NASHVILLE, Tenn., May 3, 2012 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company focused on hospital acute care and gastroenterology markets, today announced first quarter 2012 financial results.
Net Revenues: For the three months ended March 31, 2012, net revenues were $10.3 million, compared to $10.7 million in the prior year period. Revenues for the quarter were impacted by the timing of wholesaler buying patterns. During the quarter, the Company recognized revenue of $0.5 million related to an upfront payment received in connection with its recent license agreement for China.
Operating Expenses: Total operating expenses for the three months ended March 31, 2012, were $9.6 million compared with $9.3 million for the prior year period. The net effect of the increase was primarily due to increases in research and development and general and administrative expenses partially offset by a decrease in selling and marketing expenses.
Net Income: Net income attributable to common shareholders for the three months ended March 31, 2012, was $0.4 million, or $0.02 per diluted share, compared to $0.7 million, or $0.03 per diluted share, for the prior year period.
Cash Flow: Operating cash flows for the three months ended March 31, 2012, were $2.6 million, up from $1.0 million, for the prior year period. The same wholesaler buying patterns that impacted revenues during the quarter positively affected cash flow from operations as those receivables were collected during the quarter.
Balance Sheet: As of March 31, 2012, Cumberland had $71.6 million in cash and securities, with approximately $55.6 million in cash and equivalents and $16.0 million in marketable securities. Total assets at March 31, 2012, were $94.6 million.
"The first quarter of 2012 was marked by several key milestones for Cumberland, including the agreement with Harbin Gloria Pharmaceuticals to license Acetadote® and Caldolor® in China and the allowance of a patent for our new Acetadote formulation," said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. "Demand for our products remains strong and we are on track to meet our 2012 financial guidance, as well accomplishing our key objectives for the year."
In February 2012, the U.S. Patent and Trademark Office (the "USPTO") allowed a patent for claims encompassing the new formulation of Acetadote® (acetylcysteine) Injection. The Food and Drug Administration (the "FDA") approved the new Acetadote formulation in 2011. The allowance included a 270-day patent term adjustment granted by the USPTO, with the resulting patent scheduled to expire in May 2026.
In February 2012, Cumberland entered into an exclusive agreement with China's Harbin Gloria Pharmaceuticals Co., Ltd. for the commercialization of Acetadote® (acetylcysteine) Injection, which is used to treat acetaminophen overdose, and Caldolor® (ibuprofen) Injection, which is used to treat pain and fever in the hospital setting. The agreement provides Harbin Gloria exclusive rights to register and commercialize both drugs in China, further expanding Cumberland's international presence.
Conference Call and Webcast
A conference call and live Internet webcast will be held on Thursday, May 3, 2012, at 5:00 p.m. Eastern Time to discuss the Company's first quarter 2012 financial results. To participate in the call, please dial 877-303-1298 (for U.S. callers) or 253-237-1032 (for international callers). A rebroadcast of the teleconference will be available for one week and can be accessed by dialing 855-859-2056 (for U.S. callers) or 404-537-3406 (for international callers). The Conference ID for the rebroadcast is 70848539. The live webcast and rebroadcast can be accessed via Cumberland's website at http://investor.shareholder.com/cpix/events.cfm.
About Cumberland Pharmaceuticals
Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. The Company's primary target markets include hospital acute care and gastroenterology. Cumberland's marketed products include Acetadote® (acetylcysteine) Injection, for the treatment of acetaminophen poisoning, Caldolor® (ibuprofen) Injection, the first injectable treatment for pain and fever approved in the United States, and Kristalose® (lactulose) for Oral Solution, a prescription laxative. Cumberland is dedicated to providing innovative products that improve quality of care for patients. For more information, please visit the Company's website at www.cumberlandpharma.com.