Activist investor StarBoard Value on Thursday formally called for a special meeting of Depomed shareholders as it looks to replace the drugmaker’s board.
Starboard, which has a 9.9% stake in Depomed (DEPO), criticized the drugmaker’s board last month over corporate governance deficiencies and urged it to explore a sale.
The hedge fund had also said Depomed had taken a “series of shareholder-unfriendly steps,” referring to the company’s decision to reject takeover offers from Horizon Pharma last year.
The company, in response, had given StarBoard 30 days to formally request a meeting, to be held within 35-to-60 days after the submission of the request.
StarBoard said on Thursday it had selected a group of six nominees to Depomed’s board, including Chief Executive Jeffrey Smith and Peter Lankau, a former CEO of Endo International.
Depomed was not immediately available for comment.
Depomed’s shares were little changed at $20 in morning on Thursday. Up to Wednesday’s close, the shares had risen 39% since StarBoard disclosed its stake in the company in April.