<- Go home

Added to YB: 2026-02-20

Pitch date: 2026-02-18

CPH.TO [bullish]

Cipher Pharmaceuticals Inc.

+31.66%

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 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 330.8M

Pitch Price

CAD 14.53

Price Target

N/A

Dividend

N/A

EV/EBITDA

13.65

P/E

12.45

EV/Sales

6.52

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)