SC Fundamental Value Calls on Transcept Pharmaceuticals to Remove Four Board Members

SC Fundamental Value, Transcept: Transcept Pharmaceuticals Inc (NASDAQ:TSPT) was given support in the equity portfolio of SC Fundamental Value, a filing with the SEC shows. The firm still owns 6.7% of the company, which is the same amount it disclosed holding a couple months ago. 

The primary purpose of the filing was to ask Transcept’s Board to “eliminate the Tax Benefit Preservation Plan” that is on the table, and more dramatically, the note calls for it to “remove as a director of the Company without cause each of Christopher B. Ehrlich, Glenn A. Oclassen, Jake R. Nunn [and] G. Kirk Raab.”

In a filing yesterday, Roumell Asset Management, managed by James Roumell, disclosed a letter sent to Transcept, in which he stated that the company’s intention to partner with Shin Nippon Biomedical Labs was “an astoundingly poor capital allocation decision.”

At the end of last month, Transcept disclosed that it received a request from Retrophin Inc (OTCMKTS:RTRX), which asked for permission to increase its position in Transcept to 15%, from its currently held 4.9% stake. Transcept’s Board of Directors declined the request “after consultation with its financial and legal advisors, and after evaluating the Retrophin request in the context of the tax benefit preservation plan adopted on September 13, 2013,” it said in a statement.

Disclosure: none

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