Depomed Board of Directors Shaken Up While Insys Therapeutics Appoints a New CEO

NEW YORK, NY / ACCESSWIRE / March 29, 2017 / Depomed continued the shakeup of its Board of Directors, while Insys reorganizes its own board. Both companies were down slightly, after there was an announcement of a Federal investigation into their opioid market sale and regulations. The opioid problem has recently become the focus of attention for media and government officials.

RDI Initiates
Coverage:

Depomed Inc. https://ub.rdinvesting.com/news/?ticker=DEPO

Insys Therapeutics
Inc. https://ub.rdinvesting.com/news/?ticker=INSY

Depomed stumbled 4.50% to close at $14.23 on Tuesday. The stock traded between $14.84 and $14.13 on volume of 1,777,969 shares traded. The news for the company over the past few days has been anything but completely positive, as Senator Claire McCaskill, a Democrat from Missouri, has begun an investigation into the opioid prescription market. Depomed was one of five companies selected for the investigation, whose stated goal is to examine, “the challenges industry practices pose to efforts to curb opioid addiction.” After trading hours, it was announced that the company has replaced its Chief Executive and appointed two new Directors to its board. The new Director, CEO, and President will be Arthur Higgins, and the two other board members will be William McKee and Gavin Molinelli. James Fogarty will serve as the Chairman.

The replacements are all from Starboard, LP, which has nearly 10% stake in Depomed, and has been seeking the removal of the original Depomed Board of Directors ever since Depomed fought off a takeover bid at $33 a share from Horizon Pharmaceutical in 2015. With that objective accomplished, the question for investors is whether Depomed will once again become a takeover target.

Access RDI’s Depomed Research Report at: https://ub.rdinvesting.com/news/?ticker=DEPO

Insys Therapeutics fell 0.72% to close at $11.00 on Tuesday. The stock traded between $11.38 and $10.76 on volume of 683,792 shares traded. Like Depomed, Insys was another of the selected companies to be investigated by the Federal government. Monday, the company announced that effective April 17th of this year, Saeed Motahari will become the company’s new President and Chief Executive Officer, and a member of the Board of Directors.

Chairman of the Board of Directors, Steven Meyer, gave high praise to Motahari, saying “We believe Saeed can execute on the promise of this business including the anticipated commercial launch of Syndros(TM) and the potential products in our pipeline.”

Access RDI’s Insys Therapeutics Research Report at:
https://ub.rdinvesting.com/news/?ticker=INSY

Our Actionable Research on Depomed Inc. (NASDAQ: DEPO) and Insys Therapeutics Inc. (NASDAQ: INSY) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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