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Horizon drops hostile bid for Depomed after California judge's ruling

LOS ANGELES, Calif. – Horizon Pharma says it is dropping its hostile bid for rival drugmaker Depomed after a judge rejected its effort to nullify Depomed’s “poison pill” takeover defence.

Horizon said Thursday that while it strongly disagreed with the ruling from a California superior court judge, it is withdrawing its offer. Depomed had repeatedly rejected Horizon’s overtures, saying they undervalued the Newark, California-based company.

As of Thursday, Horizon’s all stock bid was worth about $1.1 billion.

Depomed in July adopted the “poison pill” measure, which can thwart takeover attempts by making them too expensive.

Dublin-based Horizon Pharma PLC makes the rheumatoid arthritis drug Duexis. Depomed Inc. has a portfolio that includes the migraine drug Cambia.

Depomed’s shares rose almost 4 per cent in extended trading, while Horizon’s rose less than 1 per cent.