MUMBAI (Reuters) - Indian group Ranbaxy Laboratories (RANB.NS) has received U.S. approval for acne treatment drug Absorica and expects a U.S. launch in the fourth quarter of this year.
The product was jointly developed by Canadian group Cipher Pharmaceuticals DND.TO and Galephar Pharmaceutical Research, while Ranbaxy holds the U.S. marketing rights.
Post approval, Cipher will receive a $9 million milestone payment from Ranbaxy, of which $4.5 million would be shared with Galephar, the Canadian company said.
Cipher will also get a royalty on net sales from Ranbaxy - majority owned by Japanese company Daiichi Sankyo (4568.T).
The U.S. acne treatment market was worth about $400 million in 2011.
Absorica will be the flagship brand for Ranbaxy’s specialised dermatology sales force, Venkat Krishnan, senior vice president, Ranbaxy for America region said.
Valued $4 billion, Ranbaxy Laboratories shares were down 0.9 percent at 525.20 rupees by 1025 GMT in a firm Mumbai market .NSEI.
Reporting by Kaustubh Kulkarni; Editing by Dan Lalor