Opinion ID: 6800376
Heading Depth: 2
Heading Rank: 1

Heading: Merger Transaction

Text: In December 2017, Akebia, a development-stage biopharmaceutical company, contacted Keryx, a commercial-stage biopharmaceutical company, to discuss a potential merger transaction. During negotiations, Keryx prepared two relevant sets of financial projections—the first of which was based on Keryx’s assumptions about Akebia’s business and the second of which was partially based on information that Akebia provided to Keryx (the “Adjusted Projections”). Keryx presented these projections during a special committee meeting1 on May 30, 2018. 1 Keryx had convened a special committee to discuss the possibility of a merger. 2 Between June 12 and 14, 2018, Akebia determined that the completion of its clinical trial and, by extension, the commercial launch of its lead product, vadadustat, would be delayed. Given these developments, Akebia updated its financial projections. Akebia’s CEO then advised Keryx’s Interim CEO of this development on June 15, 2018. On June 27, 2018, MTS Securities LLC (“MTS”), an affiliate of Keryx’s financial advisor for the merger, opined that the merger was financially fair.2 MTS based its fairness opinion on, amongst other information, Keryx’s Adjusted Projections—which were prepared before May 30, 2018, and were not revised to incorporate the vadadustat delay. The following day, Keryx announced its approval of the merger transaction. Ultimately, the companies jointly filed the Proxy on October 30, 2018, and a majority of Keryx’s shareholders approved the transaction on December 12, 2018.