Cipher Pharmaceuticals, Inc. (CPHRF) research, news, and more from GeoInvesting

Company description

Mon, 26 Sep 2022 16:24:23 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

Fri, 13 Mar 2026 04:00:00 GMT

Cipher Pharmaceuticals, Inc. (OTC:CPHRF) (TSX:CPH) ($10.59; $364.8M market cap) announced Q4 and full-year 2025 results:

Q4 sales of $12.2 million vs. $11.8 million in the prior year, below analyst estimates of $12.6 million
Q4 2025 adjusted EPS: $0.18 vs. $0.00 in the prior year, above analyst estimates of $0.16
Full year sales of $50.5 million vs. $33.4 million in the prior year, below analyst estimates of $51.7 million
Full year 2025 adjusted EPS: $0.67 vs. $0.11 in the prior year, below analyst estimates of $0.69

Management Commentary:

"In 2025, Cipher achieved the goal it set for itself in connection with its acquisition of the Natroba™ business during the second half of 2024, to double the Company's revenue and earnings. In fact, we have exceeded our goal with a more than doubling of both, with revenue of $50.5 million in 2025, a 138% increase compared to $21.2 million in 2023, the most recent full year prior to the Natroba™ acquisition, and Adjusted EBITDA of $28.1 million in 2025, a 121% increase compared to $12.7 million in 2023.

As the U.S. business, led by Natroba™ continues to perform well, we are looking forward to our next acquisition. In doing so, we are spending a significant amount of our time identifying, evaluating and pursuing various business development opportunities, including opportunities for accretive acquisitions of companies with strategic value to Cipher."

"During 2025, once we substantially completed the integration of the acquired U.S. business, led by Natroba™, an area of focus was purposeful allocations of capital to better position Cipher for its next leg of growth, including the near full repayment of our revolving credit facility that was negotiated and drawn upon to partially fund the Natroba™ acquisition.

With minimal outstanding debt, strong cash flows from operations, and access to capital through $85 million of available debt financing, we are well positioned to execute on our strategy of pursuing growth opportunities, however we remain selective in our approach to pursuing these opportunities to ensure they are the right fit for Cipher. We look forward to being able to provide further updates on the progress of our business development activities."

Our Quick Take:

Natroba revenue increased by 14% YoY, and is now the preferred treatment on Illinois Medicaid. Its main competitor, Permethrin 5%, was moved to non-preferred status. Additionally, Health Canada has accepted Cipher’s New Drug Submission for Natroba™ (Spinosad), and is now reviewing it. If it gets approved, Cipher will launch and sell Natroba in Canada using its current sales and distribution network.

Apart from this, Cipher continues to generate very strong cash flow and paid $35M of its outstanding debt balance, which positions the company to pursue accretive M&A.

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

Fri, 07 Nov 2025 18:49:50 GMT

Cipher Pharmaceuticals, Inc. (TSX:CPH) (OTC:CPHRF) (C$14.82; C$376.5M market cap) announced Q3 2025 results:

Q3 2025 sales of $12.8 million vs. $10.4 million in the prior year, below analyst estimates of $13.4 million
Q3 2025 EPS: $0.22 vs. $0.01 in the prior year, well ahead of analyst estimates of $0.13
Adjusted EBITDA of $7.3 million in Q3 2025, up 79% YoY
Natroba™ product revenue rose 47% YoY to $8.1 million
Cash from operations totaled $10.8 million in Q3 2025
$12.0 million in debt repayments and $1.6 million in share repurchases during Q3 2025
Additional $5.0 million debt repayment made post-quarter end, reducing revolver balance to $8.0 million
141,700 shares repurchased and cancelled under NCIB at avg. price of C$15.41
Ongoing focus areas include:
- Growing U.S. market share for Natroba™
- Securing Health Canada approval and launching in Canada
- Out-licensing Natroba™ globally
- Acquiring complementary products in North America

Management Commentary:

Craig Mull, Interim CEO, stated:

“The U.S. business, led by Natroba™, continues to provide a meaningful growth pillar to an already sound foundation of Cipher's base business, with a sequential quarterly increase in both revenue and earnings for the third quarter.

We continued to spend considerable time identifying, evaluating and pursuing various business development opportunities during the quarter, including opportunities to acquire or in-license products that are complementary to our existing portfolio, as well as opportunities to out-license the Company's existing products, including Natroba™. We are active in discussions with a number of parties, however these discussions do take time and may or may not come to realization. We will also be selective in our approach, ensuring we execute on the right opportunities for the Company. We look forward to providing further updates on our business development activities as they progress.”

