Cipher Pharmaceuticals Inc T.CPH

Very good Q

[Northforce13]

Solid results, big boost in profitability, though a big chunk of which is attributable to tax revaluation.

1)  Great profitability

2)  Tax revaluation was encouraging, indicates less likelyhood that the accumulated tax payables on their balance sheet will have to be paid, and more likelyhood they will be gradually reversed as was the case this quarter, which could continually boost profitability. 

3)  Licensing revenue stabilized, which is what they said they expected last quarter.  I had expected additional small declines, so this is a small positive as well.  

4)  No M&A chatter... last quarter they seemed to allude to M&A every second sentence.   I guess they took a pass on the deals they were looking at.  If so, this is also a positive, indicative of their continued caution in deploying their cash.  

5)  Big cash pile is generating interest revenues, as opposed to the typical company which has debt and it seeing increasing interest costs.  This is very nice. 

6)  Epuris in Canada keeps growing year over year.  

7)  No news on the NCIB.  They paused it end September if I remember right.  I thought this was due to an imminent M&A deal requiring cash.  Or perhaps they stalled it due to the SP appreciation. 

8)  Slight negative:  MOB -015 is pushed back a bit.  Enrolement in the second phase 3 study appears to have taken longer than expected by Moberg.  This is slightly incompetent on their part, as it only required 350 participants and they started in May.  It should not have taken 6 months to find 350 people.  The company they subcontracted to do the enrollment did a lazy subpar job in my opinion.  

Speculation:  They are doing nothing with their cash, no concrete talk of acquisision + they stopped the NCIB.  Maybe someone is making an offer to buy them out?  Slim possibility, but would fit with those facts.  It would be logical that any debt loaded cash hungry pharma company trading at high multiples would love to buy CPH and get the multiplies benefit plus the pile of cash with no debt.  

Sitting and doing nothing, this is an interesting ride, been on it for 1.5 years now. 

GLTA

[Rsoleblocka]

Nice synopsis, I almost sold today at 3.70 but could not pull the trigger. As longs as they do not buy something for the sake of doing so I am still comfortable with this holding.  Cheers

[stockfy]

Where are all those bears who were posting ugly comments against CPH and its management team about one year ago when CPH was below CAD$1?