Depomed Inc (NASDAQ:DEPO) issued the following statement regarding Horizon Pharma PLC (NASDAQ:HZNP) decision to withdraw its acquisition proposal. The withdrawal follows a ruling today by the Santa Clara County Superior Court enjoining Horizon Pharma’s exchange offer and proxy solicitation based on Horizon’s misuse of Depomed’s confidential information:
Depomed’s Board and management team are committed to enhancing long-term value and we look forward to continuing to execute on our strategy and delivering significant and sustainable returns for all our shareholders. For example, the NUCYNTA franchise is, in our view, a transformational value driver for Depomed that will significantly increase Depomed’s EBITDA and cash flow in 2015 and beyond. Ultimately, we strongly believe we have successfully executed our acquisition and commercialization strategy, and Depomed has a bright future as an independent company.
We thank all of our shareholders for their input and support throughout this process. And importantly, we want to thank our employees for their relentless focus and dedication to the patients, families, physicians and other providers and payers we serve.
Morgan Stanley & Co. LLC and Leerink Partners LLC are serving as financial advisors to Depomed and Gibson, Dunn & Crutcher LLP andBaker Botts L.L.P. are serving as legal counsel. (Original Source)
Shares of Depomed closed yesterday at $19.39. DEPO has a 1-year high of $33.74 and a 1-year low of $14.38. The stock’s 50-day moving average is $18.79 and its 200-day moving average is $23.99.
On the ratings front, Depomed has been the subject of a number of recent research reports. In a report issued on November 18, Janney Montgomery Scott analyst Ken Trbovich reiterated a Buy rating on DEPO, with a price target of $35, which implies an upside of 80.5% from current levels. Separately, on the same day, Cantor Fitzgerald’s Chiara Russo maintained a Buy rating on the stock and has a price target of $29.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ken Trbovich and Chiara Russo have a total average return of 15.9% and -4.2% respectively. Trbovich has a success rate of 33.3% and is ranked #1232 out of 3857 analysts, while Russo has a success rate of 31.6% and is ranked #3126.
Overall, one research analyst has assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $25.00 which is 28.9% above where the stock closed yesterday.
DepoMed Inc is a specialty pharmaceutical company focused on pain and other conditions and diseases of the central nervous system.