Cipher Pharma Press Releases

Cipher reports record financial results for Q1 2013

Fri, 03 May 2013 07:00:00 -0400

- Revenue increases 82%, Company records earnings of $0.06 per share -

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, May 3, 2013 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND); (OTC: CPHMF) today announced its financial and operational results for the three months ended March 31, 2013.

Q1 2013 Highlights

Net revenue increased by 82% over Q1 2012 to $3.3 million.
EBITDA of $ 1.7 million versus $0.3 million in Q1 2012.
Net income was $1.5 million, or $0.06 per share, compared with net income of $0.1 million, or $0.01 per share, in Q1 2012.
Cash balance increased to $16.5 million at quarter end, compared with $15.8 million at December 31, 2012 and $10.1 million at March 31, 2012.
Expanded management team with the addition of Joan Chypyha as Vice President, Marketing and Sales.
Subsequent to quarter end, out-licensed Latin American distribution rights for CIP-TRAMADOL ER to Tecnofarma International Ltd.

"We delivered record financial performance in the first quarter, reflecting the addition of new product revenue streams, especially the strong early results from Absorica," said Larry Andrews, President and CEO of Cipher. "Building off this good start to the year, we are working toward the Canadian launch of Epuris by Q3 and have recently added experienced marketing and sales leadership to help us build our commercial presence in Canada. In addition, we recently licensed out the Latin American rights for our extended-release tramadol product to Tecnofarma International, which has deep experience in pain therapeutics and a large sales team in the region."

Financial Review and Outlook

Net revenue for Q1 2013 was $3.3 million, an increase of 82% compared with $1.8 million in Q1 2012. The contribution from Absorica^™was particularly strong in Q1 2013, with net revenue of $2.0 million, compared with $0.1 million in Q1 2012.

Net revenue from Lipofen^® was $0.8 million in Q1 2013, compared with $1.4 million in Q1 2012. In Q1 2012, the Company received a milestone payment that contributed $0.5 million in net revenue for the quarter. Net revenue from the Company's extended release tramadol product (ConZip^®/Durela^®) increased to $0.5 million in Q1 2013, compared with $0.3 million in Q1 2012.

Research and Development expense decreased in Q1 2013 to $0.3 million, compared with $0.5 million in Q1 2012. Operating, General and Administrative expenses for Q1 2013 were $1.3 million, compared to $1.1 million in Q1 2012.

Net income in Q1 2013 grew to $1.5 million, or $0.06 per share, compared with net income of $0.1 million, or $0.01 per share, in Q1 2012.

The Company's cash position increased at quarter end. As at March 31, 2013, Cipher had cash and cash equivalents of $16.5 million, compared with $15.8 million at December 31, 2012.

For the balance of fiscal 2013, Cipher expects continued revenue growth from its currently marketed products and the introduction of Epuris^™ in Canada during the second half of 2013. In particular, the Company expects the full-year contribution of Absorica^™ to be a primary revenue driver. In 2013, Cipher will be investing in commercial sales and marketing capabilities in Canada. The Company expects an increase in operating expenses of approximately $2.0 million to $2.5 million during the balance of 2013 related to the launch of Epuris^™in Canada and to support other growth initiatives. In addition to one-time launch costs associated with marketing promotion and market access for Epuris^™, the Company plans to deploy a 6 to 8 person field sales force in the second half of 2013.

Cipher expects the revenue growth in 2013 to offset the additional spending required to build its commercial infrastructure in Canada.

Product Update

CIP-ISOTRETINOIN (Absorica^™/Epuris^™)
Absorica^™was released in the U.S. market in late November 2012. The product has performed well to date, achieving 7.5% market share by March 2013, based on total isotretinoin prescriptions. The overall U.S. isotretinoin market grew in 2012, with prescriptions increasing 11% over the prior year, and this growth has continued into 2013 with Q1 2013 prescriptions increasing 13% over the same period in the prior year.

The product was also approved by Health Canada in Q4 2012 under the trade name Epuris^™. The Company is preparing to launch Epuris^™ by Q3 2013 and has commenced pre-commercial activities.

Lipofen^®
Lipofen^® prescriptions in Q1 2013 were 4% ahead of Q1 2012 levels, and the product continues to be promoted in second detail position by Cipher's partner.

CIP-TRAMADOL ER (ConZip^®/Durela^®)
Cipher's extended-release tramadol was launched in the U.S. by Vertical Pharmaceuticals in September 2011 under the trade name ConZip^®. Subsequent to year end, Vertical expanded its sales force to 75 representatives, which has contributed to improved performance. In Q1 2013, prescriptions grew 15% compared to Q1 2012. In Canada, Medical Futures launched the product in March 2012 under the trade name Durela^®, with a dedicated sales force comprising 22 representatives. While sales to date have been below expectations, there was continued steady improvement and growth during Q1 2013.

Cipher is actively pursuing marketing partners for CIP-TRAMADOL ER and CIP-ISOTRETINOIN in other territories, including Latin America. Subsequent to quarter end, Cipher announced that the Latin American distribution rights to CIP-TRAMADOL ER have been granted to Tecnofarma International Ltd. Tecnofarma, headquartered in Uruguay, operates in 18 Latin American countries and will launch the product in certain territories, including Brazil and Mexico.

Other Products
In Q3 2012, Cipher obtained exclusive license and distribution rights in Canada to market the Betesil^® Patch, a novel, patent-protected, self-adhesive medicated plaster for the treatment of inflammatory skin conditions such as plaque psoriasis. The efficacy and safety of the Betesil^® Patch has been established in three successful phase III trials, and the product is currently marketed in several European countries. Cipher is working toward completion of a New Drug Submission for the product and will provide additional detail on expected timelines and plans in the coming months.

In addition, the Company is seeking other late-stage to commercial-stage product candidates in specialty markets to support its Canadian commercial strategy.

