An expanding product portfolio could create upside for Cipher Pharmaceuticals (Cipher Pharmaceuticals Stock Quote, Chart, News: TSX:CPH, Nasdaq:CPHR), says Laurentian Bank Securities analyst Joseph Walewicz.
Yesterday, Cipher announced it had received Health Canada approvals for its SD (seborrheic dermatitis) cream and AD (atopic dermatitis) cream, which are also known as Dermadexin and Pruridexin. The company also received European approval of Helioclin pruritus SD cream (also known as Pruridexin) was achieved.
“We continue to deliver on our key regulatory milestones, and our plan to expand the Canadian product portfolio,” said CEO Shawn O’Brien. “These products target chronic inflammatory conditions that we believe are insufficiently addressed today. While we finalize our commercialization plans in Canada, we are very focused on obtaining U.S. approvals for both products, which we are targeting later this year.”
Walewicz says the ongoing product expansion at Cipher is creating a company with a superior organic growth profile.
“These products will be launched in Canada by Cipher’s own sales team,” notes the analyst. “While the Beteflam launch and Canadian approvals were expected, the continued development of the portfolio is encouraging and we expect U.S. approvals for Dermadexin and Pruridexin later this year. We currently forecast that these products will generate at least $3-4 million in incremental sales in a few years. We note that the approval / market launch of Dermadexin / Pruridexin in international (outside of North America) markets is not in our numbers and could present upside to our forecasts.”
In a research update to clients today, Walewicz maintained his “Buy” rating and one-year price target of (U.S.) $8.50 on Cipher Pharmaceuticals.
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