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Home Industry News Covidien and Depomed in license agreement

Covidien and Depomed in license agreement

26th November 2008

Covidien and Depomed have today announced an agreement, which will see the former licensing rights to utilise the latter’s AcuForm gastric retentive drug delivery technology.

The deal will see the method used in the exclusive development of four undisclosed products, which will target a key strategic focus in business, along with addressing medical needs.

As a result of the agreement, Depomed will receive a one-time upfront payment of $4 million (2.59 million pounds), which could rise to $64 million in additional milestone payments over the next few years.

Covidien will additionally pay the company for royalties on sales of products developed under the deal.

President and chief executive officer of Depomed Carl Pelzel said: “We are very excited to license our technology to one of the world’s leading global healthcare manufacturers.”

“We feel this transaction reflects the value of our technology and its ability to engender compounds with new, meaningful product differentiation.”

President of pharmaceutical products at Covidien Chuck Bramlage added that using Depomed’s technology will give the company an opportunity to create drug delivery systems, in an aim to meet unmet needs in its key target markets.

Covidien reported 2007 revenue of nearly $9 billion and current employs 42,000 people in more than 130 countries around the world.

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