CPEX Pharma accepts $76.6 million takeover by Footstar; Merck KGaA buys Chinese firm

CPEX Pharmaceuticals (Nasdaq: CPEX), an emerging, USA-based specialty pharmaceutical company, has agreed to a buyout from the Footstar group, in a deal valued at around $76.6 million, plus fees and expenses relating to the transaction. The news sent CPEX’ shares 10% higher to $27 in premarket trading yesterday, and the stock has more than doubled over the past 12 months.

The news has spawned a slew of law firms’ investigations as to whether the CPEX board had failed in its fiduciary duty by not “shopping” the company before entering into this transaction, questioning if the offer provides fair value, and calling on investors to enter into the action.

CPEX has previously been the subject of a takeover bid by shareholder Richard Rofe’s and his firm Arcadia Capital Advisors (The Pharma Letter April 14, 2010). CPEX chief executive John Sedor, commenting on the latest offer, said: "After engaging with multiple parties during the review process, it was clear that this agreement was the most compelling outcome for our shareholders, delivering them significant and immediate value."