Morrisville, North Carolina-based Salix Pharmaceuticals licensed a drug delivery technology from Mumbai, India-based Lupin Pharmaceuticals in 2009. Salix uses that technology in its gastrointestinal drug rifaximin, marketed as Xifaxan. Lupin recently granted Salix exclusive worldwide rights, outside India, to use that technology and any technology jointly developed by the companies for all rifaximin products for human use, according to MedCity News.
Originally, the pact gave Salix only U.S. rights to the technology, and the FDA-approved indication was for treating traveler’s diarrhea. Salix has now received FDA approval on rifaximin for treating hepatic encephalopathy and has also been seeking to add non-constipation irritable bowel syndrome as a new indication.
Salix must make a $10 million up-front payment to Lupin. Salix must also pay royalties on any sales as well as quarterly payments for product development.