Notice of Conference Call

Cipher will hold a conference call today, May 3, 2013, at 8:30 a.m (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. A live audio webcast of the call will be available at www.cipherpharma.com. The webcast will be archived for 90 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company with three commercial products and a fourth in development. Our product candidates are typically improved formulations of successful, currently marketed drugs. We in-license a product, manage the required clinical development and regulatory approval process, and either out-license it to a marketing partner, or, in Canada, we may market the product ourselves. Our core capabilities are in clinical and regulatory affairs, product licensing, supply chain management, and marketing and sales. Since the Company was founded in 2000, we have achieved final regulatory approval in the U.S. and Canada for all three of our original products and completed six marketing partnerships, generating growing licensing revenue.

Forward-Looking Statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Company's Annual Information Form and other filings with Canadian securities regulatory authorities. These factors include, but are not limited to; the applicability of patents and proprietary technology; possible patent litigation; approval of products in the Company's pipeline; marketing of products; meeting projected drug development timelines and goals; product liability and insurance; dependence on strategic partnerships and licensees; concentration of the Company's revenue; substantial competition and rapid technological change in the pharmaceutical industry; the publication of negative results of clinical trials of the Company's products; the ability to access capital; the ability to attract and retain key personnel; changes in government regulation or regulatory approval processes; dependence on contract research organizations; third party reimbursement; the success of the Company's strategic investments; the achievement of development goals and time frames; the possibility of shareholder dilution; market price volatility of securities; and the existence of significant shareholders. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Cipher Pharmaceuticals Inc.

Financial Statements

For the Three Months Ended March 31, 2013
(Unaudited)

Cipher Pharmaceuticals Inc.
Balance Sheets

As at March 31, 2013 and December 31, 2012
(in thousands of Canadian dollars - unaudited)


		March 31,	December 31,
		2013	2012
		$	$
ASSETS

Current assets
	Cash and cash equivalents	16,518	15,843
	Accounts receivable	5,342	3,185
	Prepaid expenses and other assets	139	212
		21,999	19,240

	Property and equipment, net	25	25

	Intangible assets, net	2,413	2,690

		24,437	21,955

LIABILITIES

Current liabilities
	Accounts payable and accrued liabilities	4,284	2,808
	Current portion of deferred revenue	2,392	2,392
		6,676	5,200

	Deferred revenue	3,751	4,349
		10,427	9,549

SHAREHOLDERS' EQUITY

	Share capital	50,374	50,339
	Contributed surplus	33,295	33,227
	Deficit	(69,659)	(71,160)
		14,010	12,406

		24,437	21,955

Cipher Pharmaceuticals Inc.
Statements of Operations and Comprehensive Income

Three month periods ended March 31, 2013 and 2012
(in thousands of Canadian dollars, except per share data - unaudited)


		March 31,	March 31,
		2013	2012
		$	$

Revenues
	Licensing revenue	3,293	1,811

Expenses
	Research and development	308	471
	Operating, general and administrative	1,262	1,016
	Amortization of intangible assets	277	225
	Interest income	(55)	(26)

		1,792	1,686

Income before income taxes		1,501	125

Provision for (recovery of) income taxes
	Current	398	-
	Deferred	(398)	-

Income and comprehensive income for the period		1,501	125


Basic and diluted earnings per share		0.06	0.01

Cipher Pharmaceuticals Inc.
Statements of Changes in Equity

Three month periods ended March 31, 2013 and 2012
(in thousands of Canadian dollars - unaudited)


				Total
	Share	Contributed		Shareholders'
	Capital	Surplus	Deficit	Equity
	$	$	$	$

Balance, January 1, 2013	50,339	33,227	(71,160)	12,406

Income and comprehensive income for the period	-	-	1,501	1,501

Shares issued under the share purchase plan	35	-	-	35

Share-based compensation - stock option plan	-	68	-	68

Balance, March 31, 2013	50,374	33,295	(69,659)	14,010


Balance, January 1, 2012	50,172	33,032	(73,704)	9,500

Income and comprehensive income for the period	-	-	125	125

Shares issued under the share purchase plan	39	-	-	39

Share-based compensation - stock option plan	-	49	-	49

Balance, March 31, 2012	50,211	33,081	(73,579)	9,713

Cipher Pharmaceuticals Inc.
Statements of Cash Flows

Three month periods ended March 31, 2013 and 2012
(in thousands of Canadian dollars - unaudited)


			March 31,	March 31,
			2013	2012
			$	$
Cash provided by (used in)

Operating activities
	Income for the period		1,501	125
	Items not affecting cash:
		Depreciation of property and equipment	5	7
		Amortization of intangible assets	277	225
		Share-based compensation - share purchase plan	5	6
		Share-based compensation - stock option plan	68	49
			1,856	412

	Changes in non-cash operating items:
		Accounts receivable	(2,157)	(155)
		Prepaid expenses and other assets	73	92
		Accounts payable and accrued liabilities	1,476	300
		Deferred revenue	(598)	(195)

Net cash generated from operating activities			650	454

Investing activities
	Purchase of property and equipment		(5)	(10)

Financing activities
	Proceeds from shares issued under the share purchase plan		30	33


Increase in cash			675	477
Cash and cash equivalents, beginning of period			15,843	9,636

Cash and cash equivalents, end of period			16,518	10,113

Craig Armitage
Investor Relations
The Equicom Group
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@tmxequicom.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Cipher Pharmaceuticals completes Latin American distribution and supply agreement for extended-release tramadol

Mon, 29 Apr 2013 08:00:00 -0400

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, April 29, 2013 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND; OTC: CPHMF) today announced it has entered into a definitive distribution and supply agreement with Tecnofarma International Ltd. ("Tecnofarma") under which Cipher has granted Tecnofarma the exclusive right to market, sell and distribute CIP-TRAMADOL ER in Latin America. Tecnofarma, headquartered in Uruguay, operates in 18 Latin American countries and will launch the product in certain territories, including Brazil and Mexico.

CIP-TRAMADOL ER is a patent-protected, extended-release formulation of tramadol, which is used for the treatment of moderate to moderately severe chronic pain in adults. The product received approval from the U.S. Food and Drug Administration in 2010.

