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Added to YB: 2026-02-20

Pitch date: 2026-02-18

CPH.TO [bullish]

Cipher Pharmaceuticals Inc.

+0.28%

current return

Author Info

Divergent Capital is a self-taught value investor in the tradition of Graham, Buffett and Munger. Sign up for the newsletter.

Company Info

Cipher Pharmaceuticals Inc. operates as a specialty pharmaceutical company in Canada. It offers Epuris (isotretinoin), an oral retinoid indicated for the treatment of severe nodular and/or inflammatory acne, acne conglobate and recalcitrant acne; Actikerall, a topical solution indicated for the treatment of slightly palpable and/or moderately thick hyperkeratotic actinic keratosis (Grade I/II) of the face, forehead, and balding scalp; Natroba for the topical treatment of head lice and scabies infestations in adult and pediatric patients; Vaniqa, a topical cream for the slowing of the growth of unwanted facial hair in women; Durela, an opioid analgesic for the management of moderate to moderately severe pain in adults; Brinavess for the rapid conversion of onset atrial fibriallation to sinus rhythm in adults; and Aggrastat, a reversible GP IIb/IIIa inhibitor for use in patients with Acute Coronary Syndrome.

Market Cap

CAD 275.7M

Pitch Price

CAD 14.53

Price Target

N/A

Dividend

N/A

EV/EBITDA

14.24

P/E

16.29

EV/Sales

5.61

Sector

Pharmaceuticals

Category

growth

Show full summary:
Q1'26 Idea Inventory, Part 1: $CPH.TO

CPH.TO: Specialty pharma distributor in Canada (Epuris acne, 51% share) & US (Natroba scabies). Epuris protected by niche/prescriber stickiness, gushes cash. Natroba targeting Permethrin's 75% share in $168M market w/ 80% gross, 60% op margins. LBO platform: $82M credit facility + high FCF from Epuris fund accretive M&A. CEO owns 44%, proven allocator. Near-zero capex, tax-loss carryforwards.

Read full article (2 min)