Cipher Pharmaceuticals (CPH) investor relations material

Executive summary

• Achieved record quarterly net revenue of $13.4M in Q2 2025, up 152% year-over-year, driven by strong Natroba business performance and U.S. growth.

• Natroba revenues exceeded expectations post-acquisition, with significant growth due to seasonality and increased demand.

• Net income rose to $5.9M and EPS to $0.23, up from $3.0M and $0.12 in Q2 2024, mainly due to Natroba contribution.

• Canadian product portfolio and US licensing portfolio delivered higher revenues and earnings year-over-year, maintaining reliable cash generation.

• Strong cash generation with $6.0M from operations; $15M debt repaid and $2.1M in share repurchases in Q2 2025.

Financial highlights

• Total net revenue for Q2 2025 was $13.4M, up 152% year-over-year; six-month revenue was $25.4M, up 127%.

• Natroba business contributed $7.8M in Q2 and $14.4M for the six months; Canadian portfolio revenue grew 12% in Q2 and 26% for six months.

• Net income for Q2 2025 was $5.9M ($0.22/diluted share), up from $3.0M ($0.12) year-over-year; six-month net income was $8.5M ($0.32/diluted share).

• Adjusted EBITDA for Q2 2025 was $7.6M, up 148% year-over-year; six-month adjusted EBITDA was $13.8M, up 108%.

• Cash balance at quarter-end was $11.3M; debt reduced to $18M after $22M in repayments.

Outlook and guidance

• Expect continued strong performance from Natroba, especially entering Q3, a seasonally high-demand period.

• Ongoing efforts to expand Natroba's Medicaid preferred status in additional US states and to launch in Canada.

• Out-licensing discussions for Natroba are progressing, with potential agreements likely by 2026.

• Focus remains on profitability, shareholder value, and expanding Natroba market share in the U.S.

• Strategic business development and acquisition of complementary dermatology products prioritized.