Depomed, Inc announced that the previously announced product license agreement under which Solvay Pharmaceuticals will have exclusive rights for DM-1796 for the treatment of pain in the United States, Canada, Mexico and Puerto Rico, has cleared review under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976. The $25 million upfront payment to Depomed under the agreement is due 60 days following the completion of the HSR review.
Under the terms of the agreement Solvay Pharmaceuticals will make an upfront payment of $25 million to Depomed, and will make milestone payments to Depomed, subject to the fulfilment of future regulatory and sales milestones, of up to an additional $370 million (up to $70 million in regulatory milestones and up to $300 million in sales milestones). Solvay Pharmaceuticals will also pay a royalty of 14 to 20 percent, depending on product sales.
DM-1796 is an investigational gastric retentive formulation of gabapentin that is designed to achieve once-daily dosing and potentially reduce some of the side effects associated with gabapentin. Currently in phase-3 development, DM-1796 is being studied for the treatment of postherpetic neuralgia.
"We are pleased that our license agreement with Solvay has cleared HSR review and look forward to advancing the development of DM-1796 as well as receiving the $25 million upfront payment. This payment, combined with our existing cash position provides Depomed with sufficient financial resources to complete both our phase-3 trials for DM-1796 as well as DM-5689 for hot flashes without any other external financing requirements," said Carl Pelzel, Depomed's president and chief executive officer.
Solvay Pharma of Marietta, Georgia, is the U.S. subsidiary of Solvay Pharmaceuticals. For more information, visit www.solvaypharmaceuticals-us.com.
Solvay Pharmaceuticals is a research driven group of companies that constitute the global pharmaceutical business of the Solvay Group.
Depomed is a specialty pharmaceutical company with two approved products on the market and other product candidates in its pipeline.