Depomed Reports Fourth Quarter And Year-End 2010 Financial Results

MENLO PARK, Calif., March 3, 2011 (GLOBE NEWSWIRE) -- Depomed, Inc. (Nasdaq:DEPO) today reported financial results for the fourth quarter and year ended December 31, 2010.

"We are pleased to report a profitable year and our third consecutive profitable quarter," said Carl A. Pelzel, president and chief executive officer of Depomed. "Our excellent financial performance and business progress in 2010, as well as the $48 million milestone payment from Abbott Products received last week, provide us with substantial resources to pursue our plan to achieve sustainable profitability from recurring operating revenue from our own specialty pharmaceutical business. Meanwhile, we look forward to the results of Serada's Breeze 3 trial later this year, as enrollment has just concluded," Mr. Pelzel added.

Fourth Quarter 2010 and Recent Highlights

• Presentations of Breeze 1 and 2 clinical data at the North American Menopause Society annual meeting (October 2010);
• Awarded a second grant by The Michael J. Fox Foundation to support clinical development of DM-1992 for Parkinson's disease (October 2010);
• Receipt of a $5.0 million milestone payment from Janssen Pharmaceutica for delivery of formulation (October 2010, recognized as revenue during the third quarter of 2010);
• Receipt of a $2.5 million development milestone payment pursuant to the agreement with Merck (October 2010, recognized as revenue during the fourth quarter of 2010);
• Availability and re-launch of Glumetza 500mg tablets (January 2011);
• Achievement of a $3.0 million Glumetza sales milestone payment from Santarus, Inc. to be paid in March 2011 (January 2011);
• US FDA approval of Gralise (gabapentin) once-daily tablets for treatment of post-herpetic neuralgia (January 2011);
• Results of the Phase 1 trial of twice-daily formulation of DM-1992 in Parkinson's patients (February 2011);
• Receipt of a $48.0 million milestone payment from Abbott Products on FDA approval of Gralise (February 2011);
• Completion of enrollment in Breeze 3, our pivotal Phase 3 trial evaluating Serada for menopausal hot flashes (March 2011).   

Depomed Fourth Quarter and Full-Year 2010 Financial Highlights

Total revenue for the fourth quarter of 2010 was $20.9 million compared to $13.2 million in the fourth quarter of 2009. The increase in revenue in the fourth quarter of 2010 was the result of recognition of the $2.5 million Merck milestone, an increase in Glumetza product sales and revenues related to our collaborative arrangements with Janssen and Covidien.