(Reuters) - Ireland-based Horizon Pharma Plc (O:HZNP) raised its offer to buy Depomed Inc (O:DEPO) to $33 (£21.2) per share, contingent on the smaller drugmaker agreeing to start takeover talks.
The equity value of the new offer works out to $1.97 billion (£1.26 billion), according to Thomson Reuters calculations, and compares with Horizon Pharma's previous offer of $29.25 per share, or about $1.74 billion.
Horizon Pharma had taken its previous offer hostile on July 7 after Depomed refused to engage in talks over a deal.
The new offer represents a 59.8 percent premium to Depomed's closing price on July 6, before Horizon made its first offer public.
In an effort to pursue a friendly deal, Horizon Pharma had previously raised its offer to $32.25 per share, which was again rejected by Depomed, the company said in a letter to Depomed's board on Tuesday.
Horizon Pharma said based on talk with Depomed's largest shareholders and its own shareholders, "it is clear that they and the investment community strongly support a combination of our two businesses".
Depomed was not immediately available for comment.
The raised offer comes a day after Horizon Pharma forecast current quarter net sales above analysts' expectations and raised its 2015 forecast.
Horizon Pharma has previously said that deal could nearly double its portfolio of marketed medicines.
The deal value was calculated based on the 59.6 million Depomed shares outstanding as of March 31.