Esprit paid Depomed a $10 million license fee payment due under the parties' license agreement for ProQuin® XR, a treatment for uncomplicated urinary tract infections. ProQuin XR, an extended release formulation of the antibiotic ciprofloxacin, was developed by Depomed and exclusively licensed in the U.S. to Esprit.
In addition, Depomed and Esprit have agreed to commence discussions toward a mutually agreeable restructuring of their license agreement after the new year. In the meantime, the existing agreement will remain in effect.
Depomed also agreed to withdraw the notice of breach and demand for arbitration related to the license agreement.