Esprit will pay Depomed a $50 million license fee and 15%-to-25% royalties on net sales.Esprit Pharma, an East-Brunswick-based pharmaceutical company, has acquired exclusive rights to market and distribute a drug used to treat uncomplicated urinary tract infections.
Esprit Pharma will pay California-based Depomed a $50 million license fee, consisting of a $30 million upfront payment, $10 million in 12 months and the remaining $10 million due in 24 months. Depomed will also get 15%-to-25% royalties on sales of the drug, Proquin XR, which should go on the market during the forth quarter of 2005.
This news comes shortly after Esprit acquired marketing rights for Sanctura, a drug that treats overactive bladder. Esprit Chairman John Spitznagel said Proquin XR has fewer gastrointestinal side effects than current treatments for urinary tract infections. Depomed has said Esprit was one of ÂseveralÂ companies interested in marketing Proquin XR.