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Cipher Pharmaceuticals
(TSX:CPH)
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Rating:74Outperform
Price Target:
C$16.00
▼(-1.54% Downside)
Action:Reiterated
Date:08/17/26
The score is supported primarily by very strong financial performance (high margins, low leverage, solid cash generation) and a low P/E valuation, but is held back by weak price/indicator trends (below key moving averages with negative MACD) and near-term top-line pressure discussed on the earnings call (notably the U.S./Natroba revenue decline), despite constructive guidance actions and Epuris momentum.
Positive Factors
High Margins and Operating Efficiency
Exceptionally high gross and EBITDA margins provide resilience against product volatility. The 6% YTD EBITDA increase, despite lower revenue, indicates that cost control and operating efficiency can protect profitability over the next several quarters.
Negative Factors
Natroba U.S. Revenue Pressure
Natroba is facing a structural channel challenge rather than a one-day disruption. Reduced Medicaid volumes pressure the company’s U.S. revenue base, while new direct-to-patient and retail channels will require execution and time to offset the decline.
Read all positive and negative factors
Positive Factors
Negative Factors
High Margins and Operating Efficiency
Exceptionally high gross and EBITDA margins provide resilience against product volatility. The 6% YTD EBITDA increase, despite lower revenue, indicates that cost control and operating efficiency can protect profitability over the next several quarters.
Read all positive factors
Cipher Pharmaceuticals (CPH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$359.37M
Dividend YieldN/A
Average Volume (3M)26.25K
Price to Earnings (P/E)9.1
Beta (1Y)0.90
Revenue Growth3.18%
EPS Growth140.09%
CountryCA
Employees5
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.14
Shares Outstanding25,415,071
10 Day Avg. Volume28,238
30 Day Avg. Volume26,255
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.22
Price to Sales (P/S)5.44
P/FCF Ratio9.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.00Price Target Upside23.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.81
Revenue Forecast (FY)C$53.46M
Cipher Pharmaceuticals Business Overview & Revenue Model
Company Description
Cipher Pharmaceuticals Inc., founded in 2000 and based in Oakville, Canada, operates as a specialized pharmaceutical enterprise. The company markets a diverse portfolio of commercial therapeutic solutions. These include Epuris (CIP-ISOTRETINOIN), ...
How the Company Makes Money
Cipher makes money primarily through (1) product revenue from the commercialization of its own portfolio in the markets where it sells directly and/or via local distributors, and (2) licensing-based income from partners that commercialize Cipher-o...
Cipher Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive outlook: while the U.S. business (Natroba) experienced clear top-line pressure—driving a 10% decline in quarter revenue and a 19% decline in Natroba sales versus prior year—the company offset those headwinds with strong margin performance, SG&A reductions, cash generation, year-to-date EBITDA growth (+6% YTD), and concrete commercial and reimbursement progress for Epuris (14% revenue growth, expanded pCPA LOI and 47.1% market share). Management laid out actionable mitigation plans for U.S. channel diversification (DTC, retail, delivery), maintained an opportunistic M&A/in-licensing posture, and preserved liquidity and financing optionality. Overall, positives (sustained high margins, Epuris momentum, cost efficiencies, solid cash and financing capacity) meaningfully outweigh the operational revenue setbacks in the quarter.Positive Updates
Strong Overall Profitability and Margins
Cipher maintained high gross margins (80% in Q2 2026; 81% year-to-date) and strong adjusted EBITDA margins (57% in Q2; 59% year-to-date). The company remains profitable, cash generative, and debt-free.
Negative Updates
Natroba Revenue Decline (U.S. Business Pressure)
Natroba revenue for Q2 2026 was $6.3M versus $7.8M in Q2 2025, a decline of $1.5M or ~19% year-over-year. Management attributes the pressure principally to evolving Medicaid dynamics and reduced sales volumes to state Medicaid programs.
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Q2-2026 Updates
Positive
Negative
Strong Overall Profitability and Margins
Cipher maintained high gross margins (80% in Q2 2026; 81% year-to-date) and strong adjusted EBITDA margins (57% in Q2; 59% year-to-date). The company remains profitable, cash generative, and debt-free.
