Horizon Pharma is getting anxious and has offered the substantial amount of €2.7Bn to buy its American competitor Depomed. The Irish drug-maker plans to add the US-based firm to its shopping list just after enrolling Hyperion Therapeutics, the company that was purchased only one month ago.
Dublin-based Horizon has been pursuing Depomed lately, but the American company is playing hard to get. After been rebuffed twice, Horizon has decided to address the shareholders directly, to whom the former has offered €26.2 per share, 42% premium to Depomed’s closing price last Monday. Horizon expects the stockholders to listen to reason and understand the benefits this takeover transition will bring.
Nevertheless, Depomed’s Board of Directors is not convinced with the unsolicited proposal and, in a statement, has warned its shareholders that they would only own 27% of the combined company. The American managers believe in the potential of the company to run on its own, and therefore suggested a bigger piece of a perhaps smaller cake to the investors.
Over the last four years, Depomed has transformed into a leading specialty pharmaceutical company focused on pain and neurology. Assets that Horizon undoubtedly wants to add to its diversified pipeline.