Depomed Inc. said Monday that it would attempt to block Horizon
Pharma PLC from using confidential data, a week after the company
rejected Horizon's roughly $2 billion hostile takeover bid.
In a news release, Depomed said Horizon's bid is "predicated on
the improper and unlawful use of highly confidential and
proprietary information" relating to Depomed's leading pain drug.
The company plans to file an injunction to prevent Horizon from
continuing its alleged use of Depomed's data, and to prevent
Horizon from making statements that Depomed claims are false.
The complaint, to be filed in the Superior Court of the State of
California for the County of Santa Clara, follows the rejection by
Depomed's board last week of Horizon's sweetened offer to buy the
company at $33 a share.
The board has said the proposal is "not in the best interest" of
the company, given that it is in a period of significant growth and
is expected to benefit from its recent acquisition of the U.S.
rights to painkiller Nucynta from Janssen Pharmaceuticals Inc., a
unit of Johnson & Johnson.
Earlier Monday, Dublin-based Horizon submitted a written request
to Depomed to schedule a special meeting allowing shareholders to
vote on the proposed tie-up. Horizon also filed a lawsuit Monday to
challenge the poison-pill measure Depomed recently adopted in an
attempt to defend against the hostile bid. The rights plan would be
triggered by a person or group acquiring a more than 10% stake in
the company.
Horizon first made an all-stock offer to buy Depomed in a letter
sent May 27, and then went public with the increased proposal
mid-July after it was rejected by Depomed's board.
Shares in Depomed fell 1.3% in midday trading, while Horizon
shares declined 3%.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires