Preliminary results from Cipher Pharmaceuticals (TSX:CPH, Nasdaq:CPHR) second quarter came in well ahead of Laurentian Bank Securities analyst Joseph Walewicz’s expectations, says the analyst.
This morning, Cipher Pharma provided preliminary estimates of its Q2 financial results. The company said it expects to post a net loss of approximately $3.4-million and adjusted EBITDA of approximately $2.7-million on revenue of approximately $11.7-million, which would be a more than 30 per cent increase over the $8.8-million topline the company posted in the same period last year.
“It was a solid second quarter for the company, highlighted by more than 30-per-cent growth in revenue and a strong improvement in adjusted EBITDA,” said CEO Shawn Patrick O’Brien. “In addition, we generated cash from operating activities of approximately $3.2-million in the second quarter, and ended the quarter with more than $30-million in cash.”
Walewicz says this was a “very solid” quarter, across the board.
“Total revenues of US$11.7 million were well above our above-consensus forecast,” notes the analyst. “All parts of the business exceeded our forecast, with licensing revenues (US$7.4 million), product revenues (US$4.3 million) and U.S. product revenues (US$3.2 million) ALL ahead of our expectations for the quarter. While we have to wait for next week to see which products drove this strong result, but we are encouraged by the strength across all businesses.”
In a research update to clients today, Walewicz maintained his “Buy” rating and one-year price target of (U.S.) $8.25 on Cipher Pharmaceuticals.