Horizon Pharma pursues Depomed with US$3bn hostile bid
Aims to combine its rare disease business with Depomed's pain treatments
Horizon Pharma has launched a hostile bid for Depomed of Newark, CA, US for US$29.25 a share in an all-stock, tax free exchange which values the company at approximately $3bn.
The proposal represents a premium of 42% to Depomed's closing price on 6 July, 2015.
Horizon says the combined company would have 13 marketed medicines, nearly doubling Horizon's current portfolio, with more than 700 sales representatives in primary care, orphan and speciality business units, and projected full-year pro forma combined 2015 net sales in excess of $950m, the company says.
'The strategic and financial benefits of our proposal are highly compelling,' said Timothy P. Walbert, Chairman, President and Chief Executive of Horizon Pharma. 'Given the significant revenue and operating synergies, as well as considerable tax savings, we would create substantial long-term value for Depomed's shareholders in addition to the immediate value realised through the proposed premium.'
Depomed's board of directors has 'unanimously determined' that Horizon’s proposal is not in the best interests of the company, and remains confident that 'continuing to execute on its strategic plan is the best path forward'.
The bid, the company said, 'fails to reflect 'the inherent value of Depomed in light of the company's standalone prospects'.
