Depomed Licenses GLUMETZA(R) Data and Acuform(R) Technology
MENLO PARK, Calif., Aug 5, 2010 (GlobeNewswire via COMTEX) -- Depomed, Inc. (Nasdaq:DEPO) today announced that Janssen Pharmaceutica N.V. has licensed worldwide rights to Depomed's Acuform(R) gastric retentive drug delivery technology to be used for the non-exclusive development of a fixed dose combination formulation of canagliflozin, a Sodium Glucose Transport 2 (SGLT2) inhibitor, and extended-release metformin. Janssen Pharmaceutica has also been granted a right of reference to the GLUMETZA(R) NDA and associated data for use in developing the combination product.
Under the terms of the service agreement, Depomed will formulate the fixed dose combination product. Janssen Pharmaceutica will have the commercialization rights for the combination product. Depomed will receive a $5 million upfront license fee, plus reimbursements for its formulation work on the project and an additional $5 million license fee following completion of Depomed's formulation work. Depomed is eligible for an additional milestone plus a royalty on potential future net sales.
"We are excited that we have been able to close our third licensing deal with a Big Pharma partner within the last 2 years. We believe that an expansion in use of our technology in the diabetes field will also further improve adoption of our proprietary, single-agent, extended-release metformin product Glumetza among patients and physicians," said Carl A. Pelzel, president and chief executive officer of Depomed. "We will continue to monetize the value of our technology and advance our strategic goal to become a specialty pharmaceutical company."
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. Product candidate Serada(TM) is in Phase 3 clinical development for menopausal hot flashes.
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. 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 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.
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"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 the terms of our transaction with Janssen Pharmaceutica, our business strategy,; our research and development efforts, including pre-clinical and clinical testing; regulation by the FDA and other government agencies; the timing of regulatory applications and product launches; and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Annual Report on Form 10-K. 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.
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SOURCE: Depomed, Inc.