Cipher Pharmaceuticals Inc T.CPH

Ink Research

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Morning Report: Cipher Pharmaceuticals makes its mark in the INK Top 40 

September 18, 2023

Cipher Pharmaceuticals (CPH) stock has been on a steady rise over the past year, up 44.2% in the 12 months ended September 15th. Slightly more than half the rise (22.5%) took place over the past 6 months. Meanwhile, valuations remain relatively low as company earnings have benefited from a favourable reduction in tax expense in the first 6 months of this year even as total 6-month revenue as of June 30, 2023, came in at $10.2 million versus just over $10.9 million a year earlier. On a trailing 12-month basis, as of June 30th, earnings were $1.44 per share versus $0.40 a year earlier. That leaves the stock trading at a trailing P/E of 3.1 as of Friday's close ($4.47). The combination of rising price momentum, relatively low valuations, and substantial CEO holdings helped the stock enter the INK Top 40 this month at #35.

Cipher describes itself as having a diversified portfolio of commercial and early to late-stage products that it believes fulfill unmet medical needs. It manages product clinical development, regulatory approvals, and marketing either directly in Canada or indirectly through partners throughout the Americas. Its product pipeline includes MOB-015 with partner Moberg Pharma AB which targets nail fungus and is in a phase 3 clinical trial in the US. Meanwhile, it reports that its Piclidenoson CF-101 program with partner Canfite Biopharma recently received positive top-line results from its Phase 3 COMFORT study in the treatment of psoriasis. It also has a novel treatment product approach in DTR-001 which focuses on the removal of tattoos. DTR-001 is in the pre-clinical proof-of-concept study stage. While we will have to see if the removal of body art helps Cipher grow its revenue in the future, the stock has already made its mark in the INK Edge rankings, arriving in the top 10% this month.