Los Angeles billionaire and biotech entrepreneur Patrick Soon-Shiong, MD, was sued by two Washington, D.C., lawyers over the acquisition of Altor Bioscience Corp., a Miramar, Fla.-based pharmaceutical and immunotherapy company, reports Law360.
C. Boyden Gray and Adam R. Waldman — who are both investors in Altor — sued Dr. Soon-Shiong, a new appointee to the HHS Health IT Advisory Committee, and other pharma executives June 21 in Delaware's Court of Chancery. The suit alleges Dr. Soon-Shiong low-balled them by $19 million in the purchase, in part by withholding value information about the company.
The suit claims two Altor drugs, currently in Phase 3 clinical trials, are "expected to lead to relatively swift approval to sell the drugs as treatments for cancer into the anticipated $200 billion annual market for immunotherapy" treatment, according to Law360.
The lawsuit calls the acquisition a "squeeze-out merger" of minority stakeholders, noting the company neither appointed a special committee nor an independent party to evaluate the deal, Law360 reports.
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