Investment,News

Emisphere’s Stockholders Sue Over Novo Nordisk Purchase

6 months ago By Josh Neil
  • Share on

  • Facebook
  • Linkedin

For daily articles on the latest pharma trends and innovations, as well as interviews with leading experts and in-depth industry White Paperssubscribe to PharmaFeatures.com.

A trio of lawsuits are being levelled at Emisphere Technologies over its recent sale to Novo Nordisk in late 2020. The sale, which saw Emisphere acquired for $1.8 billion, drew criticism from a number of stockholders who alleged that controlling stockholder MHR Fund Management ‘co-opted’ the company’s board and forced an ‘ill-timed’ sale at an ‘artificially low price’. 

Emisphere Technologies’ oral formulation technology, Eligen SNAC, was used in Novo Nordisk’s diabetes medication Rybelsus. The drug launched in September 2019 after receiving FDA approval. In 2020 the drug generated around $305 million.

Rybelsus controls blood sugar levels in adults with type 2 diabetes. Its active substance, semaglutide, increases the amount of insulin that the pancreas releases in response to food. 

Shortly after Rybelsus’ launch, Novo Nordisk announced its purchase of the company, alongside plans to ‘apply and further develop the technology and use it on current and future pipeline assets’. 

 One of those suing Emisphere, IsZo Capital, alleges MHR ‘diverted… a portion of the purchase price to its pocket’, and that MHR Chief Investment Officer Mark Rachesky ceded the majority-of-the-minority condition during the sale talks. The lawsuit also claims that Emisphere was worth considerably more than the $1.35 billion remaining for stockholders after MHR’s payout is accounted for. 

Finally, the lawsuits allege that compensation given to two MHR appointees for nine month’s work – each receiving over $7.8 million – should not have happened to the extent that it did.

Joshua Neil, Editor
Proventa International

More news

DeepMind’s AI Predicts Structures for More Than 350,000 Proteins

In 2003, researchers sequenced approximately 92% of the human genome, a huge achievement and very recently researchers have completed the entire process. Now, the latest innovation in AI technology has predicted the structure of nearly the entire human proteome. The...

4 months ago
Investment,News

DeepMind’s AI Predicts Structures for More Than 350,000 Proteins

In 2003, researchers sequenced approximately 92% of the human genome, a huge achievement and very recently researchers have completed the entire process. Now, the latest innovation in AI technology has predicted the structure of nearly the entire human proteome. The...

4 months ago

COVID-19 Booster Controversy: Disputes Across the Pharma Industry

Despite almost two thirds of the adult population in the UK having been vaccinated, cases are on the rise, which appear to be associated with the highly-transmissible delta variant of COVID-19. According to The European Centre for Disease Prevention and Control,...

5 months ago
Investment,News

COVID-19 Booster Controversy: Disputes Across the Pharma Industry

Despite almost two thirds of the adult population in the UK having been vaccinated, cases are on the rise, which appear to be associated with the highly-transmissible delta variant of COVID-19. According to The European Centre for Disease Prevention and Control,...

5 months ago

COVID’s Impact on Innovations in Regulatory Affairs

While the impact of COVID-19 was significant in every area of the pharmaceutical sector, some of the most pandemic’s most overlooked impacts were within the regulatory space. From study design to submissions, the virus affected every aspect of drug regulation,...

5 months ago
Investment,News

COVID’s Impact on Innovations in Regulatory Affairs

While the impact of COVID-19 was significant in every area of the pharmaceutical sector, some of the most pandemic’s most overlooked impacts were within the regulatory space. From study design to submissions, the virus affected every aspect of drug regulation,...

5 months ago
Working With us

Interested?
Reserve your space