Canada's Cipher Pharmaceuticals Q1 net income jumps 135% on lower costs

Cipher Pharmaceuticals

07/05/2026 22:19

Overview

Canada specialty pharma firm's Q1 revenue rose 4% yr/yr

Net income more than doubled, driven by higher gross profit and lower SG&A expenses

Company fully repaid revolving credit facility and announced new share buyback program

Outlook

Cipher aims to grow Natroba market share in the U.S. anti-parasitic market

Company plans to acquire or in-license complementary products to expand its North American platform

Cipher intends to commercialize Natroba in Canada following Health Canada approval

Result Drivers

LICENSING REVENUE - Higher product shipments to licensing partners and increased net sales royalties drove a 52% rise in licensing revenue

GROSS MARGIN - Gross margin increased to 82% from 76% in Q1 2025, mainly due to the absence of non-cash fair value adjustments on acquired inventory and higher licensing revenue

LOWER SG&A EXPENSES - SG&A expenses fell 42% due to non-recurring legal costs in Q1 2025 and a reduced cost structure in U.S. operations

Company press release: ID:nCNWs1gRqa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
$6.16 mln
Q1 Adjusted EBITDA
Beat
$7.71 mln
$6.26 mln (2 Analysts)
Q1 EBITDA
$6.81 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 6.1% above its May 6 closing price of C$17.90

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)