Progenics urges shareholders to reject Velan Capital's strategic plan
Progenics Pharmaceuticals issued the following letter, highlighting its belief in the value that will be created by its recently announced transaction with Lantheus Holdings, and the uncertainty surrounding Velan Capital's promised, but unproven, strategic plan. "In the next few months, you will be asked to vote on two important matters affecting the future of your investment in Progenics: The first relates to whether you want to hand over control of the board of directors and the company to a minority shareholder with no payment of a premium and no proven ability to execute a commercial strategy. As you may be aware, Velan Capital, L.P., an 11.7% shareholder, recently launched a consent solicitation campaign, attempting to gain control of five of the seven seats on your board. Velan is taking this action despite numerous good-faith efforts by your board to reach a reasonable settlement that would have avoided the cost and disruption caused by this campaign. At a later date, you will also be asked to vote on the proposed sale of Progenics to Lantheus, a global leader in the development, manufacture and commercialization of innovative diagnostic imaging agents and products. Your board negotiated this compelling strategic transaction that delivers a premium and a 35% ownership stake in the combined company with strong prospects for improved top line growth, enhanced operational execution and significant synergy opportunities. Additionally, the transaction provides for an industry leading board of directors and a management team with deep experience in the development, manufacturing and commercialization of radiopharmaceuticals, proven in public markets, to lead the combined company. We believe the choice is clear in both of these matters: We urge you to reject Velan's unproven nominees and their uncertain, undisclosed strategic plan. This will ensure that you and your fellow shareholders can make a fully informed decision whether you want the clear and compelling value that will be provided through the transaction with Lantheus."