Horizon Pharma in hostile pursuit of Depomed for $3 billion
- Horizon Pharma is pursuing a hostile bid of $3 billion for Depomed.
- Although Horizon has been purusing Depomed since March, the latter firm has continuously rejected Horizon's offers.
- Depomed's portfolio includes the migraine drug Cambia and the painkiller Nucynta ER.
For the last four months, Horizon has pursued Depomed, but Depomed is looking for a stronger deal than has been proposed so far. So now, Dublin-based Horizon has decided to go directly to shareholders with an offer of $29.25 per share—a 42% premium.
Horizon Pharma has been acquisition hungry for the last two years, during which time the company has acquired four companies, including Hyperion Therapeutics. Through this deal, Horizon gained access to the U.S. rights for the painkiller, Vimovo.
Assuming the $3 billion (with debt) deal goes through, Horizon will have a total of 13 marketed drugs, and Depomed shareholders will end up owning roughly 25% of Horizon.