MENLO PARK, Calif., Aug. 27, 2012 /PRNewswire/ -- Depomed, Inc. (Nasdaq:DEPO) today announced that Janssen Pharmaceuticals, Inc., has licensed rights to Depomed's Acuform gastric retentive drug delivery technology. Under the terms of the agreement Janssen received a non-exclusive license and other rights to certain Acuform patents. In exchange, Depomed will receive an upfront payment of $10 million and will receive a low single digit royalty on net sales of NUCYNTA® ER (tapentadol extended-release tablets) in the U.S., Canada and Japan from and after July 2, 2012 through December 31, 2021. In addition, Depomed is eligible for a one-time sales milestone upon achievement of a specified level of quarterly net sales. Depomed has no development obligations under the agreement and expects to recognize the $10 million payment as revenue in the third quarter of 2012.
"We are pleased to expand our positive working relationship with Janssen and to provide them rights to our patents," said Jim Schoeneck, President and Chief Executive Officer of Depomed. "This agreement will immediately provide Depomed with a new and growing royalty stream."
Depomed, Inc. is a specialty pharmaceutical company with three approved and marketed products. Gralise® (gabapentin) is a once-daily treatment approved for the management of postherpetic neuralgia (PHN). Zipsor ® (diclofenac potassium) Liquid Filled Capsules is a non-steroidal anti-inflammatory drug (NSAID) indicated for relief of mild to moderate acute pain in adults. Glumetza® (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and is commercialized by Santarus, Inc. in the United States. Depomed formulates its products and product candidates with its proven, proprietary Acuform® drug delivery technology, which is designed to improve existing oral medications, allowing for extended release of medications to the upper gastrointestinal tract when dosed with food. Additional information about Depomed may be found on its website, www.depomed.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties including, but not limited to, those related to our commercial arrangements and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Annual Report on Form 10-K for the year ended December 31, 2011 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. The inclusion of forward-looking statements should not be regarded as a representation that any of the company's plans or objectives will be achieved. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
August J. Moretti
SOURCE Depomed, Inc.