New York's Faruqi & Faruqi, a national securities law firm, launched a legal investigation into the board of directors of Cambridge, Mass.-based Ariad Pharmaceuticals ahead of its potential sale to Japan's Takeda for $5.2 billion.
Here's what you should know.
1. Founding partner Nadeem Faruqi is leading the investigation of potential breaches of fiduciary duties in advance of the company's sale to Takeda. Pharmaceutical Processing reports the investigation is largely centered around whether Ariad executives practiced fair sales processes.
2. The company's stockholders are set to receive $24 for every share of Ariad's stock they hold.
Mr. Faruqi is investigating if this valuation undervalues the company, and, if it does, by how much.
3. Takeda is primarily acquiring Ariad's leukemia drug, Iclusig. Takeda expects the drug to generate between $170 million to $180 million in sales.