Akebia Therapeutics, Inc. (Nasdaq:AKBA) (“Akebia” or the “Company”) today announced that leading independent proxy advisory firm, Institutional Shareholder Services (“ISS”), recommends that Akebia shareholders vote “FOR” the shareholder proposals relating to the Company’s proposed merger with Keryx Biopharmaceuticals (Nasdaq:KERX).
In its report of November 28, 2018, ISS stated1:
- “…the strategic rationale appears strong, as the combined company should require less future funding and both companies are focused on developing drugs for patients with kidney disease, which should lead to substantial cost savings. As such, a vote for the merger is warranted.”
- “If vadadustat is approved, the combined company will be able to provide a more complete solution for patients with CKD [chronic kidney disease], which could help the company gain greater awareness among doctors treating CKD and lead to the combined company having greater revenue than the two companies would have had individually.”
- “The combined company would use the commercial organization that Keryx has been building, which includes sales people who have relationships with the same group of physicians who would prescribe vadadustat, doctors who treat kidney disease. That existing commercial organization should lead to the combined company being able to increase vadadustat revenue more quickly than if Akebia were to build its own commercial organization.”
- “[Akebia] anticipates that the combined company will have a better balance sheet in future years, and that the transaction will close a substantial funding gap.”
Muneer A. Satter, Chairperson of the Akebia Board of Directors, said, “We are pleased that ISS shares our belief that our proposed combination with Keryx will be a value-enhancing opportunity for Akebia shareholders and supports our Board’s recommendation that shareholders vote “FOR” the shareholder proposals relating to the merger. The Board unanimously believes this combination will provide substantial strategic, financial and operational benefits to Akebia, and will increase the long-term value of Akebia. The companies continue to make progress towards completing the transaction and look forward to being a fully integrated company focused on treating patients with chronic kidney disease. We strongly urge all Akebia shareholders to follow the recommendation of ISS and vote “FOR” the shareholder proposals relating to the proposed combination with Keryx today.”
The merger of Akebia and Keryx is subject to the satisfaction of various closing conditions, including approval by shareholders of both companies. The special meeting of Akebia shareholders to vote on matters relating to the proposed merger has been scheduled for December 11, 2018. Holders of record of Akebia common stock as of 5:00 p.m. Eastern Time on October 22, 2018, will be entitled to vote at the special meeting.
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