Eagle Pharmaceuticals Announces Amendment to Limited Duration Stockholder Rights Plan
Eagle Pharmaceuticals (EGRX) has announced an amendment to its duration stockholder rights plan, doubling the initial purchase price of preferred share purchase rights from $10.00 to $20.00. The Rights Plan targets any person or group that acquires 10% ownership (15% for passive institutional investors) of company stock without Board approval.
The amendment responds to significant stock price dislocation and aims to increase potential dilution for unauthorized acquirers. The plan's primary objectives are to protect long-term stockholder value and prevent control acquisition through open market accumulation without fair compensation. The Rights Plan will automatically expire on October 30, 2025, unless rights are redeemed or exchanged earlier.
Eagle Pharmaceuticals (EGRX) ha annunciato una modifica al suo piano di diritti degli azionisti, raddoppiando il prezzo di acquisto iniziale dei diritti di acquisto delle azioni privilegiate da $10,00 a $20,00. Il Piano dei Diritti si rivolge a qualsiasi persona o gruppo che acquisisce il 10% della proprietà (15% per gli investitori istituzionali passivi) delle azioni della società senza l'approvazione del Consiglio.
La modifica risponde a un significativo dislocamento del prezzo delle azioni e mira ad aumentare la potenziale diluizione per gli acquirenti non autorizzati. Gli obiettivi principali del piano sono proteggere il valore degli azionisti a lungo termine e prevenire l'acquisizione del controllo attraverso l'accumulo nel mercato aperto senza un giusto compenso. Il Piano dei Diritti scadrà automaticamente il 30 ottobre 2025, a meno che i diritti non vengano riscattati o scambiati prima.
Eagle Pharmaceuticals (EGRX) ha anunciado una enmienda a su plan de derechos de los accionistas, duplicando el precio de compra inicial de los derechos de compra de acciones preferentes de $10.00 a $20.00. El Plan de Derechos se dirige a cualquier persona o grupo que adquiera el 10% de propiedad (15% para inversores institucionales pasivos) de las acciones de la empresa sin la aprobación de la Junta.
La enmienda responde a una significativa dislocación del precio de las acciones y tiene como objetivo aumentar la posible dilución para los adquirentes no autorizados. Los objetivos principales del plan son proteger el valor de los accionistas a largo plazo y prevenir la adquisición del control a través de la acumulación en el mercado abierto sin una compensación justa. El Plan de Derechos expirará automáticamente el 30 de octubre de 2025, a menos que los derechos sean canjeados o intercambiados antes.
Eagle Pharmaceuticals (EGRX)는 주주 권리 계획의 수정안을 발표하며, 우선주 구매권의 초기 구매 가격을 $10.00에서 $20.00으로 두 배로 늘렸습니다. 권리 계획은 이사회 승인 없이 회사 주식의 10% 소유권 (수동적 기관 투자자는 15%)를 취득하는 개인 또는 그룹을 대상으로 합니다.
이번 수정안은 주가의 심각한 왜곡에 대응하며, 무단 인수자에 대한 잠재적 희석을 증가시키는 것을 목표로 합니다. 이 계획의 주요 목표는 장기 주주 가치를 보호하고 공정한 보상 없이 공개 시장에서의 축적을 통해 통제권 인수를 방지하는 것입니다. 권리 계획은 2025년 10월 30일에 자동으로 만료되며, 이전에 권리가 상환되거나 교환되지 않는 한 유효합니다.
Eagle Pharmaceuticals (EGRX) a annoncé un amendement à son plan de droits des actionnaires, doublant le prix d'achat initial des droits d'achat d'actions privilégiées de 10,00 $ à 20,00 $. Le Plan de Droits cible toute personne ou groupe acquérant 10% de propriété (15% pour les investisseurs institutionnels passifs) des actions de la société sans approbation du Conseil.
L'amendement répond à une dislocation significative du prix des actions et vise à accroître la dilution potentielle pour les acquéreurs non autorisés. Les principaux objectifs du plan sont de protéger la valeur des actionnaires à long terme et de prévenir l'acquisition de contrôle par accumulation sur le marché libre sans compensation équitable. Le Plan de Droits expirera automatiquement le 30 octobre 2025, à moins que les droits ne soient échangés ou rachetés plus tôt.
Eagle Pharmaceuticals (EGRX) hat eine Änderung seines Aktionärsrechteplans angekündigt, bei der der ursprüngliche Kaufpreis für die Vorzugsaktienkaufrechte von 10,00 $ auf 20,00 $ verdoppelt wird. Der Rechteplan richtet sich an jede Person oder Gruppe, die 10% Eigentum (15% für passive institutionelle Investoren) an den Unternehmensaktien ohne Genehmigung des Vorstands erwirbt.
Die Änderung reagiert auf eine signifikante Preisdiskrepanz der Aktien und zielt darauf ab, die potenzielle Verwässerung für unbefugte Erwerber zu erhöhen. Die Hauptziele des Plans sind der Schutz des langfristigen Aktionärswerts und die Verhinderung der Kontrolle durch Akkumulation am offenen Markt ohne faire Entschädigung. Der Rechteplan läuft automatisch am 30. Oktober 2025 aus, es sei denn, die Rechte werden vorher eingelöst oder getauscht.