"Completing this agreement demonstrates progress with our strategy to extend the reach of our currently marketed products and generate additional revenue streams," said Larry Andrews, President and Chief Executive Officer of Cipher Pharmaceuticals. "Tecnofarma is a significant player in the region with deep experience in pain management, which positions them well to introduce our extended-release tramadol product in key Latin American markets."

Under the terms of the agreement, Cipher will receive an upfront payment and is eligible for additional milestones based upon regulatory approval in Brazil and Mexico. Cipher will supply product to Tecnofarma. Product manufacturing will be fulfilled by Cipher's partner, Galephar Pharmaceutical Research.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company with three commercial products and a fourth in development. Our product candidates are typically improved formulations of successful, currently marketed drugs. We in-license a product, manage the required clinical development and regulatory approval process, and either out-license it to a marketing partner, or, in Canada, we may choose to market the product ourselves. Our core capabilities are in clinical and regulatory affairs, product licensing, supply chain management, and marketing and sales. Since the Company was founded in 2000, we have achieved final regulatory approval in the U.S. and Canada for all three of our original products and completed six marketing partnerships, generating growing licensing revenue.

Forward-Looking Statements

Craig Armitage
Investor Relations
The Equicom Group
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@tmxequicom.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Notice of Cipher Pharmaceuticals Inc. Q1 2013 Conference Call and 2012 Annual and Special Meeting of Shareholders

Mon, 15 Apr 2013 15:27:00 -0400

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, April 15, 2013 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND; OTC: CPHMF) today announced it will host a conference call for its Q1 2013 financial results and hold its Annual and Special Meeting of Shareholders on Friday, May 3, 2013.

Q1 2013 CONFERENCE CALL

WHEN: Friday, May 3, 2013 at 8:30AM ET

CONFERENCE CALL/WEBCAST: You can join the call by dialing 647-427-7450 or 1-888-231-8191. A live audio webcast will be available through http://www.cipherpharma.com or http://bit.ly/XUdD6c. An archived replay of the webcast will be available for 365 days.

ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

WHEN: Friday, May 3, 2013 at 11:00AM ET

WHERE: Goodmans LLP, Bay Adelaide Centre, 333 Bay Street, Suite 3400, Toronto, Ontario

WEBCAST: The meeting will be webcast live. To access the webcast go to http://www.cipherpharma.com or http://bit.ly/ZN3zX9. Please connect at least 15 minutes prior to the start of the meeting to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 365 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company with three commercial products and a fourth in development. Our product candidates are typically improved formulations of successful, currently marketed drugs. We in-license a product, manage the required clinical development and regulatory approval process, and either out-license it to a marketing partner, or, in Canada, we may choose to market the product ourselves. Our core capabilities are in clinical and regulatory affairs, product licensing, supply chain management, and marketing and sales. Since the Company was founded in 2000, we have achieved final regulatory approval in the U.S. and Canada for all three of our original products and completed five marketing partnerships, generating growing licensing revenue.

Craig Armitage
Investor Relations
TMX Equicom
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@tmxequicom.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Cipher reports record financial results for 2012

Fri, 01 Mar 2013 07:00:00 -0500

- Revenue increases 137%, Company records earnings of $0.10 per share -

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, March 1, 2013 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND; OTC: CPHMF) today announced its financial and operational results for the three and twelve months ended December 31, 2012.

Fiscal 2012 Highlights

Net revenue of $8.5 million, an increase of 137% over 2011; Q4 2012 revenue was a quarterly record $2.9 million.
Net revenue from Lipofen^® increased 110% to $4.6 million.
EBITDA of $3.4 million versus ($1.8) million in 2011.
Net income in 2012 was $2.5 million, or $0.10 per share, compared with a loss of $2.3 million, or ($0.10) per share, in 2011; Q4 2012 net income was $1.5 million, or $0.06 per share.
Cash balance increased to $15.8 million, compared with $15.1 million as at September 30, 2012 and $9.6 million at December 31, 2011.
Cipher's U.S. marketing partner, Ranbaxy Laboratories Inc., launched Absorica^™ in Q4 2012.
Cipher received Health Canada approval for Epuris^™.
Acquired the Canadian license and distribution rights for the Betesil^® Patch, a novel treatment for inflammatory skin conditions such as plaque psoriasis.

"Our financial performance in 2012 was excellent, reflecting the strong growth of Lipofen and early returns from Absorica, which was introduced in the fourth quarter," said Larry Andrews, President and CEO of Cipher. "With a full-year contribution from Absorica, the Canadian launch of the product later this year, and ongoing growth in our other products, we are well positioned to deliver continued revenue gains in 2013. We are also investing to build commercial sales and marketing capabilities in Canada both to support the Epuris launch as well as future products we plan to in-license for the Canadian market."

Financial Review and Outlook

Net revenue for 2012 was $8.5 million, an increase of 137% compared with $3.6 million in 2011. The year-over-year change reflects the strong performance of Lipofen^®, including an increase in product shipments and the achievement of a $1.0 million sales milestone. In addition, 2012 revenue reflects the additions of Absorica^™ (launched in Q4 2012) and Durela^®(launched in late Q1 2012). Net revenue from Lipofen^® increased to $4.6 million during 2012, compared with $2.4 million in 2011. Net revenue from the Company's extended release tramadol product (ConZip^®/Durela^®) was $1.4 million in 2012, compared with $0.8 million in 2011. Absorica^ä contributed $2.6 million of net revenue, compared with $0.6 million in 2011, reflecting strong product sales in Q4 2012 associated with the U.S. launch.

Research and Development (R&D) expense decreased during 2012 to $1.5 million, compared with $2.2 million in 2011. Operating, General and Administrative ("OG&A") expenses for 2012 were $3.5 million, compared to $3.2 million in 2011.

Net income in 2012 grew to $2.5 million, or $0.10 per share, compared with a net loss of $2.3 million, or ($0.10) per share, in 2011.

