Depomed, Inc. BagsCAMBIA® Migraine Med From Nautilus Neurosciences, Inc. For $48.7 Million

NEWARK, Calif., Dec. 17, 2013 /PRNewswire/ -- Depomed, Inc. (NASDAQ: DEPO) today announced that it has acquired the United States rights to CAMBIA® (diclofenac potassium for oral solution) from Nautilus Neurosciences for $48.7 million. In addition, Depomed may pay Nautilus up to an additional $5 million based on the achievement of certain annual net sales milestones. CAMBIA is a non-steroidal anti-inflammatory drug (NSAID) indicated for acute treatment of migraine attacks with or without aura in adults 18 years of age or older.

Benefits of CAMBIA acquisition:

• Bolsters Depomed’s portfolio in pain and neurology, specifically strengthening the company’s position with neurologists
• Secures CAMBIA, the only single agent NSAID in the U.S. specifically indicated for migraine, and immediately increases Depomed’s topline with annualized net sales run rate of approximately $18 million over the past 3 months
• Adds another growth product to Depomed, as CAMBIA total prescriptions in third quarter 2013 were up more than 30 percent over the same quarter last year
• Creates synergies with Gralise commercial efforts as nearly 70% of CAMBIA prescriptions are written by neurologists and half of these prescribing neurologists are currently Gralise prescribers
• Increases the sales support for CAMBIA, moving from the current 35 sales reps with Nautilus to Depomed’s existing 155 sales territories, reaching more of the target audience for the drug
• Secures a long term revenue stream with settled ANDA litigation and generic entry expected in January 2023

“CAMBIA, our third product acquisition in 18 months, is a unique and fast acting treatment for migraine with long-term growth potential that is a great fit in our pain and neurology-focused portfolio,” said Jim Schoeneck, President and CEO of Depomed. “Some of the capital secured in October 2013 from the sale of our royalties in type 2 diabetes assets is being put to work in this product acquisition that leverages our current infrastructure. We will continue to actively seek products that complement our pain and neurology portfolio and position us for a strong growth trajectory in the coming years.”

Transaction Details

• Depomed acquired all US rights to CAMBIA in return for $48.7 million cash, $7.5 million of which will be deposited into an escrow account
• Depomed will pay Nautilus up to $5 million in net sales milestone payments and will assume certain liabilities, including third party royalties and up to $10 million in third party sales milestone payments

Financial and Operational Guidance

• Depomed expects the acquisition of CAMBIA to be immediately accretive
• Updated year end 2013 cash guidance of $268 to $272 million, pending future payment of taxes related to the PDL transaction

CAMBIA is a powdered formulation of diclofenac potassium that is dissolved in liquid. It has a rapid onset and has demonstrated in clinical studies relief of the pain and associated symptoms of migraine, including nausea, sensitivity to light and sensitivity to sound. It was launched in 2010.

Important Safety Information

CAMBIA is a non-steroidal anti-inflammatory drug (NSAID). NSAIDs may increase your chance of a heart attack or stroke that can lead to death. This chance is higher with longer use of NSAID medicines and in people who have heart disease. CAMBIA should never be used right before or after certain heart surgeries.

NSAID medicines can also cause stomach and intestine problems, such as ulcers and bleeding, which can happen without warning and may cause death. This risk increases with use of steroids (corticosteroids), blood thinners (anticoagulants), smoking, alcohol use, older age, and for those in poor health.

Conference Call Information

Depomed will host a conference call today, December 17, beginning at 5:00 p.m. EST, 2:00 p.m. PST to discuss the transaction. The conference call will be available via a live webcast on the investor relations section of Depomed’s website at http://www.depomed.com. The dial-in number for the conference call is 877-317-6789 and for international calls 412-317-6789. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company’s website for three months.

About Depomed

Depomed, Inc. is a specialty pharmaceutical company that commercializes products for pain and neurology related disorders. Gralise® (gabapentin) is a once-daily treatment approved for the management of postherpetic neuralgia. Zipsor® (diclofenac potassium) Liquid Filled Capsules is a non-steroidal anti-inflammatory drug indicated for relief of mild to moderate acute pain in adults. Lazanda® (fentanyl) Nasal Spray is an intranasal fentanyl drug used to manage breakthrough pain in adults (18 years of age or older) who are already routinely taking other opioid pain medicines around-the-clock for cancer pain. CAMBIA® (diclofenac potassium for oral solution) is a non-steroidal anti-inflammatory drug indicated for acute treatment of migraine attacks with or without aura in adults (18 years of age or older). Gralise and other products and product candidates are formulated with Depomed’s proven, proprietary Acuform® drug delivery technology. Additional information about Depomed may be found at www.depomed.com.

Forward Looking Statements
“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 ability to commercialize CAMBIA, expected synergies from the acquisition, expected year-end cash, growth in future periods, 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, 2012 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. 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.

INVESTOR CONTACT:
August J. Moretti
Depomed, Inc.
510.744.8000
amoretti@depomed.com

MEDIA CONTACT:
Carolyn Hawley
Canale Communications for Depomed
619-849-5375
Carolyn@canalecomm.com

SOURCE Depomed, Inc.