Cipher Pharmaceuticals (CPH) Planet MicroCap Showcase: VANCOUVER 2024 summary

Pre-acquisition business overview

• Canadian portfolio generates $13 million annually, led by Epuris for severe acne, holding 46% market share and growing at 20% per year.

• U.S. portfolio includes Absorica, Lipofen, and ConZip, generating $8.5 million annually through royalty partnerships.

• EBITDA margins are around 60%, providing strong cash flow and stability.

Natroba acquisition and market opportunity

• Acquired Natroba, a U.S.-based product for head lice and scabies, with 23% antiparasitic market share and FDA approval for both indications.

• Natroba offers a single-use, complete cure rate, and 15-year exclusivity on its active ingredient, spinosad.

• Permethrin, the main competitor, faces widespread resistance, creating growth potential for Natroba.

• Plans to launch Natroba in Canada and out-license globally, with ongoing discussions in Europe and Asia.

Combined business and growth strategy

• Acquisition doubled sales and EBITDA; focus is on gaining U.S. market share from permethrin using a 35-rep sales force.

• Intends to add complementary products for pediatric and dermatology markets, leveraging existing sales infrastructure.

• Plans to commercialize Natroba in Canada (pending Health Canada approval in ~12 months) and out-license internationally.

• Considering direct U.S. sales for legacy products to improve margins.