In Q4 2012, Cipher recorded net revenue of $2.9 million, compared with $1.0 million in Q4 2011. Net income for the three months ended December 31, 2012 was $1.5 million, or $0.06 per share, compared with a net loss of $0.5 million, or ($0.02) per share, in the same period last year.

The Company's cash position increased at year end. As at December 31, 2012, Cipher had cash and cash equivalents of $15.8 million, compared with $15.1 million as at September 30, 2012 and $9.6 million at December 31, 2011.

For fiscal 2013, Cipher expects continued revenue growth from its currently marketed products and the introduction of Epuris^™ in Canada during the second half of 2013. In particular, the Company expects the full-year contribution of Absorica^™ to be a primary revenue driver. In 2013, Cipher will be investing in commercial sales and marketing capabilities in Canada. The Company expects an increase in operating expenses of approximately $2.5 million to $3.0 million related to the launch of Epuris^™ in Canada and to support other growth initiatives. In addition to one-time launch costs associated with marketing promotion and market access for Epuris^™, the Company plans to deploy a 6 to 8 person field sales force in the second half of 2013. The Company expects the revenue growth in 2013 to fund the build of its commercial infrastructure.

Product Update

CIP-ISOTRETINOIN (Absorica^™/Epuris^™)
In November 2012, Ranbaxy Laboratories Inc., Cipher's U.S. partner, launched Absorica^™. The combination of initial royalty revenue and the load-in of finished product inventory to support this launch resulted in very strong net revenue from the product during Q4 2012. Revenue from Absorica^™ was $2.6 million in 2012, compared to $0.6 million in 2011.

The product was also approved by Health Canada in Q4 2012 under the trade name Epuris^™. The Company is preparing to launch Epuris^™ by Q3-2013 and has commenced pre-commercial activities.

Lipofen^®
During 2012, Kowa's promotional effort resulted in Lipofen^® monthly prescriptions and sales increasing significantly. Cipher's net revenue increased 110% over 2011 to $4.6 million. During 2012, Cipher achieved another contractual sales goal for the product and as a result, the royalty percentage for Lipofen^® increased by three percentage points. This change was retroactive to October 2011 and resulted in a one-time catch-up payment which was recorded in Q3 2012.

CIP-TRAMADOL ER (ConZip^®/Durela^®)
Cipher's extended-release tramadol was launched in the U.S. by Vertical Pharmaceuticals in September 2011 under the trade name ConZip^®. Vertical's dedicated sales force comprises approximately 60 representatives. In Canada, Medical Futures launched the product in March 2012 under the trade name Durela^®, with a dedicated sales force comprising 22 representatives. Net revenue from these products was $1.3 million in 2012, compared with $0.8 million in 2011. Subsequent to year end, Vertical expanded its sales force to 75 representatives.

Cipher is actively pursuing marketing partners for CIP-TRAMADOL ER in other territories, including Latin America.

Other Products
In Q3 2012, Cipher obtained exclusive license and distribution rights in Canada to market the Betesil^® Patch, a novel, patent-protected, self-adhesive medicated plaster for the treatment of inflammatory skin conditions such as plaque psoriasis. The efficacy and safety of the Betesil^® Patch has been established in three successful phase III trials, and the product is currently marketed in several European countries. Cipher is currently in discussions with Health Canada regarding the requirements of a New Drug Submission for the product.

Cipher plans to license in and/or acquire other products, with an emphasis on late-stage to commercial-stage product candidates in specialty markets for Canada, where the Company can leverage its sales and marketing capabilities.

Notice of Conference Call

Cipher will hold a conference call today, March 1, 2013, at 8:30 a.m (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. A live audio webcast of the call will be available at www.cipherpharma.com. The webcast will be archived for 90 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's first product is a fenofibrate formulation marketed in the United States as Lipofen^®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip^® and in Canada as Durela^®. Cipher's third product, a novel formulation of the acne treatment isotretinoin, was approved by the FDA in May 2012 and launched in the United States in Q4 2012 as Absorica^™. The product was also recently approved by Health Canada and Cipher expects to launch it as Epuris^™ in Canada by Q3 2013.

Forward-Looking Statements

Cipher Pharmaceuticals Inc.

Financial Statements

For the Year Ended December 31, 2012


Cipher Pharmaceuticals Inc.
Balance Sheets

As at December 31, 2012 and December 31, 2011
(in thousands of Canadian dollars)

		December 31,	December 31,
		2012	2011
		$	$
ASSETS

Current assets
	Cash and cash equivalents	15,843	9,636
	Accounts receivable	3,185	1,782
	Prepaid expenses and other assets	212	272
		19,240	11,690

	Property and equipment, net	25	25

	Intangible assets, net	2,690	2,944

		21,955	14,659
LIABILITIES

Current liabilities
	Accounts payable and accrued liabilities	2,808	1,912
	Current portion of deferred revenue	2,392	917
		5,200	2,829

	Deferred revenue	4,349	2,330
		9,549	5,159

SHAREHOLDERS' EQUITY

	Share capital	50,339	50,172
	Contributed surplus	33,227	33,032
	Deficit	(71,160)	(73,704)
		12,406	9,500

		21,955	14,659



Cipher Pharmaceuticals Inc.
Statements of Operations and Comprehensive Income (Loss)

For the years ended December 31, 2012 and 2011
(in thousands of Canadian dollars, except per share data)

		December 31,	December 31,
		2012	2011
		$	$

Revenues
	Licensing revenue	8,458	3,569

Expenses
	Research and development	1,517	2,205
	Operating, general and administrative	3,527	3,186
	Amortization of intangible assets	1,025	578
	Interest income	(155)	(89)

		5,914	5,880

Income (loss) before income taxes		2,544	(2,311)

Provision for (recovery of) income taxes
	Current	770	-
	Deferred	(770)	-

Income (loss) and comprehensive income (loss) for the year		2,544	(2,311)

Basic and diluted earnings (loss) per share		0.10	(0.10)



