DepoMed (DEPO)

Revenue

Revenue for the three and nine months ended September 30, 2006 was $959,000 and $4,514,000 compared to $795,000 and $1,242,000 for the three and nine months ended September 30, 2005, respectively. In 2006, the increase in revenue is primarily due to revenue recognized under our license agreements with Esprit and Biovail and product sales related to our supply agreement with Esprit for ProQuin XR.

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License revenue in the three and nine months ended September 30, 2006 increased to $893,000 and $2,679,000, respectively, from $19,000 and $56,000 in the same periods of 2005 due to revenue recognized under our license agreements with Esprit and Biovail.  Product revenue related to our supply agreement with Esprit was zero and $1,265,000 for the three and nine months ended September 30, 2006, respectively, compared to zero in the same periods of 2005. Royalty revenue included Esprit’s sales of ProQuin XR in the United States and Biovail’s sales of Glumetza in Canada and for the three and nine months ended September 30, 2006 was $66,000 and $495,000, respectively, compared to zero in the same periods of 2005. Revenue from collaborative agreements decreased to zero and $75,000 for the three and nine months ended September 30, 2006 from $776,000 and $1,186,000 for the three and nine months ended September 30, 2005, respectively.  The decrease in collaborative revenue was a result of services performed in 2005 under our agreement with Boehringer Ingelheim Pharmaceuticals which were completed in December 2005.

Revenue

Revenue for the three and six months ended June 30, 2006 was $2,213,000 and $3,556,000 compared to $428,000 and $447,000 for the three and six months ended June 30, 2005, respectively. In 2006, the increase in revenue is primarily due to revenue recognized under our license agreements with Esprit and Biovail and product sales related to our supply agreement with Esprit for ProQuin XR.

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License revenue in the three and six months ended June 30, 2006 increased to $893,000 and $1,786,000, respectively, from $19,000 and $38,000 in the same periods of 2005 due to revenue recognized under our license agreements with Esprit and Biovail.  Product revenue related to our supply agreement with Esprit was $1,165,000 and $1,265,000, for the three and six months ended June 30, 2006, respectively, compared to zero in the same periods of 2005. Royalty revenue included Esprit’s sales of ProQuin XR in the United States and Biovail’s sales of Glumetza in Canada and for the three and six months ended June 30, 2006 was $80,000 and $429,000, respectively, compared to zero in the same periods of 2005. Revenue from collaborative agreements decreased to $75,000 for the three and six months ended June 30, 2006 from $409,000 for the three and six months ended June 30, 2005.  The decrease in collaborative revenue was a result of services performed in 2005 under our agreement with Boehringer Ingelheim Pharmaceuticals which were completed in December 2005.

Revenue

Revenue for the three months ended March 31, 2006 was $1,342,000 compared to $19,000 in the three months ended March 31, 2005. License revenue in the three months ended March 31, 2006 increased to $893,000 from $19,000 in the same period of 2005 due to revenue recognized under our license agreements with Esprit and Biovail. For the three months ended March 31, 2006, royalty revenue related to Esprit’s sales of ProQuin XR was $260,000 and product revenue related to our supply agreement with Esprit was $100,000. For the three months ended March 31, 2006, royalty revenue related to Biovail’s sales of Glumetza in Canada was $89,000.