Business
Cipher Pharmaceuticals Acquires Profitable Growth Dermatology Products from ParaPRO for US$89.5 Million
Cipher Pharmaceuticals Acquires Profitable Growth Dermatology Products from ParaPRO for US$89.5 M...
About this update from Cipher Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\n Cipher Pharmaceuticals Acquires Profitable Growth Dermatology Products from ParaPRO for US$89.5 Million\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n MISSISSAUGA, ON\n \n\n ,\n \n\n July 29, 2024\n \n\n /CNW/ - Cipher Pharmaceuticals Inc. (TSX: CPH) (OTCQX: CPHRF) (\"\n \n Cipher\n \n \" or the \"\n \n Company\n \n \") announces the signing of a definitive asset purchase agreement with ParaPRO LLC (\"ParaPRO\") and the closing of the acquisition of the global product rights for Natroba™ (Spinosad), as well as the commercial sales team in\n \n the United States\n \n for total consideration of\n \n US$89.5 million\n \n .\n \n\n\n Acquisition Details\n \n\n\n\n Cipher has acquired the profitable and growing U.S. based Natroba™ operations and global product rights to ParaPRO's Natroba™ and its authorized generic Spinosad, a topical treatment for both head lice and scabies. There are currently no generic alternatives for these products. The indication for scabies, which represents a larger market than head lice, currently carries FDA exclusivity and patent protection until 2033.\n \n\n\n\n Cipher paid\n \n US$80 million\n \n in cash (satisfied from\n \n US$40 million\n \n cash on hand and\n \n US$40 million\n \n from a new credit facility) and issued\n \n US$9.5 million\n \n in common shares of Cipher to ParaPRO (1,474,097 shares at a deemed issue price of\n \n CAD$8.91\n \n ).\n \n\n\n\n Cipher announces entering into a new credit agreement and partnership with the National Bank of\n \n Canada\n \n , with a\n \n US$65 million\n \n revolving credit facility which was partially drawn to fund the Natroba™ transaction, and will be available to provide financing to fuel Cipher's continued future growth plans.\n \n\n\n\n Natroba™ (Spinosad) is widely recognized as one of the most effective treatments for two parasitic indications in\n \n the United States\n \n . It is superior to permethrin 1% for treating head lice and is the only treatment that meets the FDA's criteria for a \"complete cure\" (eli...