Depomed Inc on Thursday said it has agreed to pay $1.05 billion to acquire the U.S. rights to Johnson & Johnson's Nucynta opioid pain drug franchise, giving the smaller company a new flagship product expected to significantly add to revenue and earnings. The deal, expected to close in the second quarter, gives Depomed Nucynta ER for management of pain, including neuropathic pain associated with diabetic peripheral neuropathy, severe enough to require around-the-clock treatment. It also gains an older immediate release version of the drug for moderate to severe pain, and a liquid form of the medicine not yet on the market.Over the 12 months ending in September, the Nucynta franchise had sales of $166 million - something of an afterthought for J&J but revenue that would make it Depomed's top-selling product.The acquisition is expected to immediately add to Depomed's adjusted earnings this year and beyond, the company said, adding that it would provide a more detailed forecast once the deal closes.The medicine has U.S. patent protection until 2022, with a potential for a pediatric extension into 2023.
Depomed, Inc. (Depomed) is a specialty pharmaceutical company focused on pain and other conditions and diseases of the central nervous system. Shares of DEPO fell by 2.22% or $-0.4/share to $17.65. In the past year, the shares have traded as low as $9.85 and as high as $18.28. On average, 807413 shares of DEPO exchange hands on a given day and today's volume is recorded at 620914.
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