Ryan Mailling, CFO, commented:

“With the acquisition of the Natroba™ business closing only 15 months ago, we have made substantial progress towards de-levering the business and are very close to achieving a net-debt free position, with a total of $32 million in repayments on our revolving credit facility within the past six months, and a remaining outstanding balance on the revolving credit facility of only $8 million as of today.

This puts us on excellent footing to execute on our business strategy of pursuing growth opportunities, as we continue to achieve strong cash generation from operations and maintain access to capital with $82 million of total potential debt financing available to us, comprising of $57 million of financing remaining available through the revolving credit facility, plus a $25 million accordion option.”

Our Quick Take:

CPHRF’s year-over-year growth looks dramatic due to the low comparison from last year. However, sequentially, earnings were roughly in line with Q2. The company also paid down a solid portion of debt and continues to buy back shares.

The near-term growth story remains focused on expanding U.S. traction with Natroba. We’d like to see Natroba gain preferred drug Medicaid designation in additional states, as it recently did in Illinois.

Research

Fri, 08 Aug 2025 18:23:08 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) ($27.75; $638.5M market cap) announced Q2 2025 results:

Sales of $13.4 million vs $5.3 million in the prior year
Non-GAAP EPS of $0.18 vs $0.12 in the prior year

"Cipher has continued its growth during the second quarter of 2025, with quarterly revenue achieving a historical record for the Company, largely contributed to by our U.S. business. The U.S. business, led by Natroba™, continues to exceed our expectations from when we acquired the business almost one year ago, in July 2024. The U.S. business has contributed to a more than doubling of Cipher's total revenue and Adjusted EBITDA1 compared to the prior year, for both the second quarter and the year-to-date. We look forward to providing further updates on the impact our strategy and activities surrounding the business have on the performance of Natroba™ for the remainder of 2025."

Cipher Pharmaceuticals Inc. is a specialty pharmaceutical company that develops, licenses, and markets prescription drugs, primarily for dermatology, pain management, cardiovascular conditions, and infectious diseases.

Research

Fri, 09 May 2025 20:14:32 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) announced Q1 2025 results:

Sales of $12.0 million vs $5.9 million in the prior year
Non-GAAP EPS of $0.04 vs $0.11 in the prior year

"In Q1 2025, our base business in Canada, combined with the NatrobaTM business in the US, continued to generate free cash flow for Cipher, with $4.2 million of cash generated from operations during the quarter, and an ending cash balance of $22.0 million. As we have demonstrated previously, we will continue to be smart in our approach to allocating capital, with the ability to return capital to shareholders through our recently approved Normal Course Issuer Bid ("NCIB"); by further de-levering the Company's current low leverage position through repayments on our revolving credit facility; and by continuing to be selective in our approach to executing on acquisition opportunities."

Research

Thu, 01 May 2025 15:42:07 GMT

Cipher Pharmaceuticals, Inc. (OTC:CPHRF) (TSX:CPH) ($2.47; $61.7M market cap) today announced its intention to initiate a share repurchase program (buyback) to purchase up to 1,485,260 common shares. The program will begin on May 5, 2025, and end on May 4, 2026.

The buyback represents 10% of Cipher's public float of 14,852,604 shares as of April 22, 2025.

Cipher previously repurchased 115,876 shares under its prior buyback program, which ran from November 2023 to November 2024, and also completed a substantial issuer bid (SIB) in 2023, purchasing 1,290,321 shares at CDN$4.65 per share.

Research

Tue, 29 Apr 2025 04:00:00 GMT

Cipher Pharmaceuticals Inc. (OTC:CPHRF) (TSX:CPH) ($8.99, $230.4M market cap) announced today that the state of Illinois has granted preferred drug status to its treatment Natroba™ on the state’s Medicaid Preferred Drug List (PDL). As part of the update, Permethrin 5%—a competing treatment—has been downgraded to non-preferred, making Natroba™ the required first-line treatment for scabies and head lice in Illinois Medicaid programs.

The decision follows clinical concerns over growing parasite resistance to Permethrin-based therapies. Cipher collaborated closely with state pharmacy officials, whose review concluded that Natroba™ offers greater efficacy as a standard of care.

