Transcept Pharma Says Received Request by Retrophin to Buy Up to 15% of Outstanding Shares, Board Decided Not to Accede Request
Transcept Pharmaceuticals, Inc. (NASDAQ: TSPT) today announced that it had received a communication from Retrophin, Inc. stating that it owns 4.9% of the outstanding common stock of Transcept and seeking permission from the Board of Directors of Transcept to increase its ownership stake up to 15% of the outstanding common stock of Transcept. After consultation with its financial and legal advisors, and after evaluating the Retrophin request in the context of the tax benefit preservation plan adopted on September 13, 2013, the Board of Directors of Transcept unanimously determined not to accede to this request.
During its deliberations, the Board of Directors of Transcept determined that granting the Retrophin request could jeopardize the value of the approximately $78 million in net operating loss carry forwards of Transcept. The tax benefit preservation plan was unanimously adopted by the Board to protect this asset for the benefit of all Transcept stockholders.
Leerink Swann LLC is acting as financial and strategic advisor to Transcept. Latham & Watkins LLP is acting as the Transcept legal advisor.
About Transcept, Inc.
Transcept Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development and commercialization of proprietary products to address important