(Reuters) - Depomed said it acquired all rights to Zipsor, a pain drug, from privately owned Xanodyne Pharmaceuticals Inc for $25.9 million in cash.
The deal, which expands the specialty pharmaceutical company's portfolio of pain products, will have an immediate positive impact on its financials, the company said in a statement.
The deal also includes potential milestone payments to Xanodyne based on sales of Zipsor and assumption of certain liabilities.
Zipsor, an oral dose of diclofenac, had net sales of about $19 million for the year ended May 31.
Shares of the Menlo Park, California-based company closed at $5.14 Thursday on Nasdaq.
(Reporting by Shailesh Kuber in Bangalore; Editing by Saumyadeb Chakrabarty)