Depomed: Reincorporation Plan Not In Best Interests, Would Have Been ‘Costly,’ ‘Distracting’
The East Bay drug company last week withdrew its proposal to reincorporate in Delaware.
The San Francisco Business Times:
East Bay Drug Company Avoids 'Distracting' Shareholder Fight By Withdrawing Reincorporation Plan
Depomed Inc. withdrew a plan to reincorporate in Delaware, potentially heading off a showdown with a New York hedge fund that last week used the proposal to push for board changes and the company's sale. Switching incorporation from California to Delaware "is not in the best interests" of the company and shareholders and "would result in a costly and distracting proxy contest at a time when the company is focused on growing its business and driving shareholder value," the East Bay pain drug company said in a Securities and Exchange Commission statement Thursday. Starboard Value LP, a hedge fund that controls 9.2 percent of Depomed stock, had criticized the plan as a tactic to "entrench" the company's management and board by suppressing shareholder rights. (Leuty, 4/15)
Meanwhile, MedStart has found elusive lab space —
The Sacramento Business Journal:
MedStart Finds 'Vital' Lab Space For Med And Biotech Startups
MedStart has gotten the Sutter Institute for Medical Research to participate in its new laboratory network program. The non-profit program identifies startups in the region’s medical technology and biotechnology industry and offers them support, networking and mentoring. Lately, it's been searching for rare accessible lab space so local companies have a place to work on development, said Matt Phillips, MedStart program manager. (Anderson, 4/15)