Depomed amends marketing agreement with Esprit

Under the revised terms, Depomed has been granted co-promotion rights, which will enable Depomed to promote the product through its own sales force or through a contract sales organization or other third party.

In addition, Depomed representatives will sit on a joint marketing team, which will review all promotional and marketing activities for ProQuin XR. Depomed will receive a co-promotion fee of 18% on net sales, in addition to its royalty under the license agreement.

The amended agreement also provides for minimum detail obligations on the part of Esprit applicable through 2006, which had not been part of the original agreement. Depomed has also extended the due date for the $10 million license fee payable by Esprit until December 2006 rather than July 2006 to provide Esprit with financial flexibility for continued promotional emphasis on ProQuin XR.

“We continue to believe in the potential of ProQuin XR and have taken steps to be more active in the commercialization of the product,” said Dr John Fara, chairman, president and CEO of Depomed. “As we move forward to further assist Esprit’s commercialization efforts, we intend to begin discussions with potential sublicense partners over the next several months to expand and complement Esprit’s sales force reach.”