Another look at the news in week to April 15

Activist fund Starboard Value targeted Depomed, a small drug maker with an approximate $1 billion market capitalization late last week, wrote Bret Jensen, a regular contributor to the Seeking Alpha blog.

The company has been caught flat footed as many others in the space by the fallout and negative sentiment created on the industry by the now pariah Valeant Pharmaceuticals. Last year Depomed also successfully fought off a takeover attempt by Horizon Pharma, which has its own issues. The stock is selling at half of its 52-week highs.

Starboard has acquired 10% of the company and is demanding six board seats. The activist firm noted the reason for its push is because the company "has a troubling record of egregiously manipulating the corporate machinery to entrench management and the Board." Starboard has had success effecting change at larger companies such as Darden and Yahoo. This will be interesting drama to watch unfold, said Mr Jensen.