CPEX to Arcadia: Show me the money


Exeter, N.H.-based CPEX Pharmaceuticals has asked Arcadia Capital Advisors either to make a formal offer to buy the company – with details about where it will get the money to do so – or to withdraw the offer, according to a filing with the U.S. Securities and Exchange Commission.The put-up-or-shut-up filing is the latest in a series of exchanges between the maker of alternative drug delivery systems and the New York-based investment company that owns 12.2 percent of CPEX shares. Arcadia has been critical of CPEX since last August, when it questioned the company’s focus on developing Nasulin, an insulin nose spray, as well as litigation over Testim, CPEX’s only product on the market, and excessive compensation of its chief executives.Arcadia later said it was considering an offer to buy CPEX, which had just been spun off from Bentley Pharmaceuticals, another Exeter firm, in June 2008, for $14 a share.Arcadia’s managing director, Richard Rofe, said he wanted to meet with the company to provide details of his proposal, but he was rebuffed by CPEX chief executive John Sedor, who complained that Rofe was “badgering and threatening” the board of directors.“This is insane,” Rofe told NHBR on Tuesday. “They are so arrogant. They don’t want to meet with you when you are making a fully funded offer for the company. They don’t want to hear the details. I’ve never heard of such a thing.”But an hour later, CPEX filed a letter saying it did want the details, in writing.“We request that your offer letter provide the standard details of such letters, including how specifically you would finance a transaction,” the CPEX letter said. “If you do not intend to make an offer, we ask that you promptly withdraw your publicly stated intention to do so.” – BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW
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