Depomed Provides Product Supply Information Following Hurricane Maria
October 10 2017 - 7:30AM
Depomed, Inc. (NASDAQ:DEPO) today provided information on the
impact of Hurricane Maria to the supply of NUCYNTA® ER, which is
manufactured in Puerto Rico by the Company’s third party
manufacturing partner.
The most recent assessment that the Company has received from
the manufacturer of NUCYNTA ER indicates that the facility in
Puerto Rico suffered minor damage and that site leaders are working
to return the facility to full operation.
As a result of the ongoing disruption to manufacturing
operations in Puerto Rico arising from Hurricane Maria, the
Company’s third quarter product revenue was negatively impacted by
approximately $2 to $3 million. Furthermore, as a result of
the temporary delays in the packaging and delivery of certain
dosage strengths of NUCYNTA ER at the facility in Puerto Rico and
based on the information available to it at this time, the Company
currently expects its fourth quarter product revenue may be
negatively impacted by less than $10 million. The Company
will provide an update to its full year 2017 financial guidance and
on the NUCYNTA ER supply situation during its third quarter
conference call in early November.
The Company does not currently anticipate, based on the
information available to it at this time, any material disruption
to the supply of NUCYNTA IR, which recently transitioned to a new
third party manufacturer, or Gralise®, which is manufactured in
Puerto Rico and of which the Company has adequate inventory.
“Depomed’s objective is to ensure patients have continued access
to NUCYNTA ER,” said Arthur Higgins, President and Chief Executive
Officer of Depomed. “We continue to work urgently with our
manufacturing partner to ensure that we achieve this goal.”
Mr. Higgins continued: “We recognize that we are just one of
many companies affected and that this devastating event has
impacted many lives and businesses. Our thoughts are with the
people of Puerto Rico. Recognizing that our partners and colleagues
in Puerto Rico have long supported our business, today we are
pleased to pledge, on behalf of the healthcare providers and
patients affected by this disruption, $100,000 to the American Red
Cross in support of the urgent Hurricane Maria relief efforts in
Puerto Rico.”
About Depomed
Depomed is a leading specialty pharmaceutical company focused on
enhancing the lives of the patients, families, physicians,
providers and payors we serve through commercializing innovative
products for pain and neurology related disorders. Depomed markets
six medicines with areas of focus that include mild to severe acute
pain, moderate to severe chronic pain, neuropathic pain, migraine
and breakthrough cancer pain. Depomed is headquartered in Newark,
California. To learn more about Depomed, visit www.depomed.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995. The statements that are not historical facts
contained in this release are forward-looking statements that
involve risks and uncertainties including, but not limited to,
those related to the availability and supply of the Company’s
products, including NUCYNTA and NUCYNTA ER product supply, the
period of any supply disruption, and the expected financial
impact of any supply disruption, and other risks detailed in the
Company's Securities and Exchange Commission filings, including the
Company's most recent Annual Report on Form 10-K and most recent
Quarterly Report on Form 10-Q. The achievement of 2017 financial
guidance is significantly dependent upon the success of NUCYNTA ER
and NUCYNTA, and the continuing public focus on the opioid markets
and the decline in the short-acting and long-acting opioid markets
present risks to achievement of financial guidance. The inclusion
of forward-looking statements should not be regarded as a
representation that any of the Company's plans or objectives will
be achieved. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to publicly release the result
of any revisions to these forward-looking statements that may be
made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
INVESTOR AND MEDIA CONTACT:
Christopher Keenan
VP, Investor Relations and Corporate Communications
510-744-8000
ckeenan@depomed.com
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