Sector News

Horizon hikes Depomed offer to $2B in bid for ‘friendly’ deal talks

July 21, 2015
Life sciences
Don’t get Horizon Pharma wrong. It intends to pursue Depomed as an M&A target whether the California company likes it or not. But it would prefer for Depomed to like it–and in an effort to spur a “friendly, negotiated transaction,” it’s raising its bid.
 
Tuesday, the Irish pharma put forth a $33 per share proposal–up from its previous $29.25-per-share offer. The new bid represents a 60% premium to Depomed’s share price the day before Horizon took its intentions public, or about $1.97 billion. But that price is contingent on Depomed “rapidly entering into good faith discussions regarding a transaction,” Horizon CEO Timothy Walbert wrote in a letter to his target’s board.
 
On that front, Walbert said his company remains “surprised and disappointed” that Depomed hasn’t yet come to the bargaining table. Based on talks Horizon has had with shareholders on both sides, “it is clear that they and the investment community strongly support a combination of our two businesses,” he said in a statement.
 
For its part, Depomed so far hasn’t shown any signs that it’s up for a buyout. Last week, it adopted a poison pill plan that would be triggered if any person or group picks up an ownership stake larger than 10%.
 
But Depomed’s reticence won’t stop Horizon from moving forward, Walbert stressed: “Horizon remains committed to an acquisition of Depomed and we are prepared to consider all paths necessary to complete the transaction,” he said.
 
By Carly Helfand
 

Related News

April 17, 2021

Thermo Fisher to buy research contractor PPD in $17B deal

Life sciences

Thermo Fisher Scientific plans to buy PPD for $17.4 billion to bolster its clinical research service offerings to pharmaceutical and biotech companies.

April 17, 2021

Nestlé finds supplement cocktail slashes preterm birth in major preconception study

Life sciences

Nestlé Research has linked a specific blend of myo-inositol (a type of sugar), probiotics, riboflavin, zinc and vitamins D, B6 and B12 to the decreased incidence of preterm birth when consumed before and during pregnancy.

April 17, 2021

Eli Lilly, riding pharma’s rising digital wave, drafts Apple exec to replace Shah as CDO

Life sciences

Eli Lilly hired a new digital chief from Apple in another consumer switch for pharma and as the industry speeds up its shift to online strategies.

Send this to a friend