Depomed, Inc. (NASDAQ:DEPO) announced today that it has received a
second $500,000 milestone payment under its worldwide license agreement
with Covidien focusing on the exclusive development of four
acetaminophen/opioid analgesic combination products utilizing Depomed’s
Acuform® gastric retentive drug delivery technology. The most recent
payment from Covidien, which was received in December 2009, relates to
the development of a formulation for the second product candidate under
the collaboration.
“We are pleased to see these product candidates advancing and
potentially triggering further development milestones”
“We are pleased to see these product candidates advancing and
potentially triggering further development milestones,” commented Carl
A. Pelzel, Depomed’s president and chief executive officer.
Covidien is the largest supplier of controlled pain medications in the
United States based on number of prescriptions. The company is expanding
the limits of pain therapy by combining proven drugs with innovative
delivery systems.
Depomed’s Acuform technology is designed to enable extended and
controlled release of oral medications in the upper gastrointestinal
tract for once-daily administration, improved treatment tolerability and
enhanced compliance and efficacy.
Under the license agreement between Depomed and Mallinckrodt Inc., a
Covidien company, Depomed received a one-time upfront payment of $4
million, a milestone payment for the first formulation in October 2009,
and could receive up to $63.5 million in additional development
milestone payments over the next several years. In addition, Covidien
will pay Depomed a royalty on sales of products developed under the
license agreement. Covidien is responsible for all development other
than certain initial formulation work.
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