Avoro Capital Advisors, a long-term and collaborative investor in life sciences and biotechnology companies, together with certain of its affiliates and managed funds beneficially owns approximately 7% of Acceleron Pharma Inc. (Nasdaq: XLRN), making Avoro one of the Company's most significant shareholders. Avoro today released a detailed presentation outlining why shareholders should not tender their Acceleron shares to the Merck & Co. Inc. (NYSE: MRK) tender offer for $180 per share.

As highlighted in the presentation, Avoro believes that:

• Now is the wrong time to cash out of Acceleron: Significant value will be created in one year or less after the STELLAR phase 3 trial data is available. Other major shareholders agree.
• Merck’s offer does not represent fair value for Acceleron: The implied valuation based on precedent transactions is much higher than the $180 per share Tender Offer price. Sell side analysts and several other investors agree that the price is too low.
• Acceleron’s Board used a flawed process in reaching the deal: The Board only approached three potential buyers and seemingly did not pursue any other strategic alternatives. In fact, the Board appeared more focused on serving management’s interests by providing last-minute tax gross-ups and increased severance payments to Acceleron executives.
• Avoro stands ready to support an independent Acceleron: Avoro would stand ready to take the steps necessary to help modify the Board’s composition and add directors with relevant experience and expertise to create improved shareholder.

Avoro reiterates that it will not tender its shares into the Merck Tender Offer.