Depomed Highlights Horizon's Failure To Make Compelling Proposal For Company

(RTTNews) - Depomed Inc. (DEPO) sent a letter to Horizon Pharma plc (HZNP), highlighting Horizon's failure to make compelling buyout proposal for Depomed, despite Horizon's stated willingness to increase price and include cash component.

"Your willingness to increase your proposal is an obvious recognition that the vast majority of our shareholders do not support what you have proposed. Our Board takes its fiduciary duties seriously and will always be open to any compelling proposal that creates value for its shareholders, but we are prepared and committed to take actions that we deem appropriate to protect our shareholders' interests, even if it involves protracted litigation and a proxy fight," Depomed said in the letter.

In conversation late last week, Horizon stated that it was prepared to increase its proposal and to include a cash component of up to 25%. It was confirmed in an email late Friday night from one of Horizon Board members to Depomed's Board Chairman.

"Yet you still have not made a new proposal. Instead, you have insisted that we need to first make a counter-offer. It does not make any sense to engage with Horizon unless you make a sufficiently compelling and detailed proposal," Depomed said.

Depomed noted that it is making available an investor presentation today which shows the continued period of accelerated growth it has experienced and Depomed's promising outlook.

On July 29, 2015, the Depomed Board rejected Horizon's previous purported revised, highly conditional, unsolicited proposal to acquire all outstanding common share of Depomed at a price of $33.00 per share. The Depomed Board concluded that such prior proposal was inadequate and not in the best interests of Depomed and its shareholders, as it substantially undervalued Depomed's business and did not reflect the inherent value of Depomed in light of its standalone prospects.