SOURCE: Spencer Pharmaceutical, Inc.

November 11, 2010 09:00 ET

Spencer Pharmaceutical Announces That the Unsolicited All-Cash Buyout Offer at a Premium of $0.97 Per Share

BOSTON, MA--(Marketwire - November 11, 2010) - Spencer Pharmaceutical Inc. (PINKSHEETS: SPPH) announced today that an unsolicited offer received on November 4, 2010 is at a premium of $0.97 per share, making the potential transaction valued at $245 million.

According to the buyout offer documents, the purchaser is requiring any and all shares be tendered for a purchase price of $0.97 per share and with the intent to privatize the company. Spencer Pharmaceutical has opted to continue to keep the purchaser's name confidential until such time as a timeline can be presented and the approval of the board of directors can be obtained.

"We will conduct our own due-diligence of the purchaser but so far they have assured us of their seriousness and have marked this acquisition as important in terms of strategy but not in-terms of value," said Dr. Max Arella, President of Spencer Pharmaceutical Inc. "We will continue with business as usual but this will also be one of our priorities," further added Dr. Arella.

About Spencer Pharmaceutical Inc.

Spencer Pharmaceutical Inc. is a US-based Pharmaceutical Research and Development Corporation, which is developing innovative drug release and absorption systems for the treatment of metabolic diseases such as diabetes and metabolic syndrome.

Important Information About Forward-Looking Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on the Company's website does not constitute a part of this release.

Contact Information

  • Contact:
    Dr. Max Arella
    Spencer Pharmaceutical Inc.
    Tel. 1+(617) 973-5017