07:39 AM EDT, 07/29/2024 (MT Newswires) -- Cipher Pharmaceuticals ( CPHRF ) on Monday said it has signed an agreement with ParaPRO to acquire the global product rights for head lice and scabies treatment Natroba (and authorized generic Spinosad), and the 50-person commercial sales team in the U.S. for US$89.5 million.

Cipher paid US$80 million in cash, and issued US$9.5 million in common shares. The company entered into a credit agreement and partnership with National Bank (NA.TO), for a US$65 million revolving credit facility which was partially drawn to fund the Natroba transaction.

Cipher terminated its undrawn credit facility with the Royal Bank of Canada (RY.TO).

The company will submit Natroba for Health Canada approval later this year and will commercialize the product in Canada directly through its Canadian dermatology infrastructure. It also plans to out-license Natroba in countries outside North America.