Cipher Pharmaceuticals Announces Normal Course Issuer Bid

• Cipher Pharmaceuticals announced TSX acceptance for a Normal Course Issuer Bid (NCIB) effective May 5, 2026 to May 4, 2027.
• Program allows repurchase of up to 1,490,343 common shares, representing 10% of the public float.
• Funding source is available cash resources; daily trading limits apply (max 7,505 shares).
• Previous NCIB (May 2025-May 2026) repurchased 532,940 shares at an average price of CDN$13.90.
• This follows the March 12, 2026 earnings release which reported record revenue and significant debt reduction.

• The NCIB is a routine capital allocation decision for a company with strong cash flow ($7.5M cash + $85M debt capacity).
• It signals management confidence in the current valuation but does not introduce new revenue streams or strategic pivots.
• Given the recent earnings beat and debt deleveraging, this action aligns with market expectations rather than exceeding them significantly.
• The buyback size (10% of float) is substantial enough to provide support but small relative to total liquidity, limiting immediate upside impact compared to a takeover or major product approval.

• Cipher Pharmaceuticals is a specialty pharma company with products marketed in Canada, the U.S., and South America.
• Flagship Project: Natroba (Spinosad), acquired July 2024, treated as head lice and scabies therapy; single-dose application superior to permethrin.
• Revenue Driver: U.S. business revenue reached $30.0M in FY2025 (up 150% YoY), driven primarily by Natroba sales ($7.4M in Q4).
• Secondary Asset: Absorica LD royalty rights awarded via arbitration against Sun Pharmaceuticals (15% royalty on Canadian net sales until 2040).