Cipher Pharmaceuticals Secures Court Confirmation Of Arbitration Award

(RTTNews) - Cipher Pharmaceuticals Inc. (CPH.TO) has received a favorable ruling from the New York federal court, which denied Sun Pharmaceutical Industries' petition to vacate portions of an arbitration award and instead confirmed Cipher's ownership of key clinical data tied to the launch of Absorica LD in Canada.

The court's decision not only upheld the arbitrator's binding award but also granted Cipher interest on damages, attorneys' fees and related expenses at a rate of 9% per annum until judgment satisfaction. Cipher intends to pursue additional claims against Sun for use of its clinical data in other jurisdictions.

The arbitration stemmed from a contractual dispute over Sun's breach of its supply and distribution agreement with Cipher. The arbitrator declared Cipher the rightful owner of the disputed clinical data and awarded CAD $4.24 million in damages, a 15% royalty on Canadian net sales of Absorica LD through 2040, and reimbursement of 80% of Cipher's legal costs.

Cipher, a specialty pharmaceutical company focused on dermatology, continues to build a diversified portfolio across Canada, the U.S., and South America.

This ruling reinforces Cipher's position in protecting its intellectual property and securing long-term financial remedies, marking a significant step in its ongoing dispute resolution with Sun.

CPH.TO has traded between CAD 12.48 and CAD 20.56 over the past year. The stock closed Tuesday's trading at CAD 14.19, up 3.73%.

Glossary:

Arbitration Award - A binding decision made by an arbitrator to resolve a dispute outside of court.

Vacate (Legal Term) - To set aside or nullify a prior ruling or award.

Royalty - A percentage of sales revenue paid to a company for the use of its intellectual property or data