Depomed Announces Cooperation Agreement with Starboard Value LP Including CEO and Board Changes
March 28 2017 - 4:03PM
-Pharmaceutical Veteran Arthur J. Higgins Joins
as President, CEO and Director-
Depomed, Inc. (NASDAQ:DEPO) today announced that Arthur J. Higgins
has joined the Company as President and Chief Executive Officer and
member of the Board of Directors, following the resignation of
James Schoeneck as President and Chief Executive Officer and member
of the Board of Directors. Mr. Higgins is a highly respected
executive with over 35 years’ experience in the pharmaceutical and
healthcare industry. Serving as CEO of Bayer Healthcare, he
helped transform the company into a leader in global pharmaceutical
and consumer healthcare. He previously served as Chairman and
CEO of Enzon, Inc., and President of Abbott Laboratories
Pharmaceuticals Division, and more recently has served as Senior
Advisor to The Blackstone Group.
“I am honored to be able to work with the management and the
Board of Depomed. We have an opportunity to accelerate
Depomed’s journey as a leader in pain management and neurology as
we maximize value for all shareholders,” said Mr.
Higgins.
Composition of the Board
Depomed also announced that Mr. Higgins, William McKee, former
Chief Financial Officer of Barr Pharmaceuticals, LLC, and Gavin
Molinelli, a partner at Starboard Value LP have joined the Board of
Directors, and that Samuel Saks, M.D. and David Zenoff, D.B.A. have
resigned from the Board. Karen Dawes, James Fogarty, Louis
Lavigne, Jr., Robert Savage, Peter Staple and James Tyree will
continue as members of the Board. James Fogarty will serve as
the new Chairman of the Board.
Peter Staple said, "On behalf of the Board, I want to thank Sam
Saks and David Zenoff for their contributions as directors. They
have each played an important role in the Company's growth and have
provided the rest of the Board and the management team with
valuable insights and leadership over many years."
“We are pleased to have reached an agreement to work with
Depomed. We believe that Arthur Higgins is an excellent
choice to lead Depomed. We are excited to have found such a
qualified leader for the Company. Furthermore, we believe the
addition of William McKee as a member of the Board of Directors
will add valuable industry experience to the boardroom. I
look forward to working with my fellow board members to maximize
value for all shareholders,” said Gavin Molinelli, Partner of
Starboard Value LP.
William McKee is a pharmaceutical industry consultant and board
member of Cerulean Pharma, Inc. and Agile Therapeutics.
Formerly, Mr. McKee served as COO and CFO at EKR Therapeutics,
Inc., a private specialty pharmaceutical company, until EKR was
sold to Cornerstone Therapeutics Inc. Prior to that, Mr.
McKee served as the Executive Vice President and Chief Financial
Officer of Barr Pharmaceuticals Inc., a public specialty
pharmaceutical company, which was acquired by Teva Pharmaceutical
Industries Ltd.
Gavin Molinelli is a Partner of Starboard Value LP. Prior
to joining Starboard and its related funds in 2006, Mr. Molinelli
was a member of the Technology Investment Banking group at Banc of
America Securities LLC. Mr. Molinelli was formerly on the
Board of Directors of Wausau Paper Corp. and Actel Corporation.
First Quarter Results
Depomed also announced that it estimates net sales for the
quarter ending March 31, 2017 will be approximately $95 to $100
million. First quarter results reflect the impact of the
previously announced realignment of the Company’s sales force
effective February 1, 2017 and the fact that the Company had a
significant number of openings in its field sales force in the
first quarter, as well as wholesalers’ reductions of inventory of
our products in the first quarter and continued weakness in the
long-acting and short-acting opioid markets.
The Company will revise its financial guidance for the year at
its earnings call for the first quarter which is expected to take
place in the week of May 8, 2017.
About Depomed
Depomed is a leading specialty pharmaceutical company focused on
enhancing the lives of the patients, families, physicians,
providers and payors we serve through commercializing innovative
products for pain and neurology related disorders. Depomed markets
six medicines with areas of focus that include mild to severe acute
pain, moderate to severe chronic pain, neuropathic pain, migraine
and breakthrough cancer pain. Depomed is headquartered in Newark,
California. To learn more about Depomed, visit www.depomed.com.
About Starboard Value LP
Starboard Value LP is a New York-based investment adviser with a
focused and fundamental approach to investing in publicly traded
U.S. companies. Starboard invests in deeply undervalued companies
and actively engages with management teams and boards of directors
to identify and execute on opportunities to unlock value for the
benefit of all shareholders.
“Safe Harbor” Statement under the Private Securities Litigation
Reform Act of 1995. The statements that are not historical facts
contained in this release are forward-looking statements that
involve risks and uncertainties including, but not limited to risks
detailed in the Company’s Securities and Exchange Commission
filings, including the Company’s most recent Annual Report on Form
10-K and most recent Quarterly Report on Form 10-Q. The inclusion
of forward-looking statements should not be regarded as a
representation that any of the Company’s plans or objectives will
be achieved. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to publicly release the result
of any revisions to these forward-looking statements that may be
made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
INVESTOR AND MEDIA CONTACT:
Christopher Keenan
VP, Investor Relations and Corporate Communications
510-744-8000
ckeenan@depomed.com
Depomed, Inc. (delisted) (NASDAQ:DEPO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Depomed, Inc. (delisted) (NASDAQ:DEPO)
Historical Stock Chart
From Sep 2023 to Sep 2024