Research analyst, medium-term horizon, biotech, small-cap

Another Astute Deal For Depomed

On October 21, 2013, Depomed, Inc. (NASDAQ:DEPO) announced that it has sold its interests in royalty and milestone payments under its license agreements in the Type 2 diabetes therapeutic area to PDL BioPharma (NASDAQ:PDLI), Inc. for $240.5 million in cash. The interests sold include royalty and milestone payments accruing from and after October 1, 2013:

1) From Santarus (NASDAQ:SNTS) with respect to sales of Glumetza (metformin HCL extended-release tablets) in the U.S.

    Santarus has been doing an incredible job selling Glumetza over the past few years. Glumetza contributed $14.2 million in royalties in the second quarter 2013 on of sales at Santarus of $44.4 million. Total Glumetza royalties in 2012 were $42.7 million; which...
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