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  • Cipher Pharmaceuticals (TSX:CPH) have posted their 2019 fourth quarter and full year results
  • Revenues dipped by C$280,000 in 2019, but cost-cutting improved margins at the company
  • Total operating expenses at Cipher shrunk from $27 million in 2018 to $22 million in 2019
  • Adjusted EBITDA in Q4 increased by 282 per cent, and yearly adjusted EBITDA was up by 84 per cent
  • Cipher Pharmaceuticals (TSX:CPH) is up 71 per cent, and trading at $0.72 per share with a $19 million market cap

Cipher Pharmaceuticals’ (TSX:FCU) margins have blossomed, following a range of cost-cutting measures introduced at the company in 2019.

The company believes it has significantly reduced the business’ cost structure, and has spun out assets that did not meet its new internal hurdle rates.

The restructure did affect profitability for 2019’s second and third quarters, but improved in the fourth quarter.

The company’s yearly figures show that revenue was down $200,000, from $22.7 million in 2018 to $22.5 million in 2019.

However, margins have spiked for the year, with Adjusted EBITDA up by 84 per cent to $12.6 million.

The fourth quarter results were particularly impressive. Total revenue at the pharmaceuticals manufacturer decreased by 8 per cent to $5.9 million for the quarter.

Total operational expenses decreased by 62 percent, from $5.8 million in 2018 to $2.2 million in 2019.

Adjusted EBITDA grew by 282 per cent to $4.1 million, and net income increased to $2.6 million from a loss of $0.5 million in 2018.

This represents a net income turn around of over $3 million over the course of 2019.

The company’s product and licensing revenue for the year also both increased.

Epuris, one of Cipher’s flagship products, increased revenue to $7.3 million for the year, up from $5.8 million the year before.

Cipher’s Interim CEO, Craig Mull, said that the company was pleased to see strong progress being made on reducing business costs.

“Fourth quarter results showed a substantial decrease in operating expenses, which translated into a 282 per cent improvement in Adjusted EBITDA and $2.6 million of net income during the quarter.

“Epuris is showing strong growth, with fourth quarter revenue up 30 per cent to $2.0 million.

“Epuris finished the quarter with 39 per cent market share in Canada,” he said.

Cipher Pharmaceuticals (TSX:CPH) is up 71 per cent, and trading at $0.72 per share at 11:00am EST.

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