PDL BioPharma, Inc. (PDL) announces an amendment to the Royalty Purchase and Sale Agreement (the “Royalty Agreement”) with Depomed, Inc. (Depome”) under which PDL acquired all of Depomed’s remaining rights to royalties and milestones payable on sales of type 2 diabetes products licensed by Depomed for up to $20 million.
Under the original Royalty Agreement PDL would have shared future royalties equally with Depomed after total cash received by PDL reached $481 million, or two times PDL’s original investment, which PDL expects to occur by October 2020.
Under terms of the amendment, PDL has made an initial payment of $10 million to Depomed. An additional $10 million will be payable if Depomed meets certain conditions specified in the amendment.
Products covered by the Royalty Agreement and amendment include Glumetza and its authorized generic, Jentadueto XR, Invokamet XR and Synjardy XR.