Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, June 29, 2011 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND) ("Cipher" or "the Company") today announced that it has entered into a definitive distribution and supply agreement with Vertical Pharmaceuticals, Inc. ("Vertical"), a U.S.-based specialty pharmaceutical company, under which Cipher has granted Vertical the exclusive right to market, sell and distribute CIP-TRAMADOL ER in the United States.

CIP-TRAMADOL ER is a patent-protected, extended-release formulation of tramadol, which is used for the treatment of moderate to moderately severe chronic pain in adults. The product received approval from the U.S. Food and Drug Administration in 2010.

"Completing a commercial supply agreement for our extended-release tramadol represents another important achievement for our organization and provides an additional revenue stream to support our continued growth," said Larry Andrews, President and Chief Executive Officer of Cipher Pharmaceuticals. "With its experienced, entrepreneurial leadership team and strong promotional commitment behind this product, we believe Vertical is well positioned to penetrate the U.S. tramadol market."

Under the terms of the agreement with Vertical, Cipher received an initial upfront payment of US$0.5 million with additional payments totaling US$1.0 million due upon the first commercial sale of the product. Cipher is also eligible to receive future payments of approximately US$4.0 million contingent upon the achievement of certain sales milestones. In addition, Cipher will receive a royalty on net sales in the mid-teens. Cipher is responsible for product supply and manufacturing, which will be fulfilled by its partner, Galephar Pharmaceutical Research.

Vertical plans to launch the product in Q3 2011 under the trade name ConZip™. Vertical's dedicated sales force will comprise 60 representatives at the time of product launch, with plans for further expansion in the first half of 2012.

Steve Squashic, President of Vertical, said, "We are excited about the opportunity in the large and growing U.S. tramadol market, where there were more than 36 million tramadol prescriptions written last year. ConZip's unique capsule formulation comprising an immediate-release tablet and sustained-release beads, combined with having no food effect, will make it an attractive alternative for clinicians and chronic pain sufferers. It will immediately become our flagship product."

VelocityHealth Securities, Inc. acted as the exclusive financial advisor to Vertical on this transaction.

About Vertical Pharmaceuticals, Inc.
Vertical Pharmaceuticals, Inc was founded in 2003 with a clear focus in mind. Vertical develops, markets and acquires products with therapeutic options for patients and caregivers. Vertical is a privately owned pharmaceutical company that supplies niche prescription pharmaceutical preparations. The company specializes in Pain Management, Primary Care, Internal Medicine and Women's Health. Our prescription medications are marketed by our dedicated sales force throughout the United States. With prescription drug costs rising, Vertical supplies effective and safe medications that are affordable. We value our patient and physician feedback to bring a better prescription medication to our patient population.

About Cipher Pharmaceuticals Inc.
Cipher Pharmaceuticals is a commercial-stage drug development company focused on commercializing novel formulations of successful, currently marketed molecules using advanced drug delivery technologies. Cipher's strategy is to in-license products that icals Inc. (NASDAQ:CPHR; TSX:CPH) today announced it will host a conference call for its Q3 2015 financial results on Wednesday, November 4, 2015.

Q3 2015 CONFERENCE CALL

WHEN: Wednesday, November 4, 2015 at 8:30AM ET

CONFERENCE CALL/WEBCAST: You can join the call by dialing 647-427-7450 or 1-888-231-8191. A live audio webcast will be available through www.cipherpharma.com or http://bit.ly/1LSI3hH. An archived replay of the webcast will be available for 90 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (NASDAQ:CPHR; TSX:CPH) is a rapidly growing specialty pharmaceutical dermatology company with a diversified portfolio of commercial-stage products with the goal of becoming the most customer-centric dermatology company in North America.

Cipher has completed seven transactions in 2015, including the acquisition of Innocutis and its nine branded dermatology products, to build its U.S. commercial presence, expand its Canadian dermatology franchise and broaden its pipeline. Cipher is well-capitalized to drive long-term, sustained earnings growth by leveraging its proven clinical development capabilities and efficient commercial execution. For more information, visit www.cipherpharma.com.

SOURCE Cipher Pharmaceuticals Inc.