Depomed acquires all rights to Zipsor from Xanodyne

Depomed, Inc. (NASDAQ: DEPO) today announced that it has acquired all rights to Zipsor^® (diclofenac potassium) Liquid Filled Capsules from Xanodyne Pharmaceuticals, Inc.  Zipsor is a non-steroidal anti-inflammatory drug (NSAID) indicated for relief of mild to moderate acute pain in adults.  The product uses proprietary ProSorb^® delivery technology to deliver a finely dispersed, rapidly absorbed formulation of diclofenac.

Zipsor, which was introduced by Xanodyne in 2009, achieved approximately $19 million of net sales in the 12 months ended May 31, 2012.  Depomed acquired the product in return for $25.9 million of cash and potential milestone payments based on sales of Zipsor and assumption of certain liabilities.

"We are pleased to expand our portfolio of pain products with the addition of Zipsor to our sales force of 164 reps and 78 flex reps that today are detailing Depomed's Gralise^® (gabapentin)," said Jim Schoeneck, president and CEO of Depomed.  "Zipsor is an NSAID that we believe is differentiated in the pain space, allowing rapid absorption of the lowest available oral dose of diclofenac.  With current sales of approximately $19 million annually, Zipsor will have an immediate positive impact on Depomed's financials.  We believe we will have the runway to achieve significant returns for our shareholders from this acquisition, with the Orange Book listed patents for Zipsor expiring in 2019 and 2029.  We plan to utilize our sales force to promote Zipsor to pain specialists, neurologists, and high prescribing PCPs, including those we currently detail for Gralise in addition to current prescribers of Zipsor."

SOURCE Depomed, Inc.