Salix and Alfa Wassermann expand rifaximin accord

10 August 2012

USA-based Salix Pharmaceuticals (Nasdaq: SLXP) and Italy’s Alfa Wassermann have entered into an exclusive agreement by which Salix has licensed rights in the USA and Canada to an extended intestinal release (EIR) formulation of rifaximin for gastrointestinal and respiratory indications, including Crohn’s disease.

Financial terms of the transaction include $10 million up-front and a $25 million development milestone on New Drug Application approval of an EIR formulation rifaximin product for Crohn’s disease. Salix also will pay sales-based milestones in respect of EIR formulation rifaximin products for Crohn’s disease, if sales targets are achieved, plus royalties on product sales of all EIR formulation rifaximin products. Alfa Wassermann will manufacture Salix’s requirements of EIR formulation rifaximin products.

Rifaximin, which Salix markets under license from Wassermann in the USA under the trade name Xifaxan, is currently approved for the treatment of patients, 12 years of age or older, with travelers' diarrhea (TD) caused by non-invasive strains of Escherichia coli.

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