Depomed Says Shingles Pain Drug Meets Study Goal

MARLEY SEAMAN

MENLO PARK, Calif. (AP) — Depomed Inc. on Monday reported a successful late stage clinical trial of a drug intended to treat pain following the viral infection shingles, and its shares soared on the news.

The company said its DM-1796 significantly reduced post-shingles pain compared to placebo after 10 weeks of treatment. Depomed said it plans to file for Food and Drug Administration approval by the end of March 2010, and in morning trading, its shares surged to a three-year high.

Depomed shares advanced $1.20, or 27.2 percent, to $5.61, and they peaked at $6.21, their highest price since June 2006. About 5.1 million shares changed hands by 10 a.m. About 288,000 shares trade on an average full day.

DM-1796 is an extended-release form of gabapentin, which is used to treat pain disorders and epilepsy. Depomed said its drug needs to be taken only once per day, compared with other versions that have to be used four or five times a day, and the company said DM-1796 may have fewer side effects due to its lower dosing.

Depomed CEO Carl Pelzel said the tablet swells up after reaching a patient's stomach, becoming three times its original size. That allows the tablet to remain in the stomach longer and release medication over eight or nine hours.