Cipher Pharmaceuticals, a rapidly growing specialty pharmaceutical dermatology company, has acquired Innocutis Holdings LLC, a privately held specialty dermatology company, for US$45.5 million in cash.
"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," said Shawn O'Brien, president and chief executive officer of Cipher. "Innocutis provides us with commercial infrastructure, revenue-generating branded prescription products, and a talented team, including a 31-person sales force 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."
"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," said Joe Pecora, president and chief executive officer of Innocutis.
“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,” Pecora, added.
O'Brien added, "With five transactions since the start of 2015, we are executing on our growth strategy and continue to be highly active on the business development front."