding a share buy-back plan, not an unidentified acquisition.

The new proposal by Retrophin offers to buy Transcept at a 20-percent premium to Tuesday’s closing price.  The price is still lower than the $6 mark that Collery believes can be attained by performing a share repurchase, but this is a little to-may-toes/to-ma-toes because a merged company could benefit similarly, so investors will have to see where the support falls with the new proposal.

“Our proposal represents an attractive premium to Transcept’s trading performance, and we believe that the proposal offers a compelling opportunity for Transcept’s stockholders, particularly in light of Transcept’s risky and controversial acquisition strategy,” stated Martin Shkreli, Chief Executive Officer of Retrophin. “We hope that Transcept’s Board of Directors will respect its stockholders’ wishes and quickly commence discussions with us regarding the proposed transaction.”

Retrophin wants a transaction to be entered into by the end of September.

Shares of TSPT are down about 18 percent in 2013 thanks to a run-up from lows of $2.52 late in August with the acquisition chatter.  At lows, the stock was off about 40 percent.  Shares rose by 8 percent in Wednesday trading to close at $3.59.  In extended trading, shares rose to $3.98.  Retrophin shares edged up about 1 percent on the day to $6.88.  Shares have more than doubled in 2013.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for rtrx
Stock Rocket
27 Mar 15 08:36:31
$THCZ Has Become One Of The Hottest Penny Stocks Of The Year So Far! Check It Out: http://t.co/3wv3AMJ7Ni $RTRX $CPST $TGTX
Mike H
27 Mar 15 07:19:35
Last add to $RTRX short press
Alexander Morris
27 Mar 15 06:43:02
$RTRX: At 1DyHIGH=22.86, hits:1, ch:+3.3%, 3NewHi, 7:3Accel+Dy, tf:1000111, lowFlt:15M, HiPctSht[25%:2d], PrvClGap+[+0.5%,fill:69%]
27 Mar 15 06:00:04
$LUV $RTRX: Why Making Dramatic Moves: Southwest Airlines Co. (NYSE:LUV ...: http://t.co/QDaX4dBEkJ
Russell Barbour
27 Mar 15 03:52:20
http://t.co/xQoCh2lsYk SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
Penny Stockington
27 Mar 15 02:28:58
Our Penny Stock Alerts Have Gained Over 1000% So Far This Year! Big News: http://t.co/Mq9GADvqO5 $RTRX $CPST $TGTX
27 Mar 15 02:20:16
Our Winning Stock Tips Gained Over 680% In The Past 2 Months! Subscribe Today: http://t.co/lLjJU4COQW $RTRX $CPST $TGTX
27 Mar 15 01:45:38
Our Penny Stock Pick On $THCZ Is Up 321.54% In Less Than 6 Weeks! This is Huge: http://t.co/WroUGtaeZF $RTRX $CPST $TGTX
Russell Barbour
26 Mar 15 16:23:07
***REVIEW***: Super Alerts teaching trading service: http://t.co/CZJcFSNjlK $RTRX $CLDN $VSLR $KTWO $SFS $JUNO
Stock Dawgzz
26 Mar 15 13:59:46
Our Penny Stock Newsletter Alert On $RCGP Gained 57% Mid-Day Today! Blog Update: http://t.co/Dk7CzkVjdH $RTRX $CPST $TGTX
Penny Stockington
26 Mar 15 11:43:32
Our Penny Stock Pick On $THCZ Is Up 321.54% In Less Than 6 Weeks! Big News: http://t.co/PqlF5t9PRj $RTRX $CPST $TGTX
26 Mar 15 11:43:06
Our Penny Stock Picks Have Gained Over 1485% In The Past 4 Months! MASSIVE Update: http://t.co/Cu9lMFFRwA $RTRX $CPST $TGTX
26 Mar 15 11:33:14
Our Penny Stock Alerts Gained 600% In 2 Months! Get Our Next Picks Early: http://t.co/tEvkQFqi7N $RTRX $CPST $TGTX
Stock Rocket
26 Mar 15 10:53:58
$THCZ Has Become One Of The Hottest Penny Stocks Of The Year So Far! Check It Out: http://t.co/3wv3AMJ7Ni $RTRX $CPST $TGTX
Penny Stock Secret
26 Mar 15 09:48:28
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/NovWYe2RAx .. $RTRX $CPST $TGTX
26 Mar 15 06:46:05
$ARIA strong volume - buyout news soon??? $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
Penny Stockington
25 Mar 15 21:19:20
Our Penny Stock Newsletter Pick On $THCZ Is Up 310.77% In Less Than 6 Weeks! Huge News: http://t.co/9GpipsMyIy $RTRX $CPST $TGTX
25 Mar 15 20:37:31
Our Stock Tips Gained Over 600% In The Past 2 Months! Special Update: http://t.co/jUh1Sp2QCy $RTRX $CPST $TGTX
Stock Dawgzz
25 Mar 15 19:19:04
Our Penny Stock Picks Gained 7 Times Their Value In less than 3 months! Subscribe Today: http://t.co/4obl4msJC8 $RTRX $CPST $TGTX
Stock Rocket
