MONSEY, N.Y., June 20, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the $2.15 per share in cash, plus a contingent value right (CVR), at which Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK) (“Paratek”) has agreed to be sold to Gurnet Point Capital and Novo Holdings.
If you remain a Paratek shareholder and question the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/paratek-pharmaceuticals-inc/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On June 6, 2023, Paratek announced that it had agreed to be sold to Gurnet Point Capital and Novo Holdings for $2.15 per share in cash, plus a CVR of $0.85 per share payable upon the achievement of $320 million in U.S. NUZYRA net sales in any calendar year ending on or prior to December 31, 2026 (subject to exclusion of certain permitted deductions, payments under Paratek’s contract with ASPR-BARDA, certain government payments and certain royalty revenue).
“We are investigating whether the Paratek Board of Directors acted in the best interests of Paratek shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to Paratek shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for Paratek in the last 90 days published on Seeking Alpha, there is a high price target of $5.00 per share, and an average price target of $3.10 per share, which indicates that most Wall Street analysts think the deal price is too low.
Additionally, on Seeking Alpha, an investor with the screen name of David Kincaid has observed that the “CVR payment terms are particularly bad” because, aside from the exclusions, the “[s]ales goal must be reached in a calendar year—not cumulative, or even over a 12-month period—and only US sales are included, [and] non-US sales [are] excluded.”
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
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