Santarus to promote Depomed’s Glumetza prescription products

Under the terms of the promotion agreement, Santarus paid Depomed a $12 million upfront fee, and based on the achievement of specified levels of annual Glumetza net product sales, Santarus may pay Depomed one-time sales milestones totaling up to $16 million.

Depomed will continue to record revenue from the sales of Glumetza and will pay Santarus a fee ranging from 75% to 80% of the gross margin associated with net sales of Glumetza, defined as net sales less cost of goods and product-related fees paid to Biovail Laboratories.

Santarus will be responsible for all costs associated with its sales force and for all other marketing expenses associated with its promotion of Glumetza. A joint commercialization committee has also been formed to oversee and guide the strategic direction of the Glumetza promotion efforts in the US.

Depomed will be responsible for overseeing product manufacturing and supply, and retains the option to co-promote Glumetza in the future to obstetricians and gynecologists.

Glumetza is a once-daily, extended-release formulation of metformin that incorporates patented drug delivery technology and is indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus.

Santarus expects to train its field sales representatives in the third quarter and to begin promotion of Glumetza brand products in the fourth quarter of 2008.