Lupin and Salix to collaborate in development of extended release Rifaximin product

Published: 6-Oct-2009

Indian generic drugmaker Lupin has granted Salix Pharmaceuticals exclusive US rights to its bioadhesive drug delivery technology for use with gut-selective antibiotic Rifaximin.


Indian generic drugmaker Lupin has granted Salix Pharmaceuticals exclusive US rights to its bioadhesive drug delivery technology for use with gut-selective antibiotic Rifaximin.

Mumbai-based Lupin and Raleigh, NC-based Salix have entered into an agreement under which the two companies will collaborate in the development and commercialisation of an extended release product incorporating Rifaximin and utilising Lupin's proprietary bioadhesive technology.

Salix generated US$80m in revenue from Rifaximin, which it markets in the US as Xifaxan, in 2008. Lupin and Salix have entered into an exclusive agreement in the US for the supply of Rifaximin active pharmaceutical ingredient (API).

Salix has made a US$5m up-front payment and will make additional regulatory milestone payments to Lupin. In addition, Salix will pay royalties on net sales of the bioadhesive Rifaximin product to Lupin.

"We believe our proprietary bioadhesive 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 lifecycle management strategy for Rifaximin," said Nilesh Gupta, executive director of Lupin.

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