New Delhi: Ranbaxy Laboratories on Monday said it will launch Absorica, a patented acne treatment drug developed by Canadian firm Cipher Pharmaceuticals Inc, in the American market during the fourth quarter of 2012 following approval from the US health regulator.

The company's a wholly-owned subsidiary Ranbaxy Laboratories Inc (RLI) will be responsible for marketing the product in the US market.

"Through a business agreement with the Canadian firm, Cipher Pharmaceuticals Inc, RLI is expected to launch Absorica in the US in Q4 2012," Ranbaxy said in a statement.

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 separate 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 specialized 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 on Monday closed at Rs 524.70 per share on the BSE, down 1.06 per cent from its previous close.


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