Depomed Executes an Exit Strategy for Its Opioid Drug

Depomed Executes an Exit Strategy for Its Opioid Drug

After reporting that Collegium Pharmaceutical (NASDAQ: COLL) will take over commercializing its top-selling drug, Nucynta, Depomed Inc.  (NASDAQ: DEPO) shares rallied 10% yesterday. The pact is good news for the company because its revenue and profit have been falling this year due to waning demand for Nucynta. Does this deal make Depomed a buy? 

Depomed probably wishes it had a do-over on Nucynta. It acquired the opioid painkiller from Johnson & Johnson (NYSE: JNJ) in 2015 for $1 billion shortly before opioid prescription volume fell off a cliff because of the opioid epidemic.

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Source: Fool.com