Q: Cipher Pharma made a major acquisition today that they say will double their sales and profits. The new products acquired are also superior to the existing treatment, which has 71% of the USA market, so lots of room there for growth, plus they plan to get approval in Canada and make a deal for ex-North America sales. They also have their drug for toenail fungus, a big market, set to produce final results in about 6 months, with sales expected starting in 2026. This looks like a good growth stock to me, trading at a cheap valuation, given the profit from the new products, and I am wondering what your take is on the acquisition and the stock.
5i Research Answer:
The acquisition looks quite good, and the stock remains cheap at 13X earnings despite its 88%...