Horizon Sues to Knock Out Depomed’s Anti-Takeover Defense

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Horizon Pharma Plc sued rival drugmaker Depomed Inc. in hopes of invalidating an anti-takeover defense and clearing the way for its $2 billion hostile buyout bid of the maker of painkillers and anti-seizure medicines.

Horizon contends a “poison-pill” defense allows Depomed directors to wrongfully fend off acquisition offers without taking investors’ best interests into account, according to a complaint filed Monday in state court in San Jose, California.