Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals Inc. is a growing specialty company with a focus on dermatology. The company's goal is to develop and acquire best-in-class skincare solutions for unmet medical needs. Cipher has everything it takes—strong financials, a robust and growing product portfolio and savvy executive leadership with proven commercial execution capabilities—to change the face of dermatology treatment for patients and healthcare professionals throughout North America.

Expert Comments:

Grant Zeng, Zacks Small-Cap Research (11/5/15)
"Since the onset of 2015, Cipher Pharmaceuticals Inc. has completed six transactions. The company reported another strong quarter of financial results for Q3/15 despite all the mergers and acquisitions activity, showing that management can execute on both the existing operations and business development; we continue to rate the company's shares a Buy rating." -Zacks Small-Cap Research

Douglas Loe, Euro Pacific Canada (11/5/15)
"We are comfortable with Cipher Pharmaceuticals Inc.'s growth trajectory of core dermatology assets currently marketed by the firm in Canada/U.S., and with the suite of new product launches/filings on pace to transpire in FY16 and to contribute profitably to our revenue/EBITDA/EPS forecasts in FY16/17. We are maintaining our Buy rating and $13.25 price target. . .it corresponds to a one-year return of 156%."

Management Q&A: View From the Top
Shawn Patrick O'Brien
Shawn Patrick O'Brien, president and CEO of Cipher Pharmaceuticals, describes his company's ongoing efforts to address unmet needs in dermatology.
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"Cipher Pharmaceuticals Inc. is a company I know really well. I know both current and former management. I invested in the company personally four years ago at around $0.70/share, before I had the fund. When it got FDA approval for CIP-isotretinoin (Absorica; an acne treatment), and went to $1.50–2/share, I bought more, because in biotech a company is less risky when it actually succeeds. Cipher had a big bull move on the back of isotretinoin's great success. The stock peaked at CA$18–19/share, then fell back. When I launched the fund, I bought in. . .I was basically waiting to see how new management would begin to execute its transition. The company could not live off its existing portfolio. It had to transition to another growth phase. . .I've been buying, and I suspect other value guys have been buying as well, because I think Cipher is a decent risk/reward proposition. We now have some visibility to growth in the second half of the decade." read more >

"Cipher Pharmaceuticals Inc. is generating attractive EBITDA margins. The company, until recently, was focused on its own product development, and thus only recently qualified for specialty pharma status. Throughout most of its history, Cipher developed novel formulations of already approved drugs, like the blood triglyceride-lowering drug fenofibrate (Cipher's brand is Lipofen), the opioid-like pain drug tramadol (ConZip) and the vitamin A-analog acne drug isotretinoin (Absorica), using its licensed CIP drug delivery technology. . .the biggest-selling drug in the portfolio by far is Absorica, mostly because its CIP formulation is demonstrably superior to generic forms. The drug does not need to be ingested with a high-fat meal as others do, and failure to comply greatly mitigates effectiveness of drugs that have to be ingested in this way. By the end of Q3/14, Absorica's U.S. prescription market share was nearly 20%, and that was achieved while pricing Absorica at a premium to generic alternatives sold in the U.S. The firm's balance sheet is impeccable, with $47M in cash and no debt, so without any substantial working capital obligations, EBITDA and cash flow are essentially identical for the firm, both in the $5.1–5.2M range in Q3/14. Accordingly, Cipher has abundant financial flexibility to grow its product portfolio by acquisition, with an intense focus on dermatology." read more >

Experts Following This Company

Douglas Loe, Analyst – Euro Pacific Canada
Eden Rahim, Portfolio Manager and Options Strategist – Next Edge Capital, Theta Strategies Capital
Grant Zeng, Senior Biotech Analyst – Zacks Investment Research, Zacks Small-Cap Research

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.