Depomed gives Starboard chance for meeting to replace board

AP News
Posted: Apr 25, 2016 9:06 AM

Depomed is taking steps to ease the pain of a protracted battle with activist investor Starboard Value over control of the drugmaker.

The pharmaceutical company said Monday that its board has amended its shareholder rights plan, which allows Starboard to immediately submit its request for a special meeting. Starboard has said it wants that meeting so it can replace Depomed's board.

Starboard holds a nearly 10 percent stake in Depomed and also is leading a shareholder mutiny at Yahoo as well.

Depomed's portfolio includes the painkiller Nucynta and the migraine drug Cambia.

It also said Monday that it has settled litigation with Horizon Pharma, which tried to acquire Depomed. Terms of that deal are confidential, but Depomed did say that Horizon cannot start another unsolicited takeover bid until 2020.