Cipher Pharmaceuticals Inc.
Statements of Changes in Equity

For the years ended December 31, 2012 and 2011
(in thousands of Canadian dollars)

	Share Capital	Contributed Surplus	Deficit	Total Shareholders' Equity
	$	$	$	$

Balance, January 1, 2012	50,172	33,032	(73,704)	9,500

Income and comprehensive income for the year	-	-	2,544	2,544

Exercise of stock options	8	(8)	-	-

Shares issued under the share purchase plan	159	-	-	159

Share-based compensation - stock option plan	-	203	-	203

Balance, December 31, 2012	50,339	33,227	(71,160)	12,406

Balance, January 1, 2011	49,977	32,890	(71,393)	11,474

Loss and comprehensive loss for the year	-	-	(2,311)	(2,311)

Exercise of stock options	90	(43)	-	47

Shares issued under the share purchase plan	105	-	-	105

Share-based compensation - stock option plan	-	185	-	185

Balance, December 31, 2011	50,172	33,032	(73,704)	9,500



Cipher Pharmaceuticals Inc.
Statements of Cash Flows

For the years ended December 31, 2012 and 2011
(in thousands of Canadian dollars)

			December 31,	December 31,
			2012	2011
			$	$
Cash provided by (used in)

Operating activities
	Income (loss) for the year		2,544	(2,311)
	Items not affecting cash:
		Depreciation of property and equipment	20	37
		Amortization of intangible assets	1,025	578
		Share-based compensation - share purchase plan	24	16
		Share-based compensation - stock option plan	203	185
			3,816	(1,495)

	Changes in non-cash operating items:
		Accounts receivable	(1,403)	26
		Prepaid expenses and other assets	60	193
		Accounts payable and accrued liabilities	896	(528)
		Deferred revenue	3,494	988

Net cash generated from (used in) operating activities			6,863	(816)

Investing activities
	Purchase of property and equipment		(20)	(12)
	Acquisition of intangible rights		(771)	-

Net cash generated from (used in) investing activities			(791)	(12)

Financing activities
	Proceeds from shares issued under the share purchase plan		135	89
	Proceeds from exercise of stock options		-	47

Net cash generated from (used in) financing activities			135	136

Increase (Decrease) in cash			6,207	(692)
Cash, beginning of year			9,636	10,328

Cash, end of year			15,843	9,636

Notice of Cipher Pharmaceuticals Inc. Q4 and Year-End 2012 Conference Call

Thu, 21 Feb 2013 09:00:00 -0500

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, Feb. 21, 2013 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND) (OTC: CPHMF), today announced it will host a conference call for its Q4 and Year-End 2012 financial results on Friday, March 1, 2013.

Q4 AND YEAR-END 2012 CONFERENCE CALL

WHEN: Friday, March 1, 2013 at 8:30AM ET

CONFERENCE CALL/WEBCAST: You can join the call by dialing 647-427-7450 or 1-888-231-8191. A live audio webcast will be available through http://www.cipherpharma.com or http://www.newswire.ca. An archived replay of the webcast will be available for 365 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's strategy is to in-license clearly differentiated products, advance them through the clinical development and regulatory approval stages, and out-license to international marketing partners. Cipher's first product is a fenofibrate formulation marketed in the United States as Lipofen®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip® and in Canada as Durela®. Cipher's third product, a novel formulation of the acne treatment isotretinoin, was approved by the FDA in May 2012 and launched in the United States in Q4 2012 as Absorica™. The product was also recently approved by Health Canada and Cipher expects to launch it as Epuris™ in Canada in early Q3 2013.

For more information, please visit www.cipherpharma.com.

Craig Armitage
Investor Relations
TMX Equicom
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@tmxequicom.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Cipher Pharmaceuticals to present at Biotech Showcase™ 2013

Thu, 03 Jan 2013 09:00:00 -0500

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, Jan. 3, 2013 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND) (OTC: CPHMF), announced today that Larry Andrews, President and Chief Executive Officer, is presenting at Biotech Showcase™ 2013, which is being held in San Francisco at the Wyndham Parc 55 Hotel at Union Square. Mr. Andrews will provide a corporate update on Monday, January 7, 2013 at 1:45 PM PST in the Powell Room, followed immediately by Q&A breakout session in the Balboa Room.

To learn more about Biotech Showcase™ 2013 please visit their website http://bit.ly/134duey

Cipher's presentation will be available on their website www.cipherpharma.com.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's strategy is to in-license clearly differentiated products, advance them through the clinical development and regulatory approval stages, and out-license to international marketing partners. Cipher's first product is a fenofibrate formulation marketed in the United States as Lipofen®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip® and in Canada as Durela®. Cipher's third product, a novel formulation of the acne treatment isotretinoin, was approved by the FDA in May and was launched in the United States in Q4 2012 as Absorica™. The product was also recently approved by Health Canada and Cipher expects to launch it as Epuris™ in Canada in Q2 2013.

For more information, please visit www.cipherpharma.com.

Craig Armitage
Investor Relations
The Equicom Group
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@equicomgroup.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Cipher's partner launches Absorica™ (isotretinoin) capsules in U.S. market

Mon, 26 Nov 2012 08:30:00 -0500

- Novel product provides valuable new treatment option for severe recalcitrant nodular acne -

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, Nov. 26, 2012 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND; OTC: CPHMF) ("Cipher") today announced that its partner, Ranbaxy Laboratories Inc. ("Ranbaxy"), has begun the sales and promotion of Absorica™, Cipher's novel, patented, brand formulation of the acne medication isotretinoin for the treatment of severe recalcitrant nodular acne.

"The launch of Absorica, our third commercial product, represents a major milestone for Cipher and we look forward to its successful introduction and growth in the U.S. market," said Larry Andrews, President and CEO of Cipher.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's strategy is to in-license clearly differentiated products, advance them through the clinical development and regulatory approval stages, and out-license to international marketing partners. The Company's first product is a fenofibrate formulation marketed in the United States as Lipofen®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip® and in Canada as Durela®. Cipher's third product, a novel formulation of the acne treatment isotretinoin, was recently introduced to the U.S. market under the trade name Absorica™. For more information, please visit www.cipherpharma.com.

