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Ranbaxy to launch in-licensed patented product in US-news29052012


Ranbaxy Laboratories' US based subsidiary Ranbaxy Laboratories Incn (RLI) has received US FDA approval for Absorica, which is a patented brand formulation of the acne medication isotretinoin, developed by Cipher, for the treatment of severe recalcitrant nodular acne.


RLI has entered business agreement with Ciphar, the Canadian firm, to launch Absorica in the US market. It is expected that the product will be launch in Q4CY2012 and RLI will pay royalties on net sales to Cipher Pharmaceuticals. As a result of the FDA approval of Absorica, Cipher will receive a US$9 million milestone from Ranbaxy, approximately US$4.5 million of which will be shared with Galephar.

This milestone will be reflected in Cipher's cash balance at the end of Q2 2012. Going forward, Cipher will also receive royalties on net US sales and is eligible for future milestone payments based on sales targets. Under the agreement with Ranbaxy, Cipher is responsible for product supply and manufacturing.

At 2.47 pm, Ranbaxy was trading at Rs537.60 up by 2.53% with the volume of 3.21 lakh shares on BSE.
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