Canada's Cipher Pharma Q2 revenue falls on lower Natroba sales amid reduced Medicaid coverage

Cipher Pharmaceuticals

11/08/2026 22:11

Overview
Canada specialty pharma firm's Q2 revenue fell 10% yr/yr, missing analyst expectations
Adjusted EBITDA for Q2 declined 10% and missed analyst expectations
Company cited lower Natroba sales in U.S. Medicaid as main reason for declines

Outlook
Cipher expects performance to improve in future quarters as new programs are implemented
Company anticipates continued market share growth for Epuris in Canada due to expanded reimbursement
Cipher plans to pursue acquisitions and in-licensing to expand its North American platform

Result Drivers
NATROBA SALES DECLINE - Revenue from Natroba fell 19% due to reduced sales volumes from fewer patients covered by Medicaid programs
EPURIS GROWTH - Epuris sales in Canada rose 14% yr/yr, contributing to a 12% increase in Canadian product portfolio revenue
LOWER LICENSING REVENUE - Licensing revenue dropped 22%, mainly due to lower product shipments to licensing partners

Company press release: ID:nCNW7w1qva

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$12.07 mln
$13.61 mln (3 Analysts)
Q2 EPS
 
$0.15
 
Q2 Net Income
 
$4.01 mln
 
Q2 Adjusted EBITDA
Miss
$6.84 mln
$7.81 mln (3 Analysts)
Q2 EBITDA
 
$5.41 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Cipher Pharmaceuticals Inc is C$19.00, about 8.1% above its August 10 closing price of C$17.57
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Aug 10 - Canada's Medexus Q1 revenue beats on GRAFAPEX strength
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Aug 11 - TherapeuticsMD Q2 license revenue falls; continues to evaluate strategic alternatives

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)