The parties have entered into a settlement and license agreement that provides for a one-time payment to Depomed of $7.5 million, and a non-exclusive license to the asserted patents in favor of Ivax and Teva to continue to market their generic Glucophage XR (metformin hydrochloride extended release tablets) product in the US under Depomed’s patents. Depomed will also receive ongoing royalty payments from Teva on sales by Ivax and Teva of generic Glucophage XR. The royalty is subject to a $2.5 million aggregate cap.
The agreement also provides for the parties to dismiss their pending patent litigation and for a release of all claims associated with the litigation.
Carl Pelzel, president and CEO of Depomed, said: “We are pleased to have reached a settlement of this matter without further distraction and expense of a trial.”