Depomed, Santarus expand Glumetza deal

Depomed Inc. (NASDAQ:DEPO) and partner Santarus Inc. (NASDAQ:SNTS) expanded a 2008 deal for the U.S. commercialization of Depomed's Glumetza extended-release metformin tablets to treat Type II diabetes. Santarus, which previously had promotional rights, will now assume full commercialization rights in the U.S., including manufacturing and regulatory responsibilities. Santarus will begin recording revenue from Glumetza sales. Depomed will be eligible for royalties of 26.5%, 29.5% and 32% in 2011, 2012, and 2013-14, respectively, and 34.5% in 2015 and beyond. Depomed, which has an option to co-promote Glumetza to physicians not called on by Santarus, recorded $45.5 million in annual sales of the product in 2010. ...