Ademi LLP is investigating Radius (NASDAQ:RDUS) for possible breaches of fiduciary duty and other violations of law in its transaction with Gurnet Point and Patient Square.
Ademi LLP alleges Radius’s financial outlook and prospects are excellent and yet Radius holders will receive only $10.00 per share in cash plus a Contingent Value Right (CVR) of $1.00 per share payable upon TYMLOS® (abaloparatide) net sales reaching $300 million (inclusive of U.S. sales and Japan royalties or supply payments based on supply of TYMLOS for sale in Japan) during any consecutive 12-month period prior to December 31, 2025. The transaction values Radius at approximately $890 million, including the assumption of debt and assuming full payment of the CVR. The transaction agreement unreasonably limits competing bids for Radius by imposing a significant penalty if Radius accepts a superior bid. Radius insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Radius’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Radius.