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Cipher Pharmaceuticals Inc (CPHRF) Q3 2024 Earnings Call Highlights: Revenue Surge and ...

In This Article:

  • Total Net Revenue (Q3 2024): $10.4 million, a 71% increase compared to the same quarter in the prior year.

  • Total Net Revenue (9 months ended September 30, 2024): $21.5 million, a 33% increase compared to the same period in the prior year.

  • Licensing Revenue (Q3 2024): $1.1 million, a 66% decrease compared to the same quarter in the prior year.

  • Licensing Revenue (9 months ended September 30, 2024): $5.3 million, a 24% decrease compared to the same period in the prior year.

  • Product Revenue (Q3 2024): $9.3 million, a 213% increase compared to the same quarter in the prior year.

  • Product Revenue (9 months ended September 30, 2024): $6.3 million, a 7.75% increase compared to the same period in the prior year.

  • Gross Margin (Q3 2024): 79%, up from 64% in the same period in the prior year.

  • Selling, General and Administrative Expenses (Q3 2024): $6.2 million, an increase of $4.5 million compared to the same period in the prior year.

  • Adjusted EBITDA (Q3 2024): $4.1 million, compared to $3.6 million in the same quarter in the prior year.

  • Cash on Hand (End of Q3 2024): $9.5 million.

  • Revolving Credit Facility: $65 million total with $40 million drawn as of September 30, 2024.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cipher Pharmaceuticals Inc (CPHRF) reported a significant increase in net revenue for Q3 2024, with a 71% rise compared to the same quarter in the previous year.

  • The acquisition of the Natroba business is expected to drive future growth, with plans to insource sales and reduce costs, potentially leading to higher earnings in 2025.

  • The company has successfully integrated the Natroba business into its existing infrastructure, providing a strong North American platform for expansion.

  • Cipher Pharmaceuticals Inc (CPHRF) has increased its market share for Epuris, a key product, by 4.2% to 50.3% as of September 30, 2024.

  • The company has a strong cash position with $9.5 million on hand and a $65 million revolving credit facility, providing flexibility for future acquisitions and growth initiatives.

Negative Points

  • Licensing revenue from Absorica decreased significantly by 76% in Q3 2024 compared to the same period in 2023, due to lower product shipments.

  • The transition from a co-promotion partner for Natroba is impacting sales and earnings, with full transition expected only by Q1 2025.

  • Selling, general, and administrative expenses increased by $4.5 million in Q3 2024, primarily due to costs associated with the Natroba acquisition and restructuring.

  • The ongoing North American phase three study for MOB 015 showed lower clinical cure rates than expected, potentially impacting its commercial outlook.

  • Can-Fite, a partner for the development of Pleno CF 101, may face challenges in funding the second phase three clinical trial for plaque psoriasis, which could delay progress.