Horizon Pharma ditches $1 billion hostile bid for Depomed
- Horizon Pharma has backed off of its unsolicited bid for Depomed after a California court found the company guilty of using confidential information improperly.
- Charges of inappropriate use of confidential information were first brought up in documentation from Depomed, which has been attempting to stave off Horizon's acquisition efforts for six months.
- Depomed's board repeatedly said that this acquisition would not be in the best interest of Depomed, because Depomed has a real opportunity to grow significantly in light of the company's recent acquisition of pain medication Nucynta (tapentadol).
On paper, it's a great fit. Horizon focuses on treatments for orphan diseases, and Depomed focuses on treatments for pain and central nervous system (CNS) disorders. However, Depomed wants to remain independent because of the potential it sees with Nucynta.
Backstory: In 2013, both Depomed and Horizon bid on Nucynta. As part of that process, each company signed a confidentiality agreement with Jannsen not to use the confidential information revealed during the proceedings. Depomed says that Horizon failed to honor that deal—and a judge agreed.
At the point, Horizon has backed off and withdrawn its bid, with the goal of looking elsewhere for acquisition targets.