LOS ANGELES (CN) - Shareholders claim Abraxis, a biotechnology company, is selling itself too cheaply to Celgene, for $2.9 billion or $58 a share and 0.26 shares of Celgene stock for each Abraxis share. The shareholders claim Abraxis is worth more than $3.5 billion.
Abraxis specializes in cancer drugs. Its most successful drug is Abraxane, for breast cancer. Celgene also makes cancer drugs. The companies announced the merger on June 30.
Shareholders claim the offer undervalues Abraxis and "essentially pay(s) nothing for Abraxis' pipeline drugs."
The shareholders claim Abraxis CEO Patrick Soon-Shiong wants to "cash out all his illiquid holdings and secure a billion-dollar payday." Soon-Shiong owns 82.8 percent of Abraxis' shares, according to the Superior Court complaint.
The class wants the merger rescinded, and a better deal. They are represented by Darren Robbins with Robbins Geller Rudman & Dowd.
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