- Increased takeover protection through doubled rights purchase price ($20.00 vs $10.00)
- Enhanced shareholder value protection against unauthorized acquisitions
- Greater potential dilution deterrent against hostile takeovers
- Significant stock price dislocation prompting defensive measures
- Trading status downgraded to OTCMKTS from major exchange
WOODCLIFF LAKE, N.J., March 21, 2025 (GLOBE NEWSWIRE) -- Eagle Pharmaceuticals, Inc. (OTCMKTS: EGRX) (the “Company” or “Eagle”) today announced that its Board of Directors (the “Board”) has approved an amendment to its previously disclosed limited duration stockholder rights plan (the “Rights Plan”) to increase the initial purchase price of each preferred share purchase right issued under the Rights Plan from
In general terms, the Rights Plan is designed to impose a penalty upon any person or group (an “Acquiring Person”) that acquires beneficial ownership of
The Rights Plan will automatically expire on October 30, 2025, without any further action being required to be taken by the Board, unless the rights are earlier redeemed or exchanged by the Company. For a complete description of the Rights Plan, please refer to the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on October 31, 2024.
About Eagle Pharmaceuticals, Inc.
Eagle is a fully integrated pharmaceutical company with research and development, clinical, manufacturing and commercial expertise. Eagle is committed to developing innovative medicines that result in meaningful improvements in patients’ lives. Eagle’s commercialized products include PEMFEXY®, RYANODEX®, BENDEKA®, BELRAPZO®, TREAKISYM® (Japan), and BYFAVO® and BARHEMSYS® through its wholly owned subsidiary Acacia Pharma Inc. Eagle’s oncology and critical care pipeline includes product candidates with the potential to address underserved therapeutic areas across multiple disease states, and the company is focused on developing medicines with the potential to become part of the personalized medicine paradigm in cancer care. Additional information is available on Eagle’s website at www.eagleus.com.
Forward Looking Statement
This press release contains “forward-looking statements” regarding future events or our future financial performance. Forward-looking statements are statements that are not historical facts. Words and phrases such as “anticipated,” “forward,” “will,” “would,” “could,” “may,” “intend,” “remain,” “regain,” “maintain,” “potential,” “prepare,” “expected,” “believe,” “plan,” “seek,” “continue,” “goal,” “estimate,” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements with respect to: the impact of the adoption of the Rights Plan, including the ability of the Rights Plan to protect stockholders’ ability to realize the long-term value of their investment and to effectively provide the Board sufficient time to make informed judgments and take actions that are in the best interests of the Company and its stockholders. All such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, which could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Such risks and uncertainties include, but are not limited to: the completion of the review and preparation of the Company’s financial information and internal control over financial reporting and disclosure controls and procedures and the timing thereof; the discovery of additional information; further delays in the Company’s financial reporting, including as a result of unanticipated factors; the Company’s ability to obtain resolution with respect to the events of default under its Third Amended and Restated Credit Agreement, as amended; the Company's ability to obtain additional financing and the timing and potential terms thereof; whether the objectives of the Company’s review of potential financing and other alternatives will be achieved, the terms, structure, benefits and costs of any arrangement or transaction resulting therefrom, and whether any transaction will be consummated at all; the extent to which the rights under the Company’s Rights Plan become exercisable, if at all; the risk that the Company’s review of potential financing and other alternatives and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other relationships and on its operating results and business generally; the risk that the Company’s review of potential financing and other alternatives could divert the attention and time of the Company’s management; the costs resulting from the review of potential financing and other alternatives; the risk of the Company potentially seeking protection under bankruptcy laws; the possibility that the Company will be unable to re-list its common stock on the Nasdaq or another exchange and, if re-listed, the possibility that the Company thereafter will be unable to comply with the listing rules of such exchange; the limitations on trading of the Company’s common stock related to the Company’s trading on the OTC Expert Market; the impact on the price of the Company’s common stock and the Company’s reputation; the Company’s ability to remediate material weaknesses in its internal control over financial reporting; the Company’s ability to recruit and hire a new Chief Executive Officer and retain key personnel; the ability of the Company to realize the anticipated benefits of its plan designed to improve operational efficiencies and realign its sales and marketing expenditures and the impacts thereof; the Company’s reliance on third parties to manufacture commercial supplies of its products and clinical supplies of its product candidates; the impacts of geopolitical factors such as the conflicts between Russia and Ukraine and Hamas, Iran and Israel; delay in or failure to obtain regulatory approval of the Company’s or its partners’ product candidates and successful compliance with Federal Drug Administration, European Medicines Agency and other governmental regulations applicable to product approvals; changes in the regulatory environment; the uncertainties and timing of the regulatory approval process; whether the Company can successfully market and commercialize its products; the success of the Company's relationships with its partners; the outcome of litigation and other legal proceedings and the risk of additional litigation and legal proceedings, including with respect to the matters referenced herein; the strength and enforceability of the Company’s intellectual property rights or the rights of third parties; competition from other pharmaceutical and biotechnology companies and competition from generic entrants into the market; unexpected safety or efficacy data observed during clinical trials; clinical trial site activation or enrollment rates that are lower than expected; the risks inherent in drug development and in conducting clinical trials; risks inherent in estimates or judgments relating to the Company’s critical accounting policies, or any of the Company’s estimates or projections, which may prove to be inaccurate; and unanticipated factors in addition to the foregoing that may impact the Company’s financial and business projections and may cause the Company’s actual results and outcomes to materially differ from its estimates and projections. Readers are cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Investor Relations Contact
Lisa M. Wilson
T: 212-452-2793
E: lwilson@insitecony.com
FAQ
What changes were made to Eagle Pharmaceuticals (EGRX) stockholder rights plan in March 2025?
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