DepoMed Inc. said its board urged its shareholders to reject Horizon Pharma PLC's unsolicited bid to acquire the company in a share-exchange offer, reiterating that the deal significantly undervalues the company.

Depomed holders have been offered 0.95 Horizon share for each Depomed share held, an offer valued at roughly $27.54 a share as of Friday's close.

Horizon first made an all-stock offer to buy Depomed in a letter sent May 27, and then went public with an increased proposal mid-July after the previous offer was rejected by Depomed's board.

Horizon also has been seeking to replace the Depomed board.

A Horizon spokesman wasn't immediately available to comment on Monday.

Depomed's board has repeatedly said Horizon's takeover attempt is "not in the best interest" of the company, given that it is in a period of significant growth and is expected to benefit from its recent acquisition of the U.S. rights to pain killer Nucynta from Janssen Pharmaceuticals Inc., a unit of Johnson & Johnson.

In its news release Monday, DepoMed said it thinks Nucynta has the potential to exceed $1 billion in annual net sales. The company also said that during the first quarter DepoMed sold the drug, Nucynta sales reached $56.7 million.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

September 14, 2015 10:05 ET (14:05 GMT)

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