(All figures are presented in
- Strong growth capital available with
$36.3 million in cash and cash equivalents - Net income increased by 32% year-over-year to
$5.7 million - EPS increased 35% year-over-year to
$0.23 per share
Q2 2023 Financial Highlights
(All figures in
- MOB-015 pipeline product for nail fungus treatment obtained
European Union approval - Commercial launch of Epuris in
Mexico through partnerships with Italmex & Galephar - Total revenue was
$5.3 million compared to$5.6 million in Q2 2022 - Licensing revenue increased 6% to
$2.2 million compared to$2.0 million in Q2 2022 - Adjusted EBITDA1 was
$3.1 million compared to$3.6 million in Q2 2022 - Ended the quarter with
$36.3 million in cash (CDN$48.1 2) or$1.43 per share (CDN$1.90 2)
Management Commentary
We also are proud to announce the official launch of Epuris in
Q2 2023 Financial Review
(All figures are in
- Total revenue was
$5.3 million in Q2 2023, compared to$5.6 million in Q2 2022. - Licensing revenue was
$2.2 million in Q2 2023, compared to$2.0 million in Q2 2022. - Product revenue was
$3.1 million in Q2 2023, compared to$3.5 million in Q2 2022. - Net income was
$3.1 million , or$0.12 per diluted share in Q2 2023, compared to$2.2 million , or$0.08 per diluted share in Q2 2022. - Adjusted EBITDA for Q2 2023 was
$3.1 million , compared to$3.6 million in Q2 2022. - The Company had
$36.3 million in cash and no debt as of the end Q2 2023. - Cipher generated
$2.9 million of additional cash on hand in Q2 2023 (YTD$7.5 million ).
Business Strategy & Outlook
Cipher anticipates executing on its business strategy in 2023 to enhance long term value, including:
- Focusing on acquiring cash flow positive pharmaceutical assets to further diversity our product portfolio
- Continuing to collaborate with our partners to further development on our product pipeline, including MOB-015 for the treatment of nail fungus and CF-101 for the treatment of moderate to severe plaque psoriasis
- Advancing our studies on DTR-001, our pipeline product for the removal of tattoos
- Continuing to pursue opportunities to enhance long-term shareholder value
- Operating the business in an efficient and prudent manner to deliver continued earnings, being our management philosophy
Corporate Developments
- On
July 5, 2023 , Cipher announced that its partner, Moberg Pharma AB, has obtainedEuropean Union approval for its product MOB-015 for the treatment of nail fungus, paving the way for their commercial launch across 13 countries inEurope . Cipher believes this is an important precursor to the eventual approval inNorth America andCanada - In
May 2023 , the Epuris product was launched commercially by Galephar's commercial partner inMexico , Italmex. For the three months endedJune 30, 2023 , royalty revenue of$0.1 million was earned on initial sales of Epuris inMexico - In
June 2023 , Cipher's partner, Canfite Biopharma announced it had received a positive view from the FDA with respect to its registration plan for the pivotal Phase III clinical trial of CF-101 for the treatment of moderate to severe psoriasis - In
June 2023 , the Company bolstered the pharmaceutical experience and expertise of its board with the appointment of two new directors to the Company's board of directors, Mr.Douglas Deeth and Dr.Hubert Walinski
Financial Statements and MD&A
Cipher's Financial Statements for the three and six month periods ended June 30, 2023, and Management's Discussion and Analysis (the "MD&A") for the three and six month periods ended June 30, 2023, are available on the Company's website at www.cipherpharma.com in the "Investors" section under "Financial Reports" and on SEDAR+ at www.sedarplus.ca.
Notice of Conference Call
Cipher will hold a conference call on August 11, 2023, at 8:30 a.m. (ET) to discuss its financial results and other corporate developments. To access the conference call by telephone, dial (416) 764-8650 or (888) 664-6383 and use conference ID 71994934.
A live audio webcast will be available at https://app.webinar.net/l8n1YB8qokM
- or the Investor Relations section of the Company's website at http://www.cipherpharma.com.
- An archived replay of the webcast will be available until
August 18, 2023 .
About
Forward-Looking Statements and Non-IFRS Measures
This document includes forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, 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
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
- EBITDA and adjusted EBITDA are non-IFRS financial measures. 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, non-cash share-based compensation, changes in fair value of derivative financial instruments, provision for legal settlement, loss on disposal of assets and loss on extinguishment of lease, impairment of intangible assets, restructuring costs and foreign exchange gains and losses from the translation of Canadian cash balances.
