On July 29, 2024, Cipher Pharmaceuticals Inc. (TSX: CPH) (OTCQX: CPHRF) signed a definitive asset purchase agreement with ParaPRO LLC, acquiring global product rights for Natroba™ (Spinosad) and its U.S. commercial sales team for US$89.5 million (approximately CAD$121.4 million). The transaction included US$80 million (approximately CAD$108.5 million) in cash and US$9.5 million (approximately CAD$12.9 million) in Cipher common shares.

The acquisition encompassed Natroba™ operations and its authorized generic, both of which were topical treatments for head lice and scabies, with FDA exclusivity and patent protection until 2033. The deal also included ParaPRO's 50-member sales and marketing team.

Cipher planned to leverage Natroba™'s market position by seeking Health Canada approval and out-licensing it globally. The transaction was funded through a new US$65 million (approximately CAD$88.1 million) revolving credit facility with National Bank of Canada, partially drawn to finance the deal.

Fogler Rubinoff LLP and Troutman Pepper Hamilton Sanders LLP advised Cipher, while Stifel, Dinsmore & Shohl LLP, and Osler, Hoskin & Harcourt LLP advised ParaPRO. The acquisition was expected to significantly enhance Cipher's dermatology platform and double its current sales and earnings.