25 Mar 15 18:04:06
$THCZ Has Become One Of The Hottest Penny Stocks Of The Year So Far! Check It Out: http://t.co/3wv3AN0IEQ $RTRX $CPST $TGTX
25 Mar 15 17:55:58
Our Penny Stock Alerts Gained Over 680% In The Past 2 Months! Special Update: http://t.co/8VP5dUIIVo $RTRX $CPST $TGTX
Capital Market Labs
25 Mar 15 14:24:18
$DRNA, $VNDA, $SPPI, $RTRX, $IMDZ Earnings Trend Comparison http://t.co/TeGd8J6U3A https://t.co/O7J0gCDLXd
25 Mar 15 12:39:52
This Guy Turned $100 Into Over $10,000 In Just 30 Days!!! http://t.co/8WvnrVmkBS .. $RTRX $CPST $TGTX
Dan Rosenblum
25 Mar 15 11:49:36
$RTRX $ONCE didnt get the memo
25 Mar 15 11:47:32
$BBG $CENX $EYES $HK $IG $NPTN $RICE $RTRX $WBAI autocharts @ http://t.co/cLiki3R0GR
Mike H
25 Mar 15 11:40:18
Adding more $RTRX short
25 Mar 15 09:37:42
Our Penny Stock Newsletter Picks Gained Over 400% In The Past 6 Weeks! Blog Update: http://t.co/XXwFnvVyHI $RTRX $CPST $TGTX
Stock Dawgzz
25 Mar 15 09:36:00
After More Big Gains We Have A Huge Penny Stock Pick Coming Later Today! Check It Out: http://t.co/fZabpjL5Cz $RTRX $CPST $TGTX
Stock Rocket
25 Mar 15 09:08:53
We Have Huge New Stock Picks On The Way! Subscribe To Get Them Early: http://t.co/kxZxwiP47B $RTRX $CPST $TGTX
Russell Barbour
25 Mar 15 07:40:47
http://t.co/xQoCh2lsYk SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
25 Mar 15 07:09:07
Will the #SEC look into manipulation of $ARIA stock??? $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
25 Mar 15 07:05:39
The #SEC needs to look into stock manipulation of $CNDO. $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
25 Mar 15 06:56:23
Will the #SEC look into manipulation of $ARIA stock? $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
25 Mar 15 06:54:28
Hahahaha what a lame $ARIA tree shake. Shorts are scared!!! $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
25 Mar 15 06:36:35
An $ARIA buyout now more likely based on #Israel approval $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
Aditya Polsani
25 Mar 15 04:35:23
RT @AndyBiotech: Lawmakers introduce new bill to make permanent rare pediatric dis priority review voucher program http://t.co/MlJ2YQXIuK $…
Penny Stockington
25 Mar 15 03:40:05
Our Penny Stock Pick On $THCZ Gained 229.23% In The Past 5 Weeks! Big News: http://t.co/pdLte5OllX $RTRX $CPST $TGTX
Breaking News
25 Mar 15 03:40:02
$RTRX $ING: Stocks clocking 52-week highs: Retrophin Inc, (NASDAQ:RTRX ...: http://t.co/ky0Y2ZgRVc
Penny Stock Secret
25 Mar 15 03:24:05
Yesterday We Made $94,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $RTRX $CUBA $MKTX
25 Mar 15 03:04:14
Weekly Smallcap #Stocks Performance $GPT $RTRX $ZQK $VTSS $PRTA $CORT $RALY $MHR $OVAS $ACI $BTX $BAS more@ http://t.co/Giravo3fg9
25 Mar 15 02:11:20
Our Penny Stock Alerts Have Gained Over 600% In The Past 2 Months! Special Update: http://t.co/o476cpQAWn $RTRX $CPST $TGTX
Bilo Selhi
24 Mar 15 21:22:33
PHENOMENAL stock trade alerts http://t.co/uAcamNRUPt $CDTI +40% http://t.co/AzWPki9jeI $BONA $RTRX $TNP $DVAX $LPCN $ADXS $EVDY $NHTC $PGNX
24 Mar 15 19:11:21
RT @BargainTrapper: http://t.co/i6I3uSGBAM SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB…
Malia B
24 Mar 15 19:11:20
http://t.co/i6I3uSGBAM SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
RB Options Scans
24 Mar 15 18:56:09
They came after this one again 4820 $RTRX 2015-09-18 $30 calls bot @ 2.1 $1,012,200 140X OI
24 Mar 15 18:51:24
RT @JasonCRG: Wow, looks like $RTRX is now an $800M company
Michael Grattan
24 Mar 15 18:35:13
@Zackfoot: Big thanks to the team at $RTRX for allowing Little Bear & friends to put in best Q1 in 7 yrs. We sold 50% of pos right here ...
Zachary Prensky
24 Mar 15 18:27:11
Big thanks to the team at $RTRX for allowing Little Bear & friends to put in best Q1 in 7 yrs. We sold 50% of pos right here #BigWin
Scott Elliott
24 Mar 15 17:58:52
$RTRX Recent gapper continuing to make new highs http://t.co/MqO8LW7NV2
24 Mar 15 15:07:04
$RTRX: Retrophin Closes Public Offering of 7866000 Shares of Common ...: http://t.co/FQo3beOkIX
By  +Follow September 19, 2013 8:51AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.