Morrisville-based Salix Pharmaceuticals Ltd. said Monday that it has struck a deal that will allow it to develop an extended-release formulation of its travelers’ diarrhea drug rifaximin.
Salix has entered into an agreement with Indian pharma Lupin Ltd., in which the two firms will collaborate in the development and commercialization of a product incorporating rifaximin and utilizing Lupin’s bioadhesive drug delivery technology.
Salix added that it and Lupin have entered into an exclusive agreement in the United States for supply of rifaximin active pharmaceutical ingredient. Salix has to make a $5 million up-front payment and regulatory milestone payments to Lupin, with the majority contingent on achievement of clinical development and U.S. regulatory milestones.
Salix (Nasdaq: SLXP) also will pay royalties on net sales of the bioadhesive rifaximin product.
Salix generated $80 million in 2008 revenue from Xifaxan, the company’s brand name for rifaximin. The company also is working to obtain regulatory approval to use rifaximin for the treatment of irritable bowel syndrome.
Salix’s stock was trading at $22.87 in mid-morning trading, a 3.9 percent increase from its previous close.
A Salix spokesperson was not available for comment.
No comments:
Post a Comment