CIPHER PHARMACEUTICALS INC (CPH.TO) research, news, and more from GeoInvesting

Company description

Mon, 26 Sep 2022 17:00:49 GMT

Cipher Pharmaceuticals Inc. operates as a specialty pharmaceutical company in Canada. Its commercial products include Epuris (CIP-ISOTRETINOIN), a formulation of the active ingredient isotretinoin for use in the treatment of severe acne; Ozenoxacin to treat adult and paediatric patients with impetigo; Actikerall, which is indicated for the treatment of palpable or moderately thick hyperkeratotic actinic keratosis; Vaniqa, a prescription cream that reduces the growth of unwanted facial hair in women; BRINAVESS, a treatment for sinus rhythm in adults; and AGGRASTAT, an intravenous anti-platelet drug. The company's licensed products comprise CIP-Isotretinoin; Lipofen (CIP-Fenofibrate), a formulation of the active ingredient fenofibrate used for the treatment of hyperlipidemia, a cholesterol disorder; and Conzip/Durela (CIP- Tramadol), a formulation of the active ingredient tramadol for the management of moderate to moderately severe pain. Its pipeline products include Trevyent, a vasodilatory prostacyclin analogue to treat pulmonary arterial hypertension; CF-101 for severe plaque psoriasis and rheumatoid arthritis; MOB-015, a topical formulation of terbinafine for the treatment of onychomycosis; and DTR-001, a tattoo removal cream. Cipher Pharmaceuticals Inc. was founded in 2000 and is headquartered in Oakville, Canada.

Research

Wed, 12 Aug 2026 18:39:14 GMT

Cipher Pharmaceuticals, Inc. (OTC:CPHRF) (TSX:CPH) ($12.80; $456.2M market cap) announced Q2 2026 results:

Q2 sales of $12.1 million vs. $13.4 million in the prior year, below analyst estimates of $13.6 million
Q2 2026 EPS: $0.15 vs. $0.22 in the prior year, below analyst estimates of $0.19
Natroba™ revenue fell 19% to $6.3 million, primarily due to reduced Medicaid patient coverage.
The pan-Canadian Pharmaceutical Alliance LOI secured expanded public reimbursement for Epuris®, with Product Listing Agreements being finalized.
During Q3 2026, Cipher launched a stocking program targeting Natroba™ and/or authorized generic Spinosad availability at all U.S. Walmart stores.
Outlook includes improving Natroba™ performance, acquisitions or in-licensing, Health Canada approval and Canadian commercialization, global out-licensing, and disciplined acquisitions.

Management Commentary:

"While this quarter was a departure from the significant growth we have delivered in recent quarters, our original expectations for the U.S. business, led by Natroba™, continue to remain in place, despite market dynamics that may emerge over time, both within the product indication and in Medicaid programs. We expect performance to improve in future quarters as certain programs we are implementing take effect. Natroba™ remains highly profitable and we believe Cipher's combined business led by Natroba™ in the U.S. and Epuris® in Canada, is robust and continues to generate strong results for our shareholders, consistent with previous periods and our expectation for future periods," said Craig Mull, Interim CEO of Cipher.

"We are also focused on Cipher's next phases of growth, including the pursuit of various business development opportunities. Recently, we were in the advanced stages of a process for one of these opportunities, however, we ultimately determined that not moving forward with the process was the right decision for Cipher. We continue to assess other acquisition opportunities and are making progress in our efforts with respect to out-licensing of our products into markets outside of North America. We continue to remain optimistic that we will achieve success in finding and executing on the right opportunities."

"During the second quarter, our leading product in the Canadian portfolio, Epuris®, experienced meaningful growth with a 14% increase in revenue compared to the same quarter last year. With the recently announced Letter of Intent that Cipher executed with the pan-Canadian Pharmaceutical Alliance, which secured expanded public reimbursement, and upon finalizing the Product Listing Agreements with federal, provincial, and territorial public drug plans, we expect the market share of Epuris®, which currently holds a 47% share of the isotretinoin market in Canada, to continue to grow as a result of additional patient access across Canada," said Ryan Mailling, CFO of Cipher.

