RALEIGH, N.C. (AP) – Salix Pharmaceuticals said it has agreed to pay $10 million, plus additional payments to license an experimental extended release drug for intestinal and respiratory diseases, including Crohn’s disease.
The formulation of rifaximin from Alfa Wassermann S.p.A is designed to pass through the stomach before being released into the intestinal tract. In addition to the upfront payment, Salix has agreed to pay a $25 million development milestone if the drug is approved for Crohn’s disease. Salix will pay additional fees based on sales and royalties of the drug.
Alfa Wassermann, based in the Netherlands, will manufacture rifaximin for Salix. The drug is currently used to treat diarrhea caused by certain types of bacteria.
Separately, Salix reported better-than-expected adjusted earnings for the second quarter and raised its full-year guidance. Sales of its top-seller, Xifaxan for traveler’s diarrhea and neurological problems associated with liver failure, rose 34% during the quarter.
Date: August 8, 2012
Source: Associated Press
Filed Under: Drug Discovery
