MENLO PARK, CA--(Marketwire - October 21, 2010) - Depomed, Inc. (NASDAQ: DEPO) today announced that it has received a $5 million milestone payment from Janssen Pharmaceutica N.V. following the delivery of a prototype of one of four formulations of a fixed dose combination of canagliflozin, a Sodium Glucose Transporter 2 (SGLT2) inhibitor, and extended-release metformin by Depomed meeting certain specifications.
"We are pleased that we have been able to deliver a prototype formulation within a month after we signed the licensing deal with Janssen. I would like to thank our formulation development team for their efficient work and the project teams from both companies for the excellent collaboration," said Carl A. Pelzel, president and chief executive officer of Depomed.
Under the terms of the agreement, Depomed received a $5 million upfront license fee, and receives reimbursements for its formulation work on the project. The $5 million milestone payment for Depomed's delivery of a prototype formulation meeting certain specifications also ensures that Janssen maintains the licenses granted under the parties' agreement. Depomed is eligible for an additional milestone plus a royalty on potential future net sales.
Depomed, Inc. is a specialty pharmaceutical company with one product candidate through Phase 3 clinical development, another in Phase 3 clinical development, two approved products on the market and other product candidates in its early stage pipeline. Product candidate DM-1796 has completed Phase 3 clinical development and has been licensed to Abbott Products, Inc. A New Drug Application for DM-1796 was accepted by the FDA in the second quarter of 2010. Product candidate SeradaTM is in Phase 3 clinical development for menopausal hot flashes. GLUMETZA® (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and promoted 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, controlled release of medications to the upper gastrointestinal tract. Benefits of Acuform- enhanced pharmaceuticals include the convenience of once-daily administration, improved treatment tolerability and enhanced compliance and efficacy. Additional information about Depomed may be found on its website, www.depomed.com.