Jason Napodano, CFA
Research analyst, medium-term horizon, biotech, small-cap

Buy Cipher Pharma Before Someone Else Buys Them

We believe Cipher Pharmaceuticals (CPHMF) (DND.TO) is a very attractive acquisition target by a larger pharmaceutical organization. Below we provide a quick review of the solid fundamentals that led to break-out financial results in 2013, and conclude with what makes the name such an attractive take-out target at this level.

Solid 2013 In The Books

On February 26, 2014, Cipher Pharmaceuticals reported financial results for the fourth quarter and full year ended December 31, 2013. Total revenues in the quarter were $12.5 million, up 332% over the fourth quarter 2013 and $1.0 million above our estimate for revenues of $11.5 million. Revenues were driven by recognition of a $5.0 million milestone payment from U.S. Absorica commercialization partner, Ranbaxy, on achieving...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details