Post-LabCorp merger, LipoScience reveals details on other bid attempts

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John West

LipoScience operates out of these offices in Morrisville.

Jason deBruyn

Staff Writer- Triangle Business Journal

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After Raleigh health care diagnostics developer LipoScience agreed to sell to LabCorp at a price per share of less than half its all-time high, it contacted 14 other companies for potential bids, but none would even make an offer.

On Sept. 25, LipoScience (Nasdaq: LPDX) announced it agreed to sell to Burlington-based Laboratory Corporation of America (NYSE: LH) for $5.25 per share, a deal with an enterprise value of $63 million. Shortly after executives announced the deal, certain shareholders filed lawsuits against the company and its board alleging breach of fiduciary duties and the dissemination of allegedly incomplete or misleading information about the merger. In a settlement agreement, LipoScience agreed to give more detail about the acquisition, and talks both prior to, and after the LabCorp signing.

Before an Aug. 4 LipoScience board meeting, board members identified 40 companies to approach to solicit a potential acquisition offer. Those 40 were whittled down to the eight most likely to make an offer. At that meeting, the board authorized management and Canaccord Genuity to contact those eight potential buyers.

By Aug. 14, five of the eight companies had definitively declined interest and the other three did not respond. At that time LipoScience agreed to exclusive negotiations with LabCorp.

After reaching an agreement with LabCorp, LipoScience entered a "go shop" period and contacted 14 potential buyers – the eight from earlier along with six new companies. By Oct. 19, the end of the "go shop" period, 11 of the 14 definitively declined interest and the remaining three did not respond.

Jason deBruyn covers The Biopharmaceutical and Health Care industries. Follow him on Twitter @jasondebruyn.