In my previous post, I posted facts about the existing core products that generate revenue (Epuris, Absorica, Absorica LD) and the core drugs in the pipeline (tattoo, Galephar and alitretinoin, Moberg and nail fungus).
However, the aforementioned growth factors are not alone.
Dirt-cheap CPH currently trading
just 1.3 times its 2020 EBITDA has additional levers to pull in 2021-2022.
Specifically, CPH is debt-free with a significant amount of cash, so CPH is seeking new growth opportunities, see excerpts from the latest Conference Call:
"The COVID-19 pandemic continued to impact the economy during the third quarter of 2020. Cipher is navigating through this environment while executing on business improvements and cost reductions. Cipher demonstrated strong profitability during the third quarter and sequential growth in revenue, despite market conditions that have not fully normalized. Our focus continues to be on driving profitability, strengthening the balance sheet and looking for the right opportunities for growth. "
"Cipher’s business and operations have demonstrated resilience as the COVID-19 pandemic continues to impact the world with the profitable business in a reduced cost structure, we feel that we are in an excellent position to start ramping up strategic promotional efforts to drive market share in our core brands and looking for the right opportunity to return Cipher to growth."
"Prasath Pandurangan: Hi, good morning. Thanks for taking my questions. Firstly, could you – is there any progress in terms of taking advantage of tax losses?
Craig Mull: Yes, we’ve made a significant progress. We are in serious discussions, including drafting of agreements with a partner that will co-promote our hospital products. And with that, we believe that we will be able to access the Cardiome losses as we are conducting an active business any area that Cardiome had participated in, and we expect to be able to utilize those losses as soon as the end of 2020."