Depomed, Inc.
Ticker:DPMD 1170 B Chess Drive
Exchange:NASDAQ-Small Cap Market Foster City, CA 94404
Industry:Service (SIC Code 8731) (415) 513-0990

Offering Information
Type of Shares:Common Shares Filing Date:4/18/97
U.S. Shares:1,200,000 Offer Date:11/4/97
Non-U.S. Shares:0 Filing Range:$6.00 - $7.00
Primary Shares:1,200,000 Offer Price:$6.10
Secondary Shares:0 Gross Spread:$0.49
Offering Amount: $7,800,000 Selling:$0.29
Expenses: - Reallowance:$0.10
Shares Out After:6,763,447

Primary Underwriting Group
ManagerTierPhone
National Securities Corp.Lead Manager (800) 800-9217

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Heller, Ehrman, White & McAuliffe
Bank's Law Firm: Orrick, Herrington & Sutcliffe
Auditor: Ernst & Young
Registrar/Transfer Agent: Continental Stock Transfer & Trust Co

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$0.32Assets:$0.33
Net Income:-$0.47Curr Assets:
EPS:-$0.11Liabilities:$0.71
Prior EPS:Curr Liabilities:
Cash Flow/Oper:-$0.39Equity:-$0.38
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a development stage company engaged in the development of new and proprietary oral drug delivery technologies. Utilizing these technologies, the company has developed two types of oral drug delivery systems, the Gastric Retention System and the Reduced Irritation System. The GR System is designed to be retained in the stomach for an extended period of time while it delivers the incorporated rug or drugs, and the RI System is designed to reduce the gastrointestinal irritation that is a side effect of many drugs. In addition, the company's Systems are designed to provide continuous, controlled delivery of an incorporated drug. The company intends to develop products utilizing the company's Systems in collaboration with pharmaceutical and biotechnology companies, from which the company expects to receive license fees, research and development funding, milestone payments and royalties. The company also intends to develop independently certain over-the-counter and generic oral drug products utilizing the company's Systems.

Use of Proceeds
The proceeds from the proposed offering will be used for research and development, laboratory and facilities capital expenditures, repayment of certain indebtedness and working capital and general corporate purposes.

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