Horizon Pharma withdraws hostile bid for Depomed

Ireland-incorporated Horizon Pharma (Nasdaq: HZNP) saw its share rise 7% $20.14 in morning trading, after it revealed it would drop its hostile six-month pursuit of orphan disease specialist Depomed (Nasdaq: DEPO), for which it had offered around $1.1 billion to acquire.

Depomed’s stock fell 5.5% to $18.32 in premarket trading but was barely changed by mid-morning at $19.29(-0.52%). Leading analysts have reiterated their buy rating on Depomed, despite the Horizon action, with a fair value estimate of $35.

Horizon announced late Thursday that at a hearing held that day, Judge Peter Kirwan of the Superior Court of California for the County of Santa Clara granted Depomed’s motion for preliminary injunctive relief against Horizon Pharma's alleged use of information that Depomed claimed was confidential. In his ruling, Judge Kirwan did not grant the injunctive relief Horizon Pharma had sought regarding the legality of Depomed's poison pill and certain of the bylaw amendments announced by Depomed's board of directors on July 13, 2015.