AMEX Approves Depomed's Continued Listings Plan
MENLO PARK, Calif. – September 20, 2002 – DepoMed today announced that on September 17, 2002, the Company received notice from the staff of the American Stock Exchange that the AMEX had accepted the Company's plan to regain compliance with AMEX listing standards and had granted the Company an extension until January 2004 to regain compliance with those standards. The Company will be subject to periodic review by the AMEX staff during the extension period. Failure to make progress consistent with the terms of the plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Company being delisted from the AMEX.
As previously disclosed, the AMEX staff notified the Company in June 2002 that the Company has fallen below Section 1003 (a)(i) of the AMEX Company Guide for having sustained losses in two of its three most recent fiscal years and stockholders' equity of less than $2,000,000 and below Section 1003 (a)(ii) of the AMEX Company Guide for having sustained losses in three of its four most recent fiscal years and stockholders' equity of less than $4,000,000. The Company was afforded the opportunity to submit a plan of compliance to the AMEX and presented its plan to the AMEX in July 2002.
DepoMed, Inc., a development stage company, is applying its innovative oral drug delivery systems to the development of novel oral products and improved formulations of existing oral drugs. DepoMed's Gastric Retention (GRTM) System is a patented oral drug delivery technology designed specifically for drugs preferentially absorbed high in the gastrointestinal tract. Using normal physiological processes by which the stomach retains large objects for further digestion, the GR System swells following ingestion and is retained in the stomach for a number of hours, while it continuously releases the incorporated drug at a controlled rate to absorption sites in the upper intestinal tract. The controlled release of the drug at the preferred absorption site optimizes delivery of the drug during the “therapeutic window,” potentially maximizing its therapeutic benefits. In addition to developing products jointly with other companies, DepoMed is developing its own line of proprietary products based on off-patent and over-the-counter drugs. Additional information about DepoMed may be found at the company's web site, www.depomedinc.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, the company's ability to regain compliance with AMEX listing standards, the results of research and development efforts, the results of pre-clinical and clinical testing, the effect of regulation by the FDA and other agencies, the impact of competitive products, disputes arising from collaborative arrangements, product development, commercialization and technological difficulties, and other risks detailed in DepoMed's Securities and Exchange Commission filings.
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