Craig Mull, Interim CEO, stated:

“The medical decision made by the state of Illinois is just another example of the effectiveness of Natroba™ (Spinosad) and what clear growth potential for the product remains ahead of us. We believe it is only a matter of time until more state pharmacy directors require step-through of Natroba™ representing the standard of care in the treatment of scabies and head lice. We are in active discussions with other U.S. states to build upon this recent success, and we continue to believe there is significant potential outside the U.S. to out-license Natroba™ whereby lice resistance to Permethrin based products is a pervasive worldwide issue and whereby Natroba fills an unmet need.”

Cipher emphasized that state Medicaid PDL decisions often influence broader prescribing habits across commercial and private plans—a potential growth catalyst for Natroba™ in both U.S. and international markets.

Research

Wed, 19 Mar 2025 13:59:00 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (TSX:CPH)) ($8.36; $214.2 market cap) announced Q4 and full year 2024 results:

Q4 Sales of $11.8 million vs $4.9 million in the prior year
Non-GAAP EPS of $0.13 vs $0.12 in the prior year
Full year sales of $33.3 million vs $21.1 million in the prior year
Non-GAAP EPS of $0.38 Vs $0.47 in the prior year

In 2024, Cipher entered a new phase of substantial growth with its acquisition of the Natroba business from ParaPRO LLC, providing us with a U.S.-based commercial footprint, including a commercial sales team and the Natroba™ product for the treatment of head lice and scabies, which form the perfect platform to support further growth in the U.S. and to launch unique dermatology and infectious disease products complementary to Natroba™.

Throughout the year, we also yielded growth in our base business in Canada, with strong sales performance and increased market share from our market leading Canadian product, Epuris®. Revenue from Epuris® grew 20% in 2024, with market share growth of 3% in the year and a total market share of 48%2. As we enter 2025, we continue to execute on our growth strategy by leveraging our existing product portfolio, including distribution in additional territories, and growth through the pursuit of accretive acquisitions."

Share Buyback:

As result of the recent decline in the Company's share price, despite the strong underlying performance of the Company's existing base business, combined with the performance to-date and growth potential of the recently acquired U.S. based Natroba™ business, Cipher believes the current price of its Common Shares do not fully reflect their value.

Accordingly, Cipher intends to file with the Toronto Stock Exchange (the "TSX") a notice of its intention to commence a normal course issuer bid ("NCIB"). In accordance with TSX policies, Cipher also intends to utilize block purchases, in addition to daily repurchases under the NCIB, to repurchase its Common Shares.

Cipher Pharmaceuticals Inc. operates as a specialty pharmaceutical company in Canada.

Research

Fri, 08 Nov 2024 15:56:34 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) ($11.08; $267.3 market cap) announced Q3 2024 results:

Sales of $10.4 million vs $6.1 million in the prior year and in line with analyst estimates of $10.3
Non-GAAP EPS of $0.07 vs $0.12 in the prior year and below analyst estimates of $0.14

"Since my transition to Chief Financial Officer during the third quarter, I have dedicated a large portion of my time executing an efficient financial structuring of our Natroba Acquisition, managing our new bank financing relationship, and supporting the financial and administrative integration of the Natroba business into the existing Cipher infrastructure. I look forward to continuing to progress these activities, while also driving other efficiencies in the business."

Research

Wed, 09 Oct 2024 16:04:08 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (TSX:CPH) ($12.35; $317.0M market cap) yesterday announced the hire of a new chief business officer, Hamed Ghanei to help the company with its next phase of growth.

“Craig Mull, Interim Chief Executive Officer, commented on the appointment: "I am delighted to announce the addition of Dr. Ghanei to Cipher's executive team. Hamed's expertise in business development, including extensive experience with licensing deals and other M&A opportunities in the specialty pharmaceuticals and healthcare industries, make him an excellent fit for contributing to Cipher's next phase of substantial growth."

This seems like a logical step for the company to make due to its acquisition of ParaPro’s Natrobra operations which has a large salesforce and presence in the United States. Management has stated they want to leverage that infrastructure for M&A and licensing opportunities.

Research

Fri, 13 Sep 2024 14:52:17 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (TSX:CPH) shares are under pressure today as its licensing partner, Moberg Pharma (MOB.ST) is trading down 65% as expectations on the primary endpoint for its ongoing phase 3 trail of MOB-015 (topical fungus treatment) are lower than company expectations. Cipher holds exclusive licensing rights to market the fungus treatment in Canada, upon regulatory approval.

