TransForm, J&J and topiramate: New life, old products

In May, the US Patent Office granted TransForm its first patent on topiramate sodium trihydrate-an alternate salt form of J&J's $700 million epilepsy drug Topamax. J&J found itself with an interesting complement to Alza reformulation efforts on the drug--which were gearing it for alternative indications like obesity and migraine--and a potential IP complication. The business-like result: a broad licensing agreement under which TransForm assigns all its topiramate patent rights to J&J in exchange for up-front money, an equity investment, milestones, and future royalties.