Lupin, one of the leading pharmaceutical companies in India, has finally granted Nasdaq-listed Salix Pharmaceuticals, the exclusive rights in the United States to its bioadhesive drug delivery technology for use with Rifaximin.

Lupin and Salix have entered into a deal under which both partners will collaborate in the development and commercialization of an extended release product incorporating Rifaximin and utilizing Lupin’s proprietary bioadhesive technology.

Beside this, Lupin and Salix have also entered into an exclusive agreement in the United States for supply of Rifaximin active pharmaceutical ingredient (API).

Under the arrangement, Salix has made a $5 million 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.

Rifaximin is a gut-selective antibiotic with negligible systemic absorption (<0.4%) and broad-spectrum activity in vitro against both gram-positive and gram-negative pathogens.