What is Nifoxipam? Nifoxipam is a benzodiazepine drug that is similar to other medications such as diazepam (brand name Valium) and alprazolam (xanax). It is a type of psychoactive substance that is often used for the treatment of anxiety and panic disorders. Nifoxipam works by regulating the balance of certain brain chemicals and neurotransmitters, which helps to calm the mind and reduce feelings of anxiety and apprehension. It is sold under various brand names and formulations, and is typically taken orally in the form of tablets or capsules.