Thursday, July 30, 2015
Depomed Inc rejected Horizon Pharma Plc's latest unsolicited bid, saying the offer is "inadequate" and undervalues the company.
Depomed's stock rose about 2.3 percent to $32.60 in aftermarket trading on Wednesday. Horizon Pharma's shares fell 0.56 percent to $36.99.
Last week, Ireland-based Horizon Pharma had raised its all-stock offer for the smaller drugmaker for the second time to about $33 per share.
Horizon Pharma's latest offer does not reflect an increase in Depomed shareholders' stake in the combined company or the amount of Horizon Pharma stock they would receive, Depomed said on Wednesday, echoing its view from last week.
Horizon Pharma first approached Depomed in May and after being rejected, went hostile with its offer in July. Depomed reacted by adopting a poison pill to stave off a takeover.
Horizon Pharma has said that its latest offer was contingent on Depomed starting takeover talks and that it would consider other options to pressure Depomed if spurned again.
Horizon Pharma has drugs to treat genetic disorders related to immunity and metabolism and has four pain treatments on the market. Depomed has five pain treatments, including its flagship product Nucynta.
The company said on Wednesday it believes that Nucynta has blockbuster potential - an even bigger opportunity it originally anticipated.
Depomed's net product sales rose 234 percent to $94.3 million in the second quarter ended June 30, led by a strong performance from Nucynta in the first quarter that the company distributed the product.
The California-based company also raised its full-year forecast for total product sales and adjusted earnings.
reuters.com
