Retrophin pulls out of deal to acquire Transcept Pharmaceuticals

USA-based Retrophin (OTCQB:RTRX) says it has withdrawn its unsolicited offer to acquire all the shares of Transcept Pharmaceuticals (Nasdaq: TSPT) for $4.00 per share in cash, an improved offer on its original $3.50 bid (The Pharma Letter September 20), noting that it is no longer a shareholder of Transcept, shares of which fell 7.8% to $3.30 on the news.

Martin Shkreli, founder and chief executive of Retrophin, stated: “We were disappointed that, despite the fact that our offer was at a substantial premium to Transcept’s share price and represented, in our opinion, a compelling opportunity for its stockholders - who also opposed Transcept’s risky and highly speculative stated strategy to grow the company through acquisitions - our offer was dismissed without giving us the opportunity to discuss its merits directly with the board of directors. Given the reluctance of Transcept’s board to engage in substantive discussions with us, their implementation of a “poison pill” in order to prevent stockholders from acquiring more than 4.99% of Transcept’s shares, their in-licensing of an early-stage migraine development project and their now expressed interest in entering into a reverse merger, we have now formally withdrawn our offer for Transcept.”

Most precious asset – cash- has dwindled