Read all positive updates
Company Guidance
Management guided that they expect near-term improvement in U.S. performance for Natroba as they scale new commercial channels (direct-to-patient launched earlier this year, direct mail/same-day delivery and national retail placement such as Walmart) while continuing to pursue in‑licensing, out‑licensing and acquisitions; key metrics discussed include Q2 net revenue of $12.1M (Q2 Natroba $6.3M vs $7.8M prior year; Epuris $4.1M, +$0.5M or +14%), six‑month revenue $24.6M, Q2 gross margin 80% (YTD 81%), Q2 adjusted EBITDA $6.8M (‑10% YoY) at a 57% margin, YTD adjusted EBITDA $14.6M (+6% YoY) at a 59% margin, Q2 net income $4.0M ($0.15/sh) and YTD net income $10.2M ($0.39/sh), Epuris sales volume +8% in Q2 and market share up 1.3 pts to 47.1% as of June 30, 2026, cash $9.1M, operating cash flow $7.6M YTD, debt‑free with $90M of potential financing capacity (a $65M revolver plus $25M accordion), and an expected timeline of 30–60 days to finalize expanded public drug‑plan listings for Epuris that management said should meaningfully expand the product’s addressable market and drive future market‑share growth.Cipher Pharmaceuticals Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.29M | 51.33M | 33.36M | 21.16M | 20.68M | 21.94M |
| Gross Profit | 34.78M | 33.77M | 24.10M | 17.09M | 16.68M | 18.26M |
| EBITDA | 24.42M | 24.10M | 11.87M | 11.53M | 12.04M | 13.66M |
| Net Income | 28.99M | 27.81M | 11.54M | 20.38M | 26.64M | 7.76M |
Balance Sheet | ||||||
| Total Assets | 156.63M | 156.22M | 162.51M | 86.03M | 73.78M | 51.65M |
| Cash, Cash Equivalents and Short-Term Investments | 9.10M | 7.48M | 17.84M | 39.83M | 28.84M | 20.55M |
| Total Debt | 366.40K | 5.49M | 40.58M | 353.00K | 428.00K | 516.00K |
| Total Liabilities | 19.60M | 30.20M | 60.17M | 5.51M | 9.70M | 12.75M |
| Stockholders Equity | 137.03M | 126.01M | 102.34M | 80.52M | 64.08M | 38.90M |
Cash Flow | ||||||
| Free Cash Flow | 26.93M | 30.22M | 19.50M | 15.98M | 10.49M | 13.81M |
| Operating Cash Flow | 27.05M | 30.25M | 19.55M | 16.00M | 10.57M | 13.81M |
| Investing Cash Flow | -804.45K | -72.24K | -80.04M | -144.00K | -81.00K | 0.00 |
| Financing Cash Flow | -28.26M | -41.18M | 39.30M | -5.24M | -1.91M | -2.47M |
Cipher Pharmaceuticals Technical Analysis
Negative
16.25
Price Trends
16.48
Negative
17.16
Negative
15.98
Negative
Market Momentum
-0.49
Positive
32.13
Neutral
12.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CPH, the sentiment is Negative. The current price of 16.25 is below the 20-day moving average (MA) of 16.29, below the 50-day MA of 16.48, and above the 200-day MA of 15.98, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 32.13 is Neutral, neither overbought nor oversold. The STOCH value of 12.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CPH.
Cipher Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | C$174.43M | 18.02 | 22.05% | 1.42% | 20.13% | 17.08% | |
74 Outperform | C$359.37M | 9.05 | 25.69% | ― | 3.18% | 140.09% | |
72 Outperform | C$915.52M | 66.49 | 1.91% | ― | 42.32% | 4332.35% | |
63 Neutral | C$167.81M | -49.18 | -4.64% | ― | -3.16% | -345.50% | |
54 Neutral | C$121.97M | -8.61 | -16.54% | ― | -1.18% | 42.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | C$293.22M | -7.24 | -180.13% | ― | ― | 29.34% |
* Healthcare Sector Average
TSE:CPH
Cipher Pharmaceuticals
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Cipher Pharmaceuticals Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Cipher Pharmaceuticals Balances Q2 Earnings Dip With Epuris Growth and Strong Balance Sheet
Negative
Aug 11, 2026
Cipher Pharmaceuticals reported softer second-quarter 2026 results, with net income falling 32% to $4.0 million and total revenue down 10% to $12.1 million, while adjusted EBITDA slipped 10% and operating cash flow halved year over year. Managemen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.