Depomed Gets Favorable Nucynta Patent Decision

Depomed Inc. said it received a favorable court decision on its patents for its Nucynta painkiller products and expected the ruling would result in market exclusivity through 2025.

The patent litigation has lingered over Depomed as it fought off a takeover approach last year from Horizon Pharma PLC and has been dealing this year with activist investor Starboard Value LP. Starboard, which is seeking to replace Depomed's board, has said Depomed should consider a sale and criticized the company's interactions with Horizon.

Reuters reported earlier this month that Depomed was working with Morgan Stanley on a sale process, and that talks with potential buyers were expected to start following the patent decision. Depomed also said it wanted to schedule a shareholder meeting later in the year so that shareholders would know the outcome of the patent litigation.

Depomed shares rose 4.5% in the regular session and increased 3.3% to $25.80 in after-hours trading.

Depomed said Friday that a federal judge in New Jersey ruled that Actavis Inc., Alkem Laboratories Ltd. and Roxane Laboratories Inc. infringed two of its patents.

Depomed will appeal a ruling that two of the defendants didn't infringe another patent that covers the Nucynta extended-release product through 2029.

Nucynta patent litigation dates as far as back as 2013. In April 2015, Depomed bought the U.S. rights to Nucynta from Johnson & Johnson unit Janssen Pharmaceuticals Inc. for $1.05 billion.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

September 30, 2016 17:55 ET (21:55 GMT)

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