Depomed, Inc. has entered into a non-binding term sheet with Biovail Corporation which may lead to the resolution of the parties' ongoing contractual dispute related to the license agreement for Glumetza, a once-daily extended-release formulation of metformin.

As a result, the parties have also agreed to a short-term standstill arrangement related to the lawsuit filed by Depomed on November 16, 2005. Depomed does not intend to comment on the specifics of its discussions with Biovail, unless and until definitive documentation providing for a resolution of the dispute has been completed, states a company release.

Depomed, Inc. is a specialty pharmaceutical company utilizing its innovative AcuForm drug delivery technology to develop novel oral products and improved, extended release formulations of existing oral drugs. AcuForm-based products are designed to provide once daily administration and reduced gastrointestinal side effects, improving patient convenience, compliance and pharmacokinetic profiles.