In the latest of a series of licensing deals, Depomed ($DEPO) has licensed its Acuform gastric retentive drug delivery technology to Janssen Pharmaceuticals, a unit of Johnson & Johnson, in a non-exclusive deal, leading to a premarket share jump of 8.6%, according to The Wall Street Journal. The polymers in Acuform swell in the stomach, releasing the active drug gradually over 8 or 9 hours.
Under the terms of the deal, Depomed will get an upfront payment of $10 million, a milestone payment on sales, and a low single-digit royalty on net sales of Janssen's Nucynta ER (tapentadol extended-release tablets) in the U.S., Canada and Japan for the second half of 2012.
"We are pleased to expand our positive working relationship with Janssen and to provide them rights to our patents," said Jim Schoeneck, president and CEO of Depomed. "This agreement will immediately provide Depomed with a new and growing royalty stream."
Depomed has had a previous Acuform agreement with Janssen; other licensing deals include Boehringer Ingelheim and Ironwood Pharmaceuticals.
- read the press release
- check out the article in The Wall Street Journal
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