Lupin grants Salix exclusive rights to its bioadhesive drug delivery technology for use with rifaximin

Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) today announced that as of September 30, 2009 Lupin Ltd. granted Salix the exclusive right in the United States to its bioadhesive drug delivery technology for use with rifaximin. Salix and Lupin have entered into a development, commercialization and license agreement under which the two companies will collaborate in the development and commercialization of a product incorporating rifaximin and utilizing Lupin’s proprietary technology. In connection with this agreement, Salix and Lupin have entered into an exclusive agreement in the United States for supply of rifaximin active pharmaceutical ingredient (API). Salix is required to make a $5 million up-front payment and regulatory milestone payments to Lupin, with the majority contingent upon achievement of clinical development and U.S. regulatory milestones. In addition, Salix will pay royalties on net sales of the bioadhesive rifaximin product.

Carolyn Logan, President and CEO, Salix, commented, “We are pleased to enter into this strategic collaboration with Lupin. This collaboration to develop and commercialize an extended release formulation of rifaximin is a significant advancement in rifaximin’s lifecycle management strategy. With this collaboration Salix embarks on the development of our next generation rifaximin product incorporating Lupin’s proprietary drug delivery platform with our proprietary gut-targeted antibiotic. We believe this novel delivery approach, which combines controlled-release as well as slowed gastrointestinal transit of rifaximin, might prove to provide a number of clinical advantages including patient compliance and patient convenience. The acquisition of these rights to Lupin’s proprietary bioadhesive drug delivery technology should serve to further protect this important Company asset.”

Nilesh Gupta, Group President and Executive Director, Lupin, stated, “We are pleased to enter into this collaboration with Salix. We believe our proprietary bioadhesive drug delivery technology, which combines controlled-release as well as slowed gastrointestinal transit, could provide an extended release formulation of rifaximin that will be an important component of Salix’s lifecycle management strategy for rifaximin. This formulation, coupled with Salix’s commercialization capabilities, gives us the opportunity to jointly bring a potentially great product to the marketplace. We also believe that this alliance further validates Lupin’s increasing capabilities as a drug delivery provider. ”