Posts Tagged ‘DEPO’

DepoMed, Inc. (DEPO) -Buzz Stock of the Day

Monday, January 31st, 2011

Shares of drug maker DepoMed, Inc. (Nasdaq: DEPO) surged as much as 37 percent from Friday’s closing price in morning trading on Monday after the company announced that its one-a-day pain drug for shingles, Gralise was approved by the U.S. Food and Drug Administration. The announcement was made last Friday at 7:30 p.m. EST.

“Importantly, the label stated that Gralise is not interchangeable with other gabapentin products. We view this as a major victory that is preventing substitution at the pharmacist level,” Roth Capital Partners analyst Scott Henry told Reuters.

Shares of DepoMed climbed as high as $8.60 per share, up from Friday’s closing price of $6.24. Shares opened markedly higher, at $8.50 on Monday.

The drug is licensed to Abbot Products, Inc. (NYSE: ABT) in the U.S., Canada and Mexico, and the FDA approval triggers a milestone payment of $48 million from Abbott to Depomed.  The licensing deal also includes sales milestone payments of up to $300 million, and calls for Depomed to receive royalties of 14 percent-20 percent on sales of Gralise.

“We are delighted with the approval of Gralise, which marks the third FDA approval of a product developed by DepoMed. Further, FDA has granted GRALISE Orphan Drug status, recognizing GRALISE as an important treatment option for patients who suffer from the pain of PHN,” said Dr. Michael Sweeney, DepoMed’s Vice President of Research and Development, in a statement. ” We are also very pleased with the product label FDA has approved.”

DepoMed’s other FDA approved drugs include Glumetza for the treatment of type 2 diabetes in the United States and Canada; and Proquin XR for the treatment of uncomplicated urinary tract infection in the United States.

The Menlo Park-based company also has collaboration and license agreements with Solvay Pharmaceuticals, Inc.; PharmaNova, Inc.; Santarus, Inc.; Merck & Co., Inc.; Covidien, Ltd.; TEVA Pharmaceuticals USA, Inc.; King Pharmaceuticals, Inc.; Esprit Pharma, Inc.; LG Life Sciences, Ltd.; Rottapharm/Madaus S.r.l.; PharmaNova, Inc.; and Supernus Pharmaceuticals, Inc.

Shares of Depomed, Inc. are up about 65 percent over the past three months.

DEPO finds wings, C mushrooms, CHMP anything but champ

Monday, January 31st, 2011

Depomed Inc. (Nasdaq: DEPO) shares gained 30 percent to $8.11, on volume of 5.5 million shares, more than five times what it would trade during an average day, after the drug developer said late Friday that regulators approved its marketing of its treatment for shingles.

Citigroup Inc. (NYSE: C) held its usual place atop the volume ladder Monday, trading in 95.2 million shares. Its daily volume averages around 551 million. Share prices were up 1.4 percent at $4.76, after a portfolio manager for the Artio Global Equity Fund said the run in C shares is far from over.

Champion Industries Inc. (Nasdaq: CHMP) lost a bit of its grip early Monday, tumbling 7.8 percent to $1.78, on volume of 30,111 or nearly twice its full-day average, only days after reporting better results for 2010’s full year and last quarter. The West Virginia-based company announced net income of $0.5 million or $0.05 per share on a basic and diluted basis for the year ended October 31, 2010 compared to a net loss of $(27.5) million or $(2.76) per share on a basic and diluted basis for the year ended October 31, 2009.