Depomed shares rocket on Horizon Pharma bid

Shares in Depomed rocketed 37% as biopharmaceutical firm Horizon Phama said it was taking its bid for the company hostile, after revealing that the offer it made to acquire all of Depomed’s outstanding shares in May was rejected.

Horizon, which said it has gone public with the deal because Depomed has refused to engage in talks, offered $29.25 per share in an all-stock, tax-free exchange valued at around $3bn.

The proposal represents a 42% premium to Depomed’s closing price on 6 July and if consummated, would be immediately and substantially accretive to Horizon's adjusted diluted earnings per share.

Chairman, president and chief executive officer of Horizon Pharma, Timothy P Walbert, said: "Despite our repeated attempts beginning in March to engage Depomed's management and board of directors in friendly and confidential discussions, Depomed's management and board have refused to engage in discussions with us and rejected our proposal."

He added: “We have elected to bring this proposal to the attention of Depomed's shareholders, who we expect, given the opportunity to understand the financial, strategic and operational benefits of this transaction will support it and will encourage their Board and management to begin constructive discussions with us promptly with the goal of completing a negotiated transaction."

At 14:58, Horizon Pharma shares were down 1.6% at $34.00.