Forward-Looking Statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Company's Annual Information Form and other filings with Canadian securities regulatory authorities. These factors include, but are not limited to losses; the applicability of patents and proprietary technology; possible patent litigation; approval of products in the Company's pipeline; marketing of products; meeting projected drug development timelines and goals; product liability and insurance; dependence on strategic partnerships and licensees; concentration of the Company's revenue; substantial competition and rapid technological change in the pharmaceutical industry; the publication of negative results of clinical trials of the Company's products; the ability to access capital; the ability to attract and retain key personnel; changes in government regulation or regulatory approval processes; dependence on contract research organizations; third party reimbursement; the success of the Company's strategic investments; the achievement of development goals and time frames; the possibility of shareholder dilution; market price volatility of securities; and the existence of significant shareholders. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Craig Armitage
Investor Relations
The Equicom Group
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@equicomgroup.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Cipher Pharmaceuticals Announces Health Canada Approval of CIP-Isotretinoin

Tue, 20 Nov 2012 08:23:00 -0500

Product to be launched as Epuris™

Toronto Stock Exchange Symbol: DND

MISSISSAUGA, ON, Nov. 20, 2012 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND; OTC: CPHMF) announced today that Health Canada has approved the Company's New Drug Submission (NDS) for Epuris™, Cipher's novel, brand formulation of the acne medication isotretinoin, for the treatment of severe acne. Cipher expects to launch Epuris™ in Canada in Q2 2013.

Epuris™ is indicated for the treatment of severe, recalcitrant, nodular acne in patients 12 years of age and older. The product is available by prescription and is administered orally, once or twice daily, for a treatment period of approximately five months. Compared to the other currently available isotretinoin products (including the brand original, Accutane^®, distributed by Hoffman- La Roche Ltd.), Epuris™ provides more reliable absorption under varying dietary conditions. While the rate and the extent of absorption of Epuris™ is equivalent to Accutane^® under high-fat, fed conditions, Epuris™ is 83% more bioavailable than Accutane^® when taken without food.

"We are pleased to make Epuris™ available as a valuable option to Canadian dermatologists and patients who require treatment for severe recalcitrant nodular acne," said Larry Andrews, President and CEO of Cipher. "The approval of Epuris™ is a critical milestone in our plans to create a commercial presence in dermatology and other specialty markets in Canada. Pre-commercial activities have commenced, including the addition, in the coming months, of a specialized dermatology sales and marketing team in preparation for the launch in Q2 2013."

Acne affects more than five million Canadians¹, with 80 per cent of those between the ages of 12 and 24². Although acne is most commonly seen as a stage of puberty, it can also begin in adulthood, with 75 per cent of adult acne occurring in women². For severe nodular acne, isotretinoin is the most commonly prescribed medication, with a market size of approximately $15 million in sales in Canada.

About Cipher Pharmaceuticals Inc.
Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's strategy is to in-license clearly differentiated products, advance them through the clinical development and regulatory approval stages, and out-license to international marketing partners. The Company's first product is a fenofibrate formulation marketed in the United States as Lipofen®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip® and in Canada as Durela®. Cipher's third product, a novel formulation of the acne treatment isotretinoin, was recently introduced to the U.S. market under the trade name Absorica™ and will be launched inCanada in 2013 as Epuris™. For more information, please visit www.cipherpharma.com.

(1)(2) Source: Canadian Dermatology Association. Acne Brochure: Quick facts about acne.
http://www.dermatology.ca/wp-content/uploads/2012/01/Teen-Acne2009EN.pdf

Forward-Looking Statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Company's Annual Information Form and other filings with Canadian securities regulatory authorities. These factors include, but are not limited to losses; the applicability of patents and proprietary technology; possible patent litigation; approval of products in the Company's pipeline; marketing of products; meeting projected drug development timelines and goals; product liability and insurance; dependence on strategic partnerships and licensees; concentration of the Company's revenue; substantial competition and rapid technological change in the pharmaceutical industry; the publication of negative results of clinical trials of the Company's products; the ability to access capital; the ability to attract and retain key personnel; changes in government regulation or regulatory approval processes; dependence on contract research organizations; third party reimbursement; the success of the Company's strategic investments; the achievement of development goals and time frames; the possibility of shareholder dilution; market price volatility of securities; and the existence of significant shareholders. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Cipher Reports Strong Q3 2012 Financial Results

Wed, 24 Oct 2012 07:00:00 -0400

- Results highlighted by strong revenue and earnings growth -

MISSISSAUGA, ON, Oct. 24, 2012 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND) (OTC: CPHMF) today announced its financial and operational results for the three months ended September 30, 2012 ("Q3 2012").

Q3 2012 Summary

Achieved quarterly net revenue of $2.1 million, an 89% increase over Q3 2011.
EBITDA of $1.0 million versus nil in Q3 2011.
Net income in Q3 2012 was $0.8 million, compared with a loss of $0.2 million in Q3 2011.
Cash balance increased to $15.1 million, compared with $14.4 million as at June 30, 2012 and $9.6 million at December 31, 2011.
Acquired the Canadian license and distribution rights for the Betesil^® Patch, a novel treatment for inflammatory skin conditions such as plaque psoriasis.

"Strong third-quarter revenues combined with consistent expense levels year over year allowed us to achieve substantially higher earnings and strengthened our cash balance," said Larry Andrews, President and CEO of Cipher. "The near-term launch of Absorica in the U.S., our highest-potential product to date, positions us well for the balance of 2012 and for continued strong revenue growth in 2013."

