Depomed Surges 8% Following NUCYNTA Acquisition From Janssen Pharmaceuticals

Investors cheered the Depomed Inc DEPO decision to acquire the U.S. rights to the NUCYNTA franchise as the stock traded 8 percent higher in Friday's premarket.

The company will acquire the franchise rights from Johnson & Johnson JNJ subsidiary Janssen Pharmaceuticals, Inc. for $1.05 billion.

According to the company’s press release the “transaction is expected to be immediately accretive and to significantly increase Depomed's product revenue, cash flow, earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted earnings per share for 2015, 2016 and beyond.”

Depomed indicated that it expects “to support NUCYNTA and NUCYNTA ER with an expanded sales force of over 250 representatives." The NUCYNTA franchise generated U.S. net sales of approximately $166 million in 2014.

Shares of Depomed traded at $19.19 in the premarket, up 8.7 percent.

Posted In: NewsJanssen Pharmaceuticals
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