Company says that it would consider a higher offer.
Alpharma says no to King Pharmaceuticals’ $1.4 billion acquisition proposal. The firm is, however, willing to entertain a higher offer.
Alpharma said that King made prior offers to buy out the company at the rate of $33 per share. At both times as well as with the current publicly announced unsolicited bid, Alpharma’s board has decided that this amount does not reflect the company’s inherent value.
Alpharma is not for sale but would consider seriously any bona fide proposal that reflects the fair value of the firm, wrote Dean J. Mitchell, president and CEO, in his letter to King’s chairman, president, and CEO, Brian A. Markison.
Mitchell also reported in his letter that King declined to enter a confidentiality agreement with Alpharma that would give it access to nonpublic information. Mitchell believes that such data would demonstrate that $33.00 per share significantly undervalues Alpharma.
Alpharma has an animal health and a pharmaceutical business. In February, the company submitted an NDA for Embeda™, a pharmacological abuse-deterrent, extended-release morphine product.
“We also believe there are a number of near-term events surrounding Embeda that will drive increased value for our shareholders in addition to the potential value of the rest of our pipeline,” Mitchell pointed out in the letter. “We are currently in a phase of investment for the company, which we are confident will create significant value for our shareholders and do not believe is reflected in your proposal.”