Reuters | Depomed Inc. said U.S. health regulators accepted the company’s
marketing application for its experimental pain drug, triggering a $10
million milestone payment from its licensee and sending its shares up 12
percent.

The drug, DM-1796, was being tested to treat postherpetic neuralgia — a neuropathic pain syndrome that usually follows an outbreak of shingles.

The company has licensed the rights to the drug, a once-daily tablet formulation of gabapentin, to Abbott Products, a unit of Abbott Laboratories.

Depomed shares were up 12 percent at $3.39 in trading after the bell. They closed at $3.03 Monday on Nasdaq.