Domestic drug major Cipla Ltd has signed a long-term collaboration agreement with Swiss specialty pharmaceutical major Meda, to develop and market an anti-allergic rhinitis drug for various global markets.

Cipla will manufacture the drug, which will treat an ailment that causes a runny nose, and the Swiss company will market the product in Europe, Japan, Brazil, South Korea and Australia.

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Both partners have been developing the drug for the North American market for the past few years, said sources. According to studies in the US, more than 50 million Americans suffer from rhinitis.

Meda will reportedly pay Cipla $5 million upon regulatory approval in the first market and up to $10 million as other milestone payments.

The drug under development is a combination of two drugs, Azelastine and fluticasone.

Azelastine is a an anti-allergic drug and fluticasone is a corticosteroid, which is a class of steroid hormones.

"This product could become the first combination of an antihistamine and corticosteroid in a nasal formulation, which would strengthen Meda’s position in the allergy area," Anders Lonner, chief executive of Meda, said in a statement.

Amar Lulla, Cipla’s joint managing director, was not available for comment.

The seven decade-old Cipla, the largest Indian drug company in terms of domestic sales, has developed a strong portfolio of products to treat asthma and allergy-related aliments and is the market leader in India, with a 52 per cent share. Cipla is also one of the world's largest producers of inhalers and its products are sold in over 90 countries.

Nasdaq- and Nordic Stock Exchange-listed Meda's products are sold in over 120 countries and it has a turnover of close to Rs 7,000 crore.

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