DepoMed to Buy U.S. Rights to Nucynta From J&J Unit Deal to Position DepoMed as Pain, Neurology Focused Company By JOSH BECKERMAN Updated Jan. 16, 2015 2:04 p.m. ET
Johnson & Johnson unit Janssen Pharmaceuticals Inc. has agreed to sell its U.S. license rights to the painkiller Nucynta to DepoMed Inc. for $1.05 billion.
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DepoMed said the deal will increase its 2014 pro forma net product revenue guidance by about 2.5 times. The company previously projected about $113 million to $117 million in 2014 product sales and overall revenue of about $232 million to $242 million.
The Nucynta franchise had U.S. net sales of about $166 million for the 12 months ended in September, DepoMed said.
Nucynta received Food and Drug Administration approval in 2008, with an extended-release form of the drug gaining approval in 2011. It treats conditions including pain associated with diabetic peripheral neuropathy.
$1 billion for only U.S. rights to one single drug (IR + ER forms) that has been on the market now for 7 years and which I've never, ever seen prescribed by anyone. Supposedly comparable in strength to Ultram (tramadol), another drug I have little use for. No abuse deterrance, probably because nobody wants to abuse it. If Nucynta and Nucynta ER are worth $1 billion for only a U.S. license, I'm going to start looking at yacht catalogs. I don't live on a coast, but I'll fly there on my private jet.