This partnership was viewed as a potentially extremely bullish catalyst for Cipher:

“Cipher holds the exclusive rights to MOB-015 in Canada and we believe approval in the European Union highly de-risks the eventual regulatory approval in Canada, which is a market opportunity in excess of CDN $80 million.

We published our initial key takeaways following an interview with company management when CPHRF shares (USD) were trading around $2.38. Shortly after that, we described the large market opportunity we believed existed for the company.

To be clear, after participating in a live call by Moberg this morning going over this development, our first take is that today's news really only impacts Moberg. Here’s why:

This phase 3 trial referenced in today’s news is only related to FDA approval in the U.S., where Moberg changed some of the parameters, going for a “complete cure.”
MOB-015 treatment is already approved in Europe.
It appears that this development should not influence approval in Canada, since it is anticipated that Moberg will be using the European study to gain approval. Thus, Cipher should be in good position to eventually market MOB-015 in Canada, if approved in Canada.
MOB-015 has quickly become the leading nail fungus treatment therapy in Sweden (first EU launch, via partnership), quickly taking a 40% market share.

From our understanding of the information disclosed on the conference call, nothing has really changed for chances of Cipher still being able to eventually market MLB–015 in Canada. It appears that Moberg is anticipating that the therapy will be available in Canada in 2026. At that time, if Canada approves the therapy, the ball will be in Cipher’s court as to deciding to launch (although we will have to review the original licensing agreement between Cipher and Moberg to see if Cipher can still back out of the licensing arrangement if MLB–015 is approved in Canada).

In totality, today’s news is certainly a negative headline risk for Cipher that will cause selling from investors who bought Cipher solely for the Moberg opportunity and really don’t understand what’s going on. However, we’ve always treated the fungus as a call option and view today’s news as a distraction.

As a matter of fact, the anticipated approval/launch of MOB-015 in Canada is not anywhere in the timeline originally expected, (well over three years longer). Regardless of what happens with the fungus, the company has made great strides with its legacy business, and due to the acquisition of ParaPRO's Natroba operations for $89.5 million is a much different company than it was when we first profiled the company.

Our recent valuation assessment only takes into account the addition of the acquired asset, not MOB-015. As the company begins to release more news about the integration of its acquisition and starts reporting consolidated sales and earnings, we think the stock should get back to get back to and surpass its recent high.

Cipher is a specialty pharmaceutical company domiciled in Canada and resides on multiple GeoInvesting screens and portfolios.

Research

Fri, 09 Aug 2024 15:03:57 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (TSX:CPH) ($9.88) operates as a specialty pharmaceutical company in Canada. The company reported its second quarter 2024 results: (figures in USD)

Sales of $5.3 million vs $5.3 million in the prior year
EPS of $0.12. vs $0.12 in the prior year

“Last week's Natroba Acquisition should be viewed as the kick-off of our growth phase. Cipher's revenue and earnings profile has immediately doubled, further accelerating the overall profitability of the business. Additionally, the Company now possesses a fully established and profitable U.S. platform which will allow us to add complementary dermatology and infectious disease products over time.”

A July 29 note of ours on the acquisition preceded a full length discussion that same day with Cipher management where we gleaned more on the scope and ultimate purpose of the deal, a clip of which you can watch here.

We also added the stock to our Open Forum Focus Stocks Model Portfolio during this past Tuesday’s Open Forum. We think shares can rise over 50% in the short-term, when taking into account the acquisition and have long-term multibagger potential. The stock is up 273% since the stock was first added to our Select Coverage Universe Model Portfolio.

Research

Mon, 29 Jul 2024 19:36:27 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.

Research

Fri, 15 Mar 2024 16:08:51 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH:TO) operates as a specialty pharmaceutical company in Canada. The company reported its fourth quarter 2023 results: (figures in USD)

Sales of $4.9 million vs $4.9 million in the prior year
EPS of $0.15. vs $0.12 in the prior year

"Cipher's priorities continue to be focused on profitability and capital allocation strategies that benefit our shareholders. We had several position catalysts in 2023, including a highly successful substantial issuer bid, as well as secured a credit facility with the Royal Bank of Canada at favorable terms to the present day market. We continue to work diligently for our shareholders and we are excited to execute on our growth strategy in 2024 and beyond."

