Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) today announced that as of March 31, 2011 Lupin Ltd. granted Salix exclusive worldwide rights (except for India) to exploit Lupin technology and technology jointly developed by Lupin and Salix for all rifaximin products for human use.
This agreement expands the collaboration that Salix and Lupin entered into as of September 30, 2009. The agreement covers the development and commercialization of rifaximin products and provides for Lupin to supply Salix with rifaximin active pharmaceutical ingredient (API) and certain finished rifaximin products. Salix is required to make a $10 million up-front payment to Lupin along with potential U.S. regulatory milestone payments in respect of products covered by Lupin patents or jointly-held patents. Royalties at a percentage rate in the low teens will be payable by Salix to Lupin in respect of sales of products covered by Lupin patents or jointly-held patents. Additionally, Salix will pay Lupin minimum quarterly payments for product development and other activities.
Salix Pharmaceuticals, Ltd.