LICENSING

Depomed Provides License for Patents Covering Metformin Extended Release Technology to
Merck & Co., Inc.

MENLO PARK, CALIFORNIA, July 22, 2009 - Depomed, Inc. (NASDAQ: DEPO) today announced that it has provided a license to certain patents directed to metformin extended release technology to Merck & Co., Inc. to be used in developing fixed dose combinations of sitagliptin and extended release metformin.

“We are delighted to provide Merck with access to certain of our patents related to metformin extended release technology for this important potential therapy for type II diabetes,” said Carl A. Pelzel, president and chief executive officer of Depomed. “We are pleased to continue to execute on our plan to extract significant value from our delivery technology as we advance our late stage clinical development programs toward Phase 3 data later this year,” Mr. Pelzel added.

Under terms of the agreement, Merck will receive a non-exclusive license as well as other rights to certain Depomed patents directed to metformin extended release technology. In exchange Depomed will receive a $10 million upfront fee. Depomed is also eligible to receive a milestone payment upon filing of the New Drug Application for the therapeutic candidate, as well as modest royalties on any net product sales for an agreed-upon period. Merck will also be granted a right of reference to the New Drug Application covering Depomed’s GLUMETZA^® (extended release metformin hydrochloride tablets) product in Merck’s regulatory filings covering fixed dose combinations of sitagliptin and extended release metformin. Depomed has no development obligations under the agreement.

About Depomed

Depomed, Inc. is a specialty pharmaceutical company with two product candidates in Phase 3 clinical development, two approved products on the market and other product candidates in its early stage pipeline. Product candidate DM-1796 is in Phase 3 clinical development for the treatment of neuropathic pain and has been licensed to Solvay Pharmaceuticals. Product candidate Serada^™ is in Phase 3 clinical development for menopausal hot flashes. GLUMETZA^® (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and promoted by Santarus, Inc. in the United States. Proquin^® XR (ciprofloxacin hydrochloride) is approved in the United States for the once-daily treatment of uncomplicated urinary tract infections. Depomed formulates its products and product candidates with its proven, proprietary Acuform^® drug delivery technology, which is designed to improve existing oral medications, allowing for extended, controlled release of medications to the upper gastrointestinal tract. Benefits of Acuform-enhanced pharmaceuticals include the convenience of once-daily administration, improved treatment tolerability and enhanced compliance and efficacy. Additional information about Depomed may be found on its website, www.depomed.com.

Forward-Looking Statement for Merck & Co., Inc.

This news release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements may include statements regarding product development, product potential, or financial performance. No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this booklet should be evaluated together with the many uncertainties that affect Merck's business, particularly those mentioned in the risk factors and cautionary statements in Item 1A of Merck's Form 10-K for the year ended Dec. 31, 2008, and in any risk factors or cautionary statements contained in the Company's periodic reports on Form 10-Q or current reports on Form 8-K, which the Company incorporates by reference.

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