Cipher Pharmaceuticals receives arbitration award

Executive Summary

• Cipher Pharmaceuticals received a favorable arbitration award against Sun Pharmaceuticals, confirming ownership of clinical data and awarding $4.242 M in compensatory damages.
• The award grants Cipher a 15% royalty on net sales of Absorica LD in Canada from Jan 1 2026 to Dec 31 2040 and reimbursement of 80% of its attorney fees.
• Sun has filed a petition in U.S. federal court to vacate portions of the award; Cipher will vigorously defend the decision and may pursue additional claims in other jurisdictions.

Key Details

• Compensatory Damages: $4,242,360 awarded to Cipher.
• Royalty Award: 15% royalty on net sales of Sun’s Absorica LD product in Canada, effective Jan 1 2026 through Dec 31 2040.
• Legal Cost Recovery: 80% reimbursement of Cipher’s out‑of‑pocket attorney fees and related arbitration expenses.
• Arbitration Findings:
• Cipher is the rightful owner of the disputed clinical data.
• Sun breached the supply and distribution agreement by submitting Cipher’s data to Health Canada for Absorica LD approval.
• Sun’s Response: Filed a petition in New York federal court seeking partial vacatur of the award’s ownership determination, damages, royalties, and cost awards.
• Cipher’s Planned Actions:
• Defend against Sun’s petition to uphold the full arbitrator’s decision.
• Pursue additional claims against Sun for any unauthorized use of Cipher’s clinical data in other jurisdictions.

Notable Quotes

(No direct quotes provided in the release.)