2009-10-22 15:31:03 -

Depomed, Inc. (NASDAQ:DEPO) announced today that it has delivered the first formulation under its worldwide license agreement with Covidien focusing on the exclusive development of four products utilizing Depomed’s Acuform® gastric retentive drug delivery technology. The delivery of the first formulation to Covidien triggers a $500,000 milestone payment.

“We are pleased to complete our work on the initial formulation and have already made significant progress on the second formulation. We believe that these products have the potential to provide meaningful clinical advantages to patients and look forward to continuing our collaboration with Covidien. Both companies have evolved a strong working relationship over the time period of the projects,” said Dr. Mike Sweeney, Depomed’s vice president, Research and Development.

Covidien is the largest

supplier of controlled pain medications in the United States based on number of prescriptions. The company is expanding the limits of pain therapy by combining proven drugs with innovative delivery systems.

Under the license agreement between Depomed and Mallinckrodt Inc., a subsidiary of Covidien, Depomed received a one-time upfront payment of $4 million, and could receive up to $63.5 million in additional development milestone payments over the next several years. In addition, Covidien will pay Depomed a royalty on sales of products developed under the license agreement. Covidien is responsible for all development other than certain initial formulation work.

The active ingredients in the products that are being developed with Covidien utilizing Depomed’s Acuform® delivery technology include acetaminophen in combination with opioid analgesics.



About Depomed

Depomed, Inc. is a specialty pharmaceutical company with one product candidate through Phase 3 clinical development, another in Phase 3 clinical development, two approved products on the market and other product candidates in its early stage pipeline. Product candidate DM-1796 has completed Phase 3 clinical development and has been licensed to Solvay Pharmaceuticals. A New Drug Applications for DM-1796 is expected to be filed with the FDA in the first quarter of 2010. Product candidate Serada TM is in Phase 3 clinical development for menopausal hot flashes. GLUMETZA (R) (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and promoted by Santarus, Inc. in the United States. Depomed formulates its products and product candidates with its proven, proprietary Acuform (R) drug delivery technology, which is designed to improve existing oral medications, allowing for extended, controlled release of medications to the upper gastrointestinal tract.
Benefits of Acuform-enhanced pharmaceuticals include the convenience of once-daily administration, improved treatment tolerability and enhanced compliance and efficacy. Additional information about Depomed may be found on its website, www.depomed.com : .

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.


The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties including, but not limited to, those related to our collaboration with Covidien; our research and development efforts, including pre-clinical and clinical testing; regulation by the FDA and other government agencies; the timing of regulatory applications and product launches; and other risks detailed in the company’s Securities and Exchange Commission filings, including the company’s Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


Depomed, Inc.Sheilah Serradell, 650-462-5900 sserradell@depomed.com : mailto:sserradell@depomed.com