Cipher acquires Innocutis for $45.5 million

Cipher Pharmaceuticals (NASDAQ: CPHR) has acquired privately held specialty dermatology company Innocutis Holdings for $45.5 million in cash.

Shawn O'Brien, president and chief executive of Cipher, said: “This acquisition marks our commercial entry to the US market and represents an important step toward our goal of creating a leading North American dermatology business. Innocutis provides us with commercial infrastructure, revenue-generating branded prescription products, and a talented team, including a 31-person salesforce that shares our customer-focused philosophy. We see excellent opportunity to drive increased sales and profitability by growing their current branded prescription products, led by Sitavig, and adding new products to the portfolio, including our recently acquired Pruridexin and Dermadexin.”

Joe Pecora, president and chief executive of Innocutis, said: “Today's transaction marks the start of a new chapter as part of the Cipher organization, as well as the opportunity to participate in the significant upside potential of the combined company. We are combining with a partner that is ideally suited to realize the full potential inherent in Sitavig, a treatment breakthrough for herpes labialis. The product was recently launched in the US and will be filed in Canada in 2016. Together with Cipher, we are poised to extend the Innocutis growth story not only in the US but also in Canada with an unwavering focus on exceeding the expectations of patients and the medical specialists who treat them. I am thankful for the hard work and dedication of our employees, and I'm confident they will make many valuable contributions to the combined company. Looking to the immediate future, all of us at Innocutis are excited to work closely with the Cipher team to ensure a smooth transition.”