Depomed says Boehringer Ingelheim licensed worldwide rights to Depomed's Acuform gastric retentive drug delivery technology to develop and commercialize extended release metformin for type 2 diabetes, among other compounds.
"We are pleased to have closed our third licensing deal for our extended release metformin technology. The upfront and future milestone payments will strengthen our balance sheet, while the potential royalties will add to our revenue build-up as a specialty pharmaceutical company," said Carl Pelzel, president and CEO of Depomed, in a news release.
Under the terms of the agreement, Boehringer Ingelheim is responsible for development and commercialization of the product. Depomed will receive a $12.5 million license fee, $10 million of which is payable upfront, with an additional $2.5 million payable upon delivery of experimental batches of prototype formulations.
- read the Depomed release