* Ranbaxy sees U.S. launch of Absorica in Q4
* Cipher, Galephar Pharma to get $9 mln milestone fee
* Cipher to draw royalty on sales from Ranbaxy
* Cipher shares jump 58 pct to a 4-year high on TSX
May 28 Indian group Ranbaxy Laboratories
has received U.S. approval for acne treatment drug
Absorica and expects a U.S. launch in the fourth quarter of this
Ranbaxy holds the U.S. marketing rights for the drug, which
was jointly developed by Cipher Pharmaceuticals Inc and
Galephar Pharmaceutical Research.
Shares of Cipher, which has a market value of about C$30.5
million, jumped 58 percent to a four-year high of C$1.98 on
Monday on the Toronto Stock Exchange.
Cipher will independently commercialize the drug in Canada,
CEO Larry Andrews said by phone.
"We are expecting to hear back (from Canadian regulators)
either in late fourth quarter or early first quarter of 2013,"
Cipher will receive a $9 million milestone payment from
Ranbaxy, half of which will 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.
Absorica will be the flagship brand for Ranbaxy's
specialized dermatology sales force, said Venkat Krishnan,
senior vice president, Ranbaxy for America region.
The U.S. acne treatment market was worth about $400 million
"The revenue we expect from Absorica will be greater than
the revenue from our existing two products," Andrews said.
Cipher earned C$1.4 million ($1.37 million) revenue from
Lipofen, a drug used to manage cholesterol, in the first
quarter. Revenue from ConZipa, used to treat chronic pain in
adults, was about C$300,000 in the period.
Shares of Ranbaxy Laboratories, which is valued at $4
billion, closed down 0.9 percent at 525.20 Indian rupees in a
firm Mumbai market.