Elliot Associates Offers $98 million for Endologix
|October 25th, 2008||
|On October 15, 2008, Endologix Inc. (NASDAQ:ELGX) acknowledged that it had received a buyout offer of $98 million or $2.25 per share from Elliot Associates, a New York-based activist hedge fund manager.|
Endologix Inc is the developer of the Powerlink(R) system, which is an innovative alternative to the highly invasive open heart surgery previously used most commonly to treat abdominal aortic aneurysm (AAA). AAA, a weakening of the aorta wall which results in a balloon like enlargement, has a mortality rate of 75% if ruptured.
Earlier this month, the Powerlink(R) system received approval from the FDA. Following approval, Endologix Inc.’s shares were expected to see a rapid rise. But while the company’s shares stayed above the $2.00 mark as it has steadily done in the previous five years, it hasn’t experienced the rapid jump analysts were expecting.
Many believe that Elliot's offer is too low, especially considering the growth the company has recently seen. In the third quarter, Endologix’s revenues increased 42% and it reported $9.4 million in sales.
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