Proxy advisory firm Glass Lewis & Co. recommended that Aviragen Therapeutics Inc. stockholders vote against the company's proposed merger with privately held Vaxart Inc.
The firm said it is not clearly established that the proposed deal likely represents the most attractive strategic alternative available to Aviragen investors.
Further, an investor group, which previously urged Aviragen shareholders to reject the deal, said the transaction undervalues the company's antiviral agent BTA074. Digirad Corp., East Hill Management Co. LLC and Thomas Clay asked shareholders not to sell a 60% economic interest in the potential condyloma treatment to Vaxart a few months before the release of its phase 2 study results.
Aviragen shareholders are scheduled to vote on the deal at an upcoming special meeting.
Alpharetta, Ga.-based Aviragen recently said its board unanimously recommended that stockholders vote for proposed merger. Meanwhile, another proxy advisory company, Institutional Shareholder Services Inc., asked shareholders vote against the deal.
