Janssen Pharmaceuticals has signed a licensing deal with Depomed for its Acuform gastric retentive drug delivery technology.
As per the agreement, Janssen gained non-exclusive license and other rights to certain Acuform patents and in return Depomed will earn $10m upfront payment and low single digit royalty on net sales of NUCYNTA ER (tapentadol extended-release tablets) in the US, Canada and Japan from and after 2 July 2012 through 31 December 2021.
Depomed president and chief executive officer Jim Schoeneck said the company provides Janssen with rights to certain Depomed patents.
"This agreement will immediately provide Depomed with a new and growing royalty stream," Schoeneck added.
According to the agreement, with the achievement of a specified level of quarterly net sales, Depomed is eligible for a one-time sales milestone and has no development obligations.
Acuform drug delivery technology, which is designed to improve existing oral medications, allows for extended release of medications to the upper gastrointestinal tract when dosed with food.
