Cipher Pharmaceuticals (CPH) AI Stock Analysis

• Market Cap: $375.57M
• Dividend Yield: N/A
• Average Volume (3M): 26.25K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.11
• Revenue Growth: 94.28%
• EPS Growth: 5.23%
• Country: CA
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.30
• Shares Outstanding: 25,393,806
• 10 Day Avg. Volume: 28,238
• 30 Day Avg. Volume: 26,255
• PEG Ratio: -0.52
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 7.37
• P/FCF Ratio: 12.61
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 7.39
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 21.01
• 1Y Price Target: $19.96
• Price Target Upside: 38.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$16.50 ▲(14.11% Upside)

Cipher Pharmaceuticals' strong financial performance, particularly in revenue growth and debt reduction, is a key strength. The technical indicators suggest a stable outlook, while the valuation is reasonable. The positive sentiment from the earnings call further supports the stock's potential, despite some challenges in profitability and operational efficiency.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and successful product expansion, which supports long-term business sustainability.

Debt Reduction

Significant debt reduction enhances financial flexibility and reduces interest burden, improving the company's long-term financial health.

Strong Gross Margins

High gross margins reflect efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

Declining Net Profit Margins

The sharp decline in net profit margins raises concerns about cost control and profitability, potentially impacting long-term financial performance.

Challenges with Licensing Revenue

Decreasing licensing revenue suggests potential challenges in maintaining income streams from partnerships, affecting future revenue diversification.

Increased SG&A Expenses

Rising SG&A expenses can strain profitability and indicate inefficiencies, potentially impacting the company's ability to invest in growth initiatives.

Cipher Pharmaceuticals Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Cipher Pharmaceuticals generates revenue primarily through the sale of its proprietary pharmaceutical products. The company has established partnerships with other pharmaceutical firms, allowing it to expand its product offerings and distribution capabilities. Key revenue streams include direct sales of its medications, royalties from licensed products, and potential milestone payments from partners based on the successful development and commercialization of products. Additionally, Cipher focuses on acquiring and developing late-stage drug candidates, which can lead to further revenue opportunities through sales and licensing agreements.

Cipher Pharmaceuticals Financial Statement Overview

Summary

Cipher Pharmaceuticals demonstrates strong revenue growth and robust gross margins, positioning it well in the pharmaceuticals industry. However, declining net profit margins and ROE highlight potential challenges in maintaining profitability and operational efficiency. The balance sheet remains solid with manageable debt levels, but cash flow improvements are needed to sustain future growth.

Income Statement

Cipher Pharmaceuticals has shown a robust revenue growth from 2023 to 2024, increasing by 57.7%, which is a positive indicator of the company's market expansion and product demand. The gross profit margin is strong at 72.3% in 2024, indicating efficient cost management. However, the absence of EBIT in 2024 could suggest increased operating expenses or write-offs. Net profit margin decreased significantly from 96.3% in 2023 to 34.6% in 2024, which raises concerns about profitability sustainability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.40 in 2024, reflecting prudent leverage levels. Return on Equity (ROE) saw a notable decrease to 11.3% in 2024 from 25.3% in 2023, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio is stable at 63.0%, showcasing a solid capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow has improved, with a 22.2% increase from 2023 to 2024, supporting operational stability. The free cash flow to net income ratio remains impressive at 1.69 in 2024, indicating strong cash conversion. However, free cash flow growth is moderate at 22.1%, suggesting potential constraints in cash generation compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.59M	33.36M	21.16M	20.68M	21.94M	21.61M
Gross Profit	35.12M	24.10M	17.09M	16.68M	18.26M	18.55M
EBITDA	16.73M	11.87M	11.53M	12.04M	13.66M	13.40M
Net Income	12.14M	11.54M	20.38M	26.64M	7.76M	4.55M
Balance Sheet
Total Assets	152.39M	162.51M	86.03M	73.78M	51.65M	44.28M
Cash, Cash Equivalents and Short-Term Investments	11.34M	17.84M	39.83M	28.84M	20.55M	9.14M
Total Debt	25.45M	40.58M	353.00K	428.00K	516.00K	1.85M
Total Liabilities	42.96M	60.17M	5.51M	9.70M	12.75M	11.63M
Stockholders Equity	109.44M	102.34M	80.52M	64.08M	38.90M	32.64M
Cash Flow
Free Cash Flow	21.10M	19.50M	15.98M	10.49M	13.81M	10.93M
Operating Cash Flow	21.13M	19.55M	16.00M	10.57M	13.81M	11.69M
Investing Cash Flow	-80.03M	-80.04M	-144.00K	-81.00K	0.00	-760.00K
Financing Cash Flow	22.15M	39.30M	-5.24M	-1.91M	-2.47M	-8.13M

Cipher Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CPH, the sentiment is Neutral. The current price of 14.46 is above the 20-day moving average (MA) of 14.23, below the 50-day MA of 14.53, and above the 200-day MA of 13.61, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CPH.

Cipher Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	74 Outperform	$375.57M	22.40	16.32%	―	94.28%	5.23%
TH	61 Neutral	―	―	―	―	5.24%	-7.99%
GUD	59 Neutral	$578.13M	1,705.88	-0.48%	―	18.70%	88.31%
OGI	59 Neutral	C$303.58M	75.00	1.86%	―	38.86%	―
MDP	58 Neutral	C$86.45M	64.48	0.87%	―	2.14%	-83.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	51 Neutral	C$169.51M	-8.20	-20.49%	―	0.73%	33.51%

Cipher Pharmaceuticals Corporate Events

Cipher Pharmaceuticals Reports Strong Q3 2025 Financial Results

Cipher Pharmaceuticals reported a strong financial performance for the third quarter of 2025, with a 24% increase in total revenue to $12.8 million and a 79% rise in adjusted EBITDA to $7.3 million. The company has made significant progress in reducing its debt, with $32 million in repayments over the past six months, positioning it well for future growth opportunities. The passing of board member Harold M. Wolkin was noted as a loss to the company, given his valuable contributions.

Cipher Pharmaceuticals Achieves Strong Q3 2025 Financial Performance

Cipher Pharmaceuticals reported significant financial growth in the third quarter of 2025, with a 24% increase in total revenue to $12.8 million and a 79% rise in adjusted EBITDA to $7.3 million compared to the same period in 2024. The company has made substantial progress in reducing its debt, with $32 million in repayments over the past six months, positioning itself well for future growth opportunities. The passing of a key board member, Harold M. Wolkin, was also noted, highlighting his contributions to the company’s strategic initiatives.

Cipher Pharmaceuticals to Announce Q3 2025 Financial Results

Cipher Pharmaceuticals announced the release of its third-quarter 2025 financial results, scheduled for November 6, 2025, followed by a conference call on November 7, 2025, to discuss the results and corporate developments. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

Cipher Pharmaceuticals Wins Arbitration Against Sun Pharmaceuticals

Cipher Pharmaceuticals has received a favorable arbitration award in a contractual dispute with Sun Pharmaceuticals over the launch of Absorica LD® in Canada and ownership of clinical data. The arbitrator ruled in Cipher’s favor, granting them CAD $4.24 million in damages, future royalties on sales, and reimbursement of legal fees. Sun is contesting the decision in court, but Cipher plans to defend the award and pursue further claims against Sun for using its clinical data in other regions.