Drug firm Cipla today said its US arm has signed a licensing pact with MEDRx Company to develop and market a Tizanidine1 patch that targets management of spasticity.
The company's wholly owned subsidiary, "Cipla USA Inc has signed a worldwide licensing agreement (except for East Asia) with MEDRx Company Ltd to further develop and commercialise MRX-4TZT, a Tizanidine1 patch for the management of spasticity", Cipla said in a filing to BSE.
Under the terms of the pact, MEDRx is eligible to receive up to USD 30 million cumulatively through upfront and developmental, regulatory, and commercial milestones payments, it added.
"MEDRx will also receive tiered royalties on the net sales of commercialised licensed products," Cipla said.
Cipla MD and Global CEO Umang Vohra said: "We believe that the Tizanidine transdermal patch will address significant unmet needs and benefit patients globally suffering from chronic spasticity."
MRX-4TZT is a medicated patch that uses an exclusive MEDRx technology to deliver Tizanidine, a centrally acting muscle relaxant, it added.
Annual sales of muscle relaxants in the United States were estimated at USD 807 million in 2016, Cipla said quoting IMS 2016 data.
The company plans to initiate phase III clinical trials after completion of additional phase I studies, it added.
Spasticity is a condition in which certain muscles are continuously contracted. This contraction causes stiffness or tightness of the muscles and can interfere with normal movement, speech, and gait.
Cipla shares were trading at Rs 589, down 0.62 per cent, on BSE .
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