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 News Release - August 8, 2006

Cipher appoints new Chief Executive Officer

MISSISSAUGA, ON, Aug. 8 (Healthcare Sales & Marketing Network) - Cipher Pharmaceuticals Inc. (TSX: DND ) today announced that, effective August 8, 2006, Larry Andrews, President of Cipher, has been appointed Chief Executive Officer of the Company. Dr. John Mull has retired from the position of Chief Executive Officer, but will remain Chairman of the Board of Directors. Mr. Andrews has served as President of Cipher since 2004 and will retain responsibility for this function.

"Since Larry's appointment as President, Cipher has demonstrated significant progress and achieved important regulatory and commercial milestones," said Dr. John Mull. "With three late-stage products approaching commercialization and a solid balance sheet, it is an appropriate time for Cipher to make this transition, and I believe Larry is ideally suited to lead the Company through its next phase of growth."

"On behalf of the Board, we thank Dr. Mull for his many contributions as CEO," said Waldemar Zimmerman, Vice-Chairman of Cipher's Board of Directors. "His support and leadership were instrumental in advancing Cipher from the start-up phase to an emerging specialty pharmaceutical company in only a few years. In his role as Chairman, Cipher will continue to benefit from Dr. Mull's judgment and experience."

Mr. Andrews has more than 25 years of experience in the pharmaceutical industry. Prior to joining Cipher, he was the founder and President of the Health Alliance Group. The former President of AltiMed Pharmaceuticals, Mr. Andrews has played a lead role in the licensing of over 25 compounds in the Canadian pharmaceutical market. His career includes senior management assignments with Eli Lilly, Syntex Pharmaceuticals, and Hoffmann-La Roche.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals is a drug development company focused on commercializing novel formulations of successful, currently marketed molecules using advanced drug delivery technologies. Cipher's strategy is to in-license products that incorporate proven drug delivery technologies and advance them through the clinical development and regulatory approval stages, after which the products are out-licensed to international partners. Because Cipher's products are based on proven technology platforms applied to currently marketed drugs, they are expected to have lower approval risk, shorter development timelines and significantly lower development costs. Cipher currently has three late-stage drugs in its pipeline. The Company's lead compound, CIP-FENOFIBRATE, received final approval from the U.S. Food and Drug Administration and Health Canada in the first quarter of 2006. In addition, Cipher is developing formulations of the pain reliever tramadol and the acne treatment isotretinoin.

Cipher is listed on the Toronto Stock Exchange under the symbol 'DND' and has approximately 24 million shares outstanding. For more information, please visit

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. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. 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, such as the applicability of patents and proprietary technology; possible patent litigation; regulatory approval of products in the Company's pipeline; changes in government regulation or regulatory approval processes; government and third-party payer reimbursement; dependence on strategic partnerships for product candidates and technologies, marketing and R&D services; meeting projected drug development timelines and goals; intensifying competition; rapid technological change in the pharmaceutical industry; anticipated future losses; the ability to access capital to fund R&D; and the ability to attract and retain key personnel. All forward-looking statements presented herein should be considered in conjunction with such filings. The Company does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Source: Cipher Pharmaceuticals

Issuer of this News Release is solely responsible for its content.
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