(Corrects to say Salix will get upfront payment from Lupin in second paragraph)

MUMBAI, Sept 12 (Reuters) - Lupin Ltd, India's fourth-largest drugmaker by sales, said it entered into an exclusive deal to market some of U.S. firm Salix Pharmaceuticals Inc's products in Canada to expand its footprint in that region.

Salix will get an upfront payment from Lupin, and is entitled to additional payments contingent on meeting some sales milestones, the Mumbai-based company said in a statement.

Lupin, whose largest market is the United States, has the option to sell other gastroenterology products in Salix's pipeline after approval by Candian regulators.

The deal includes Salix's Relistor injection for the treatment of opioid-induced constipation, and Zaxine for use in adults to help reduce risk of recurrence of overt hepatic encephalopathy - a disorder that causes worsening of brain function.

Lupin's shares were up 3 percent at 1,360 rupees in Mumbai at 1004 GMT on Friday, while the main market was up 0.24 percent.

(Reporting by Zeba Siddiqui in Mumbai; Editing by Sunil Nair)