- At the
June 30, 2023 exchange rate – 1.3240
The following is a summary of how EBITDA and Adjusted EBITDA are calculated:
| Three months | Three months | Six months | Six months |
$ | $ | $ | $ | |
Income and comprehensive income | 3,071 | 2,152 | 5,697 | 4,302 |
Add back: | ||||
Depreciation and amortization | 342 | 155 | 685 | 310 |
Interest income | (427) | (33) | (782) | (40) |
Income taxes | 99 | 1,175 | 181 | 1,948 |
EBITDA | 3,085 | 3,449 | 5,781 | 6,520 |
Unrealized foreign exchange (gain) loss | (448) | 75 | (455) | 58 |
Restructuring costs | 231 | — | 269 | — |
Share-based compensation | 209 | 47 | 653 | 85 |
Adjusted EBITDA | 3,077 | 3,571 | 6,248 | 6,663 |
Adjusted EBITDA per share – basic | 0.12 | 0.14 | 0.25 | 0.26 |
Adjusted EBITDA per share – dilutive | 0.12 | 0.14 | 0.24 | 0.26 |
Condensed interim consolidated statements of income and comprehensive income
Three months ended | Six months ended | |||
2023 | 2022 | 2023 | 2022 | |
$ | $ | $ | $ | |
Revenue | ||||
Licensing revenue | 2,170 | 2,046 | 3,846 | 4,144 |
Product revenue | 3,118 | 3,512 | 6,328 | 6,829 |
Net revenue | 5,288 | 5,558 | 10,174 | 10,973 |
Operating expenses | ||||
Cost of products sold | 1,061 | 1,072 | 2,038 | 2,195 |
Research and development | 97 | 1 | 100 | 66 |
Depreciation and amortization | 342 | 155 | 685 | 310 |
Selling, general and administrative | 1,493 | 961 | 2,710 | 2,134 |
Total operating expenses | 2,993 | 2,189 | 5,533 | 4,705 |
Other (income) expenses | ||||
Interest income | (427) | (33) | (782) | (40) |
Unrealized foreign exchange (gain) loss | (448) | 75 | (455) | 58 |
Total other (income) expenses | (875) | 42 | (1,237) | 18 |
Income before income taxes | 3,170 | 3,327 | 5,878 | 6,250 |
Current income tax (recovery) expense | 115 | 1,099 | 212 | 1,823 |
Deferred income tax (recovery) expense | (16) | 76 | (31) | 125 |
Total income tax (recovery) expense | 99 | 1,175 | 181 | 1,948 |
Net income and comprehensive income for the period | 3,071 | 2,152 | 5,697 | 4,302 |
Income per share | ||||
Basic | 0.12 | 0.08 | 0.23 | 0.17 |
Diluted | 0.12 | 0.08 | 0.22 | 0.16 |
Condensed interim consolidated statements of financial position
As at | As at | |
2023 | 2022 | |
$ | $ | |
Assets | ||
Current assets | ||
Cash and cash equivalents | 36,338 | 28,836 |
Accounts receivable | 5,824 | 6,802 |
Inventory | 2,864 | 2,152 |
Prepaid expenses and other assets | 224 | 371 |
Total current assets | 45,250 | 38,161 |
Property and equipment, net | 441 | 481 |
Intangible assets, net | 2,126 | 2,754 |
15,706 | 15,706 | |
Deferred tax assets | 17,089 | 16,674 |
Total assets | 80,612 | 73,776 |
Liabilities and shareholders' equity | ||
Current liabilities | ||
Accounts payable and accrued liabilities | 4,504 | 4,107 |
Income taxes payable | 5,230 | 4,904 |
Contract liability | 292 | 257 |
Current portion of lease obligation | 104 | 101 |
Total current liabilities | 10,130 | 9,369 |
Lease obligation | 282 | 327 |
Total liabilities | 10,412 | 9,696 |
Shareholders' equity | ||
Share capital | 18,281 | 17,719 |
Contributed surplus | 5,471 | 5,358 |
Accumulated other comprehensive loss | (9,514) | (9,514) |
Retained earnings | 55,962 | 50,517 |
Total shareholders' equity | 70,200 | 64,080 |
Total liabilities and shareholders' equity | 80,612 | 73,776 |
SOURCE
© Canada Newswire, source