Pharma major Lupin Ltd has out-licensed a new drug delivery system, developed in-house, to US-based drug major Salix Pharmaceuticals. This is the first such deal done by an Indian company.
The two companies would collaborate in the development and commercialisation of an extended release product, incorporating Rifaximin, a gastro-intestinal drug, and would utilise Lupin’s bio-adhesive technology, said a press release. Lupin will also supply the Rifaximin active pharmaceutical ingredient (API). Salix has made an up-front payment of $5 million and would make additional regulatory milestone payments to Lupin. Salix would pay royalties on net sales of the bio-adhesive Rifaximin product to Lupin, the release added.
Analysts said Lupin would get about $35-40 million revenues in two years from this deal.
“We believe our proprietary bio-adhesive drug delivery technology, which combines controlled-release as well as slowed gastrointestinal transit, would provide an extended release formulation of Rifaximin that will be an important component of Salix’s life cycle management strategy for Rifaximin,” said Nilesh Gupta, group president and executive director, Lupin.
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