NASDAQ: CPHR

TSX: CPH

Investor Presentation

October 2015

Forward-looking Statements

Statements made in this news release 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, Form 40-F

and other filings with Canadian and U.S. securities regulatory authorities. These factors include, but are not limited to our ability to enter into in-

licensing, development, manufacturing and marketing and distribution agreements with other pharmaceutical companies and keep such agreements

in effect; our dependency on three products; integration difficulties and other risks if we acquire or in-license technologies or product candidates;

reliance on third parties for the marketing of our products; the product approval process is highly unpredictable; the timing of completion of clinical

trials; reliance on third parties to manufacture our products; we may be subject to product liability claims; unexpected product safety or efficacy

concerns may arise; generate revenue from a limited number of distribution and supply agreements; the pharmaceutical industry is highly

competitive; requirements for additional capital to fund future operations; dependence on key managerial personnel and external collaborators; no

assurance that we will receive regulatory approvals in the U.S., Canada or any other jurisdictions; limitations on reimbursement in the healthcare

industry; limited reimbursement for products by government authorities and third-party payor policies; various laws pertaining to health care fraud

and abuse; reliance on the success of strategic investments and partnerships; the publication of negative results of clinical trials; unpredictable

development goals and projected time frames; rising insurance costs; ability to enforce covenants not to compete; risks associated with the industry

in which it operates; foreign currency risk; the potential violation of intellectual property rights of third parties; our efforts to obtain, protect or enforce

our patents and other intellectual property rights related to our products; changes in U.S., Canadian or foreign patent law; litigation in the

pharmaceutical industry concerning the manufacture and supply of novel versions of existing drugs that are the subject of conflicting patent rights;

inability to protect our trademarks from infringement; shareholders may be further diluted; volatility of our share price; a significant shareholder; we

do not currently intend to pay dividends; and our operating results may fluctuate significantly; we may be unsuccessful in evaluating material risks

involved in complete and future acquisitions; we may be unable to identify, acquire or integrate acquisition targets successfully; operations in the

U.S.; and inability to meet covenants on our credit facilities. All forward-looking statements presented herein should be considered in conjunction

with such filings. Except as required by Canadian or U.S. securities laws, the Company does not undertake to update any forward-looking

statements; such statements speak only as of the date made.

2

5 by 5 Growth Strategy

3

Value Creation

Next 5 years - by 2020

1. North American product portfolio by 5 products,

2. Launch two new first-to-the-market products

3. Grow Canadian Dermatological business to $50 Million

4. Grow our US Derm business to $ 250 Million

5. Grow our Royalty stream to $ 50 Million

….Accelerates EBITDA

Executing on Our Strategy

4

3-Pronged Approach to Value Creation

CANADA

Derm Focus

Transformative

Efficient Technology

USA M&A

Derm Focus

Acquisitions: Accretivein 2 years

Licensing: Cash flow 2 years; NPV 5 years

Low Cost Acqusitions

Long Term Value

Drivers

Acquisitions: Accretivein 2 years

Licensing: Cash flow 2 years; NPV 5 years

Providing

innovative

solutions for

patients with

skin conditions

Cipher Pharmaceuticals

• Specialty pharmaceutical dermatology growth company with a diversified and growing revenue streams

• Robust portfolio of commercial and late-stage products

• Established North American commercial presence

• Active M&A and product acquisition activity, supplemented by in-licensing

• Management team with proven track record of commercial and regulatory success

• 10 Consecutive quarterly and last 3 years record earnings, revenue, EBITDA & CA$H

Top Performing TSX Stock 2012 to 2014

5

h

Market Facts

6

Cipher Pharmaceuticals Inc.

Ticker / ListingCPH (TSX)

CPHR (NASDAQ)

Market Cap ~$128.7 million @ $4.95 (September 30, 2015)

Shares O/S 26.0 million

52-Week Price Range $ 4.77 - $ 19.52 Cdn

Headquarters Mississauga, Ontario

Management Board of DirectorsShawn Patrick O’Brien

President and CEO

Norman Evans, C.A.

CFO

Joan Chypyha

GM & President, Cipher Canada

Linda Angaritis

VP, Global Regulatory Compliance

and Quality

Louise Blythe

VP, Regulatory Affairs

Lynne Bulger

VP, Medical & Clinical Affairs

Lorne Markowitz

VP, Marketing & Sales

Brian Rosenberger

VP, Alliance & Portfolio Management

Peter Weiler

VP, Business Development

Gerald McDole (Chair)

Stefan Aigner

William Claypool

John Mull

Thomas Wellner

Stephen Wiseman

Senior Management & Board

7

Cipher USJoe Pecora

President & GM, USA

Mark Spina

SVP of Finance & Treasury

Elizabeth Prout

VP of Finance & HR

Chuck Jenkins

VP of Marketing

Daniel Ward

Medical Director

Mark Reed

Director of Sales

Art Waite

Director of Operations

Our Core Competencies

• North American sales &

marketing (US & Canada)

• Customer focus

• Commercial partnerships

• In-licensing / M&A

• Clinical Development

• Regulatory Affairs

• Supply chain management

8

54 Clinical trials

6 New Drug Applications

14 Licensing partners

6 Final FDA/Health

Canada approvals

12 Product revenue

streams

Efficient Drug Developer > 18X sales to R&D Invested

Execution of Company Strategy

Adds US Commercial Platform

Strengthens Access to Capital

Transaction Rationale

• Provides infrastructure to launch North American products• 31 reps covering 28 states across the U.S.

