Spencer Pharma Gets Cash Bid from Mystery PE Firm

Spencer Pharmaceutical said Thursday that it has received an all-cash offer from a PE firm. Spencer’s board has agreed to keep the offer confidential until an investment bank reviews the offer, conducts appropriate due-diligence and recommends a course of action. Boston-based Spencer develops drug release and absorptions systems to treat metabolic diseases like diabetes and metabolic syndrome.

PRESS RELEASE

Spencer Pharmaceutical Inc. announced today that it has received an all-cash offer from a private equity firm.

According to the company, a private equity firm has provided the board of directors with an all-cash offer to acquire any and all shares of the company. The board of directors has agreed to keep the offer confidential until an investment bank can be mandated to review the offer, conduct an appropriate due-diligence and recommend a course of action.

“We are surprised to be receiving an all-cash offer at this stage, and in order to keep our shareholders informed , we have opted to announce the receipt of the offer yet until we can have an independent review of the offer we will remain quiet as to his details,” said Dr. Arella, President of Spencer Pharmaceutical Inc. “We don’t want to alarm our shareholders and or put false hopes that a transaction is imminent so all we can do at this time is continue with the development of our licensing program and further development of our technology and business model to create sustainable shareholder value,” further added Dr. Arella.

The final terms and conditions of the transaction will be determined in a definitive agreement. No assurances can be provided that a definitive agreement will be executed. Execution of a definitive agreement is subject to, among other things, confirming due diligence by Spencer, and other conditions and approvals by both companies’ management, board of directors and shareholders, as appropriate.

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.

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