Depomed licenses Acuform patents to J&J division
Depomed licenses Acuform patents to J&J for $10M payment and royalties on some Nucynta sales
NEW YORK (AP) -- Depomed Inc. said Monday it licensed the patents on its Acuform drug delivery technology to Johnson & Johnson.
Depomed said it will get $10 million upfront from Janssen Pharmaceuticals, and it will also receive royalty payments on sales of Johnson & Johnson's painkiller Nucynta in the U.S., Canada, and Japan. Depomed will get a low single-digit percentage on sales from July 2, 2012 through Dec. 31, 2012.
Acuform technology is used to improve existing oral medications by allowing for their extended, controlled release to the upper gastrointestinal tract. Depomed has licensed Acuform technology to several other companies, including a deal with Johnson & Johnson in August 2010. It said the new agreement with Janssen, a division of Johnson & Johnson, is not exclusive.
In 2011, the Menlo Park, Calif., company licensed Acuform technology to Boehringer Ingelheim and Ironwood Pharmaceuticals Inc. for use in experimental drugs.
Shares of Depomed lost 2 cents to $5.11 Monday. The stock added 33 cents, or 6.5 percent, to $5.44 in after-hours trading.
