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Added to YB: 2026-09-08

Pitch date: 2026-09-04

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 263.4M

Pitch Price

N/A

Price Target

N/A

Dividend

N/A

EV/EBITDA

9.52

P/E

9.23

EV/Sales

5.13

Sector

Pharmaceuticals

Category

turnaround

Show full summary:
Cipher Pharmaceuticals ($CPH.TO) Q2’26 Results Review.

CPH.TO (earnings): Cipher’s Q2 was weak on headline revenue but constructive for long-term economics: revenue fell 10% as Medicaid-related Natroba volumes declined, yet the adjusted EBITDA margin held at 57% and normalized SG&A fell about US$0.8 million. Walmart/DTC distribution and broader Epuris reimbursement could restore volume across a leaner cost base. The key test is whether prescription growth translates into EBITDA and free-cash-flow growth rather than being absorbed by rebates, channel costs or spending.

Read full article (6 min)