Solvay licenses Depomed's gabapentin GR in Central and North America

Belgian drugmaker Solvay Pharmaceuticals has licensed USA-based Depomed's gastric-retentive formulation of gabapentin which is designed to reduce the dose frequency and side effects of the postherpetic neuralgia drug.

Under the terms of the deal, which covers rights to sell the Phase III-stage drug candidate in the USA, Canada, Mexico and Puerto Rico, Solvay will pay $25.0 million up front and will make payments subject to the fulfilment of future regulatory and sales milestones worth up to $370.0 million in total, as well as royalties.

Consummation of the transaction is expected to occur in the fourth quarter and is contingent solely on completion of review under the Hart-Scott-Rodino Antitrust rules. The upfront payment to Depomed is due 60 days once cleared.