Therapy Areas: Diabetes
PDL BioPharma buys remaining 50% interest in royalties and milestones on Type 2 diabetes products from Depomed
3 August 2018 -

Biotech royalty company PDL BioPharma Inc (NASDAQ:PDLI) on Thursday amended the original Royalty Purchase and Sale Agreement with Depomed Inc covering Glumetza and its authorised generic, Jentadueto XR, Invokamet XR and Synjardy XR Type 2 diabetes products.

Through this new agreement PDL acquired all of Depomed's remaining rights to royalties and milestones payable on sales of type 2 diabetes products for up to USD20mn.

Under the original royalty agreement, PDL would have shared future royalties equally with Depomed after total cash received by PDL reached USD481m, or two times PDL's original investment, which PDL expects to occur by October 2020.

The amendment allows PDL to make an initial payment of USD10m to Depomed plus an additional USD10m is payable if Depomed meets certain conditions specified in the amendment.