Ranbaxy gains US FDA approval for Absorica

India’s largest drugmaker Ranbaxy Laboratories (AB: BO) has received approval from the US Food and Drug Administration for Absorica, a novel, patented brand formulation of the acne medication isotretinoin, developed by Canadian firm Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF.PK), for the treatment of severe recalcitrant nodular acne.

As a result of the FDA approval of Absorica, Cipher will receive a $9.0 million milestone from Ranbaxy – which is majority owned by Japan’s Daiichi Sankyo, around $4.5 million of which will be shared with Galephar. This milestone will be reflected in Cipher's cash balance at the end of the second quarter of 2012.