Depomed Delivers Notice of Breach and Demand for Arbitration to Esprit Pharma.MENLO PARK, Calif. -- Depomed, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DEPO DEPO Delegated Episcopal Pastoral Oversight DEPO Devils Postpile National Monument (US National Park Service) DEPO Defence Export Promotion Organization (Pakistan) DEPO Double Even Pass Odd ) today announced that it has delivered a notice to Esprit Pharma, Inc. regarding Esprit's breaches of the parties' Exclusive License and Marketing Agreement for ProQuin([R])XR, a once-daily extended release formulation of ciprofloxacin ciprofloxacin /cip·ro·flox·a·cin/ (sip?ro-flok´sah-sin) a synthetic antibacterial effective against many gram-positive and gram-negative bacteria; used as the hydrochloride salt. cip·ro·flox·a·cin n. for the treatment of uncomplicated urinary tract infections. The breaches involve, among other matters, Esprit's failure to make the $10 million license fee payment due to Depomed under the contract on December 15, 2006, and to use commercially reasonable efforts to market ProQuin XR. As the license agreement provides for arbitration of disputes under the contract, Depomed has also filed a demand for binding arbitration related to Esprit's breaches of the contract. The demand seeks in excess of $105 million in damages, which includes all license payments, minimum royalty payments, and expected additional royalty payments due through the life of the patents licensed under the contract. About Depomed, Inc. Depomed, Inc. is a specialty pharmaceutical company utilizing its innovative AcuForm(TM) drug delivery technology to develop novel oral products and improved, extended release formulations of existing oral drugs. AcuForm-based products are designed to provide once daily administration and reduced side effects Side effects Effects of a proposed project on other parts of the firm. , improving patient convenience, compliance and pharmacokinetic profiles. ProQuin([R]) XR (ciprofloxacin hydrochloride ciprofloxacin hydrochloride Ciloxam, Cipro, Cipro I.V., Cipro XR, Ciproxin (UK) Pharmacologic class: Fluoroquinolone Therapeutic class: Anti-infective Pregnancy risk category C ) extended-release tablets have been approved by the FDA FDAabbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. for the once daily treatment of uncomplicated urinary tract infections and are currently being marketed in the United States. In addition, once daily Glumetza(TM) (metformin hydrochloride extended release tablets) has been approved for use in adults with type 2 diabetes type 2 diabetes n. See diabetes mellitus. and is currently being marketed in the United States and Canada. The company is conducting a Phase III trial in postherpetic neuralgia and has completed a Phase II trial in diabetic peripheral neuropathy Diabetic peripheral neuropathy A condition where the sensitivity of nerves to pain, temperature, and pressure is dulled, particularly in the legs and feet. Mentioned in: Diabetes Mellitus with its product candidate, Gabapentin GR(TM). Additional information about Depomed may be found at its web site, www.depomedinc.com. "Safe Harbor" Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 relationships and disputes with collaborative partners; expectations regarding commercialization of our products; 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. |
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