Horizon Pharma ups offer for Depomed to $33 a share

Ireland-incorporated Horizon Pharma (Nasdaq: HZNP) say that it has increased the value of its previously-announced all-stock acquisition proposal for Depomed (Nasdaq: DEPO; The Pharma Letter July 7) to $33.00 per share from $29.25 per share, contingent on Depomed entering into good faith discussions regarding a transaction. Shares of the latter rose 2.6% to $33.80 on the news.

The increased offer represents a 60% premium to the closing price of Depomed on July 6, 2015, the day prior to when Horizon's initial proposal was made public. Horizon Pharma said the first offer valued the company at about $3 billion, but this was rejected by Depomed, which has in the meantime adopted a shareholder rights plan to shield itself from the hostile takeover approach (TPL July 14).

"Based on discussions we've had with Depomed's largest shareholders as well as our own shareholders, it is clear that they and the investment community strongly support a combination of our two businesses," said Timothy Walbert, chairman, president and chief executive of Horizon Pharma, adding: "We are resolute in our commitment to acquire Depomed and we call upon Depomed's board of directors to listen to their shareholders, fulfill their fiduciary responsibilities and meet with us in order to promptly complete a negotiated transaction."