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Cipher Pharmaceuticals (TSX:DND) has entered into a distribution and supply agreement with Medical Futures, a closely held Canadian pharmaceutical company, for the marketing of Durela in Canada.
Durela is Cipher’s once-daily capsule formulation of tramadol, which has both immediate-release and extended-release components for the treatment of moderate-to-moderately severe chronic pain in adults.
“This agreement, coupled with our recently announced tramadol distribution agreement with Vertical Pharmaceuticals for the U.S. market, will provide another valuable royalty revenue stream for Cipher,” CEO Larry Andrews said in a statement.
“With sales of more than $60 million in 2010, the Canadian tramadol market remains robust, and we believe Medical Futures, with its primary care focus, will be an excellent partner for this market,” he added.
Under the accord, Cipher will receive an upfront payment of $300,000, is eligible to receive future payments contingent on the achievement of cumulative net sales milestones, and a double-digit royalty on net sales. Cipher is responsible for product supply and manufacturing, which will be fulfilled by its partner, Galephar Pharmaceutical Research.
Colin Campbell, CEO of Medical Futures, said the addition of Durela to the Medical Futures product portfolio “strengthens and demonstrates our commitment to providing top tier solutions to the Canadian marketplace.” It plans to launch Durela in the first quarter of 2012, with a dedicated sales force of about 22 representatives and with plans for further expansion.
Medical Futures sells both pharmaceutical and natural therapeutic products, with a focus in pain, women’s health and gastrointestinal disorders. Founded in 2000, some of the products it markets in Canada include, Moviprep, Proferrin, Florastor, Iberogast and OnypenA.
