January 16, 2015
By Mark Terry, BioSpace.com Breaking News Staff
Newark, Calif.-based Depomed, Inc. announced yesterday that it had inked a deal to acquire U.S. rights to the Nucynta franchise from Janssen Biotech Inc. The deal is priced at $1.05 billion.
Depomed will pay cash to Janssen. The initial payment was $500 million placed into an escrow account, which will be turned over to Janssen upon closing. The company plans to raise the remainder of the capital through a combination of debt, equity and equity-linked financing.
“We believe that NUCYNTA is an ideal strategic fit for Depomed — a rare opportunity to add a proprietary, differentiated drug with a lengthy period of exclusivity that fits precisely into our therapeutic focus,” said Jim Schoeneck president and chief executive of Depomed in a statement. “NUCYNTA meets all of our criteria for product acquisition that we have laid out over the past two years. The NUCYNTA franchise generated U.S. net sales of approximately $166 million for the 12 months ended September 2014.”
The deal is expected to position Depomed as a pain and neurology-focused specialty pharmaceutical company. Janssen indicates it was a strategic decision on the company’s part to focus on other priorities. Janssen licenses Nucynta from Gunenthal GmbH, and will retain rights in several counties, including Japan and Canada.
Depomed focuses on pain treatment and other central nervous system disorders. It currently markets four FDA-approved products. They are Gralise (gabapentin) for Postherpetic Neuralgia, Cambia (diclofenac potassium for oral solution) for acute migraines, Zipsor (diclofenac potassium) liquid filled capsules for mild to moderate acute pain, and Lazanda (fantanyl) nasal spray CII for breakthrough pain in cancer patients. The company also offers a drug-delivery technology called Acuform.
The Nucynta franchise includes Nucynta ER, extended release tablets for pain management, including neuropathic pain associated with diabetic peripheral neuropathy, and Nucynta, for moderate to severe acute pain in adults.
Depomed will re-launch Nucynta and Nucynta ER. Nucynta ER is the only FDA-approved opioid for both chronic pain and diabetic peripheral neuropathy. The company also plans to expand its sales force to 250 or more.
In 2013 Depomed reported $134 million in sales. Its major product is Gralise, an anti-seizure medication. The company attempted to get approval for Gralise for menopausal hot flashes, but was turned down by the U.S. Food and Drug Administration in May 2013.
The U.S. Drug Enforcement Administration categorizes Nucynta as a schedule II drug, indicating it has a “high potential for abuse.”
“NUCYNTA has composition of matter patent protection to Aug. 2022, a potential pediatric extension into 2023, and additional patents that could extend beyond that timeframe,” said Schoeneck in a statement. “Finally, the synergies between NUCYNTA and our existing pain and neurology call points create a number of opportunities to grow not only the NUCYNTA franchise, but to enhance the growth of our current business as well.”
