New Delhi: Drug firm Ranbaxy Laboratories on Monday said it has received approval from the US health regulator to launch Absorica, a patented acne treatment drug developed by Canadian firm Cipher Pharmaceuticals Inc, in the American market.
The approval has been granted to Ranbaxy Laboratories Inc (RLI), a wholly-owned subsidiary of the company, Ranbaxy Laboratories said in a statement.
"Through a business agreement with the Canadian firm, Cipher Pharmaceuticals Inc, RLI is expected to launch Absorica in the US in Q4 2012," it said.
Under the agreement, Ranbaxy will pay royalties on net sales to Cipher, it added.
"As a result of the FDA approval of Absorica, Cipher will receive a USD nine million milestone from Ranbaxy...Going forward, Cipher will also receive royalties on net US sales and is eligible for future milestone payments based on sales targets," Cipher Pharmaceuticals said in a statement.
Cipher would be responsible for product supply and manufacturing, it added.
Commenting on the development, Ranbaxy Americas Senior Vice-President and Regional Director Venkat Krishnan said: "Absorica is a critical milestone in our commitment to serve the dermatology community and will be the flagship brand for Ranbaxy's specialised dermatology sales force."
Commenting on the approval Cipher President and CEO Larry Andrews said the approval for Absorica is the third and most important milestone to date for the company.
"We look forward to working closely with our partner, Ranbaxy Laboratories Inc, in preparation
for the upcoming US launch of the product through its dermatology sales force," he added.
Scrips of Ranbaxy today closed at Rs 524.70 per share on the BSE, down 1.06 percent from its previous close.