- Cipher Pharmaceuticals (TSX:CPH) reveals it has acquired global rights and operations for a lice and scabies treatment for US$89.5 million
- The company acquired the products from ParaPro, which are called Natroba and its authorized generic Spinosad
- No generic alternatives are apparently available for these products
- Shares of Cipher Pharmaceuticals are up 26.38 per cent to C$10.97 as of 11:10 am ET
Cipher Pharmaceuticals (TSX:CPH) reveals it has acquired global rights and operations for a lice and scabies treatment for US$89.5 million.
The company said in a release that it had acquired the products from ParaPro, which are called Natroba, as well as its authorized generic Spinosad.
According to Cipher Pharmaceuticals, no generic alternatives are allegedly available for these products. The company also stated that the indication for scabies has exclusivity with the U.S. Food and Drug Administration and has patent protection until 2033.
“[The] acquisition of the Natroba products and the ParaPro commercial infrastructure is a pivotal step in our strategy to establish a leading dermatology platform featuring unique, innovative products,” Craig Mull, interim CEO of Cipher Pharmaceuticals, said in a statement. “ParaPRO has a demonstrated strong sales, gross margin and earnings profile, making it a natural fit with our existing business.
Natroba is known to be one of the most effective treatments for two parasitic indications in the United States. The company anticipates submitting the drug to Health Canada for approval later in 2024 with plans to commercialize the product in the country through its existing Canadian dermatology infrastructure.
Additional terms of the agreement include Cipher paying $80 million in cash and $9.5 million in common shares issued to ParaPRO.
With its headquarters out of Mississauga, Ontario, Cipher Pharmaceuticals is a specialty pharmaceutical company with a range of commercial and early to late-stage products, mainly in dermatology.
The company acquires products that aim to meet unmet medical needs and currently markets those products in Canada, the U.S., and South America.
Shares of Cipher Pharmaceuticals Inc. (TSX:CPH) are up 26.38 per cent to C$10.97 as of 11:10 am ET.
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