Royalty agreement granting Sun Pharmaceutical
Industries Inc. exclusive right to market, sell and
distribute Absorica, Absorica AG and Absorica LD in the U.S.
extended through December 31,
2026
MISSISSAUGA, ON, March 10, 2022 /CNW/ -Cipher Pharmaceuticals Inc.
(TSX: CPH) ("Cipher" or the "Company") announced
today that it has entered into a second amended and restated
distribution and supply agreement (the "Amendment") with Sun
Pharmaceutical Industries, Inc. (Sun Pharma"), a wholly owned
subsidiary company of Sun Pharmaceutical Industries Limited,
India. Under the terms of the
Amendment, Cipher and Sun Pharma have agreed to extend Sun
Pharma's exclusive right to market, sell and distribute the
isotrentinoin product portfolio, Absorica and Absorica
AG in the United States ("U.S.") through
December 31, 2026 and Absorica LD
through December 31, 2024.
Under the terms of the Amendment, Cipher will continue to earn a
royalty on U.S. net sales from Sun Pharma's isotrentinoin product
portfolio, and will continue to be responsible for manufacturing
the supplied product. The amendment extends the relationship from
November 30, 2022 until December 31, 2026.
"This is a significant milestone for Cipher. Sun Pharma has been
an excellent partner on our isotretinoin portfolio and we are
pleased to extend the term of our relationship for an additional
four years, through the end of 2026," said Craig Mull, Interim CEO of Cipher. "During
the second quarter of 2021, the Company launched Absorica AG with
Sun Pharma and implemented a plan to ensure we had products to
serve each segment of the market, while retaining our overall
market share. This Amendment is testament to the success of our
strategy and provides Cipher with enhanced visibility into stable
revenue and cashflow for years to come. This will help to further
strengthen our balance sheet, which had over US$15.6 million in cash as at the end of
September, 2021, for the next phase of our growth," added Mr.
Mull.
About Cipher Pharmaceuticals Inc.
Cipher
Pharmaceuticals (TSX: CPH) is a specialty pharmaceutical company
with a robust and diversified portfolio of commercial and early to
late-stage products. Cipher acquires products that fulfill unmet
medical needs, manages the required clinical development and
regulatory approval process, and currently markets those products
either directly in Canada or indirectly through partners
in Canada, the U.S., and South America. For more
information, visit www.cipherpharma.com.
Forward-Looking Statements
This document includes forward-looking statements within the
meaning of applicable securities laws. These forward-looking
statements include, among others, statements with respect to our
objectives and goals and strategies to achieve those objectives and
goals, as well as statements with respect to our beliefs, plans,
expectations, anticipations, estimates and intentions. The
words "may", "will", "could", "should", "would", "suspect",
"outlook", "believe", "plan", "anticipate", "estimate", "expect",
"intend", "forecast", "objective", "hope" and "continue" (or
the negative thereof), and words and expressions of similar import,
are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, which
give rise to the possibility that predictions, forecasts,
projections and other forward-looking statements will not be
achieved. Certain material factors or assumptions are applied in
making forward-looking statements and actual results may differ
materially from those expressed or implied in such statements. We
caution readers not to place undue reliance on these statements as
a number of important factors, many of which are beyond our
control, could cause our actual results to differ materially from
the beliefs, plans, objectives, expectations, anticipations,
estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, the
extent and impact of the coronavirus (COVID-19) outbreak on our
business including any impact on our contract manufacturers and
other third party service providers; our ability to enter into
development, manufacturing and marketing and distribution
agreements with other pharmaceutical companies and keep such
agreements in effect; our dependency on a limited number of
products; our dependency on protection from patents that will
expire; integration difficulties and other risks if we acquire or
in-license technologies or product candidates; reliance on third
parties for the marketing of certain products; the product approval
process is highly unpredictable; the timing of completion of
clinical trials, regulatory submissions and regulatory approvals;
reliance on third parties to manufacture our products and events
outside of our control that could adversely impact the ability of
our manufacturing partners to supply products to meet our demands;
we may be subject to future product liability claims; unexpected
product safety or efficacy concerns may arise; we generate license
revenue from a limited number of distribution and supply
agreements; the pharmaceutical industry is highly competitive;
requirements for additional capital to fund future operations;
products in Canada may be subject to pricing regulation;
dependence on key managerial personnel and external collaborators;
no assurance that we will receive regulatory approvals in the
U.S., Canada or any other jurisdictions and current
uncertainty surrounding health care regulation in the U.S.; certain
of our products are subject to regulation as controlled substances;
limitations on reimbursement in the healthcare industry; limited
reimbursement for products by government authorities and
third-party payor policies; products may not be included on list of
drugs approved for use in hospitals; hospital customers may make
late payments or not make any payments; various laws pertaining to
health care fraud and abuse; reliance on the success of strategic
investments and partnerships; the publication of negative results
of clinical trials; unpredictable development goals and projected
time frames; rising insurance costs; ability to enforce covenants
not to compete; risks associated with the industry in which we
operate; we may be unsuccessful in evaluating material risks
involved in completed and future acquisitions; we may be unable to
identify, acquire or integrate acquisition targets successfully;
legacy risks from operations conducted in the U.S.; compliance with
privacy and security regulation; our policies regarding returns,
allowances and chargebacks may reduce revenues; certain current and
future regulations could restrict our activities; additional
regulatory burden and controls over financial reporting; reliance
on third parties to perform certain services; general commercial
litigation, class actions, other litigation claims and regulatory
actions; the difficulty for shareholders to realize in the
United States upon judgments of U.S. courts predicated upon
civil liability of the Company and its directors and officers who
are not residents of the United
States; the potential violation of intellectual property
rights of third parties; our efforts to obtain, protect or enforce
our patents and other intellectual property rights related to our
products; changes in U.S., Canadian or foreign patent laws;
litigation in the pharmaceutical industry concerning the
manufacture and supply of novel and generic versions of existing
drugs; inability to protect our trademarks from infringement;
shareholders may be further diluted if we issue securities to raise
capital; volatility of our share price; the fact that we have a
significant shareholder; we do not currently intend to pay
dividends; our operating results may fluctuate significantly; and
our debt obligations will have priority over the common shares of
the Company in the event of a liquidation, dissolution or winding
up.
We caution that the foregoing list of important factors that
may affect future results is not exhaustive. When reviewing our
forward-looking statements, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Additional information about factors that may
cause actual results to differ materially from expectations, and
about material factors or assumptions applied in making
forward-looking statements, may be found in the "Risk Factors"
section of our MD&A and the Annual Information Form for the
year ended December 31, 2020, and elsewhere in our filings
with Canadian securities regulators. Except as required by Canadian
securities law, we do not undertake to update any forward-looking
statements, whether written or oral, that may be made from time to
time by us or on our behalf; such statements speak only as of the
date made. The forward-looking statements included herein are
expressly qualified in their entirety by this cautionary
language.
SOURCE Cipher Pharmaceuticals Inc.