Cipher Pharmaceuticals ($CPH.TO) FINS Review
Q4 & 2024 Annual Filings
Cipher’s annual financial statements were released last evening and at first glance, I feel like I’m going to be asking a similar question as many of my other recent reviews of other TSX listed companies. Will the market be focusing on the top line successes, or bottom line misses compared to the previous year?
About eighteen months ago, Cipher was trading in the $3.50 per share range and within a years time got very close to $20. It has been a much bumpier ride since however with the stock down close to 40% since those late August 2024 highs.
My last review of Cipher came on Boxing Day in a review of their Q3. Due to the love the company was getting at the time on social media, I was expecting to like it better than I did, and I awarded them a rather pedestrian three stars. You can see what I had to say three months ago below.
My concerns around the new year didn’t have anything to do with the company itself - in general I think they are doing some great things. But I did have deep concerns about it’s valuation. That turned out to mirror market sentiment as the stock is down 23% from that Q3 earnings release. I followed those thoughts up in last months “WWW - What’s Wolf Watching” article citing concerns that 40% of the company’s TTM net income was derived from tax benefits and the market could be in for some future shock on future bottom line comparisons.
I’m almost fully caffeinated, so lets review the detail of their Q4 and full 2024 financials.