Cipher Pharmaceuticals Inc. (TSX:CPH) (“Cipher” or “the Company”) today announced its financial and operating results for the three months ended June 30, 2019. Unless otherwise noted, all figures are in U.S. dollars.
Q2 2019 Financial Highlights
(All figures compared to Q2 2018, unless otherwise noted)
- $9.3 million in cash at June 30, 2019, compared to $7.9 million at March 31, 2019.
- Debt decreased to $13.6 million at June 30, 2019 from $15.5 million at March 31, 2019.
- Total revenue decreased to $5.6 million from $7.0 million.
- Net income from continuing operations of $1.4 million, or $0.05 per basic and diluted share ($0.066 in Canadian dollars 1), compared with net income from continuing operations of $1.9 million, or $0.07 per basic and diluted share.
- Total operating expenses decreased by $0.6 million or 15% to $3.5 million compared to $4.1 million.
As previously announced, the Board of Directors appointed a Special Committee to review and evaluate the strategic direction of the Company and consider various alternatives to maximize shareholder value.
With today’s announcement, Cipher established several new strategic priorities. Most significantly, the Company is in the process of targeting strategic distribution partnerships for the Canadian commercial assets.
“Cipher has historically had success bringing late-stage assets through the regulatory approval process and commercializing them with the right partners, and we intend to focus on that model going forward,” said Mr. Craig Mull, Interim Chief Executive Officer. “The cost structure to develop and maintain an internal sales force across multiple therapeutic areas is capital intensive and not optimal for a company of Cipher’s size. Partnering our Canadian commercial assets will help improve profitability and cash flow and right size the cost structure of the organization ensuring a self-funding business model.”
Mr. Mull added: “We will carefully select partners that possess the expertise and scale to ensure the continued success of our products. Commercial investments will be assumed by our partners and Cipher intends to collect upfront payments and royalty streams. The impact of these changes should help build up a cash balance which we intend to use to pay down debt and to target late-stage development programs that we can add to the pipeline. Cipher intends to significantly increase the collaboration with our long-term technology partner Galephar Pharmaceutical Research, Inc. (“Galephar”), to bring new exciting products to the market with a focus on U.S. and international markets.”
The Company is committed to moving current pipeline products through the regulatory approval process and is actively looking to partner these assets upon receiving regulatory approvals.
Financial Statements and MD&A
Cipher’s Financial Statements for the three and six months ended June 30, 2019 and Management’s Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2019 are available on the Company’s website at www.cipherpharma.com in the “Investors” section under “Financial Reports” and on SEDAR at www.sedar.com.
Notice of Conference Call
Cipher will hold a conference call today, Friday August 9, 2019, at 8:30 a.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial (416) 764-8609 or (888) 390-0605 and use conference ID 27295490. A live audio webcast will be available at https://bit.ly/2yBeyho or the Investor Relations section of the Company’s website at http://www.cipherpharma.com. A replay of the call will be available until midnight (ET) Friday, August 16, 2019. – Bio Space