We will be digging into the details of the quarter over the weekend.

Research

Fri, 10 Nov 2023 17:41:25 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH:TO) operates as a specialty pharmaceutical company in Canada. The company reported its third quarter 2023 results: (figures in USD)

Sales of $6.1 million vs $4.8 million in the prior year and ahead of analyst estimates of $3.9 million
EPS of $0.27. vs $0.10 in the prior year and well ahead of analyst estimates of $0.07

“During the third quarter, our business performed exceptionally well, with robust year-over-year growth in revenue and earnings, driven by the strength of our licensing revenue and our ongoing focus on operational efficiency. We continued to execute on our plan to deliver strong and continued profitability, highlighted by a 37% increase in Adjusted EBITDA1 this quarter, compared to the same quarter last year. Additionally, we generated year to date $13.3 million in cash and ended the period with $42.1 million in cash and cash equivalents, and no debt. Combined with an undrawn $35 million revolving credit facility, we have substantial resources and financial flexibility to drive future growth."

The company repurchased 1.29 million shares as part of the Tender offer announcement at an average price of CDN$4.65, representing 5.1% of the outstanding shares. With the strong cash position and no debt, the company is in a great position to help drive growth.

Cipher is one of the 5 stocks we have been including in our Open Forum “Timely Watch” discussion slides as a potential Top 5 favorite candidate, if we were to construct a new Fave 5 today.

Research

Tue, 05 Sep 2023 13:58:31 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH:TO) ($2.91USD; $3.97CAD), a company that operates as a specialty pharmaceutical company in Canada, announced it intends to buy up to $6 million worth of shares for cancellation at a price between CAD $3.95 and $4.75 per share ($2.89 to $3.48 USD)

“The Board of Directors of Cipher (the "Board") believes that the SIB is in the best interests of our Shareholders and the Company given, among other things, its significant level of interest generating cash on hand, and future access to financing with a $35 million revolving credit facility, both expected to drive the Company's future growth plans. Considering the Company's broad product pipeline and the present day market opportunities for acquisitions, the Board and the Company's management believe the current market price of the Common Shares does not currently reflect the fundamental value of the Company. The Company intends to fund the SIB with a portion of its reported cash on hand of US$36.3 million as of June 30, 2023.”

In November 2022, we published an article that delves further into Cipher’s history, product pipeline, caveat considerations, and a healthy look at industry peers from which we can derive some reasonable valuation expectations for the company's stock.

Research

Fri, 11 Aug 2023 16:54:19 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) operates as a specialty pharmaceutical company in Canada. The company reported its second quarter 2023 results: (figures in USD)

Sales of $5.3 million vs $5.6 million in the prior year
EPS of $0.12. vs $0.08 in the prior year

“Cipher holds the exclusive rights to MOB-015 in Canada and we believe approval in the European Union highly de-risks the eventual regulatory approval in Canada, which is a market opportunity in excess of CDN $80 million.

We also are proud to announce the official launch of Epuris in Mexico, making our isotretinoin product available to the many Mexicans who suffer from severe acne.

During the second quarter, our business performed as expected with sequentially strong revenue, earnings and cash flows from operations compared to trailing quarters. Our EBITDA and Adjusted EBITDA of $3.1 million during the quarter was highly correlated to the increase of our cash on hand by $2.9 million, which is indicative of a well managed business. Cipher ended the quarter with $36.3 million in cash with access to a $35 million revolving credit facility, placing us in a formidable position to drive future growth of our business."

There are two interesting takeaways from this press release. First of all, it looks like the company has added a new market with one of its drugs. Secondly, it appears that, at least for this quarter, the rate of quarterly sales decline has slowed. Recall that revenue growth has been challenged due to some of the company’s drugs facing generic competition. We are still waiting for the company to either announce one of two things to really catalyze the story.

First, the company is expected to make an acquisition soon. In our most recent Skull Session conversation with management, they had said that they would expect to complete one within the next 12 months.

Secondly, we are also waiting for one of the company's licensing partners to get approval to market a toenail fungus product in Canada.

