MENLO PARK, Calif., March 15, 2011 - Depomed, Inc. (NASDAQ: DEPO) today announced that Boehringer Ingelheim has licensed worldwide rights to Depomed's Acuform(R) gastric retentive drug delivery technology to develop and commercialize certain fixed dose combination product(s) which include extended release metformin and proprietary Boehringer Ingelheim compound(s) in development for type 2 diabetes. Boehringer Ingelheim has also been granted a right of reference to the Glumetza(R) (extended release metformin hydrochloride tablets) NDA and associated data for use in potential regulatory submission processes. "We are pleased to have closed our third licensing deal for our extended release metformin technology. The upfront and future milestone payments will strengthen our balance sheet, while the potential royalties will add to our revenue build-up as a specialty pharmaceutical company," said Carl A. Pelzel, president and chief executive officer of Depomed.
Under the terms of the agreement, Boehringer Ingelheim is responsible for development and commercialization of the product(s). Depomed will receive a $12.5 million license fee, $10 million of which is payable upfront, with an additional $2.5 million payable upon delivery of experimental batches of prototype formulations. Depomed is also eligible to receive additional milestone payments based on regulatory filing and approval events, and royalties on worldwide net sales of product(s). Further details of the agreement were not disclosed.
"We are pleased to contribute the value of Glumetza's dossier and our metformin extended release technology to Boehringer Ingelheim's type 2 diabetes compound(s)," said Thadd Vargas, Depomed's senior vice president, Business Development. "This exciting new partnership adds an important new aspect to our unique metformin franchise strategy," he added.
Depomed, Inc. is a specialty pharmaceutical company with one approved product on the market and has developed another approved product. GraliseTM (gabapentin) is a once-daily treatment approved for management of post-herpetic neuralgia (PHN). Glumetza(R) (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and promoted by Santarus, Inc. in the United States. The company also has a robust pipeline including one in Phase 3 clinical development, and other product candidates in its early stage pipeline. Product candidate Serada(R) is in Phase 3 clinical development for menopausal hot flashes. Depomed formulates its products and product candidates with its proven, proprietary Acuform(R) drug delivery technology, which is designed to improve existing oral medications, allowing for controlled release of medications to the upper gastrointestinal tract when dosed with food. Additional information about Depomed may be found on its website, http://www.depomed.com.