CIP-Isotretinoin to be Distributed in the US

Cipher has granted Ranbaxy Pharmaceuticals Inc. (RPI) the exclusive right to market, sell and distribute CIP-Isotretinoin in the US. CIP-Isotretinoin is a patented formulation of isotretinoin, which is used in the treatment of severe nodular acne. The product received approvable letters from the US FDA in May 2006 and April 2007 in which the FDA requested that Cipher provide additional clinical safety data. Cipher is currently discussing with the FDA's division of dermatology and dental products on the appropriate design of a safety study.

Under the terms of the agreement, Cipher has received an initial upfront payment of $1 million. The agreement includes additional pre- and postcommercialization payments of up to $23 million, which is based upon the achievement of certain targets