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...

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