Afexa Life Sciences Inc (FXA.TO), maker of the popular Cold-FX flu medicine, urged shareholders on Friday to take no action on a hostile takeover offer from Paladin Labs (PLB.TO), saying it undervalues the company at C$56.7 million ($57.3 million). In an earnings report that trumpeted a bright future for Cold-FX in Canada and abroad, Afexa said a special committee of the board would review the offer and would make a recommendation soon. "The board strongly urges Afexa shareholders not to deposit any shares to the Paladin offer and not to take any action with respect to the Paladin offer until the board has completed its full review and consideration of the offer," the company said. The bid for Afexa is one of two acquisition deals being pursued by Montreal-based Paladin, and highlights the growing competition in the industry for access to approved and marketable drugs.
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