Financial Review

Net revenue in Q3 2012 was $2.1 million, an increase of 89% compared with $1.1 million in Q3 2011. Net revenue from Lipofen® increased to $1.3 million during Q3 2012, compared with $0.5 million in Q3 2011. Net revenue from ConZip® was $0.3 million in Q3 2012, compared with $0.5 million in Q3 2011. ConZip® revenue was higher in the prior year as a result of the impact of initial shipments to support the product's launch in Q3 2011. Revenue from Durela® was not significant during Q3 2012 as the product was only launched in mid-March 2012. Absoricaä contributed $0.5 million of net revenue, compared with $0.1 million in Q3 2011, reflecting recognition of a portion of milestone payments received to date.

Research and Development expense decreased during Q3 2012 to $0.3 million, compared with $0.5 million in Q3 2011. Operating, General and Administrative expenses for Q3 2012 were $0.8 million, compared to $0.7 million in Q3 2011. Net income in Q3 2012 was $0.8 million, or $0.03 per share, compared with a net loss of $0.2 million, or $0.01 per share, in Q3 2011.

The Company's cash position increased at quarter end. As at September 30, 2012, Cipher had cash and cash equivalents of $15.1 million, compared with $14.4 million as at June 30, 2012 and $9.6 million at December 31, 2011.

Product Update

Lipofen®
During Q3 2012, Kowa's promotional effort resulted in Lipofen® monthly prescriptions and sales increasing significantly as reflected in an 89% increase in Cipher's net revenue over Q3 2011. During Q3 2012, Cipher achieved another contractual sales goal for the product and as a result, the royalty percentage for Lipofen increased by three percentage points. This change was retroactive to October 2011 and resulted in a one-time catch-up payment which was recorded in Q3 2012.

CIP-TRAMADOL ER (ConZip®/Durela®)
Cipher's extended-release tramadol for the treatment of moderate to moderately severe chronic pain, was launched in the U.S. by Vertical Pharmaceuticals in September 2011 under the trade name ConZip®. Vertical's dedicated sales force comprises approximately 60 representatives.

In Canada, Medical Futures launched the product in March 2012 under the trade name Durela®, with a dedicated sales force comprising 22 representatives.

With CIP-TRAMADOL ER's best-in-class product attributes, Cipher is optimistic revenues will grow in the coming quarters in both the U.S. and Canada.

In addition, Cipher is actively pursuing out-licensing discussions for CIP-TRAMADOL ER in other territories, including Latin America.

CIP-ISOTRETINOIN (Absorica™)
During Q3 2012, Cipher and its U.S. partner, Ranbaxy Pharmaceuticals, continued with pre-commercial activities, including commercial batch manufacturing and marketing planning, in anticipation of a product launch in Q4 2012. Cipher is responsible for supplying Ranbaxy with commercial product.

Cipher completed a New Drug Submission to Health Canada in Q4 2011. This has been accepted for review, with a response from Health Canada expected by Q1 2013. Once approved, the Company plans to market the product in Canada on its own.

In addition, Cipher is actively pursuing out-licensing discussions for CIP-ISOTRETINOIN in other territories, including Latin America.

New Products
In Q3 2012, Cipher obtained exclusive license and distribution rights in Canada to market the Betesil^® Patch, a novel, patent-protected, self-adhesive medicated plaster for the treatment of inflammatory skin conditions such as plaque psoriasis. Based on initial feedback from Canadian dermatologists, the Betesil^® Patch is expected to provide distinct advantages over existing treatment options, particularly for patients who suffer from plaque psoriasis in hard to treat areas such as knees and elbows. The efficacy and safety of the Betesil^® Patch has been established in three successful phase III trials, and the product is currently marketed in several European countries. Cipher intends to initiate the regulatory review process in Canada in Q4 of this year.

The Company is seeking other late-stage to commercial-stage product candidates to complement its Canadian commercialization plans for CIP-ISOTRETINOIN and the Betesil^® Patch.

Notice of Conference Call

Cipher will hold a conference call today, October 24, 2012, at 8:30 a.m (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. A live audio webcast of the call will be available at www.cipherpharma.com. The webcast will be archived for 90 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's strategy is to in-license clearly differentiated products, advance them through the clinical development and regulatory approval stages, and out-license to international marketing partners. The Company's first product is a fenofibrate formulation marketed in the United States as Lipofen®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip® and in Canada as Durela®. Cipher's third product, a novel formulation of the acne treatment isotretinoin, was recently approved by the FDA and is expected to be launched in Q4 2012 as Absorica™. The product is also currently being reviewed by Health Canada. For more information, please visit www.cipherpharma.com.

Forward-Looking Statements

Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in the Company's Annual Information Form and other filings with Canadian securities regulatory authorities. These factors include, but are not limited to losses; the applicability of patents and proprietary technology; possible patent litigation; approval of products in the Company's pipeline; marketing of products; meeting projected drug development timelines and goals; product liability and insurance; dependence on strategic partnerships and licensees; concentration of the Company's revenue; substantial competition and rapid technological change in the pharmaceutical industry; the publication of negative results of clinical trials of the Company's products; the ability to access capital; the ability to attract and retain key personnel; changes in government regulation or regulatory approval processes; dependence on contract research organizations; third party reimbursement; the success of the Company's strategic investments; the achievement of development goals and time frames; the possibility of shareholder dilution; market price volatility of securities; and the existence of significant shareholders. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities laws, the Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Cipher Pharmaceuticals Inc.

