Johnson & Johnson (NYSE: JNJ) unit Janssen Pharmaceutica has licensed worldwide rights to Depomed's (NASDAQ: DEPO) Acuform gastric retentive drug delivery technology. 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 that work.
The technology will be used for the non-exclusive development of a fixed dose combination formulation of canagliflozin, a sodium glucose transport 2 inhibitor, and extended-release metformin. Janssen also has been granted a right of reference to the Glumetza NDA and associated data for use in developing the combination product, according to a statement.
News of the agreement comes with the release of Depomed's Q2 financial results. Depomed reported net income for the quarter was $4.1 million, or $0.08 per share, compared with a net loss of $9.6 million, or $0.19 per share, during the same period last year.
According to BioMedReports, Depomed "is going places." It's been partnering with other large drugmakers, including Biovail and Santarus, and has a robust pipeline and strong IP for the Accuform technology, the report notes.
Depomed shares of the company were trading up at $3.40 in after-market trade after closing $3.31 Thursday, Reuters reports.