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Added to YB: 2026-03-19

Pitch date: 2026-03-16

CPH.TO [neutral]

Cipher Pharmaceuticals Inc.

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 for the treatment of severe nodular and/or inflammatory acne, acne conglobate, and recalcitrant acne; Actikerall, a topical solution for the treatment of slightly palpable and/or moderately thick hyperkeratotic actinic keratosis (Grade I/II) of the face, forehead, and balding scalp; 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 fibrillation to sinus rhythm in adults; Aggrastat, a reversible GP IIb/IIIa inhibitor for use in patients with acute coronary syndrome; and Natroba for the topical treatment of head lice and scabies infestations in adult and pediatric patients.

Market Cap

CAD 304.0M

Pitch Price

N/A

Price Target

21.37

Dividend

N/A

EV/EBITDA

12.54

P/E

11.45

EV/Sales

5.99

Sector

Pharmaceuticals

Category

value

Show full summary:
Cipher Pharmaceuticals ($CPH.TO) Q4'25 & FY25 Operating Results Snapshot.

CPH.TO (earnings): Q4 rev $12.2M (+3%); FY25 rev $50.5M. Natroba drove $30M rev (+150% YoY), $17.4M EBITDA at 83% margin. $35M debt retired, now net cash $2.5M w/ $85M+ firepower. 28-rep U.S. sales force = sunk cost for future M&A. Trades 11x EV/EBITDA vs 12-18x peers despite 56% EBITDA margin, 9.6% FCF yield. Canada Natroba approval expected end-2026 (high-margin, zero capex). $134M tax loss pool amplifies returns. Absorica tail risk (expires end-2026). Next acquisition key catalyst; illustrative $35-85M EV accretion at current 11x multiple on product-only deals w/ structurally superior ROIC vs Natroba's 5.1x all-in entry.

Read full article (6 min)