Depomed Takes ProQuin XR Rights Back From Esprit
This article was originally published in The Pink Sheet Daily
Executive Summary
Firm will leverage its Glumetza commercial structure to sell and distribute the proprietary ciprofloxacin formulation in the U.S.
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Depomed ended its license agreement and related supply and co-promotion agreements with Esprit Pharma for ProQuin XR , its proprietary extended-release formulation of ciprofloxacin for the treatment of uncomplicated urinary tract infections, the company announced July 5. As part of the termination agreement, Esprit paid Menlo Park, Calif.-based Depomed $17.5 million and will return ownership of the ProQuin NDA along with all promotional materials. Depomed announced the marketing and distribution agreement with privately held Esprit in July 2005, after ProQuin XR was approved in May of that year (1 (Also see "Esprit Pharma Plans November Launch Of Proquin XR Following Licensing Deal" - Pink Sheet, 29 Jul, 2005.)). "We are happy to have ProQuin back," Depomed CEO John W. Fara said. "We believe ProQuin will be a success, and we are continuing our discussions with potential new partners." The two parties have agreed to a detailed transition plan, Depomed said. The company plans to leverage the commercial distribution network it established for Glumetza , its once-daily, extended-release metformin product, to book sales and distribute ProQuin in the U.S. Glumetza won FDA approval in June 2005 and was launched over a year later under a co-promotion agreement with King Pharmaceuticals. Depomed is using the deal as a stepping off point for building its own commercial structure (2 (Also see "Depomed’s Glumetza Q3 Launch Will Be Executed By King" - Pink Sheet, 28 Jun, 2006.)). The repatriation of ProQuin came at a loss to Depomed, according to CIBC World Markets analyst Elliot Wilbur. According to Wilbur, "Esprit owed Depomed a final $10 million license fee plus $5 million minimum annual royalties through 2020." With the royalties valued at "$25 million - $30 million ... [Depomed] looks to have recovered around a third," Wilbur said in a July 5 research note. Depomed's currently marketed products are ProQuin XR and Glumetza, formulated with Depomed's AcuForm drug delivery technology. In addition, the specialty pharma anticipates results in coming weeks from a Phase III trial of its AcuForm gabapentin, for postherpetic neuralgia, an extended period of pain related to shingles (3 (Also see "Depomed Starts Gabapentin Extended Release Pivotal Trial" - Pink Sheet, 10 May, 2006.)). - Shirley Haley ([email protected]) |