Cipher Pharmaceuticals acquires Natroba for $89.5M

MISSISSAUGA — Cipher Pharmaceuticals acquires global product rights for Natroba (Spinosad) and the U.S. commercial sales team from ParaPRO, in a deal valued at USD 89.5 million.

Bryan Jacobs, CFO said, “We would like to welcome National Bank as a business partner providing financial support to drive the growth objectives of Cipher’s business. This expanded Facility provides Cipher with ample liquidity to not only fund the acquisition of Natroba and ParaPRO’s commercial assets but was designed to provide further financial support to fund future accretive acquisitions as we look to further build out our Canadian and U.S. dermatology platforms.”

Natroba is a topical treatment used for head lice and scabies, with no current generic alternatives.

As part of the acquisition, Cipher has gained ParaPRO’s U.S.-based sales and marketing team of 50 employees having a network in the dermatology, family practice, infectious disease, and pediatrics sectors.

Cipher plans to seek Health Canada approval for Natroba later in 2024 and will commercialize the product in Canada through its existing dermatology infrastructure. Additionally, the company intends to explore out-licensing opportunities for Natroba in markets outside North America.

To finance this transaction, Cipher has entered into a new credit agreement with the National Bank of Canada.