Depomed Inc. told activist shareholder Starboard Value LP—which is seeking to replace the drugmaker's board—that it has up to a month to request a special shareholder meeting.

Assuming Starboard does so, Depomed said a special meeting then could occur between June 1 and July 25. Starboard, which owns 9.9% of Depomed shares, has said the drugmaker should consider selling itself and that it would nominate a slate of candidates for Depomed's board.

A Starboard representative didn't immediately respond to a request for comment. Starboard has argued that the value of Depomed's shares could rise with improved capital deployment, rationalized research and development, and a potential sale of the company. Depomed has said it "welcomes open communications with its shareholders and values constructive input."

Separately Monday, Depomed said it settled a lawsuit that previously scuttled Horizon Pharma PLC's unsolicited offer for the company last year. As part of the settlement, Horizon Pharma agreed not to initiate another unsolicited takeover of the Depomed until 2020.

In November, Horizon Pharma withdrew its roughly $1 billion unsolicited offer for Depomed after a California court blocked its bid, saying it was based on Horizon's improper use of confidential information.

In January 2015, Depomed acquired the U.S. rights to pain killer Nucynta from Janssen Pharmaceuticals Inc., a unit of Johnson & Johnson. Depomed and Horizon both bid in 2013 for Nucynta, and each signed a confidentiality agreement with Janssen not to use the information gleaned during the bidding for any other purpose, Depomed argued in court filings.

Depomed accused Horizon of improperly using that information to inform its bid. Details about key products can often help buyers determine how much to offer. The judge granted an injunction temporarily blocking Horizon's bid, after which Horizon said it would abandon the effort.

Horizon also agreed Monday to maintain the privacy of confidential information that it received from Janssen.

Both Depomed and Horizon said further details of the settlement are confidential and that neither side has admitted liability.

Horizon focuses on treatments for orphan diseases. Depomed specializes in products that treat pain and central nervous system disorders.

Horizon shares fell 2.7% as Depomed shares fell 0.2%.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

April 25, 2016 12:25 ET (16:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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