• Partnership with leading specialty pharma financier• Proceeds will finance Innocutis and future BD activities

• Establishes commercial presence in the U.S.

+

Entrance into U.S. Commercial Dermatology Market

9

Product Portfolio

• Fully integrated US

pharmaceutical company

focused on dermatology

• Seven marketed products

• Experienced team with 50

employees including 31 sales

reps

Overview

Product Indication

Recurrent Herpes Labialis

Nail Dystrophy

Dermal Ulcers

Acne

Onychomycosis

Keratosis

Hyperpigmentation

10

BenefitOnly treatment proven to reduce the occurrence of future

outbreaks

Territory North America

Patent status Three patents with expiration in 2027 and 2030

Commercial status U.S. launch Q3 2014

Canadian approval: Expected in 2016

11

1Leveraging Sitavig’s clinical benefit with clear messages to

prescribing dermatologists through direct sales calls and

customer education

2

Direct-to-patient promotion to build awareness of Sitavig’s

superior clinical performance

• 30,000 Sitavig flyers dispensed to 18,000 unique cold

sore sufferers in six weeks

• Dramatic increase in online searches, website “hits” and

co-pay card redemptions

3Implementation of managed care program that leverages

Sitavig’s superior clinical performance and the value to both

patients and payors

12

Sitavig® Growth Strategy

Immediate impact on Sitavig prescriptions

464

680

759

675 682

594565

591

644

554 552

717

74

460

658

720616

578

516490

508

555

459 445

552

0

100

200

300

400

500

600

700

800

900

1000

TRx

SITAVIG - Sum of TRx Count SITAVIG - Sum of NRx Count

Sitavig® Growth Strategy Already Driving Scripts

July:

30%

vs June

13

Expanded Product Portfolio

14

Dermatology Products Other Products

Dermadexin™ (CE Mark)

Seborrheic dermatitis

Pruridexin™ (in EU reg.)

Chronic pruritis

ASF-1096 (Phase-2 )

Discoid lupus erythematosus

Sitavig®

Recurrent Herpes Labialis

Nuvail™

Nail Dystrophy

Bionect®

Dermal Ulcers

Inova®

Acne

CLN8™

Mild/Moderate Onychomycosis

Umecta ®

Keratosis

Aclaro™

Hyperpigmentation

Ozenoxacin (2nd Phase-3 ongoing)

Impetigo

Nanolipolee (pre-IND)

Melanoma

Absorica™/ Epuris®

Severe nodular acne

Beteflam® (In Canadian reg.)

Plaque psoriasis

Lipofen ®

High cholesterol

ConZip ® /Durela ®

Once-daily treatment of moderately

severe pain

31 US and 7 Canadian Sales Reps

CF101 (Phase 3)

Severe plaque psoriasis &

rheumatoid arthritis

Vaniqa®

Enzyme inhibitor for hair growth

Actikerall®

Hyperkeratotic actinic keratosis

Indication Severe acne

BenefitSignificantly more reliable

absorption under variable dietary

conditions

Territory Americas and Pacific Rim

Patent status4 U.S. patents issued. (Expires Sept 2021)

Paragraph IV Certification Notice Sept 2013

Commercial statusU.S. launch Q4 2012 (Absorica™)

Canadian launch in June 2013 (Epuris®)

Chile expected to launch H1 2016

Brazil expected launch Q4 2016

Available Strengths10 mg, 20 mg, 25 mg*, 30 mg, 35 mg*, 40 mg

* Absorica only

About CIP-Isotretinoin (Absorica™/Epuris®)

15

“83%Greater absorption under

fasted conditions

Not interchangeable

Dose without

regard to meals”

Our formulation is best in class

16

FDA Package InsertCIP-ISOTRETINOIN: Profile

Mean P

lasm

a Isotr

etinoin

Conc.

(ng/m

L)

Phase I: Study No. 2003-627

Single dose study Accutane 40mg vs.

CIP-Isotretinoin (20mg X 2)

Fed Condition

AUC: 106.0

Cmax: 100.6

CIP-Isotretinoin 2 x 20mg

Accutane® 40mg

Single dose study Accutane 40mg vs.

CIP-Isotretinoin (20mg X 2)

Fasted Condition

Mean P

lasm

a Isotr

etinoin

Conc.

