Under the agreement, Solvay Pharmaceuticals will make an upfront payment of $25 million and will make milestone payments to Depomed, subject to the fulfillment of future regulatory and sales milestones. Solvay Pharmaceuticals will also pay royalties based on product sales.
Consummation of the transaction is anticipated to occur in the fourth quarter of 2008 and is contingent solely on completion of review under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976. The upfront payment to Depomed is due 60 days following the completion of the HSR review.
Currently in Phase III development, Gabapentin GR is administered once daily and is being studied for the treatment of postherpetic neuralgia (PHN).
Stephen Hill, president and CEO of Solvay Pharmaceuticals, said: “Gabapentin GR has the potential to offer patients suffering from persistent postherpetic neuralgia a new treatment option with a more tolerable safety profile. This in-licensing agreement is fully aligned with Solvay Pharmaceuticals’s global strategic focus on neuroscience development and will be an important addition to the company’s portfolio.”