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If you purchased shares of BioMimetic Therapeutics, Inc. (NASDAQ:BMTI) prior to November 19, 2012, and currently hold any of those NASDAQ:BMTI shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Nov. 27, 2012 (Shareholders Foundation) -- An investor in shares of BioMimetic Therapeutics, Inc. (NASDAQ:BMTI) filed a lawsuit against directors of BioMimetic Therapeutics in effort to stop the proposed buyout of BioMimetic Therapeutics by Wright Medical Group.
The plaintiff alleges that the defendants breached their fiduciary duties owed NASDAQ:BMTI stockholders by agreeing to sell the company too cheaply via an unfair process to Wright Medical Group, Inc.
On November 19, 2012, the Wright Medical Group, Inc. (NASDAQ: WMGI) and BioMimetic Therapeutics, Inc. (NASDAQ: BMTI) announced that they have entered into an agreement for a business combination of Wright Medical Group and BioMimetic Therapeutics. Under the terms of the agreement, the transaction has a total potential value for BioMimetic shareholders of approximately $380 million, or $12.97 per share, based on Wright’s closing stock price on Friday, November 16, 2012. Each share of BioMimetic common stock will be converted into the right to receive an upfront payment of $1.50 in cash and 0.2482 shares of Wright common stock. The upfront payment values BioMimetic at approximately $190 million, or $6.47 per share, based on Wright’s closing stock price on November 16, 2012. Each BioMimetic share will also receive one tradable Contingent Value Right (CVR), which entitles its holder to receive additional cash payments of up to $6.50 per share, which are payable upon receipt of FDA approval of Augment® Bone Graft and upon achieving certain revenue milestones.
The CVR payments to BioMimetic shareholders are structured as follows:
• $3.50 per share upon FDA approval of Augment® Bone Graft;
• $1.50 per share upon the achievement of $40 million in trailing twelve month sales for all products contributed by BioMimetic;
• $1.50 per share upon the achievement of $70 million in trailing twelve month sales for all products contributed by BioMimetic.
However, the plaintiff alleges that the offer is unfair to NASDAQ:BMTI stockholders and undervalues BioMimetic Therapeutics, Inc. Indeed shares of BioMimetic Therapeutics, Inc. (NASDAQ:BMTI) traded as high as $14.07 per share in April 2011 and at least one analyst has set the high target price of NASDAQ:BMTI shares at $7.50 per share. Furthermore, so the plaintiff, BioMimetic Therapeutics, Inc. is on the verge of a major breakthrough.