MISSISSAUGA, ON, May 15, 2018 /CNW/ - Cipher Pharmaceuticals Inc. (TSX:CPH) today announced it has completed its previously announced strategic acquisition of the Canadian business portfolio of Cardiome Pharma Corp. (originally disclosed on March 20, 2018). The acquisition was completed pursuant to the terms and conditions of the definitive arrangement agreement, dated March 19, 2018, endered into between Cipher, Cardiome and Correvio Pharma Corp.
"This is an exciting and important transaction for Cipher that brings multiple strategic and financial benefits to the organization," said Robert D. Tessarolo, President and Chief Executive Officer of Cipher. "Foremost, we have acquired an attractive acute care portfolio, with revenue, growth programs and near-term launch opportunities. These products provide us with a foothold in the appealing Hospital Specialty vertical, which is a growing segment of the Canadian market. In addition, the transaction provides access to future product opportunities as Correvio's preferred partner in Canada. We look forward to delivering on the near-term milestones for these acquired products, including the commercial launch of Brinavess in the second half of 2018."
The Canadian business portfolio acquired by Cipher includes commercial and pipeline hospital products administered in the acute care setting:
- Brinavess® (vernakalant IV), for the rapid conversion of recent onset atrial fibrillation to sinus rhythm;
- Aggrastat® (tirofiban hydrochloride), for the reduction of thrombotic cardiovascular events in patients with acute coronary syndrome;
- Xydalba™ (dalbavancin hydrochloride), the first and only 30-minute, one-dose treatment option for the treatment of acute bacterial skin and skin structure infections; and
- Trevyent® a drug device combination that delivers treprostinil, the world's leading treatment for pulmonary arterial hypertension.
Brinavess and Aggrastat are currently on the market in Canada. Xydalba, which is approved and marketed by Allergan in the U.S. under the trade name Dalvance®, may receive a regulatory approval decision in Canada as early as the end of 2018. A Canadian regulatory filing for Trevyent is planned in 2019.
Cipher funded this transaction with cash and an amendment its current debt facility with CIBC to draw an additional US$5.0 million.
Strategic & Financial Benefits of the Transaction for Cipher
- Establishes attractive new vertical with expansion into Hospital Specialty business;
- Provides additional revenue streams, growth programs and near-term launches;
- Provides access to future product opportunities as Correvio's preferred partner in the Canadian territory;
- Demonstrates continued execution against growth strategy aimed at assembling a diversified portfolio of prescription medicines across a range of therapeutic areas; and
- Structure preserves potential tax attributes existing within Cardiome.
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include, without limitation, statements relating to: the anticipated strategic and/or financial benefits of the arrangement to Cipher; and anticipated regulatory approvals of products and the anticipated timing thereof. Words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "potential" and similar expressions may be used to identify these forward-looking statements although not all forward-looking statements contain such words.
Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including risks associated with acquisitions generally, such as: completion of the acquisition may be prove to be more costly than expected; the inability of Cipher to successfully integrate the acquired business and products; Cipher may not obtain anticipated regulatory approvals in respect of certain products or such approvals may take longer than anticipated; inability of Cipher to achieve the anticipated strategic and/or financial benefits from the acquisition or it may take longer than expected to achieve those benefits; and the risk of unexpected costs or liabilities relating to the acquisition. Further, additional risk factors that could cause actual results to differ materially from expectations can be found in the "Risk Factors" section of Cipher's Annual Information Form and in Cipher's Management's Discussion and Analysis of Operating Results and Financial Position for the year ended December 31, 2017 and/or for the three months ended March 31, 2018, and elsewhere in Ciphers's filings with Canadian securities regulators.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and reader should not place undue reliance on the forward-looking statements. These forward-looking statements are made as of the date of this press release and, other than as required by law, Cipher does not intend to or assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
About Cipher Pharmaceuticals Inc.
Cipher (TSX:CPH) is a specialty pharmaceutical company with a robust and diversified portfolio of commercial and early to late-stage products. Cipher acquires products that fulfill unmet medical needs, manages the required clinical development and regulatory approval process, and markets those products either directly in Canada or indirectly through partners in Canada, the U.S., and South America. Cipher is focused on a three-pronged growth strategy – including acquisitions, in-licensing, and selective investments in drug development – to assemble a broad portfolio of prescription products that serve unmet medical needs. For more information, visit www.cipherpharma.com.
SOURCE Cipher Pharmaceuticals Inc.