Cipher Pharmaceuticals Inc T.CPH

Strong Cash Position at exit 2020

[nozzpack]

Cipher had cash of $4.7 m US at exit Q3.
Cipher also had Receivables in excess of Payables by $5 m US.

Q4 is the strongest quarter of the year.
The first three quarters generated on average $2 m US in free cash flows.
Q4 should have free cash flows of about $3 m US

Those excess $5 m in Receivables will be fully paid by exit 2020

So, we have $4.7 m cash to start with plus $5 m coming in from Q3 Receivables along with $3 m in Q4 cash flows for a total cash position of  $12.7 m US which is about $18 m in CAD or about $0.65 per share in cash..

[PrivilegedP5000]

Thanks for the analysis, changing the subject I am curious how management will utilize the 400 million USD tax losses before expiration with the limited resources that they currently have? in good conscience to minority shareholders should not mgt seek to sell the Company or merge with another entity that currently has taxable income? can anyone conjure up a scenario where we could even remotely

[nozzpack]

The .expiry dates extend well into the future. So, a merger or prospective buyer in the Canadian Pharma market could make use of these for an extended period. How long will depend on profits as higher profits..eg Bausch..could take full advantage.. ie,,utilization rate is dependent on magnitude of profitability 

[Maxmoe]

One obvious problem with anyone ever being able to use those tax losses is the fact there are so very very few profitable, taxable , comparable companies in Canada. These tax losses can't be used by companies in different businesses like weed or auto parts. Outside the tsx listed companies the pharma industry, if profitable, incorporates in Ireland or Switzerland where they don't pay taxes

[nozzpack]

That is correct. However, there are many more private Pharmas in the Canadian market than public listings.

[PitchinPennies]

In the search for a Canada-based public pharma company looking for tax losses, all roads lead to Laval and stop at Bausch Health. But Bausch just can't stand the current Cipher CEO. As much as business is business, Mull's personality and perceived intent are both strong deterrents to resuming discussion. It's not just Bausch in the camp who don't like Craig. He has wasted the time

[r0nald]

What is this all about? Is this your personal opinion, or what? Source please if not. Is the purpose to discourage Ciphet shareholders in anyway? Won't work with me. I'll just keep adding, it's just way too cheap.

[lorbas]

"As much as business is business, Mull's personality and perceived intent are both strong deterrents to resuming discussion." Lol. Of course Bausch doesn't like Mull. They want to market Trulance for themselves, and Mull is defending the company's rights to this valuable asset. He would do something wrong, if Bausch liked him at his point. I expect him to be a pain in the a$

[nozzpack]

Ignore pitchinpennies. He bashes every stock he lands on..just see his postings

[PitchinPennies]

@Nosepick, that's not exactly a ringing defense of Cap'n Craig, or a denial of the veracity of my statement. Truth is the acting CEO is one of the most widely disliked figures in the sector, except by two or three sad-sack apologists on this board. Ask around. No deals have been done with Suffer Pharmaceuticals, and why do you imagine that would that be? Perhaps because potential partners

[lorbas]

I just asked around and heard that Craig Mull is a highly-esteemed professional and CEO and a tough negotiator.  I guess it's your word against mine now..  Lol

[pabaloo]

Most of the information on here is very accurate except for a few disgruntled shareholders who hate the Mulls. It's easy to see why if there long term just trend the share price back a few years. The past bunch of miss managers have destroyed the wealth of this once high flyer. Mull junior is left to try to recover some of the losses. Think about this for a minute... you run a company that

[nozzpack]

That's exactly my view. Cipher has faithfully paid its $6.8 m US in purchase and milestone costs. So, there is no way that this investment amounting to about $9 m cad can be denied. That of course does not take into account punitive and revenue replacement costs appropriately discounted. I figure about $25 million in cash. That will still be a bargain for Bausch.

[PrivilegedP5000]

Is there any risk that this arbitration could go against Cipher and they will be charged with legal fees etc.?

[pabaloo]

No worries about legal cost as parties usually wave those in binding arbitration cases. That's why you opt for this mode of agreement. Even settlements are usually mutually hated. It's usual to find middle ground and a settlement.