PDL BioPharma, Inc. announces an amendment to the Royalty Purchase and Sale Agreement with Depomed, Inc.
As per the agreement, PDL acquires all of Depomed’s remaining rights to royalties and milestones payable on sales of type 2 diabetes products licensed by Depomed for up to $20M.
PDL has made an initial payment of $10M to Depomed & rest $10M will be payable if Depomed meets certain conditions specified in the amendment.
The amended transaction is expected to yield returns to PDL in late 2020 and will provide meaningful cash flow through 2026.
Products covered by the royalty agreement and amendment include Glumetza® and its authorized generic, Jentadueto XR®, Invokamet XR® and Synjardy XR®.