LSL Pharma Group Inc. announced that it has entered into an exclusive agreement with Fera Pharmaceuticals, LLC to provide Erythromycin ophthalmic ointment USP (5mg/g) for the treatment of newborns in U.S. hospitals. Given the scarcity of Erythromycin ointment south of the border, the U.S. Food and Drug Administration granted Fera temporary discretion to import this vital medication used in the prevention of gonococcal ophthalmia neonatorum. The agreement essentially focuses on fulfilling the need in the one-gram tube market.

Under the terms of the agreement, LSL Pharma Group, via its manufacturing subsidiary Steri-Med Pharma Inc. ("Steri-Med"), could initially supply up to 25% of the four million doses required annually in the U.S. hospital market. More Erythromycin ocularmic ointment may become available if the drug shortage persists.