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.