Depomed could earn another $370M in milestone payments.
Depomed signed a product license agreement with Solvay Pharmaceuticals giving the latter firm exclusive rights for DM-1796 (formerly Gabapentin GR®) for the treatment of pain in the U.S., Canada, Mexico, and Puerto Rico.
Solvay will make an upfront payment of $25 million and milestone payments to Depomed. Subject to the fulfillment of future regulatory and sales milestones, Solvay could pay an additional $370 million (up to $70 million in regulatory milestones and up to $300 million in sales milestones). A royalty of 14–20% will also be paid to Depomed, depending on product sales.
DM-1796 is an investigational gastric retentive formulation of gabapentin that is designed to achieve once-daily dosing and potentially reduce some of the side effects associated with gabapentin. In March, Depomed initiated dosing of the first patient in a Phase III trial for DM-1796 for postherpetic neuralgia (PHN).
Depomed will remain responsible for completion of the ongoing Phase III trial for DM-1796 in PHN and will be responsible for certain other regulatory support activities through NDA approval. Solvay Pharmaceuticals will be responsible for NDA filing and has the option to develop DM-1796 in further pain indications other than PHN. If Solvay Pharmaceuticals elects to develop DM-1796 in fibromyalgia, Depomed has a right of first negotiation for co-promotational rights in the OB/GYN field upon fibromyalgia indication regulatory approval.
