Takes a step towards creating a leading dermatology business in North America
Canadian company Cipher Pharmaceuticals has acquired Innocutis Holdings, a privately held dermatology company based in Charleston, NC, US, for US$45.5m in cash.
Shawn O'Brien, President and CEO, said the deal marks the company's commercial entry into the US and is 'an important step toward our goal of creating a leading North American dermatology business'.
Innocutis has recently launched Sitavig in the US, a treatment for herpes labialis (cold sores), and Cipher plans to launch the product in Canada in 2016.
'The acquisition provides Cipher with 'a commercial infrastructure, revenue-generating branded prescription products, and a talented team, including a 31-person salesforce', added O'Brien.
'We see excellent opportunity to drive increased sales and profitability by growing Innocutis' current branded prescription products, led by Sitavig, and adding new products to the portfolio, including our recently acquired [from Astion Pharma] Pruridexin and Dermadexin.'
We see excellent opportunity to drive increased sales and profitability by growing Innocutis' current branded prescription products
Joe Pecora, President and CEO of Innocutis, said the transaction 'marks the start of a new chapter as part of the Cipher organisation, as well as the opportunity to participate in the significant upside potential of the combined company'.
'Together with Cipher, we are poised to extend the Innocutis growth story not only in the US but also in Canada,' he added.
For the 12 months to 31 December 2014, Innocutis reported approximately US$10.1m in net product revenue.
In March 2014, Onxeo entered into a licensing agreement with Innocutis regarding Sitavig for commercialisation in the US, Canada, and Mexico. Under this agreement, Onxeo is eligible to receive a total of $5m in upfront and milestones payments – of this, Onxeo received $2m in an upfront payment in 2014.