Cipher Pharmaceuticals (TSX:CPH) is an Oakville-based specialty pharmaceutical company focused on Dermatology. Shares of Cipher have dropped 23.9% in 2019 as of close on April 18. The stock is down 74.8% from the prior year.
The company released its fourth-quarter and full-year results for 2018 on March 19. Revenue from Canadian products rose 30% year-over-year to $6.9 million and cash generated from operating activities was $11.3 million.
Cipher reported total revenue of $6.4 million in the quarter which was in line with analyst expectations. However, it posted a net loss of $0.5 million which came in below expectations.
Cipher will rely on its Canadian revenues to fuel growth going forward, and it is a key to the company’s success. The company is expected to launch five new products in Canada in the next two or three years. These products include Xydalba, Trulance, and A-101, which is still under review.
These products boast huge sales potential as we move into the next decade, which could catapult Cipher into relevancy for investors.
Shares are trading at the low end of its 52-week range. The stock hit its lowest point since 2012 in trading last week, posting a 52-week low of $1.21.
Glancing at its technicals; Cipher has been deep in oversold territory since late March. The stock had an RSI of 29 as of close on April 18, which indicates that it is still technically in oversold territory. This is a solid buy signal as the company still holds solid potential.
