* Cycloset expected to be launched in Nov
* Santarus shrs up 1 pct after market
Sept 8 (Reuters) - Biopharmaceutical company Santarus Inc SNTS.O said it bought manufacturing rights for an approved diabetes drug for an upfront fee of $5 million.
Drugmakers S2Therapeutics Inc and VeroScience LLC signed an agreement granting Santarus exclusive rights to manufacture and commercialise Cycloset tablets in the United States.
Santarus said it expects to launch Cycloset, a prescription drug approved by the U.S. Food and Drug Administration for treating type 2 diabetes mellitus, in November.
The San Diego, California-based company also said Cycloset improves blood sugar levels without increasing cardiovascular risk.
Shares of the company, which have more than halved in value since a U.S court ruled against it in April in a patent suit on its heartburn drug, closed at $2.22 Wednesday on Nasdaq. (Reporting by Rajarshi Basu in Bangalore; Editing by Don Sebastian)