Cipher Pharmaceuticals Enters U.S. Market

Cipher Pharmaceuticals Inc. has acquired Charleston, SC-based Innocutis Holdings LLC, a privately held specialty dermatology company, for $45.5 million.

The acquisition marks Canada-based Cipher’s commercial entry to the U.S. market.

“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,” said Shawn O’Brien, president and chief executive officer of Cipher. “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 U.S. and will be filed in Canada in 2016.”