Cipher Pharmaceuticals (CPH) AI Stock Analysis

• Market Cap: $324.39M
• Dividend Yield: N/A
• Average Volume (3M): 26.06K
• Price to Earnings (P/E): 25.2
• Beta (1Y): -0.24
• Revenue Growth: 84.83%
• EPS Growth: -58.69%
• Country: CA
• Employees: 5
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.14
• Shares Outstanding: 25,622,940
• 10 Day Avg. Volume: 20,250
• 30 Day Avg. Volume: 26,059
• PEG Ratio: -0.83
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.01
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 11.45
• Enterprise Value/Ebitda: 5.63
• 1Y Price Target: $15.01
• Price Target Upside: 15.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: C$14.50 ▲(11.54%Upside)

Cipher Pharmaceuticals has a solid financial foundation, driven by strong revenue growth and strategic acquisitions, notably Natroba. Technical indicators show short-term bullish momentum, though long-term challenges exist. Valuation remains reasonable, and strategic initiatives, including debt reduction and market expansion, contribute positively. However, profitability sustainability and increased expenses present risks that temper the overall score.

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 commercialization and distribution of specialty dermatology products. The company's revenue streams include product sales, licensing agreements, and royalties from partnerships with other pharmaceutical companies. Cipher's business model involves acquiring or in-licensing products that have potential for growth in the dermatology sector and leveraging its marketing capabilities to boost sales. The company also enters into strategic partnerships to expand its product offerings and market reach, which further contributes to its revenue generation.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.36M	21.16M	20.68M	21.94M	21.61M
	Gross Profit
24.10M	17.09M	16.68M	18.26M	18.55M
	EBIT
7.85M	11.53M	12.04M	11.82M	12.20M
	EBITDA
11.87M	11.53M	12.04M	13.66M	13.40M
	Net Income Common Stockholders
11.54M	20.38M	26.64M	7.76M	4.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.84M	39.83M	28.84M	20.55M	9.14M
	Total Assets
162.51M	86.03M	73.78M	51.65M	44.28M
	Total Debt
40.58M	353.00K	428.00K	516.00K	1.85M
	Net Debt
22.74M	-39.47M	-28.41M	-20.03M	-7.29M
	Total Liabilities
60.17M	5.51M	9.70M	12.75M	11.63M
	Stockholders Equity
102.34M	80.52M	64.08M	38.90M	32.64M
Cash Flow		Free Cash Flow
19.50M	15.98M	10.49M	13.81M	10.93M
	Operating Cash Flow
19.55M	16.00M	10.57M	13.81M	11.69M
	Investing Cash Flow
-80.04M	-144.00K	-81.00K	0.00	-760.00K
	Financing Cash Flow
39.30M	-5.24M	-1.91M	-2.47M	-8.13M

Cipher Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 13 is above the 20-day moving average (MA) of 12.52, above the 50-day MA of 12.55, and below the 200-day MA of 14.03, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CPH.

Cipher Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	72 Outperform	$324.39M	25.24	9.69%	―	84.83%	-58.69%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
THTX		$118.42M	―		―	―	―
KHTRF		$440.29M	56.59	1.41%	―	―	―
MDP	71 Outperform	C$92.26M	14.36	11.27%	―	-3.82%	-50.36%
OGI		$192.00M	21.62	4.76%	―	―	―
HLS	60 Neutral	C$156.59M	―	-23.05%	―	-3.73%	32.70%

Cipher Pharmaceuticals Corporate Events

Cipher Pharmaceuticals Reports Strong Q1 2025 Results and Strategic Debt Repayment

Cipher Pharmaceuticals reported a significant financial performance in the first quarter of 2025, with total revenue increasing by 105% to $12.0 million compared to the previous year. The company’s Canadian product portfolio saw a 41% revenue increase, and Natroba™ sales contributed $6.7 million. The company also announced a $15 million debt repayment, reducing its revolving credit facility balance, and highlighted strategic moves such as the preferred status of Natroba™ in Illinois Medicaid and a share repurchase program, indicating a strong financial position and strategic growth opportunities.

Cipher Pharmaceuticals to Announce Q1 2025 Financial Results

Cipher Pharmaceuticals announced its financial results for the first quarter of 2025 will be released on May 8, 2025, followed by a conference call on May 9, 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’ Natroba™ Gains Preferred Status in Illinois Medicaid

Cipher Pharmaceuticals announced that its product Natroba™ has been granted preferred drug status on Illinois’ Medicaid Preferred Drug Listing for the treatment of scabies and head lice, while its competitor, Permethrin 5%, has been downgraded. This decision is expected to influence prescribing habits, potentially benefiting Cipher’s market position. The company sees this as a significant growth opportunity and is in discussions with other states to expand Natroba’s preferred status, addressing the global issue of lice resistance to Permethrin.

Cipher Pharmaceuticals Achieves Robust Growth in 2024 with Strategic Acquisition

Cipher Pharmaceuticals reported significant financial growth in 2024, with total revenue increasing by 58% to $33.4 million, driven by the acquisition of Natroba and strong performance of Epuris. The acquisition of Natroba has provided Cipher with a U.S. commercial footprint, enhancing its growth strategy and cash flow generation, supported by a new credit facility with the National Bank of Canada.