Cipher Pharmaceuticals Inc. (CPHR)

(Market Call Minute.) Very volatile name. A generic drug manufacturer.

Have a couple of products that are coming out to market and one of them has very good potential and they have three-year exclusivity with the FDA. The problem is that a couple of weeks ago Watson Pharmaceutica challenged that drug with a generic version and the market freaked out a little. Valuation is pretty high as there are high expectations and now the risk has increased. Likes the company, management and what they are doing but doesn’t think there is a need to be involved with this one.

A lead drug (Acne Drug) is gaining great market share in the States but a competitor filed to launch a generic. This process will take years to work through the courts so their patent gives them protection. A bit of a small worry but he holds it.

Went parabolic this year and finally gave out at around $9.40. It is possibly falling lack to its trend line, and may be forming a new entry point. He would not want to see the trend line broken. If it can hold current levels, and maybe move higher, it could be an okay entry point as well.

Takes existing well-known drugs and go to the FDA to ameliorate shortcomings with that particular drug. E.G. they take a good drug and find a way to eliminate some side effects. The real story here is a drug called Absorica, an acne drug, which has just taken off both sides of the border. Stock got hammered last Thursday because they were faced with another company’s application to do the same thing. With a name like this, you have to be very careful because of its reliance on one name. Valeant Pharmaceuticals (VRX-T) would be a much better choice.

Has broken out and has had a fabulous performance. Expects this one will go on. Likes this.

Have a great acne drug and are throwing off a lot of cash. ROE is in the 30%’s or 40%’s. ROE will be even higher when they start spending all the cash on their balance sheet. Has a lot of potential.

This is a distributor of drugs. Have tremendous associations. Feels that the Pharma sector is hot. This one is only followed by one analyst.