Toronto Stock Exchange Symbol: DND
MISSISSAUGA, ON, June 29, 2011 /PRNewswire/ - Cipher Pharmaceuticals Inc. (TSX:
DND) ("Cipher" or "the Company") today announced that it has entered
into a definitive distribution and supply agreement with Vertical
Pharmaceuticals, Inc. ("Vertical"), a U.S.-based specialty
pharmaceutical company, under which Cipher has granted Vertical the
exclusive right to market, sell and distribute CIP-TRAMADOL ER in the
CIP-TRAMADOL ER is a patent-protected, extended-release formulation of
tramadol, which is used for the treatment of moderate to moderately
severe chronic pain in adults. The product received approval from the
U.S. Food and Drug Administration in 2010.
"Completing a commercial supply agreement for our extended-release
tramadol represents another important achievement for our organization
and provides an additional revenue stream to support our continued
growth,"said Larry Andrews, President and Chief Executive Officer of Cipher
Pharmaceuticals. "With its experienced, entrepreneurial leadership team
and strong promotional commitment behind this product, we believe
Vertical is well positioned to penetrate the U.S. tramadol market."
Under the terms of the agreement with Vertical, Cipher received an
initial upfront payment of US$0.5 million with additional payments
totaling US$1.0 million due upon the first commercial sale of the
product. Cipher is also eligible to receive future payments of
approximately US$4.0 million contingent upon the achievement of certain
sales milestones. In addition, Cipher will receive a royalty on net
sales inthe mid-teens.Cipher is responsible for product supply and manufacturing, which will
be fulfilled by its partner, Galephar Pharmaceutical Research.
Vertical plans to launch the product in Q3 2011 under the trade name
ConZip. Vertical's dedicated sales force will comprise 60
representatives at the time of product launch, with plans for further
expansion in the first half of 2012.
Steve Squashic, President of Vertical, said, "We are excited about the
opportunity in the large and growing U.S. tramadol market, where there
were more than 36 million tramadol prescriptions written last year.
ConZip's unique capsule formulation comprising an immediate-release
tablet and sustained-release beads, combined with having no food
effect, will make it an attractive alternative for clinicians and
chronic pain sufferers. It will immediately become our flagship
VelocityHealth Securities, Inc. acted as the exclusive financial advisor
to Vertical on this transaction.
About Vertical Pharmaceuticals, Inc.
Vertical Pharmaceuticals, Inc was founded in 2003 with a clear focus in
mind. Vertical develops, markets and acquires products with therapeutic
options for patients and caregivers. Vertical is a privately owned
pharmaceutical company that supplies niche prescription pharmaceutical
preparations. The company specializes in Pain Management, Primary Care,
Internal Medicine and Women's Health. Our prescription medications are
marketed by our dedicated sales force throughout the United States.
With prescription drug costs rising, Vertical supplies effective and
safe medications that are affordable. We value our patient and
physician feedback to bring a better prescription medication to our
About Cipher Pharmaceuticals Inc.
Cipher Pharmaceuticals is a commercial-stage drug development company
focused on commercializing novel formulations of successful, currently
marketed molecules using advanced drug delivery technologies. Cipher's
strategy is to in-license products that incorporate proven drug
delivery technologies and advance them through the clinical development
and regulatory approval stages, after which the products are
out-licensed to international partners. Because Cipher's products are
based on proven technology platforms applied to currently marketed
drugs, they are expected to have lower approval risk, shorter
development timelines and significantly lower development costs. The
Company's lead compound is being marketed in the United States by Kowa
Pharmaceuticals America under the label Lipofen®. Cipher's second
product, an extended-release version of the pain reliever tramadol, has
received FDA final approval and will be marketed in the United States
by Vertical Pharmaceuticals Inc. The Company's third product, a novel
formulation of the acne treatment isotretinoin, recently completed its
final Phase III safety study.
Cipher is listed on the Toronto Stock Exchange under the symbol 'DND'
and has approximately 24 million shares outstanding. For more
information, please visit www.cipherpharma.com.
Statements made in this news release, other than those concerning
historical financial information, may be forward-looking and therefore
subject to various risks and uncertainties. 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. 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. Factors
that could cause results to vary include those identified in the
Company's Annual Information Form and other filings with Canadian
securities regulatory authorities, such as the applicability of patents
and proprietary technology; possible patent litigation; regulatory
approval of products in the Company's pipeline; changes in government
regulation or regulatory approval processes; government and third-party
payer reimbursement; dependence on strategic partnerships for product
candidates and technologies, marketing and R&D services; meeting
projected drug development timelines and goals; intensifying
competition; rapid technological change in the pharmaceutical industry;
anticipated future losses; the ability to access capital to fund R&D;
and the ability to attract and retain key personnel. All
forward-looking statements presented herein should be considered in
conjunction with such filings. Except as required by Canadian
securities laws, the Company does not undertake to update any
forward-looking statements; such statements speak only as of the date
SOURCE Cipher Pharmaceuticals Inc.