skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. CPH: I'm analyzing some pharma companies for a potential single company to add to the portfolio. [Cipher Pharmaceuticals Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I'm analyzing some pharma companies for a potential single company to add to the portfolio. I know you like Cipher in Canada. I'm looking for outsized long term returns, so I'm excluding mega caps like Eli Lilly etc. More looking to get in earlier and hold a company that has the criteria to be a big name down the road. Can you compare CPH to KRYS, which is a US company that filters pretty well for what I'm looking for. Let me know which of the 2 looks like the better choice? Thx
Asked by Adam on December 10, 2025
5i Research Answer:

KRYS is $6.8B market cap, up 50% this year, P/E 35X, insiders own 11%. It has $720M net cash, and 12-month cash flow was $176M. EPS growth is impressive, going from $4.00 last year to an expected $7.61 next year. The last quarter was very good with a giant 'beat' on earnings. It has good momentum qualities (broker upgrades, earnings surprises, positive stock movement). The product portfolio looks good. We think it looks quite good. A 'bit' expensive but the growth is there. There has been some significant insider selling recently ($11M) and that would be the only real concern we might see as concerning.

CPH is much smaller, at $370M market cap. P/E is 15x. The stock is flat this year. The balance sheet is fine but it is essentially flat in terms of cash (no big cash balance). Earnings are more volatile, and not a whole lot of growth is expected in 2026. Insiders own 44% and have bought a bit in the past six months. Management has good industry experience. This comparison is a bit of a value/growth exercise. CPH is cheap, KRYS is growing much faster. KRYS is more than 15X as large, which can add some safety. We think KRYS looks better, at least for the criteria as noted in the question.