Press Releases

Cipher Announces Third Quarter and Year-to-Date 2021 Financial Results
  • Revenue for nine months ended September 30, 2021increases 4.1% to $16.1 million
  • Adjusted EBITDA1 for nine months ended September 30, 2021 increases to $9.8 million
  • Basic EPS for the nine months ended September 30, 2021 increases 12% to $0.19 (CDN$0.242)
  • Excluding one-time charges, EPS for the nine months ended September 30, 2021 was $0.263 (CDN$0.33)
  • The Canadian product revenue increased 30% during the nine months ended September 30, 2021 compared to the similar period in 2020.
  • During the quarter, the Company assigned the office lease for its corporate head office which will result in a savings of CAD$2.2 million over the remainder of the lease term.

OAKVILLE, ON, Nov. 11, 2021 /CNW/ - Cipher Pharmaceuticals Inc. (TSX: CPH) ("Cipher" or "the Company") today announced its financial and operating results for the three and nine months ended September 30, 2021. Unless otherwise noted, all figures are in U.S. dollars.

Year-to-Date (Nine months ended September 30, 2021) Financial Highlights
(All figures in U.S. dollars, compared to nine months ended September 30, 2020, unless otherwise noted)

  • Total revenue increased 4.1% to $16.1 million compared to $15.5 million
  • SG&A decreased 7% to $4.1 million compared to $4.4 million
  • Adjusted EBITDA1 increased to $9.8 million
  • Basic EPS increased 12% to $0.19 compared to $0.17
  • Excluding one-time charges, basic and diluted EPS was $0.263 (CDN$0.33) compared to basic and diluted EPS of $0.17 and $0.16 respectively
  • As at September 30, 2021, the Company had $15.6 (CDN$19.9) million in cash or $0.59 per share (CDN$0.75)
  • Normal Course Issuer Bid 864,100 shares repurchased and cancelled to the end of September 30, 2021

Q3 2021 Financial Highlights
(All figures are in U.S. dollars)

  • Total revenue $4.5 million compared to $4.8 million in Q3 2020
  • Adjusted EBITDA decreased to $2.2 million compared to $2.8 million
  • Basic EPS $0.03 compared to $0.06
  • Excluding one-time charges, basic and diluted EPS for the three months ended September 30, 2021 was $0.064 (CDN$0.08) compared to $0.06 in Q3 2020
  • Normal Course Issuer Bid 233,100 shares repurchased and cancelled during the three months ended September 30, 2021

Management Commentary

Craig Mull, Interim CEO commented, "Our year-to-date results continue to trend positively. Revenue, Adjusted EBITDA and EPS all showed growth compared to the same period last year. We generated $8.1 million in cash from operating activities in the nine months ending September 30, 2021, ending the period with $15.6 million in cash, placing us in an excellent position as we continue to actively pursue profitable growth opportunities and maximize the income generated from our distribution agreements."

"During the quarter, the Company elected to assign the office lease for its corporate head office to a third party, which will result in a savings of CAD$2.2 million over the remainder of the lease term.  As a result of this transaction, the Company paid an inducement payment which impacted EPS. Excluding this charge, EPS for the quarter would have been $0.06 and EPS for the nine months ended September 30th would have been $0.21. Our year-to-date EPS was also impacted by the legal provision we took earlier this year, if you exclude this, EPS would have been $0.26 for the nine months ended September 30, 2021."

"Our product revenue increased 30% year-to-date and increased 27% in Q3 compared to the same period in the prior year. Product revenue continues to be driven by the strength of Epuris which ended the quarter with 43% market share, compared to 41% in the prior year. Subsequent to quarter end, Italmex, our distribution partner for isotretinoin products in Mexico, received approval of Epuris 10mg, and 20mg in Mexico by COFEPRIS. Under the terms of the agreement with Italmex, Cipher is eligible for a royalty on Epuris sales in Mexico."

"During the second quarter, we launched Absorica AG with our marketing partner Sun Pharmaceutical Industries, Inc. ("Sun Pharma").  During the third quarter, license fees were down sequentially, due to the combination of normal draw down of launched quantities at the wholesale level, as well as seasonality associated with the product.  Q3 is the seasonally weakest quarter of the year for isotretinoin products due to the summer months, which reduce prescribing trends."


Cipher anticipates several key milestones in 2021 that will continue to enhance long term value, including:

  • Realignment of distribution to increase royalty income.
  • Improved profitability of our hospital business through a distribution agreement with Verity
  • Normal Course Issuer Bid - 864,100 shares repurchased and cancelled to the end of September 30, 2021
  • Actively pursuing product and business acquisitions with a focus on high growth potential and near-term profitability

Financial Statements and MD&A

Cipher's Financial Statements for the quarter ended September 30, 2021 and Management's Discussion and Analysis (the "MD&A") for the three and nine-months ended September 30, 2021 are available on the Company's website at in the "Investors" section under "Financial Reports" and on SEDAR at

Notice of Conference Call

Cipher will hold a conference call on November 12, 2021, at 8:30 a.m. (ET) to discuss its financial results and other corporate developments.

About Cipher Pharmaceuticals Inc.

