08:29 AM EDT, 10/14/2025 (MT Newswires) -- Cipher Pharmaceuticals ( CPHRF ) said Tuesday it has received a favorable award of $4.2 million from an arbitration proceeding, as well as royalty payments. The award is related to a contractual dispute with Sun Pharmaceuticals Industries.

The dispute involved Sun's launch of anti-acne treatment Absorica LD in Canada and its claim that it owned certain clinical data. The arbitrator declared that Cipher is the rightful owner of the clinical data and also determined that Sun breached the agreement by submitting Cipher's clinical data to Health Canada to obtain approval for Absorica LD.

The $4.2 million awarded to Cipher is on top of a 15% royalty on Canadian net sales of Absorica LD, starting Jan. 1, and ending on Dec. 31, 2040. Sun will also foot 80% of Cipher's out-of-pocket attorneys' fees and certain expenses directly related to the arbitration process.

Sun recently filed a petition in New York federal court seeking to partially vacate parts of the arbitrator's award that affirmed Cipher's ownership of its clinical data and the remedies in Cipher's favour. Cipher will defend against the petition and seek to uphold the arbitrator's entire binding decision and award.

Cipher intends to pursue claims against Sun for the latter's use of its clinical data in other jurisdictions where such activity took place.