Relypsa (RLYP) Has Multiple Banking Relationships

April 15, 2016 7:48 AM EDT
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Relypsa, Inc. (NASDAQ: RLYP) is trading sharply lower (-13.9%) in pre-open trade Friday as questions emerge about which investment bank the company is working with to field potential offers. Overnight, a report from Benzinga surfaced suggesting Centerview Partners was no longer working with the company.

Last week, Relypsa shares surged after Reuters reported that the company is exploring a sale following overtures from potential buyers and was working with Centerview.

While it is unclear if Centerview is out, Relypsa said in an email statement that they work with multiple investment banks.

“We do not comment on specific banking relationships. As is common for public companies, we have multiple banking relationships,” said a Relypsa spokesperson.

Also of note, late yesterday, the same Reuters reporter (Carl O'Donnell) reported that Valeant has turned to investment banks that include Goldman Sachs and Centerview. This suggests the reporter may have a source close to Centerview.

Centerview didn’t respond to multiple requests to comment.

Centerview or not, it is clear the company is exploring options. What is not clear is if it will lead to a definitive deal. In biotech, exploring a sale and a signed deal are very far apart, as management's expectations of future blockbuster drugs potential is pitted against a buyers more cautious view.

StreetInsider first reported in December that the company was in play.

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