Depomed, Inc. (NASDAQ:DEPO) confirmed that Horizon Pharma PLC (NASDAQ:HZNP) has announced that it has commenced an unsolicited exchange offer to acquire all of the outstanding shares of Depomed. Under the terms of the offer, Horizon is offering an exchange ratio of 0.95 of Horizon shares for each share of Depomed, remaining unchanged from its prior unsolicited proposal.

The Company noted that on August 19, the Depomed Board unanimously rejected Horizon’s revised proposal that provided for an exchange ratio of 0.95 of Horizon shares for each share of Depomed.  The Board strongly believed that the revised proposal significantly undervalued Depomed, and did not reflect the value Depomed would contribute to the combined company or the value of the synergies from the transaction.

Depomed’s Board of Directors, in consultation with its financial and legal advisors, will carefully review and evaluate Horizon’s exchange offer.  Following completion of this review and evaluation, Depomed will advise shareholders of the Board’s position regarding the exchange offer by making available to shareholders, and filing with the Securities and Exchange Commission, a solicitation/recommendation statement on Schedule 14D-9. Applicable securities laws prevent Depomed from making any further comments on Horizon’s exchange offer or its terms until after this filing is made on Schedule 14D-9 which will be no later than 10 business days from today. Until that time, Depomed shareholders are advised to take no action.

Morgan Stanley & Co. LLC and Leerink Partners LLC are serving as financial advisors to Depomed and Baker Botts L.L.P. and Gibson, Dunn & Crutcher LLP are serving as legal counsel. (Original Source)

Shares of Depomed closed last Friday at $26.66. DEPO has a 1-year high of $33.74 and a 1-year low of $13.55. The stock’s 50-day moving average is $30.40 and its 200-day moving average is $25.29.

On the ratings front, Depomed has been the subject of a number of recent research reports. In a report issued on August 28, Roth Capital analyst Scott Henry maintained a Buy rating on DEPO, with a price target of $33, which implies an upside of 23.8% from current levels. Separately, on July 30, RBC’s Randall Stanicky downgraded the stock to Hold and has a price target of $32.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Henry and Randall Stanicky have a total average return of 27.8% and 11.1% respectively. Henry has a success rate of 62.9% and is ranked #13 out of 3747 analysts, while Stanicky has a success rate of 58.9% and is ranked #386.

DepoMed Inc is a specialty pharmaceutical company focused on pain and other conditions and diseases of the central nervous system.