(ng/m

L)

CIP-ISOTRETINOIN: Profile AUC: 178.8

Cmax: 200.2

CIP-Isotretinoin 2 x 20mg

Accutane® 40mg

• Marketing partner:

Ranbaxy Pharmaceuticals

• ~50 full time dermatology

reps

• Strong market penetration

• Revenue of $5.1M for

Q2 2015 compared with

$5.3M for Q2 2014

• Growing Iso Rx Market,

with Rx for Absorica up

1.8% in Q2 2015

compared to Q2 2014

• Marketed by Cipher

• Cornerstone of Canadian

commercial operation

• 7 dedicated reps

• Revenue1 up 77% to

$0.9M for Q2 2015

compared with $0.5M for

Q2 2014

• Market size of $16.4 M in

2014, with Rx increasing

by 9.8% by Q2 2015

17

Absorica market share holding steady in 19-20% range

Epuris market share up to 20% in August‘15 from 10% in Q2 2014

• Will be marketed by

Andrómaco in Chile

• Recently out-licensed to

Ranbaxy in Brazil

• Other territories in Latin

America being pursued

U.S. Canada Latin America

Absorica™ & Epuris® Market Expansion

1. Cdn$

Absorica™: Growing Market Penetration

Source: IMS Health

18

DR REDDY'S

13%

MYLAN, 21%

CIPHER, 19.2%

TEVA 33%

AKORN14%

Aug 2015 Market Share

Trend in L6M

19.2%

0%

5%

10%

15%

20%

25%

-

5,000

10,000

15,000

20,000

25,000

No

v-1

2

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-1

3

May

-13

Jun

-13

Jul-

13

Au

g-1

3

Sep

-13

Oct

-13

No

v-1

3

Dec

-13

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Iso

tre

tin

oin

mar

ket

shar

e

TRx

Absorica Monthly TRx

TRx TRx Market share

Epuris® : Growing Market Penetration

Aug 2015 Market Share

Trend in L6M

52%28%

20%

Roche

Cipher

Mylan

19.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Iso

tre

tin

oin

Mar

ket

Shar

e

TRx

Epuris Monthly TRx

TRx Market Share

IndicationFenofibrate formulation for high

cholesterol (triglycerides)

BenefitOptimum absorption when taken with

meals

Territory Americas & Pacific Rim

Patent status U.S. patent issued (exp. Jan 2015)

Commercial statusU.S. launch October 2007

Authorized Generic launched Q2 2014

About Lipofen®

20

Competes in US$1.3B fenofibrate market

Lipofen® Product Update

• Marketed by Kowa Pharmaceuticals since 2007

– Strong presence in lipid management market with Lipofen and Livalo (pitavastatin)

– 250+ primary care representatives

• Q2 2015 revenue of $0.9M compared with $1.8M for Q2 2014

• Q2 2014 elevated by higher shipments for launch of authorized generic

• Kowa reducing its commercial effort

• Authorized generic launched pre-emptively in Q2 2014

• Declining fenofibrate market

• Authorized generic has flattened the Rx decline

21

Product continues to perform well

IndicationModerate to moderately severepain (e.g. osteoarthritis)

Benefits

Once-daily dosing Rapid absorptionReliable absorption under fed and fasted conditions

Territory Global

Patent statusU.S. & Canada patents issued. (Exp. April 2022)

Commercial Status

U.S. launch Q4 2011 (ConZip®) by

Vertical Pharmaceuticals

Canada launch Q2 2012 (Durela®)

by Medical Futures Inc.

LATAM – Tecnofarma – 18 countries

Initial launch for Argentina

expected Q4 2015

CIP-TRAMADOL ER (ConZip®/Durela®)

22

ConZip®/Durela®: Product Update

• Marketed by Vertical

Pharmaceuticals

• 75 reps

• Avista Capital invested

in Vertical in Q4 2013

• Market size in 2014

exceeded US$76M

• AG launched July 2015

• Marketed by

Medical Futures,

acquired by Tribute

• 22 reps

• P1 Position

• Q2 2015 sales increased

by 20% compared to

Q2 2014

23

• Will be marketed by

Tecnofarma International

in several jurisdictions,

including Brazil and

Mexico, launches starting

in Q4 2015

U.S. Canada Latin America

Quarterly Revenue Growth

24

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015

Adjusted for one-time milestones

$U

S m

illio

ns

Quarterly Cash Balance

25

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

Q1 2012Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015

$U

S m

illio

ns

Multi-pronged Approach to Value Creation

26

5 by 5 Growth Strategy

27

Value Creation

Next 5 years - by 2020

1. North American product portfolio by 5 products,

2. Launch two new first-to-the-market products

3. Grow Canadian Dermatological business to $50 Million

4. Grow our US Derm business to $ 250 Million

5. Grow our Royalty stream to $ 50 Million

….Accelerates EBITDA

Cipher Investment Highlights

Customer-focused North American Dermatology company

Well capitalized to drive long-term, sustained earnings growth

Commercial infrastructure to support additional in-licensing / M&A

Seasoned management team with commercial expertise

Diversified portfolio of commercial-stage dermatology products

28

Inspire Innovate Deliver

Inspire

Innovate

Deliver

NASDAQ: CPHR

TSX: CPH

Investor Presentation

October 2015