Depomed Acquires CAMBIA® (Diclofenac Potassium for Oral Solution) Migraine Medicine from Nautilus Neurosciences for $48.7

  Depomed Acquires CAMBIA® (Diclofenac Potassium for Oral Solution) Migraine
            Medicine from Nautilus Neurosciences for $48.7 Million

Depomed to host investor conference call today at 5:00 p.m. EST, 2:00 p.m. PST

PR Newswire

NEWARK, Calif., Dec. 17, 2013

NEWARK, Calif., Dec. 17, 2013 /PRNewswire/ --Depomed, Inc. (NASDAQ: DEPO)
today announced that it has acquired the United States rights to CAMBIA®
(diclofenac potassium for oral solution) from Nautilus Neurosciences for $48.7
million. In addition, Depomed may pay Nautilus up to an additional $5 million
based on the achievement of certain annual net sales milestones. CAMBIA is a
non-steroidal anti-inflammatory drug (NSAID) indicated for acute treatment of
migraine attacks withor without aura in adults 18 years of age or older.

Benefits of CAMBIA acquisition:

  oBolsters Depomed'sportfolio in pain and neurology, specifically
    strengthening the company's position with neurologists
  oSecures CAMBIA, the only single agent NSAID in the U.S.
    specificallyindicated for migraine, and immediately increases Depomed's
    topline with annualized net sales run rate of approximately $18 million
    over the past 3 months
  oAdds another growth product to Depomed, as CAMBIA total prescriptions in
    third quarter 2013 were up more than 30 percent over the same quarter last
    year
  oCreates synergies with Gralise commercial efforts as nearly 70% of CAMBIA
    prescriptions are written by neurologists and half of these prescribing
    neurologists are currently Gralise prescribers
  oIncreases the sales support for CAMBIA, moving from the current 35 sales
    reps with Nautilus to Depomed's existing 155 sales territories, reaching
    more of the target audience for the drug
  oSecures a long term revenue stream with settled ANDA litigation and
    generic entry expected in January 2023

"CAMBIA, our third product acquisition in 18 months, is a unique and fast
acting treatment for migraine with long-term growth potential that is a great
fit in our pain and neurology-focused portfolio," said Jim Schoeneck,
President and CEO of Depomed. "Some of the capital secured in October 2013
from the sale of our royalties in type 2 diabetes assets is being put to work
in this product acquisition that leverages our current infrastructure. We will
continue to actively seek products that complement our pain and neurology
portfolio and position us for a strong growth trajectory in the coming years."

Transaction Details

  oDepomed acquired all US rights to CAMBIA in return for $48.7 million cash,
    $7.5 million of which will be deposited into an escrow account
  oDepomed will pay Nautilus up to $5 million in net sales milestone payments
    and will assume certain liabilities, including third party royalties and
    up to $10 million in third party sales milestone payments

Financial and Operational Guidance

  oDepomed expects the acquisition of CAMBIA to be immediately accretive
  oUpdated year end 2013 cash guidance of $268 to $272 million, pending
    future payment of taxes related to the PDL transaction

CAMBIA is a powdered formulation of diclofenac potassium that is dissolved in
liquid. It has a rapid onset and has demonstrated in clinical studies relief
of the pain and associated symptoms of migraine, including nausea, sensitivity
to light and sensitivity to sound. It was launched in 2010.

Important Safety Information

CAMBIA is a non-steroidal anti-inflammatory drug (NSAID). NSAIDs may increase
your chance of a heart attack or stroke that can lead to death. This chance is
higher with longer use of NSAID medicines and in people who have heart
disease. CAMBIA should never be used right before or after certain heart
surgeries.

NSAID medicines can also cause stomach and intestine problems, such as ulcers
and bleeding, which can happen without warning and may cause death. This risk
increases with use of steroids (corticosteroids), blood thinners
(anticoagulants), smoking, alcohol use, older age, and for those in poor
health.

Conference Call Information

Depomed will host a conference call today, December 17, beginning at 5:00 p.m.
EST, 2:00 p.m. PST to discuss the transaction. The conference call will be
available via a live webcast on the investor relations section of Depomed's
website at http://www.depomed.com. The dial-in number for the conference call
is 877-317-6789 and for international calls 412-317-6789. Access the website
15 minutes prior to the start of the call to download and install any
necessary audio software. An archived webcast replay will be available on the
Company's website for three months.

About Depomed

Depomed, Inc. is a specialty pharmaceutical company that commercializes
products for pain and neurology related disorders. Gralise® (gabapentin) is a
once-daily treatment approved for the management of postherpetic neuralgia.
Zipsor® (diclofenac potassium) Liquid Filled Capsules is a non-steroidal
anti-inflammatory drug indicated for relief of mild to moderate acute pain in
adults. Lazanda® (fentanyl) Nasal Spray is an intranasal fentanyl drug used to
manage breakthrough pain in adults (18 years of age or older) who are already
routinely taking other opioid pain medicines around-the-clock for cancer pain.
CAMBIA® (diclofenac potassium for oral solution) is a non-steroidal
anti-inflammatory drug indicated for acute treatment of migraine attacks with
or without aura in adults (18 years of age or older). Gralise and other
products and product candidates are formulated with Depomed's proven,
proprietary Acuform® drug delivery technology. Additional information about
Depomed may be found at www.depomed.com.

Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. The statements that are not historical facts contained in this release
are forward-looking statements that involve risks and uncertainties including,
but not limited to, those related to our ability to commercialize CAMBIA,
expected synergies from the acquisition, expected year-end cash, growth in
future periods, and other risks detailed in the company's Securities and
Exchange Commission filings, including the company's Annual Report on Form
10-K for the year ended December 31, 2012 and the Quarterly Report on Form
10-Q for the quarter ended September 30, 2013. The inclusion of
forward-looking statements should not be regarded as a representation that any
of the company's plans or objectives will be achieved. You are cautioned not
to place undue reliance on these forward-looking statements, which speak only
as of the date hereof. The company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements that
may be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.

INVESTOR CONTACT:
August J. Moretti
Depomed, Inc.
510.744.8000
amoretti@depomed.com

MEDIA CONTACT:
Carolyn Hawley
Canale Communications for Depomed
619-849-5375
Carolyn@canalecomm.com

SOURCE Depomed, Inc.

Website: http://www.depomed.com
 
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