UPDATE 1-Endo grants Valeant license to market pain drug

* Valeant to market Opana in Canada, Australia, New Zealand

* Exclusive license for upfront payment of C$2 mln

* First licensing agreement for Opana ER outside the U.S.

June 9 (Reuters) - Endo Pharmaceuticals Holdings Inc (ENDP.O) has granted Valeant Pharmaceuticals International (VRX.N) an exclusive license to market the pain drug Opana in Canada, Australia and New Zealand for an upfront payment of C$2 million ($1.8 million), the companies said.

Valeant will make additional payments up to C$1 million when certain sales milestones are reached in Canada, and A$1.1 million when certain regulatory and sales milestones are met in Australia.

The proceeds will be shared equally between Endo and Penwest Pharmaceuticals Co (PPCO.O), which jointly developed Opana ER, the extended release formulation of the painkiller.

The deal also includes rights to the immediate release formulation of Opana developed by Endo.

Valeant will also pay royalties ranging from 10 percent to 20 percent of net sales of the Opana products in each of the three countries, the companies said.

($1=1.111 Canadian Dollar) (Reporting by Shailesh Kuber in Bangalore; Editing by Anne Pallivathuckal)