Depomed - Investor Relations - Press Release
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`Depomed, INC. Finalizes Agreement with Elan to Develop Advanced Oral Drug Delivery Products and
`Technologies
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`FOSTER CITY, California, January 24, 2000 - DepoMed, Inc. (AMEX: DMI) today announced that it has completed its previously announced
`definitive joint venture agreements with Elan Corporation, plc. The joint venture, known as DepoMed Development Ltd. (DDL), will further
`develop gastric retention oral drug delivery technologies licensed to the venture by both companies on a non-exclusive basis and will use
`these technologies to develop a series of proprietary products. Both venture partners will provide clinical development, regulatory and
`business development guidance. As part of the transaction, Elan will make a $5 million common stock investment in DepoMed at $7 per
`share, the proceeds of which may be used by DepoMed without restriction.
`
`DepoMed will initially own 80.1% of the joint venture while Elan will retain the future right to acquire up to 50% ownership. Elan and
`DepoMed have estimated that the program will require funding in the region of $10 million to cover future operating and development costs.
`DepoMed and Elan will fund the research and development in proportion to their respective ownership interests in the venture. Elan has
`made available a credit facility to DepoMed on a draw down basis to support DepoMed's portion of the joint venture research and
`development expenses..
`
`"We are extremely pleased to have consummated this equity and joint venture agreement with Elan," said John W. Fara, Ph.D., DepoMed's
`chief executive officer. "Elan is a world-wide leader in oral drug delivery technologies and we will work closely together to leverage the
`synergies between our respective technologies. Indeed, this collaboration should accelerate the development of gastric retention oral drug
`delivery products. Of course, we also welcome Elan as an investor in the company."
`
`DepoMed's Gastric Retention (GR) System is an oral drug delivery technology designed specifically for drugs preferentially absorbed high in
`the gastrointestinal tract. Using normal physiological processes by which the stomach retains large objects for further digestion, the GR
`System swells following ingestion and is retained in the stomach for a number of hours, where it continuously releases the incorporated drug
`to absorption sites in the upper small intestine. The controlled release of the drug at the preferred absorption site optimizes delivery of the
`drug during the "therapeutic window," potentially maximizing its therapeutic benefits.
`
`DepoMed, Inc., a development stage company, is a leader in applying innovative oral drug delivery systems to the development of novel oral
`products and improved formulations of existing oral drugs. The company is developing two types of proprietary systems. The Gastric
`Retention (GR) System is designed to improve the absorption and bioavailability of oral drugs through controlled release high in the
`gastrointestinal tract. The Reduced Irritation (RI) System is designed to reduce gastrointestinal irritation, a side effect of many orally
`administered drugs. In addition to developing products jointly with other companies, DepoMed Inc. is also developing its own line of
`proprietary products based on off-patent and over-the-counter drugs. Additional information may be found at the company's Web site at
`www.depomedinc.com.
`
`The statements in this press release that are not historical facts are forward-looking statements that involve risk and uncertainties, including
`fluctuations in operating results and risks associated with the development of products, technological changes, FDA and other regulatory
`approvals, dependence on and need for collaborative partners, competition, uncertainty related to patent and proprietary rights and other
`risks identified in the company's report on Form 10-KSB and other filings with the Securities Exchange Commission. Actual results, events,
`and performance may differ materially. Readers are cautioned not to place undue relevance on these forward-looking statements, which
`speak only as of the date hereof. The company expressly disclaims any obligation or undertaking to release publicly any updates or
`revisions to any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any
`change in events, conditions or circumstances on which any statements are based.
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`http://investor.depomedinc.com/phoenix.zhtml?c=97276&p=irol-newsArticle&ID=1008811&highlight=[10/7/2014 10:45:29 AM]
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`Depomed Exhibit 2151, Page 1 of 2
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`Depomed - Investor Relations - Press Release
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`http://investor.depomedinc.com/phoenix.zhtml?c=97276&p=irol-newsArticle&ID=1008811&highlight=[10/7/2014 10:45:29 AM]
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`Depomed Exhibit 2151, Page 2 of 2