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Depomed Inc Said To Have Received One Bid

Posted by on January 6, 2017 7:00 AM
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Categories: Stocks

January 6, 2017: Depomed Inc said to have received one bid according to reports in the mainstream financial media.
Recent mainstream media commentary on potential sale of Depomed:

– On Dec 31st KKR remains interested in acquiring Depomed – NY Post

– One analyst cited expects a deal would value DEPO at $25/shr or $1.5 billion

– On Dec 6th Earlier strength attributed to Spanish press report that Novartis is working on a bid

– On Dec 5th Interest from Horizon reportedly has waned

January 2, 2017: KKR remains interested in acquiring Depomed according to an article in the NY Post. Source: http://nypost.com/2016/12/30/kkr-is-interested-in-buying-opioid-maker-depomed/

December 13, 2016: Roth Capital reiterates a Buy rating on Depomed, and sets a price target of $27.

December 12, 2016: Piper Jaffray/Simmons cuts Depomed Inc to an Underweight rating from Neutral, and sets price target at $14.

December 7, 2016: The mainstream media is reporting that Purdue Pharma executive said that Depomed is ‘clearly’ on the radar as Purdue considers M&A; however, company said there is nothing to confirm or deny at the moment.

December 6, 2016: Hearings rumors circulating that Novartis may be working on a bid for Depomed. The source of the rumors appears to be coming from this Spanish press report. You can use Google Translate to translate the webpage into english but here’s what I’ve been able to translate:

“Joe Jimenez, president of Novartis, said last Sunday that it has between $2 billion and $5 billion to buy companies. Depomed would be the chosen one.”

Depomed Stock Chart


The Finviz screener settings used to find Depomed are: Forward P/E Under 20, EPS growth past 5 years Over 30%, Sales growth past 5 years Over 30%, Debt/Equity Low (<0.1), Gross Margin High (>50%), RSI (14) Not Overbought (<50)

Depomed is a specialty pharmaceutical company that commercializes products for pain and neurology related disorders. In addition to its ability to develop and commercialize new drugs, Depomed also has successfully developed and licensed its unique drug-delivery technology, Acuform®. This patented oral delivery technology allows for the targeted, extended release of pharmaceutical compounds into the upper gastrointestinal tract. We have licensed Acuform technology to six pharmaceutical partners, and the technology is currently being used in four marketed drugs, including NUCYNTA ER and Gralise. The company’s strategy is to continue to identify, license and develop new products that offer enhanced therapeutic options patient populations that may be underserved by existing therapies.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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