Depomed and Esprit Enter into License Agreement for Proquin(TM) XR; Agreement Provides Depomed $50 Million License Fee and 15-25% Royalty on Sales.MENLO PARK, Calif. & EAST BRUNSWICK, N.J. -- Depomed, Inc. (Nasdaq: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 ) and Esprit Pharma, Inc. announced today that they have entered into a license agreement for Proquin(TM) XR, Depomed's recently approved extended release formulation of ciprofloxacin hydrochloride ciprofloxacin hydrochloride Ciloxam, Cipro, Cipro I.V., Cipro XR, Ciproxin (UK) Pharmacologic class: Fluoroquinolone Therapeutic class: Anti-infective Pregnancy risk category C for the treatment of uncomplicated urinary tract infections.In return for exclusive rights to market and distribute Proquin XR in the United States and Puerto Rico, Esprit will pay Depomed a $50 million license fee, consisting of $30 million payable upfront, $10 million in 12 months and the remaining $10 million due in 24 months. Also under the agreement, Esprit will pay Depomed 15 percent to 25 percent royalties on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of Proquin XR, based on escalating product sales. Additionally, Esprit also has right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. for the sales and marketing of Proquin XR for the Canadian market. "Esprit was one of several parties interested in licensing Proquin XR," said John W. Fara, Ph.D., chairman, president and chief executive officer of Depomed. "While we evaluated multiple competitive offers following the approval of Proquin XR, we concluded that Esprit is the ideal partner because of their established sales force, their extremely complementary product, Sanctura(R), and the proven commercialization track record of their management team. In addition, the terms of this agreement are attractive and met our expectations for licensing Proquin XR." John Spitznagel, chairman and chief executive officer of Esprit commented, "We have a high degree of confidence in the potential of Proquin XR to become the new leading quinolone treatment for uncomplicated urinary tract infections. With Proquin XR's improved gastrointestinal side effect profile, we look forward to mobilizing our sales and marketing teams towards a successful launch and penetration of urology and other key physician markets. Adding Proquin XR to our product portfolio provides an outstanding opportunity to leverage the strength of Esprit's sales force and to realize benefits arising from product synergies with our marketing of Sanctura, a treatment for overactive bladder Overactive Bladder Definition Overactive bladder is the leakage of large amounts of urine at unexpected times, including during sleep. Description ." Under the agreement, Esprit is expected to launch Proquin XR in the U.S. urology market in the fourth quarter 2005, followed by a subsequent launch into other attractive physician markets within six months of the urology market launch. Depomed retains manufacturing rights and Esprit will be responsible for sales, marketing and distribution. In addition to the license fee and agreed upon royalty rates, the agreement also provides for minimum royalties to be paid to Depomed annually, as well as minimum sales force size and marketing efforts utilized by Esprit. About Proquin(TM) XR Proquin XR is a once-daily extended-release formulation of ciprofloxacin hydrochloride and is intended to treat uncomplicated urinary tract infections (UTIs). UTIs are bacterial infections frequently caused by E. coli E. coli: see Escherichia coli. E. coli in full Escherichia coli Species of bacterium that inhabits the stomach and intestines. E. coli can be transmitted by water, milk, food, or flies and other insects. and are typically treated with antibiotics. Patients should not take Proquin XR if they are allergic to, or have ever had a severe reaction to, 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. or to any other "quinolone" antibiotics. Proquin XR is generally well tolerated. The most common side effects with Proquin XR include vaginal yeast infection Vaginal yeast infection An overgrowth of fungus in the vaginal area. Mentioned in: Jock Itch and headache. A conference call and webcast to discuss today's announcement will be held at 9:30 a.m. ET today, July 28, 2005. Interested parties can access a live Internet broadcast at http://www.shareholder.com/depomedinc/medialist.cfm?Header=no. For those unable to listen to the live broadcast, the call will be archived at www.depomedinc.com through the close of business on August 22, 2005. About Esprit Esprit Pharma is a niche oriented pharmaceutical company focused on specialty therapeutics to improve patient outcomes in the urology therapeutic area. Led by a strong and experienced management team, the Company focuses on exploring and identifying opportunities to selectively acquire and enhance the market potential of novel, commercially available therapeutics and late-stage development drugs addressing the needs of its market space. A privately held Company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , Esprit Pharma has investment support from the leading healthcare venture capital and private equity firms of Domain Associates, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (http://www.domainvc.com/), New Enterprise Associates (http://www.nea.com/), and Apax Partners, Inc. (http://www.apax.com/). About Depomed Depomed, Inc. is a specialty pharmaceutical company utilizing its innovative Gastric Retention (GR) system to develop novel oral products and improved, extended release formulations of existing oral drugs. GR-based products are designed to provide once daily administration and reduced gastrointestinal side effects, improving patient convenience, compliance and pharmacokinetic profiles. Proquin(TM) XR (ciprofloxacin hydrochloride) once daily, extended-release tablets have been approved by the FDA FDA abbr. 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 treatment of uncomplicated urinary tract infections. In addition, regulatory applications for once daily Glumetza(TM) (metformin metformin /met·for·min/ (met-for´min) an antihyperglycemic agent that potentiates the action of insulin, used in the treatment of type 2 diabetes mellitus. met·for·min n. GR) for the treatment of Type II diabetes Type II diabetes Type II diabetes is the most common form of diabetes and usually appears in middle aged adults. It is often associated with obesity and may be delayed or controlled with diet and exercise. Mentioned in: Diabetic Ketoacidosis have been approved in the U.S. and Canada. The company is also conducting a Phase II trial in post herpetic neuralgia neuralgia (n  răl`jə, ny–), acute paroxysmal pain along a peripheral sensory nerve. with their product, Gabapentin GR. 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 research and development efforts, including preclinical 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. 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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