Glumetza contributed $13.3 million in royalties in the first quarter 2013 on of sales at Santarus (SNTS) of $41.5 million. Sales in the first quarter 2012 totaled $31.2 million. Santarus recently took a price increase on Glumetza and increase the number of reps promoting the product. Glumetza new prescriptions grew 21% and total prescriptions increased 18% in the first quarter of 2013 compared with the first quarter of 2012. Total Glumetza royalties in 2012 were $42.7 million. Depomed received 29.5% royalty on sales of Glumetza at Santarus. We note the royalty rate jumped up in 2013 to 32%, and will jump again to 34.5% in 2015. For 2013, Depomed management believes it will receive over $53 million in royalties from Santarus on Glumetza.
We expect the first generic Glumetza tablets will start to show up in early 2016. Glumetza is a nice cash-cow for Depomed. It lowers the quarterly burn and provides meaningful growth to the top-line. We see a possibility that the company could look to monetize the Glumetza royalty in 2013 if they found a comparable commercial product to add to the in-house promotion with Gralise and Zipsor. Glumetza is no longer a core-asset and its life is coming to an end (generics expected in 2016). We believe that shareholders would react favorably to cashing-out on Glumetza and securing another core-asset to add to the existing "pain and neurology" model the company has worked so hard to create over the past year. That being said, we do not expect Depomed to enter into such a transaction unless they already have identified a pain / neurology product to acquire.
That is a very valid question and an obstacle that shareholders and management is well aware of. My hunch is that if in fact Santarus gets a settlement from Par in the 300-400 million range some are suggesting, that would go towards acquiring late stage drugs and even developing partnerships. Though we will hopefully have ruconest and rifamyacin up and running full board, replacing 65 million in quarterly income is going to be challenging.