Cipher Pharmaceuticals (TSX: CPH) is a specialty pharmaceutical company with a robust and diversified portfolio of commercial and early to late-stage products. Cipher acquires products that fulfill unmet medical needs, manages the required clinical development and regulatory approval process, and currently markets those products either directly in Canada or indirectly through partners in Canada, the U.S., and South America. For more information, visit


EBITDA is a non-IFRS financial measure.  The term EBITDA (earnings before interest, taxes, depreciation and amortization,) does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation of property and equipment, amortization of intangible assets, loss on debt extinguishment, non-cash share-based compensation, changes in fair value of derivative financial instruments, impairment of intangible assets and goodwill and foreign exchange gains and losses from the translation of Canadian cash balances.


At the CAD/USD exchange rate September 30, 2021(1.2741)


Excluding the provision for legal settlement of $1.25 million, loss on disposal of assets of $0.7 million and loss on extinguishment of lease of $0.1 million, income from continuing operations per common share on both a basic and diluted basis for the nine months ended September 30, 2021 was $0.26 (CDN$0.33) compared to income per common share on both a basic and diluted basis of $0.17 and $0.16, respectively, for the nine months ended September 30, 2020.


The loss on disposal of assets of $0.7 million and loss on extinguishment of lease of $0.1 million, Income from continuing operations per common share on both a basic and diluted basis for the three months ended September 30, 2021 was $0.06 (CDN$0.08) compared to $0.06 in Q3 2020

Forward-Looking Statements

This document includes forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to the impact of the Company's cost reduction plan, the potential for improved profitability of our hospital business, increased adoption of ABSORICA LD®, discussions with Galephar regarding new product opportunities, our objectives and goals and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates and intentions.  The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope" and "continue" (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. We caution readers not to place undue reliance on these statements as a number of important factors, many of which are beyond our control, could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the extent and impact of the coronavirus (COVID-19) outbreak on our business including any impact on our contract manufacturers and other third party service providers, our ability to enter into development, manufacturing and marketing and distribution agreements with other pharmaceutical companies and keep such agreements in effect; our dependency on a limited number of products; our dependency on protection from patents that will expire; integration difficulties and other risks if we acquire or in-license technologies or product candidates; reliance on third parties for the marketing of certain products; the product approval process is highly unpredictable; the timing of completion of clinical trials, regulatory submissions and regulatory approvals; reliance on third parties to manufacture our products and events outside of our control that could adversely impact the ability of our manufacturing partners to supply products to meet our demands; we may be subject to future product liability claims; unexpected product safety or efficacy concerns may arise; we generate license revenue from a limited number of distribution and supply agreements; the pharmaceutical industry is highly competitive; requirements for additional capital to fund future operations; products in Canada may be subject to pricing regulation; dependence on key managerial personnel and external collaborators; no assurance that we will receive regulatory approvals in the U.S., Canada or any other jurisdictions and current uncertainty surrounding health care regulation in the U.S.; certain of our products are subject to regulation as controlled substances; limitations on reimbursement in the healthcare industry; limited reimbursement for products by government authorities and third-party payor policies; products may not be included on list of drugs approved for use in hospitals; hospital customers may make late payments or not make any payments; various laws pertaining to health care fraud and abuse; reliance on the success of strategic investments and partnerships; the publication of negative results of clinical trials; unpredictable development goals and projected time frames; rising insurance costs; ability to enforce covenants not to compete; risks associated with the industry in which we operate; we may be unsuccessful in evaluating material risks involved in completed and future acquisitions; we may be unable to identify, acquire or integrate acquisition targets successfully; legacy risks from operations conducted in the U.S.; inability to meet covenants under our long term debt arrangement; compliance with privacy and security regulation; our policies regarding returns, allowances and chargebacks may reduce revenues; certain current and future regulations could restrict our activities; additional regulatory burden and controls over financial reporting; reliance on third parties to perform certain services; general commercial litigation, class actions, other litigation claims and regulatory actions; the difficulty for shareholders to realize in the United States upon judgments of U.S. courts predicated upon civil liability of the Company and its directors and officers who are not residents of the United States; the potential violation of intellectual property rights of third parties; our efforts to obtain, protect or enforce our patents and other intellectual property rights related to our products; changes in U.S., Canadian or foreign patent laws; litigation in the pharmaceutical industry concerning the manufacture and supply of novel and generic versions of existing drugs; inability to protect our trademarks from infringement; shareholders may be further diluted if we issue securities to raise capital; volatility of our share price; the fact that we have a significant shareholder; we do not currently intend to pay dividends; our operating results may fluctuate significantly; and our debt obligations will have priority over the common shares of the Company in the event of a liquidation, dissolution or winding up.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When reviewing our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information about factors that may cause actual results to differ materially from expectations, and about material factors or assumptions applied in making forward-looking statements, may be found in the "Risk Factors" section of the Company's Annual Information Form for the year ended December 31, 2020, and elsewhere in our filings with Canadian securities regulators. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

The following is a summary of how EBITDA and Adjusted EBITDA are calculated:


Three months
September 30,

Three months
September 30,

Nine months
September 30,

Nine months


September 30,






Income from continuing operations





Add back:


Depreciation and amortization





Interest expense, net





Income taxes










Change in fair value of derivative financial instrument




Restructuring costs



Loss (gain) from the translation of Canadian cash balances





Loss on disposal of assets



Loss on extinguishment of lease



Provision for legal settlement


Share-based compensation





Adjusted EBITDA





Adjusted EBITDA per share – basic





Adjusted EBITDA per share – dilutive






SOURCE Cipher Pharmaceuticals Inc.

For further information: James Bowen, CFA, Investor Relations, Cipher Pharmaceuticals, 416-519-9442,