Early this month, Horizon Pharma wrote to hostile target Depomed to get the ball rolling on requesting a special shareholders' meeting. And it's not happy about how that process has gone so far.
Horizon has criticized Depomed's directors for refusing to come to the table, despite its attempts to "engage in good faith" over a combination of the two companies. Now, though, it's got some new directors in mind who it thinks will see things differently.
Last month, Depomed criticized a sweetened, $33-per-share buyout offer from Horizon, claiming the all-stock proposal was "opportunistic" and took advantage of share-price fluctuations. So Horizon is doing something about it.
Horizon Pharma, which is trying to buy Depomed, today reported a small profit for Q2. It said sales soared 161%, hitting $172.8 million as revenues from newly acquired products kicked in.
Horizon Pharma has told target Depomed that it's prepared to hike its $2 billion offer for the company and throw in a cash component of up to 25%, according to Depomed chief Jim Schoeneck. And he wants to know where that sweetened offer is.
Horizon Pharma is done playing nice in its quest to nab Depomed. Now that its target has dismissed its updated buyout bid, it's charging full-force into hostile pursuit.
Last week, Horizon raised its buyout offer for California's Depomed in order to spur the drugmaker into coming to the bargaining table. But it looks like it'll have to go with Plan B.
Don't get Horizon Pharma wrong. It intends to pursue Depomed as an M&A target whether the California company likes it or not. But it would prefer for Depomed to like it--and in an effort to spur a "friendly, negotiated transaction," it's raising its bid.
Depomed was serious when it said it wasn't interested in Horizon Pharma's $29.25-per-share bid. Following the Irish pharma's move to take its hostile overture public last week, the company has put up its takeover defenses.
Last week, analysts pointed out that Horizon Pharma had plenty of potential buyouts to choose from, unlike bigger companies looking for bigger deals. Now, the $5 billion market-cap company has zeroed in on a target: Depomed, the pain drug specialist.