AP Depomed, Biovail Ink License Contract Monday February 12, 2:08 pm ET Depomed Licenses AcuForm Technology to Biovail for Upfront, Licensing and Royalty Fees
NEW YORK (AP) -- Depomed Inc. and Biovail Corp. said Monday the companies signed a contract that will provide drug delivery technology in return for license fees.
Under the agreement, Menlo Park, Calif.-based Depomed licensed its AcuForm technology to Canada-based Biovail, which will use it to develop two unnamed products. The technology is used to develop new drugs and extended release versions of existing drugs.
Biovail will pay Depomed an upfront fee of $500,000 and future license fees. Biovail will also make royalty payments based on the future sales of products developed with the technology.
Shares of Depomed rose 8 cents, or 2.2 percent, to $3.72 on the Nasdaq in afternoon trading. The stock has traded between $2.74 and $6.99 over the last 52 weeks.
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