Efficacy Biotech Fund Sends Letter to Praecis Pharma (PRCS) Urging Board To Consider Alternatives

In a 13D filing on Praecis Pharmaceuticals (NASDAQ: PRCS), Efficacy Biotech Fund disclosed a 9.36% stake (1 million shares). This compares to the 950K shares stake the firm disclosed in a past filing. The investment firm changed its filing status from 13G to 13D, indicated a more active stance, and disclosed a letter to the board of directors urging them to consider strategic opportunities and alternatives.

The firm said, "As our recent phone calls to various Board members have not been returned to date, we are writing in the interests of Praecis’ stockholders to urge the Board of Directors to consider strategic opportunities and alternatives that are presented to Praecis by third parties. Specifically, we strongly recommend that you promptly evaluate in accordance with your fiduciary duties any third party proposals for the sale of all or a portion of the company, and carefully evaluate the potential benefits of such a transaction against the company’s current business plan, which involves continued significant expenditures on a highly speculative drug discovery technology."

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