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Weekly Movers: Valeant, Depomed, Intercept Pharma, Insys Therapeutics and more…

Published on 18/04/16 at 10:31am

Troubles don’t seem to go away for Canada-based Valeant Pharma (NYSE: VRX) with news of a probable sale doing the rounds now. The stock made a turn for the worse, yet again this week as the company was served with a default notice from stakeholders.

Elsewhere it was the whole gamut of drug trial results, talks of acquisitions and sales outlook that moved sentiment and contributed to sharp stock rally.

Here’s a quick look at the movers of the week:

Depomed criticised by investors and urged to explore potential sale

Only a few short months after fighting off a $1 billion bid from Horizon Pharma, investors at Depomed have called on the board to explore a potential sale of the company.

Horizon Pharma receives third rejection from Depomed

Depomed has announced that its board has unanimously rejected Horizon Pharma’s third proposal to buy the California-based company.

Following its initial rejected approach in May, Horizon Pharma again failed with an improved proposal in July, which included up to 25% in cash – subject to a reduction in the total price per share.

Depomed, which specialises in pain and central nervous system conditions, notes that the third proposal has a current value below $30 per share, which is less than the $33 per share proposal Horizon previously made.

Takeover hostilities resume between Depomed and Horizon

Nucynta (tapentadol)
Depomed says Horizon's bid is based on illegal use of information about Nucynta

The bitter takeover row between Horizon and Depomed has escalated after Depomed dismissed its suitor’s latest advances, and warned it was willing to go through ‘protracted litigation and a proxy fight’.

In a public letter to Horizon Pharma, Depomed dismissed the latest move in the Dublin-based company’s strategy, saying “it does not make any sense to engage unless you [Horizon] make a sufficiently compelling and detailed proposal.”

Depomed rejects Horizon’s latest takeover bid

Depomed has rejected Horizon Pharma’s latest bid, stating the proposal is ‘inadequate’ and ’undervalues’ the company.

The Irish pharma company offered a $33 per share proposal, up from its previous $29.25 per share offer valued at approximately $2.0 billion.

Horizon attempts a hostile $3bn Depomed takeover

Deopmed logo
Depomed has rejected unsolicited bids for its shares from Horizon

Dublin-based specialty pharmaceutical company Horizon has launched a bid to buy Depomed for $3 billion.

Horizon, a biopharma company focussed on producing drug treatments for arthritis and other inflammatory diseases, say they have made repeated attempts for deal discussions with Depomed, which makes pain treatments and products treating conditions related to the nervous system.

Depomed hires Kyalin chief executive

Published on: 21/07/14

California-based speciality pharma firm Depomed has appointed Dr Srinivas Rao as its chief medical officer (CMO) and senior VP.

Rao was the founder and chief executive of Kyalin Biosciences, a privately held biotech company, from its formation in 2011 through to its sale to Retrophin in 2013. 

In 2014 Rao served as executive VP and head of Neuroscience at Retrophin. In the three years prior Rao also was the CMO and chief scientific officer (CSO) for three companies through his association with Avalon Ventures. 

Depomed pulls diabetes drug Glumetza

Another pharmaceutical manufacturer has been forced to recall products because of contamination caused by a chemical used to treat wooden pallets used for transport and storage of medicines.

US drugmaker Depomed said it is conducting a voluntary recall of 52 lots of its diabetes medication Glumetza (metformin hydrochloride extended release) 500mg tablets, due to the presence of trace amounts 2,4,6-tribromoanisole or TBA.

TBA is a breakdown product of another chemical - (2,4,6, tribromophenol or TBP) - which is used to make the pallets fire resistant.

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