Kudrna's Stock Market Talk

On June 21, 2012, Depomed (DEPO) announced the acquisition of the product Zipsor (diclofenac potassium) Liquid Filled Capsules from privately-held Xanodyne Pharmaceuticals, Inc. Zipsor is a non-steroidal anti-inflammatory drug (NSAID) indicated for relief of mild to moderate acute pain in adults. The product uses the proprietary ProSorb delivery technology (developed by AAIPharma Services Corp) to deliver a finely dispersed, rapidly absorbed formulation of diclofenac.

Zipsor is the lowest prescription-strength diclofenac available. The ProSorb technology allows for rapid delivery and dispersion of the medicine. The low-dose offers minimal systemic drug exposure. Depomed believes these advantages will help them drive Zipsor sales in the coming years. (more…)

On April 17, 2012, Depomed (DEPO) announced it had completed a Type B “pre-NDA” meeting with the U.S. FDA regarding the results of the three phase 3 clinical trials for Serada (extended-release gabapentin tablets). Following the meeting, management believes the data from the BREEZE-1, -2, and -3 trials “warrants submission of an NDA for the FDA’s review and consideration” for the treatment of menopausal hot flashes. (more…)

On March 8, 2012, Depomed (DEPO) reported financial results for the fourth quarter 2011. Total revenues in the fourth quarter were $12.1 million, in-line with our expectations. Revenues consisted of $0.5 million in sales of Gralise, $7.6 million in royalties from Santarus on Glumetza, and $4.0 million in licensing and collaborative payments. Royalties on Glumetza ($28.5 million in sales in the fourth quarter 2011 at Santarus) were greater than expected. Sales of Gralise were essentially in-line. We note that Gralise reported sales tracked below the prescription trends based on the company s co-pay assistance program designed to lower the out-of- pocket expense that patients pay for Gralise, bringing the drug more in-line with generic gabapentin, and the lower cost titration starter pack. (more…)