07:36 AM EDT, 04/29/2025 (MT Newswires) -- Cipher Pharmaceuticals ( CPHRF ) on Tuesday said Natroba, the company's treatment for scabies and head lice, has obtained preferred drug status on Illinois' Medicaid plan, while its main competitive product Permethrin 5% has been downgraded to non-preferred status.

As a result of this change, all Medicaid treatments for scabies and Permethrin 5% prescriptions in the state must first step through Natroba being the preferred treatment in Illinois.

"The medical decision made by the state of Illinois is just another example of the effectiveness of Natroba (Spinosad) and what clear growth potential for the product remains ahead of us," said Craig Mull, interim chief executive. "We believe it is only a matter of time until more state pharmacy directors require step-through of Natroba representing the standard of care in the treatment of scabies and head lice."

Cipher said it is in active discussions with other U.S. states.