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|Depomed Settles Patent Litigation Against IVAX|
Depomed to Receive $10 Million in Settlement and Royalties
MENLO PARK, Calif.--(BUSINESS WIRE)--April 7, 2008--Depomed, Inc. (NASDAQ:DEPO) announced today that it has reached a settlement with IVAX Corporation and its parent company, Teva Pharmaceuticals, of all claims associated with the patent infringement lawsuit filed by Depomed against IVAX in January 2006, in which Depomed alleged infringement of Depomed's patents (U.S. Patent Nos. 6,340,475 and 6,635,280) by IVAX's extended release metformin hydrochloride tablets.
The parties have entered into a settlement and license agreement that provides for a one-time payment to Depomed of $7.5 million, and a non-exclusive license to the asserted patents in favor of IVAX and Teva to continue to market their generic Glucophage(R) XR (metformin hydrochloride extended release tablets) product in the United States under Depomed's patents. Depomed will also receive ongoing royalty payments from Teva on sales by IVAX and Teva of generic Glucophage XR. The royalty is subject to a $2.5 million aggregate cap.
The agreement also provides for the parties to dismiss their pending patent litigation and for a release of all claims associated with the litigation.
"We are pleased to have reached a settlement of this matter without further distraction and expense of a trial," said Carl A. Pelzel, Depomed's president and chief executive officer.
"We feel that the rulings made in this case have strengthened the intellectual property estate around our AcuForm(TM) technology," added Matthew M. Gosling, Depomed's vice president and general counsel. "We intend to continue to defend and enforce our IP vigorously."
Depomed was represented by Michael Plimack of Heller Ehrman LLP.
Depomed, Inc. is a specialty pharmaceutical company with two approved products on the market and other product candidates in its pipeline. The company utilizes its proven, proprietary AcuForm(TM) drug delivery technology 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. Glumetza(R) (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes. Proquin(R) XR (ciprofloxacin hydrochloride) extended release tablets are approved in the United States for the once-daily treatment of uncomplicated urinary tract infections and will be marketed in the United States within the urology specialty by Watson Pharmaceuticals. Product candidate Gabapentin GR(R) is currently in clinical development for the treatment of neuropathic pain and for menopausal hot flashes. Additional information about Depomed may be found on its web site, www.depomedinc.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties. The inclusion of forward-looking statements, including those related to our intellectual property portfolio, and potential benefits of our products and product candidates, should not be regarded as a representation that any of our plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in our business, including, without limitation, risks and uncertainties related to: 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; our ability to successfully commercialize our products; the success of our collaborative arrangements with development and commercialization partners; and other risks detailed in our filings with the Securities and Exchange Commission filings, including our most recent 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. We undertake no obligation to revise or update this release to reflect events or circumstances that occur after the date of this release.
CONTACT: Depomed, Inc.