Depomed Inc’s (DEPO) Board of Directors Rejects Horizon Pharma PLC’s (HZNP) Unsolicited Exchange Offer
Depomed, Inc. Logo. (PRNewsFoto/Depomed, Inc.)
Depomed Inc (NASDAQ:DEPO) announced that its Board of Directors, after careful consideration and in consultation with its financial and legal advisors, has unanimously determined to recommend that shareholders reject Horizon Pharma plc’s (NASDAQ:HZNP) unsolicited exchange offer to acquire all of the outstanding shares of Depomed at an exchange ratio of 0.95 of an ordinary Horizon share for each share of Depomed (the “Offer”).
“Our Board of Directors unanimously concluded that Horizon’s unsolicited exchange offer significantly undervalues Depomed, is inadequate and is not in the best interests of Depomed and its shareholders,” said Jim Schoeneck, President and CEO of Depomed andPeter D. Staple, Depomed’s Chairman of the Board. “We remain very confident in the growth prospects of NUCYNTA and our strong portfolio of products for pain and neurology related disorders. We continue to believe that Horizon’s exchange offer is opportunistic and would transfer the future value of Depomed to Horizon at a price we believe does not represent the value of Depomed’s assets, business and prospects.” (Original Source)
Shares of Depomed closed last Friday at $27.33. 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 $29.67 and its 200-day moving average is $25.46.
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 20.7% 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 TipRanks.com, 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 28.9% and 11.7% respectively. Henry has a success rate of 64.9% and is ranked #11 out of 3755 analysts, while Stanicky has a success rate of 59.5% and is ranked #373.
DepoMed Inc is a specialty pharmaceutical company focused on pain and other conditions and diseases of the central nervous system.