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news.Depomed, a specialty pharmaceutical company, has announced that the previously announced product license agreement under which Solvay Pharmaceuticals will have exclusive rights for DM-1796 for the treatment of pain in the US, Canada, Mexico and Puerto Rico, has cleared review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
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The $25 million upfront payment to Depomed under the agreement is due 60 days following completion of the Hart-Scott-Rodino Antitrust Improvements Act (HSR) review.
Under the terms of the agreement Solvay Pharmaceuticals will make an upfront payment of $25 million to Depomed, and will make milestone payments to Depomed, subject to the fulfillment of future regulatory and sales milestones, of up to an additional $370 million. Solvay Pharmaceuticals will also pay a royalty of 14 to 20%, depending on product sales.
DM-1796 is an investigational gastric retentive formulation of gabapentin that is designed to achieve once-daily dosing and potentially reduce some of the side effects associated with gabapentin. Currently in Phase III development, DM-1796 is being studied for the treatment of postherpetic neuralgia.
Carl Pelzel, president and CEO of Depomed, said: We are pleased that our licensing agreement with Solvay has cleared HSR review and look forward to advancing the development of DM-1796 as well as receiving the $25 million upfront payment. This payment, combined with our existing cash position provides Depomed with sufficient financial resources to complete both our Phase III trials for DM-1796 as well as DM-5689 for hot flashes without any other external financing requirements.