Janssen will use Acuform gastric retentive drug delivery technology for the non-exclusive development of a fixed dose combination formulation of canagliflozin, a Sodium Glucose Transport 2 (SGLT2) inhibitor, and extended-release metformin.

Janssen Pharmaceutica has also been granted a right of reference to the Glumetza NDA and associated data for use in developing the combination product.

As per the agreement, Depomed will be responsible for the formulation of the fixed dose combination product, whereas Janseen will have the commercialisation rights for the combination product.

Under the contract, Depomed is also entitled to receive reimbursements for its formulation work on the project and an additional $5m license fee following completion of its task.

Additionally, Depomed is also expected to get an additional milestone plus a royalty on potential future net sales.

Carl Pelzel, president and CEO of Depomed, said: “We are excited that we have been able to close our third licensing deal with a Big Pharma partner within the last 2 years.

“We believe that an expansion in use of our technology in the diabetes field will also further improve adoption of our proprietary, single-agent, extended-release metformin product Glumetza among patients and physicians.

“We will continue to monetize the value of our technology and advance our strategic goal to become a specialty pharmaceutical company.”