Onxeo S.A. has announced Cipher Pharmaceuticals' acquisition of INNOCUTIS Holdings LLC, the licensee of Sitavig® in the USA.
Cipher Pharmaceuticals ("Cipher") is a rapidly growing specialty pharmaceutical dermatology company with a goal of becoming the most customer-centric dermatology company in North America. As a major step in their growth strategy, this acquisition provides Cipher with a commercial infrastructure and a talented sales team for the USA. Cipher has the size, strength and ability as a company to fully drive Sitavig®'s potential, maximizing the product's prospective of becoming a breakthrough treatment for herpes labialis.
"We are positive that this acquisition will further strengthen Sitavig®'s position. Supported by already trained teams and benefitting from increased means, this transaction will leverage Sitavig®'s commercial potential, clearly established as the leading product of Cipher's dermatology portfolio in the USA", said Judith Greciet, CEO of Onxeo.
"This acquisition represents an important step towards our goal of creating a leading North American dermatology business. We see excellent opportunity to drive increased sales and profitability by growing INNOCUTIS' current branded prescription drugs, led by Sitavig®", said Shawn O'Brien, President and CEO of Cipher. "We are delighted to pursue the partnership with Onxeo's team which has shown constant support and high efficiency since early 2014".
Sitavig® license agreement
In March 2014, Onxeo entered into a license agreement with INNOCUTIS regarding Sitavig® for commercialization in the following territories: USA, Canada, and Mexico. Under this agreement, Onxeo is eligible to receive a total of USD 5 million in upfront and milestones payments - of this, Onxeo has already received USD 2 million in an upfront payment in 2014. Sitavig® was launched in the USA by INNOCUTIS in July 2014 and Cipher plans to file it in Canada in 2016, enlarging the product's potential.