Cipher Pharmaceuticals (TSE:CPH)
TSX:CPH
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Cipher Pharmaceuticals
(TSX:CPH)
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Rating:85Outperform
Price Target:
C$20.00
▲(34.23% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by very strong financial performance (high margins, strong cash generation, and low leverage) and an attractive low P/E valuation. Technicals remain supportive overall due to price above major moving averages, but mixed momentum indicators temper the score. Key risk to monitor is volatility in profitability and debt levels across years.
Positive Factors
High Profitability / Net Margins
Sustained, very high trailing net margins indicate durable pricing power and attractive product economics in Cipher's specialty dermatology portfolio. Such margins support reinvestment, cover fixed commercial costs and provide a buffer for R&D or M&A, underpinning long‑term cash generation and shareholder returns.
Negative Factors
Profitability Volatility
Historical swings in margins and net income suggest results may be influenced by one‑off items, product mix shifts or timing of licensing revenue. That variability complicates forecasting, makes sustainable margin assumptions less reliable and raises execution risk when planning launches, pricing strategies or shareholder distributions.
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Positive Factors
Negative Factors
High Profitability / Net Margins
Sustained, very high trailing net margins indicate durable pricing power and attractive product economics in Cipher's specialty dermatology portfolio. Such margins support reinvestment, cover fixed commercial costs and provide a buffer for R&D or M&A, underpinning long‑term cash generation and shareholder returns.
Read all positive factors
Cipher Pharmaceuticals (CPH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$427.76M
Dividend YieldN/A
Average Volume (3M)26.25K
Price to Earnings (P/E)13.7
Beta (1Y)0.50
Revenue Growth27.57%
EPS Growth226.76%
CountryCA
Employees5
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.22
Shares Outstanding25,281,181
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$22.00Price Target Upside47.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.88
Revenue Forecast (FY)C$53.41M
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; Ozenoxaci...
How the Company Makes Money
Cipher makes money primarily by commercializing and monetizing a portfolio of prescription pharmaceutical products. Its revenue model typically includes (1) product sales in markets where it commercializes directly—most notably Canada—earning reve...
Cipher Pharmaceuticals Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and significant debt reduction, supported by the robust performance of the Natroba business. However, challenges remain in licensing revenue and the Absorica portfolio, along with increased SG&A costs. Overall, the positive aspects slightly outweigh the negative aspects.Positive Updates
Strong Performance of Natroba Business
Sales from Natroba and its authorized generic Spinosad reached $8.1 million in Q3 2025, a 4% sequential increase. The gross margin was 86%, with strong profitability reflected in an adjusted EBITDA of $5 million.
Negative Updates
Decline in Licensing Revenue
Licensing revenue for Q3 2025 decreased by 28% year-over-year, and for the 9-month period, it dropped by 44%, primarily due to lower royalties from the Absorica portfolio.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Performance of Natroba Business
Sales from Natroba and its authorized generic Spinosad reached $8.1 million in Q3 2025, a 4% sequential increase. The gross margin was 86%, with strong profitability reflected in an adjusted EBITDA of $5 million.
Read all positive updates
Company Guidance
In the Q3 2025 conference call, Cipher Pharmaceuticals reported robust financial metrics, highlighting meaningful growth attributed to the U.S.-based Natroba business. Natroba and its authorized generic Spinosad generated $8.1 million in sales, marking a 4% sequential increase from the previous quarter. This growth was attributed to product seasonality and strong profitability, with a gross profit of $7 million and a gross margin of 86%. The Natroba business contributed $5 million to the adjusted EBITDA, which totaled $7.3 million for the company during the quarter. Cipher also reported a significant reduction in its revolving credit facility from $40 million to an $8 million balance, reflecting their focus on deleveraging. The company's broader strategy includes launching a direct-to-consumer sales model in early 2023 to expand the Natroba business, pursuing complementary products for commercialization, launching Natroba in Canada, and exploring global out-licensing opportunities. Overall, Cipher Pharmaceuticals is focusing on growth and shareholder value while maintaining a strong financial position with $8.4 million in cash and $13 million in outstanding debt by the quarter's end.Cipher Pharmaceuticals Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
92
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.92M | 51.33M | 33.36M | 21.16M | 20.68M | 21.94M |
| Gross Profit | 37.95M | 33.77M | 24.10M | 17.09M | 16.68M | 18.26M |
| EBITDA | 25.12M | 16.80M | 11.87M | 11.53M | 12.04M | 13.66M |
| Net Income | 30.97M | 27.81M | 11.54M | 20.38M | 26.64M | 7.76M |
Balance Sheet | ||||||
| Total Assets | 153.39M | 156.22M | 162.51M | 86.03M | 73.78M | 51.65M |
| Cash, Cash Equivalents and Short-Term Investments | 6.41M | 7.48M | 17.84M | 39.83M | 28.84M | 20.55M |
| Total Debt | 428.30K | 5.49M | 40.58M | 353.00K | 428.00K | 516.00K |
| Total Liabilities | 20.55M | 30.20M | 60.17M | 5.51M | 9.70M | 12.75M |
| Stockholders Equity | 132.84M | 126.01M | 102.34M | 80.52M | 64.08M | 38.90M |
Cash Flow | ||||||
| Free Cash Flow | 29.99M | 30.22M | 19.50M | 15.98M | 10.49M | 13.81M |
| Operating Cash Flow | 30.09M | 30.25M | 19.55M | 16.00M | 10.57M | 13.81M |
| Investing Cash Flow | -555.03K | -72.24K | -80.04M | -144.00K | -81.00K | 0.00 |
| Financing Cash Flow | -45.54M | -41.18M | 39.30M | -5.24M | -1.91M | -2.47M |
Cipher Pharmaceuticals Technical Analysis
Neutral
14.90
Price Trends
17.73
Negative
16.32
Positive
15.58
Positive
Market Momentum
-0.15
Positive
40.03
Neutral
3.48
Positive
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 14.9 is below the 20-day moving average (MA) of 18.00, below the 50-day MA of 17.73, and below the 200-day MA of 15.58, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 3.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | C$427.76M | 13.68 | 25.69% | ― | 27.57% | 226.76% | |
77 Outperform | C$160.96M | 17.43 | 22.05% | 1.60% | 20.13% | 17.08% | |
69 Neutral | C$801.92M | 13.85 | 0.73% | ― | 36.93% | -47.43% | |
66 Neutral | C$126.62M | 294.90 | -0.52% | ― | -7.44% | -108.29% | |
55 Neutral | C$145.11M | -10.87 | -16.54% | ― | -2.35% | 42.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$200.25M | -4.76 | -229.16% | ― | ― | 18.50% |
* Healthcare Sector Average
TSE:CPH
Cipher Pharmaceuticals
16.92
4.82
39.83%
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Cipher Pharmaceuticals Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Cipher Pharmaceuticals Delivers Record 2025 Results and Primes for Next Acquisition Phase
Positive
Mar 12, 2026
Cipher Pharmaceuticals reported record 2025 results, with total revenue rising 51% to $50.5 million and net income up 137% to $27.3 million, driven primarily by the U.S. business where revenue surged 150% to $30.0 million. Adjusted EBITDA climbed ...
Business Operations and StrategyFinancial Disclosures
Cipher Pharmaceuticals Sets March Date for Q4 and Fiscal 2025 Results
Neutral
Mar 5, 2026
Cipher Pharmaceuticals Inc. will release its fourth-quarter and full-year 2025 financial results after markets close on March 12, 2026, followed by a conference call the next morning to review earnings and recent corporate developments. The schedu...
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.