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Map Pharmaceuticals Investor Sues to Block Allergan Deal

A Map Pharmaceuticals Inc. shareholder sued the company alleging that Allergan Inc.’s $958 million takeover offer is too low and deprives investors of future earnings.

The proposed acquisition comes as Map is poised for substantial growth from its drug Levadex, an orally inhaled migraine treatment, the shareholder, Robert Corwin, said in the complaint filed today in Delaware Chancery Court. Corwin is seeking to represent all Map shareholders in his bid to bar the deal.

“Levadex is likely to become a blockbuster drug,” Corwin said in the complaint. “The proposed transaction will cash out MAPP shareholders for inadequate consideration and will deny company shareholders the all but certain future success of MAPP and Levadex.”

Allergan, the Irvine, California-based maker of the wrinkle filler Botox, announced Jan. 22 that it will pay Map investors $25 a share to acquire the company, boosting its sales growth in specialty pharmaceuticals and skin care.

Lisa Borland, a spokeswoman for Mountain View, California-based Map, didn’t immediately return a phone call seeking comment on the complaint.

Migraine Treatment

Allergan’s Botox is approved as a treatment for chronic migraine patients. Map is seeking U.S. regulatory approval for Levadex, an inhaled form of a 60-year-old migraine drug. Both companies agreed in January 2011 to co-promote Levadex should it gain approval.

Future revenue for Levadex could add $1 in earnings per share for Allergan, based on the company’s current 20 percent profit margin, Corwin said in court papers. The Map acquisition is a bargain for Allergan, according to the complaint.

The proposed transaction is “unfair and inadequate” and there is no evidence Map directors shopped the company prior to agreeing to Allergan’s offer, Corwin said in the complaint.

The case is Corwin v. Map Pharmaceuticals, CA8267, Delaware Chancery Court (Wilmington)

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