PPD plans to conduct additional pre-clinical studies and file an investigational new drug application for the statin with the US Food and Drug Administration in April, Ranbaxy said in a statement.
Ranbaxy's novel statin is used for the treatment of dyslipidemia, it said. As per the agreement, Ranbaxy will be entitled to receive milestone payments in the event of approval to market a drug product, the company would be entitled to receive royalties on sales of the drug and sales-based milestones.
PPD will be responsible for all costs and expenses associated with the development and commercialisation of the compound, including pre-clinical and clinical studies. Ranbaxy has retained co-marketing rights to the compound in India, it said.
"This is yet another milestone in Ranbaxy's evolution as a strong global research company. We are pleased to partner with PPD in taking this potential drug forward promising superior treatment for dyslipidemia and related areas," Malvinder Singh, CEO and managing director said.