Research

Mon, 10 Jul 2023 18:09:15 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) operates as a specialty pharmaceutical company in Canada. The company reported its first quarter 2023 results: (figures in USD)

Sales of $4.9 million vs $5.4 million in the prior year
EPS of $0.10. vs $0.08 in the prior year

“Cipher’s efficient business model enabled us to deliver strong operating results in the first quarter, with our robust product portfolio generating substantial cash flow from operations. During the quarter, Cipher achieved a 54% net income margin and delivered 25% year-over-year growth in EPS, while adding $4.6 million of cash to our balance sheet. With a strong balance sheet, and a substantial credit facility at our disposal, we are in an ideal position to drive our next phase of growth.”

Research

Fri, 17 Mar 2023 16:26:24 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) ($2.75; $69.0M market cap) operates as a specialty pharmaceutical company in Canada. The company reported its fourth quarter 2022 results:

Sales of $4.9 million vs $5.9 million in the prior year but below analyst estimates of $5.7 million
EPS of $0.11. vs $0.11 in the prior year and ahead of analyst estimates of $0.09

"As we enter 2023, Cipher's primary focus remains on effectively allocating our capital in order to maximize value for our shareholders. This involves a continued emphasis on investing in our commercial products to drive organic growth, assessing opportunities for profitable product and company acquisitions and working with our partners on advancing our development pipeline. With these levers at our disposal, and with the recent addition of our Royal Bank of Canada credit facility, we are confident in our ability to drive shareholder value while maintaining a disciplined approach to cost management,"

The results are in line with our expectations as we wait for the company to reap the benefits from some license arrangements with its pharma partners. These most likely will begin to catalyze in 2024, assuming Cipher’s partners gain drug approvals. However, with their large cash position, there is a chance the company can surprise us with an acquisition.

In November 2022 we published an article that delves further into Cipher’s history, product pipeline, caveat considerations, and a healthy look at industry peers from which we can derive some reasonable valuation expectations for the company's stock.

Research

Fri, 11 Nov 2022 15:23:26 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) ($2.66; $67.0M market cap) operates as a specialty pharmaceutical company in Canada. The company reported its third quarter 2022 results:

Sales of $4.8 million vs $4.5 million in the prior year but below analyst estimates of $5.7 million
EPS of $0.10 vs $0.03 in the prior year and ahead of analyst estimates of $0.09
Repurchased and canceled $0.3 million under the Normal Course Issuer Bid at an average price of $2.49 Canadian dollars

"Cipher's third quarter results demonstrated growth across revenue, EPS and Adjusted EBITDA over the prior year, highlighting the continued strength of our cash flows and the resilient nature of our business. Cipher has benefitted from the impacts of its cost reduction plan, enhanced sales and distribution agreements, key leadership appointments and the strength of our isotretinoin portfolio. These factors have combined to drive a meaningful increase in profitability in the third quarter, underlined by a 252% increase in earnings per share...

...I am delighted to join the Cipher team. My commitment is simple, to support the continued and demonstrated profitability of Cipher, as well as a focus on growing the business. In Q3, we continued to enhance our liquidity, ending the quarter with a cash balance of $27.5 million, placing us in an excellent position to drive organic growth and fund our development pipeline as well as evaluate profitable product and company acquisitions to accelerate growth and drive shareholder value."

It should be noted that the 3rd quarter is usually the weakest quarter, and may not have been accounted for in analysts' estimates. Last year, this same quarter, the company’s commentary stated:

“During the third quarter, license fees were down sequentially, due to the combination of normal draw down of launched quantities at the wholesale level, as well as seasonality associated with the product. Q3 is the seasonally weakest quarter of the year for isotretinoin products due to the summer months, which reduce prescribing trends."

On September 27, 2022, we laid out some quick and preliminary reasons why we started to track CPH. We pointed out that it met 10 out of 10 Tier One Quality microcap criteria. You can review that note here.

Yesterday we released a more comprehensive update that delves further into Cipher’s history, product pipeline, caveat considerations, and a healthy look at industry peers from which we can derive some reasonable valuation expectations for the company's stock.

Please read the full update here.

Reasons For Tracking

Tue, 27 Sep 2022 14:18:09 GMT

CIPHER PHARMACEUTICALS INC (OTC:CPHRF) (CPH.TO) ($2.38; $60.1M market cap) operates as a specialty pharmaceutical company in Canada. Last week, we had a very positive preliminary interview with the CEO Craig Mull. We are in the process of writing a more detailed report on the company and scheduling a live fireside chat with management we’ll be hosting on Geoinvesting.

Please read on here to see some of our key take aways and the tier one quality microcap criteria the company meets.