Cipher Pharmaceuticals receives arbitration award on Trulance®
The arbitration award holds that Cipher was in breach of contract and will be required to turn over the Canadian Drug Identification Number for Trulance to Bausch Health.
OAKVILLE — Cipher Pharmaceuticals Inc. announced on Jan. 18 that it has received an arbitration award in the previously announced dispute between the Company and Bausch Health Ireland relating to the License, Development and Commercialization Agreement of Trulance®. As previously disclosed, the Company received a notice of termination from Bausch Health for alleged breach of contract in respect of its licensing agreement for Trulance®.
The arbitration award holds that Cipher was in breach of contract and will be required to turn over the Canadian Drug Identification Number for Trulance to Bausch Health effective immediately. In addition, Cipher has been ordered to pay approximately $240,000 related to unpaid invoices associated with work which was previously completed by Bausch Health. The issue of whether Bausch Health is entitled to any additional amounts under the Agreement is deferred to a subsequent phase of the arbitration. As a result, the Company will impair approximately $5,400,000 USD in intangible assets related to upfront and milestone payments paid.
“Although, we are disappointed with the results of this arbitration it is important to note that Trulance was not currently being marketed or generating revenue for Cipher,” said Craig Mull, Interim CEO. “Despite this news, we remain committed to driving profitability, strengthening the balance sheet, and looking for the right opportunities for growth.”