"Cipher remains debt-free, cash generative and has access to $90.0 million in financing on its credit facility, which positions us well to continue investing in our growth strategy.”

Our Quick Take:

Natroba (U.S.) fell 19% to $6.3 million due to shrinking Medicaid-covered lives. This is policy-driven, not an execution blip, so “expectations unchanged” understates the risk that this represents a structural reset lower. When covered lives shrink, a branded drug loses volume even if demand remains flat, as patients may switch to cheaper generics or not fill prescriptions at all. Natroba is heavily exposed here because management has cited Medicaid coverage as a key strength, while commercial payer volume is only now becoming a growth focus. The pivot to Walmart shelf stocking and direct-to-consumer (DTC) marketing is probably the right step; however, it remains unproven and likely won’t show results for a couple of quarters.

Cipher still generates strong cash flow and has a fortress balance sheet, but investors are waiting for management to deploy that cash toward another acquisition.

Cipher Pharmaceuticals Inc. is a specialty pharmaceutical company that develops, licenses, and markets dermatology, pain management, and cardiovascular treatments, along with a pipeline targeting skin disorders and autoimmune diseases.

Research

Mon, 29 Jul 2024 19:36:03 GMT

CPHRF (TSX:CPH) - Acquisition to double sales and earnings; Reiterating Management Morning Briefing today at 1:30PM Eastern.

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (TSX:CPH) ($6.21, $149.7 M market cap) announced its acquisition of ParaPRO's Natroba operations for $89.5 million. Cipher operates as a specialty pharmaceutical company in Canada with a diverse portfolio of dermatology and hospital acute care products.

We have been eagerly waiting for Cipher to complete an acquisition after starting to cover the stock in November 2022, when we added it to our Select Coverage Universe Model Portfolio at $2.60, which puts it, as of today, at an over 200% gain near its trading price of $8.00.

Not only does the acquisition double the size of the company’s revenue and net income, but it might present the company with a path to start thinking about entering the U.S. market with its current and future product portfolio.

CEO Craig Mull highlighted the strategic fit of this acquisition, stating,

"This transaction significantly strengthens our dermatology portfolio and is immediately accretive to our earnings. The addition of Natroba complements our existing product offerings and enhances our presence in the lucrative dermatology market."

Natroba (spinosad) is a prescription topical medication used for treating head lice and scabies, known for its pediculicidal (lice-killing) and ovicidal (egg-killing) properties. This dual action allows Natroba to effectively eliminate lice and scabies infestations, often with a single treatment. Its mechanism targets the nervous system of lice and mites, causing paralysis and death without similar effects on humans, making it a safe and efficient treatment option. (Grand View Research) (AAFP).

Cipher's acquisition comes at a time when both the lice and scabies treatment markets are experiencing growth. The global lice treatment market was valued at $975.8 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.22% from 2023 to 2030. Meanwhile, the global scabies treatment market, valued at $225.8 million in 2023, is projected to grow at a CAGR of 5.2% from 2024 to 2030.

The acquisition details reveal several optimistic aspects. Natroba “currently carries FDA exclusivity and patent protection until 2033”, and there is a good chance it will be well-received in both the U.S. and international markets. Natroba™ (Spinosad) currently carries 22.1% market share in the U.S. anti-parasitic market.

The transaction was funded through a combination of cash on hand and a $20 million credit facility, demonstrating Cipher's strong financial position. Additionally, there is potential for further market expansion as Cipher leverages Natroba’s established presence.

As you know, we have heavily covered Cipher, both writing extensively on why we’ve been bullish on the company since September 2022, including an article titled, “Cipher Pharmaceuticals Inc. Severely Undervalued Based on Peer Multiples” when the stock was trading at $2.60.

We’ve also had the pleasure of speaking with management on several occasions, replays of which you can find here.

It should be interesting to see how the stock continues to react to this news before the full financial details of Natroba’s profitability emerges.