The world's second largest drug firm, GlaxoSmithKline will launch the once-daily version of new generation painkiller drug in Mexico.

GlaxoSmithKline has obtained exclusive rights to distribute Labopharm's once-daily tramadol painkiller product in Mexico.

This agreement expands the existing licensing and distribution arrangement between Labopharm and GSK for 20 Latin American and Caribbean countries entered into in September 2005.

"Similar to that of Latin America, the tramadol product market in Mexico is experiencing rapid growth," said James Howard-Tripp, president and CEO, Labopharm, in a news release. "Having already received regulatory approval for Mexico, we will work with GSK to launch our product as rapidly as possible in that country."

Under the terms of the agreement, Labopharm will supply GSK with product and GSK will distribute the product throughout the licensed territory. In addition to specified milestone payments, Labopharm will receive a percentage of once-daily tramadol net sales in Mexico, resulting in an effective royalty rate commensurate with those of the company's US and European partnerships.

Tramadol products are currently available in Mexico only in immediate- release (four- to six-times daily) formulations and twice-daily formulations.