Salix Pharmaceuticals will receive milestone payments up to $4 million as well as royalties through a drug licensing deal it has signed with a German firm.

Dr. Falk Pharma, which is based in Freiberg, has agreed to license the colonoscopy prep drug Diacol in 28 territories across Europe. The drug is marketed as Osmoprep in the United States.

Falk has already paid Salix a $1.5 million milestone payment. The firm is responsible for receiving marketing authorization.