Cipher Pharmaceuticals Receives Successful Arbitration Award

Executive Summary

• Cipher Pharmaceuticals received a favorable arbitration award against Sun Pharmaceuticals, confirming ownership of disputed clinical data.
• The award includes CAD $4,242,360 in compensatory damages, a 15% royalty on Net Sales of Absorica LD® in Canada from Jan 1 2026 to Dec 31 2040, and reimbursement of 80% of Cipher’s out‑of‑pocket legal fees.
• Sun has filed a petition in U.S. federal court seeking to vacate parts of the award; Cipher will vigorously defend the decision and may pursue additional claims in other jurisdictions.

Key Details

• Award Amount: CAD $4,242,360 compensatory damages.
• Royalty Provision: 15% of Net Sales of Absorica LD® sold in Canada, effective Jan 1 2026 – Dec 31 2040.
• Legal Cost Recovery: 80% of Cipher’s out‑of‑pocket attorneys’ fees and related arbitration expenses.
• Data Ownership Confirmation: Arbitrator declared Cipher the rightful owner of the disputed clinical data.
• Sun’s Counteraction: Petition filed in New York federal court to partially vacate the award’s findings on data ownership and remedies.
• Cipher’s Response: Commitment to defend the arbitrator’s decision, uphold damages, royalties, and cost reimbursements, and consider further claims against Sun for any other unauthorized use of Cipher’s data.

Notable Quotes

(No direct quotes were provided in the release.)