Salix Pharamaceuticals and Indian pharmaceutical company Lupin announced Friday that they have entered into a distribution agreement that grants Lupin the exclusive right to market and sell some Salix drugs in Canada.
The drugs included in the deal are Zaxine, a drug used to treat the rare liver condition hepatic encephalopathy, and Relistor, a drug approved to treat patients with chronic pain.
Mumbai-based Lupin also has the option to exclusively market, distribute and sell other gastrointestinal drugs in Salix’s pipeline once they are approved by Canadian regulators.
Raleigh-based Salix will receive an upfront payment and distribution fees from Lupin under the terms of the agreement, and is eligible to receive additional milestone payments.
Lupin is the third largest Indian pharmaceutical company by sales, and is also the fifth largest seller of generics drugs in the U.S. with a 5.3 percent market share, according to IMS Health.
Salix shares were down about 3 percent in afternoon trading Friday.