Financial Statements

For the Nine Months Ended September 30, 2012
(Unaudited)

Cipher Pharmaceuticals Inc. Balance Sheets

As at September 30, 2012 and December 31, 2011
(in thousands of Canadian dollars - unaudited)


		September 30,	December 31,
		2012	2011
		$	$
ASSETS

Current assets
	Cash and cash equivalents	15,081	9,636
	Accounts receivable	2,757	1,782
	Prepaid expenses and other assets	102	272
		17,940	11,690

	Property and equipment, net	21	25

	Intangible assets, net	2,968	2,944
		20,929	14,659

LIABILITIES

Current liabilities
	Accounts payable and accrued liabilities	2,810	1,912
	Current portion of deferred revenue	2,318	917
		5,128	2,829

	Deferred revenue	4,947	2,330
		10,075	5,159

SHAREHOLDERS' EQUITY

	Share capital	50,294	50,172
	Contributed surplus	33,175	33,032
	Deficit	(72,615)	(73,704)
		10,854	9,500

		20,929	14,659

Cipher Pharmaceuticals Inc.
Statements of Operations and Comprehensive Income (Loss)

Three and nine month periods ended September 30, 2012 and 2011
(in thousands of Canadian dollars, except per share data - unaudited)


		Three months		Nine months
		September 30,	September 30,		September 30,	September 30,
		2012	2011		2012	2011
		$	$		$	$

Revenues
	Licensing revenue	2,118	1,120		5,558	2,522

Expenses
	Research and development	335	468		1,154	1,593
	Operating, general and administrative	799	667		2,676	2,462
	Amortization of intangible assets	277	234		747	353
	Interest income	(47)	(22)		(108)	(65)

		1,364	1,347		4,469	4,343

Income (loss) before income taxes		754	(227)		1,089	(1,821)

Provision for (recovery of) income taxes
	Current	225	-		352	-
	Deferred	(225)	-		(352)	-

Income (loss) and comprehensive income (loss) for the period		754	(227)		1,089	(1,821)


Basic and diluted earnings (loss) per share		0.03	(0.01)		0.04	(0.08)

Cipher Pharmaceuticals Inc.
Statements of Changes in Equity

Nine month periods ended September 30, 2012 and 2011
(in thousands of Canadian dollars - unaudited)


	Share Capital	Contributed Surplus	Deficit	Total Shareholders' Equity
	$	$	$	$

Balance, January 1, 2012	50,172	33,032	(73,704)	9,500

Income and comprehensive income for the period	-	-	1,089	1,089

Exercise of stock options	8	(8)	-	-

Shares issued under the share purchase plan	114	-	-	114

Share-based compensation - stock option plan	-	151	-	151


Balance, September 30, 2012	50,294	33,175	(72,615)	10,854


Balance, January 1, 2011	49,977	32,890	(71,393)	11,474

Loss and comprehensive loss for the period	-	-	(1,821)	(1,821)

Exercise of stock options	90	(43)	-	47

Shares issued under the share purchase plan	66	-	-	66

Share-based compensation - stock option plan	-	134	-	134

Balance, September 30, 2011	50,133	32,981	(73,214)	9,900

Cipher Pharmaceuticals Inc.
Statements of Cash Flows

Three and nine month periods ended September 30, 2012 and 2011
(in thousands of Canadian dollars - unaudited)


			Three months		Nine months
			September 30,	September 30,	September 30,	September 30,
			2012	2011	2012	2011
			$	$	$	$

Cash provided by (used in)

Operating activities
	Income (loss) for the period		754	(227)	1,089	(1,821)
	Items not affecting cash:
		Depreciation of property and equipment	3	8	16	29
		Amortization of intangible assets	277	234	747	353
		Share-based compensation - share purchase plan	6	10	17	10
		Share-based compensation - stock option plan	51	53	151	134
	1,091			78	2,020	(1,295)

	Changes in non-cash operating items:
		Accounts receivable	(417)	(874)	(975)	(896)
		Prepaid expenses and other assets	(27)	117	170	375
		Accounts payable and accrued liabilities	795	784	898	173
		Deferred revenue	(698)	507	4,018	459

Net cash generated from (used in) operating activities			744	612	6,131	(1,184)

Investing activities
	Purchase of property and equipment		-	(6)	(12)	(12)
	Acquisition of intangible rights		(100)	-	(771)	-

Net cash generated from (used in) investing activities			(100)	(6)	(783)	(12)

Financing activities
	Proceeds from shares issued under the share purchase plan		34	56	97	56
	Proceeds from exercise of stock options		-	-	-	47

Net cash generated from (used in) financing activities			34	56	97	103


Increase (Decrease) in cash and cash equivalents			678	662	5,445	(1,093)
Cash and cash equivalents, beginning of period			14,403	8,573	9,636	10,328

Cash and cash equivalents, end of period			15,081	9,235	15,081	9,235

please contact:

Craig Armitage
Investor Relations
The Equicom Group
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@equicomgroup.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com

Notice of Cipher Pharmaceuticals Inc. Q3 2012 Conference Call

Thu, 04 Oct 2012 08:30:00 -0400

MISSISSAUGA, ON, Oct. 4, 2012 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: DND; OTC: CPHMF) today announced it will host a conference call for its Q3 2012 financial results on Wednesday, October 24, 2012 at 8:30AM ET.

Q3 2012 CONFERENCE CALL

WHEN: Wednesday, October 24, 2012 at 8:30AM ET

CONFERENCE CALL/WEBCAST: You can join the call by dialing 647-427-7450 or 1-888-231-8191. A live audio webcast will be available through http://www.cipherpharma.com or http://www.newswire.ca. An archived replay of the webcast will be available for 365 days.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: DND; OTC: CPHMF) is a growing specialty pharmaceutical company that commercializes novel formulations of successful, currently marketed molecules. Cipher's strategy is to in-license clearly differentiated products, advance them through the clinical development and regulatory approval stages, and out-license to international marketing partners. The Company's first product is a fenofibrate formulation marketed in the United States as Lipofen®. Cipher's second product, an extended-release tramadol, is marketed in the United States as ConZip® and is marketed in Canada as Durela® Cipher's third product, a novel formulation of the acne treatment isotretinoin, was recently approved by the FDA and is expected to be launched in Q4 2012 as Absorica™. The product is also currently being reviewed by Health Canada. For more information, please visitwww.cipherpharma.com.

Craig Armitage
Investor Relations
The Equicom Group
(416) 815-0700 ext 278
(416) 815-0080 fax
carmitage@equicomgroup.com

Larry Andrews
President and CEO
Cipher Pharmaceuticals
(905) 602-5840 ext 324
(905) 602-0628 fax
landrews@cipherpharma.com