Horizon Pharma changed its mind on taking over Depomed following a ruling from Judge Peter Kirwan of the Superior Court of California. The judge decided that the bid was allegedly made by HZNP with confidential information about DEPO and ruled against it.
Horizon Pharma said that it disagrees with the judge’s decision, but that it will still withdraw its bid for Depomed. HZNP said that it doesn’t expect this ruling to affect its guidance for 2016. It also noted that DEPO was only one of many companies that it was looking at.
HZNP made its offer for Depomed back in July of this year. It was offering $3 billion, including debt, for the company. At the time, this was a 42% premium of the DEPO’s stock price.
HZNP shares were up 7% and DEPO shares were down slightly as of Friday morning.
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