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Cipher Pharmaceuticals Reports First Quarter 2021 Financial Results • Generates Adjusted EBITDA of $ 3.6 million and EPS of $ 0.05 ( CDN $ 0.61 ) Excluding legal provision EPS was $ 0.10 ( CDN $ 0.12 ) OAKVILLE , ON , May 13 , 2021 / CNW / - Cipher Pharmaceuticals Inc. ( TSX : CPH ) ( " Cipher " or " the Company " ) today announced its financial and operating results for the three months ended March 31 , 2021. Unless otherwise noted , all figures are in U.S. dollars . Q1 2021 Financial Highlights ( All figures in U.S. dollars , compared to Q1 2020 , unless otherwise noted ) • Total revenue was $ 5.4 million compared to $ 5.9 million • SG & A decreased 16.7 % to $ 1.2 million compared to $ 1.4 million • Adjusted EBITDA² was $ 3.6 million compared to $ 4.1 million • Earnings per common share was $ 0.05 compared to $ 0.09 Earnings per common share excluding legal provision increased to $ 0.10 compared to $ 0.09 • As at March 31 , 2021 the company had $ 13.3 ( CAD $ 16.7 ) million in cash or $ 0.49 per share ( CDN $ 0.62 ) Management Commentary Craig Mull , Interim CEO commented , " During this quarter , we continued to execute against our stated strategy to right size the business , optimize our cost structure and broaden our portfolio through key partnerships . Towards that , we entered into co - promotion agreement with Verity Pharmaceuticals for the marketing , sales and co - promotion of Brinavess , Aggrastat , and Trevyent . We believe that working with Verity's experienced sales force will not only drive down costs but also enhance profitability within our hospital business . Our first quarter results were impacted by a legal provision in connection with the impairment of Trulance , excluding this provision EPS would have come in at 10 cents , demonstrating the strong earnings power of the business . " " Subsequent to quarter end , we launched Absorica AG with our marketing partner Sun Pharmaceutical Industries , Inc. ( " Sun Pharma " ) . We believe that this will broaden Cipher's isotretinoin portfolio and ensure we have products to serve each segment of this market and maximize value of this portfolio , " added Mr. Mull . The launch of an authorized generic version of AbsoricaⓇ was contemplated when Cipher amended its distribution and supply agreement ( the " Sun Amendment " ) with Sun Pharma for Absorica in July of 2018. Sun Pharma launched its Authorized Generic on April 29 , 2021 , which was triggered by Teva Pharmaceuticals launch of its generic version of Absorica . Cipher will receive a royalty on the net profits of the Authorized Generic version of Absorica . " Currently , in our isotretinoin portfolio , Cipher is receiving royalties from Sun Pharma for the branded product , Absorica , as well as ABSORICA LD ™ , " said Craig Mull , Interim CEO of Cipher . " We are confident that working with Sun Pharma is the right economic decision for Cipher and is consistent with our overall strategy to maximize the value of the isotretinoin portfolio , " added Mr. Mull . TM Outlook Cipher anticipates several key milestones in 2021 that will continue to enhance long term value , including : • Full - year benefit of the cost reduction plan and continued profitability and strong cashflow