Speciality pharmaceutical company Depomed of Menlo Park, Calif., has received a $1 million milestone payment from Ironwood Pharmaceuticals of Cambridge, Mass., following the development and delivery of a prototype formulation of an Ironwood development candidate.

The milestone payment was pre-specified under the companys’ research collaboration and license agreement for Acuform technology. Depomed licensed to Ironwood worldwide rights to Depomed's Acuform gastric retentive drug delivery technology for an Ironwood development program directed at gastrointestinal disorders. Depomed received an upfront license fee on signing in 2011 and is eligible to receive additional payments pending achievement of certain development and regulatory milestones, as well as royalties on product sales.