King Pharma and Depomed to co-promote Glumetza

King Pharmaceuticals and fellow US drugmaker Depomed have entered into a co-exclusive agreement to commercialize the latter's Glumetza (metformin HCl). This is a once-daily extended-release formulation of metformin for the treatment of patients with type 2 diabetes that Depomed developed utilizing its proprietary AcuForm drug delivery technology.

Under the terms of the deal, King will assume responsibility for selling Glumetza in the USA and Puerto Rico, while Depomed has the right to co-promote the product using its own sales force at some point in the future. Depomed will book top-line revenue and pay King a fee from gross profits, defined as net sales less cost-of-goods and a 1% royalty due to Biovail Corp on the 500mg tablet.