Eagle Pharmaceuticals Adopts Stockholder Rights Plan to Protect Shareholders’ Interests

Eagle Pharmaceuticals, Inc., a pharmaceutical company based in Woodcliff Lake, New Jersey, has recently taken significant steps to protect the interests of its shareholders. On October 30, 2024, the company’s Board of Directors declared a dividend of preferred share purchase rights as part of a limited duration stockholder rights plan. These rights are issued at a ratio of one right for each outstanding share of the Company’s Common Stock.

The Rights Plan, effective immediately, aims to ensure that each shareholder has the opportunity to realize the long-term value of their investment in the company. It is specifically designed to prevent any individual or group from gaining control of Eagle Pharmaceuticals through methods such as open market accumulation of common stock without appropriately compensating all shareholders or providing the Board sufficient time to make informed decisions in the best interests of the company and its stakeholders.

The Rights Plan was implemented in response to the ongoing dislocation in the trading price of the company’s common stock and recent unsolicited attempts by third parties to exploit this situation through accumulations of common stock. The plan includes provisions that allow the Board to engage with interested parties or accept acquisition proposals if deemed beneficial for both the Company and its shareholders.

The Rights Agreement details that the Rights will expire on October 30, 2025, unless earlier redeemed or exchanged by the Company. It also outlines conditions under which the Rights become exercisable, entitling holders (excluding any Acquiring Person) to purchase additional Company Common Stock shares at a predetermined price.

Additionally, the Rights Plan features mechanisms such as a ‘flip-in,’ ‘flip-over,’ and ‘exchange’ in case a person or group becomes an Acquiring Person. These features afford protection to shareholders and ensure fair treatment in the event of significant ownership shifts.

Eagle Pharmaceuticals is committed to transparency and shareholder value, as highlighted in the recent adoption of these protective measures. For further details, the complete terms and conditions of the Rights Agreement can be accessed in the official Form 8-K filing submitted to the U.S. Securities and Exchange Commission on October 31, 2024.

This Press Release may contain forward-looking statements subject to certain risks and uncertainties outlined in the company’s regulatory filings. Investors are advised to exercise caution and refer to the Company’s official filings for a comprehensive understanding of the risks involved.

Contact:
Timothy McCarthy, CFA
Phone: 917-679-9282
Email: [email protected]

Lisa M. Wilson
Phone: 212-452-2793
Email: [email protected]

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eagle Pharmaceuticals’s 8K filing here.

Eagle Pharmaceuticals Company Profile

Eagle Pharmaceuticals, Inc, a pharmaceutical company, focuses on developing and commercializing product candidates to treat diseases of the central nervous system or metabolic critical care, and oncology in the United States. The company offers Ryanodex for malignant hyperthermia; and Belrapzo and Bendeka for chronic lymphocytic leukemia and indolent B-cell non-Hodgkin’s lymphoma.