Q: I understand that this company is on the riskier side, but it certainly appears it is doing things right and the stock seems to be reflecting that. Do you think there is potential here? The balance sheet has little debt and a decent cash balance. Two of the things you seem to look for.
5i Research Answer:
CPH has performed strongly year-to-date up 63.5%, and particularly spiked up in the last month, +44%. The recent Q3 earnings were likely the reason for the rally. Revenue was up 26.6% to $6.1M and EPS grew 1.7x to $0.27. Licensing revenue increased 54% to $3.1M due to royalty income from the Absorica portfolio. Product revenue grew 7% year-over-year. MOB-015 (a nail fungus treatment in CPH’s pipeline) recently completed its phase 3 study enrollment ahead of schedule and results are expected to be available in January 2025. The market for MOB-015 is $80M annually. There is definitely growth potential here, and the strong revenue growth numbers paired with positive outlook in the pipeline is promising.