Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, Sept. 26, 2011 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND) ("Cipher" or "the Company") today announced that it has entered into a  distribution and supply agreement with Medical Futures Inc. ("Medical Futures"), a Canadian-based  pharmaceutical company, under which Cipher has granted Medical Futures the exclusive right to market, sell and distribute Durela™ in Canada.

Durela™ is a patent-protected, once-daily capsule formulation of tramadol, which has both immediate-release and extended-release components. Durela™ is indicated for the treatment of moderate to moderately severe chronic pain in adults. The product received approval from Health Canada in August 2011.

"This agreement, coupled with our recently announced tramadol distribution agreement with Vertical Pharmaceuticals for the US market, will provide another valuable royalty revenue stream for Cipher," said Larry Andrews, President and Chief Executive Officer of Cipher Pharmaceuticals. "With sales of more than $60 million in 2010, the Canadian tramadol market remains robust, and we believe Medical Futures, with its primary care focus, will be an excellent partner for this market."

Under the terms of the agreement with Medical Futures, Cipher will receive an upfront payment of CAD$300,000. Cipher is also eligible to receive future payments contingent upon the achievement of cumulative net sales milestones. In addition, Cipher will receive a double-digit royalty on net sales Cipher is responsible for product supply and manufacturing, which will be fulfilled by its partner, Galephar Pharmaceutical Research.

"We are excited to be introducing Durela™, a new treatment option for pain in Canada. The addition of Durela™ to the Medical Futures product portfolio strengthens and demonstrates our commitment to providing top tier solutions to the Canadian marketplace," says Colin Campbell, Medical Futures' CEO.

Medical Futures plans to launch Durela™ in Q1 2012 with a dedicated sales force  comprising approximately 22 representatives with plans for further expansion.

About Medical Futures Inc.
Medical Futures Inc. is  one of Canada's fastest growing pharmaceutical companies that sells both pharmaceutical and natural therapeutic products. Medical Futures has a focus in pain, women's health and gastrointestinal disorders. Founded in 2000, this privately held company is dedicated to advancing the quality of life of all North Americans. Some of the products marketed in Canada include: Moviprep™, Proferrin, Florastor™, Iberogast™ and Onypen™.

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 incorporate proven drug delivery technologies and advance them through the clinical development and regulatory approval stages, after which the products are out-licensed to international partners. Because Cipher's products are based on proven technology platforms applied to currently marketed drugs, they are expected to have lower approval risk, shorter development timelines and significantly lower development costs. The Company's lead compound is being marketed in the United States by Kowa Pharmaceuticals America under the label Lipofen®. Cipher's second product, an extended-release version of the pain reliever tramadol, has received final FDA and Health Canada approval and was launched by Vertical Pharmaceuticals in the United States in September 2011 under trade name ConZip™. The Company's third product, a novel formulation of the acne treatment isotretinoin, recently completed its final Phase III safety study, with regulatory submissions planned in the United States and Canada in Q4, 2011.

Cipher is listed on the Toronto Stock Exchange under the symbol 'DND' and has approximately 24 million shares outstanding.  For more information, please visit www.cipherpharma.com.

Forward-Looking Statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include those identified in the Company's Annual Information Form and other filings with Canadian securities regulatory authorities, such as the applicability of patents and proprietary technology; possible patent litigation; regulatory approval of products in the Company's pipeline; changes in government regulation or regulatory approval processes; government and third-party payer reimbursement; dependence on strategic partnerships for product candidates and technologies, marketing and R&D services; meeting projected drug development timelines and goals; intensifying competition; rapid technological change in the pharmaceutical industry; anticipated future losses; the ability to access capital to fund R&D; and the ability to attract and retain key personnel. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.